SIOUX FALLS, S.D.--(BUSINESS WIRE)--ReliaMax®, the complete private student lending solutions provider for banks, credit unions and alternative lenders, today announced that its subsidiary, ReliaMax Surety Company, now insures more than $3 billion of in-school and refinanced private student loans. ReliaMax insured loan volume has grown by $500 million, more than 20 percent, since February 2016. Clients’ loan portfolios continue to perform in line with ReliaMax expectations.
“We’ve hit an important milestone, $3 billion dollars of insured private student loans. On behalf of our bank, credit union and alternative lender clients, we are now the fourth largest provider measured in terms of facilitating private student loan volume,” said Michael VanErdewyk, CEO of ReliaMax. “The growth in our insured loan volume speaks directly to the increasing growth rate in private student loans and to our distinct ability to decrease charge-offs – effectively bringing default risk to zero when a loan is insured.”
According to the most recent report* by MeasureOne, a higher education data and analytics firm, the private student loan market continues to grow steadily while maintaining strong performance. Private student loans now represent roughly 7.5 percent ($102 billion) of the $1.4 trillion student loan market and continue to gain share. For Q3 2016, annualized charge-offs (defaults) reported by MeasureOne declined by 21 percent year over year and stood at 1.9 percent of loans in repayment, the lowest Q3 charge-off rate since before the financial crisis.
For lenders looking to enter or develop their presence in the private student loan market, the ReliaMax Surety bond is the insurance policy. The policy is a comprehensive insurance certificate covering all of the eligible individual loans made during the academic year. The coverage remains in effect for the entire life of the loan, and the bond contains the complete details including agreed upon program rules, underwriting criteria and eligible school list. ReliaMax provides the education financing industry the only private student loan solution that includes administration, borrower acquisition, origination, servicing, insurance, and capital markets.
To learn more visit: www.ReliaMax.com
*”Private Student Loans Continue Healthy Performance Trends,” MeasureOne, December 13, 2016. www.MeasureOne.com/new.php
Founded in 2005, ReliaMax has redefined profitable private student lending for over 500 banks, credit unions, alternative lenders and investors. Through its complete Private Student Loan Platform-as-a-Service solution which includes originating, servicing, borrower acquisition, portfolio liquidity and insurance provided by ReliaMax Surety Company**, ReliaMax enables lenders to quickly, easily and safely help student borrowers realize their education goals. For more information, visit ReliaMax.com.
**Not available in California.
ReliaMax® is a registered trademark of ReliaMax and/or its affiliates. Other names may be trademarks of their respective owners.