According to recent figures released by Sallie Mae, federal loan customers who have loans with the mortgage servicer posted a default rate 30 percent lower than the national average in 2013.
The servicer’s private loan charge-off rate has improved significantly since the financial crisis and currently stands at less than three percent. More than 600,000 borrowers paid off education loans in full last year.
Additionally, at the end of 2013, almost 85 percent of Sallie Mae borrowers in repayment were current with their payments. Last year, the servicer launched a number of campaigns to educate borrowers about income-driven repayment, leading to a three-fold increase in enrollment in the program.
“When Americans borrow to attend college, they’re investing in their future,” Sallie Mae President and CEO John F. Remondi said. “It’s our privilege to serve these students and alumni, and one that we take seriously. Helping customers successfully repay their loans is our top priority. In fact, it’s the most important work we do. Our track record of success is achieved through a significant commitment of expertise, resources and continuous improvement for the benefit of our customers.”