Part of our commitment to keeping you informed is calling your attention to changes in the industry. In case you missed it, FSA recently released three new reports that segment federal student loan borrowers by two demographic levels, including age and location; age and debt size; and debt size and location. We have the details of the announcement you need to stay informed.
In the June 20, 2018 Electronic Announcement, FSA announced the new reports were posted to the FSA Data Center, along with a series of updates to the quarterly application, disbursement, and portfolio reports to include data through March 31, 2018. The Data Center is the centralized online source for Federal Student Aid data. The information illuminates size of debt by age and provides insight into how debt is distributed geographically by place of residence.
A summary of the quarterly loan data shows that the outstanding federal loan portfolio is $1.41 trillion, with Direct Loan representing more than 78%, FFEL at 21%, and Perkins at less than 1%. Of the total outstanding portfolio, ED owns 85%, at approximately $1.2 trillion. Year-over-year, the total federal loan portfolio has increased just 5.7%—about $75 billion—with the FFEL portfolio decreasing by 7.8% and the Direct Loan portfolio increasing by 10%.
This data shows an all-time low in delinquency rates since FSA started compiling this data in 2013. More than 85% of non-defaulted Direct Loan recipients with loans in active repayment are current on their loans (i.e. on time or less than 31 days delinquent), putting the 31-day-plus delinquency rate at 14.7% by recipient count and 11.6% by total dollar balance. The ED-held FFEL portfolio's 31+ delinquency rate also experienced similar year-over-year decreases, now at 14.6% by recipient count and 16.8% by total dollar balance. When looking at the entire federally managed portfolio (combining Direct Loans and ED-held FFEL), the 31-day plus delinquency rates are 14.8% by recipient count and 11.9% by total dollar balance, down from 18% and 14.3% at the same time last year.
Data on IDR plans show that as of March 2018, more than 6.9 million Direct Loan borrowers were enrolled in IDR plans, a 13% increase from March 2017. Although almost 1.3 million ED-held FFEL borrowers are enrolled in IBR and Income-Sensitive Repayment (ISR), there is a large overlap of Direct Loan and ED-held FFEL IDR borrowers. Combined, 7.2 million unique borrowers are enrolled in IDR plans.
We hope that this is helpful and appreciate all you do to assist your borrowers.