Supply Doesn't Meet Demand in the Student Loan Market


Supply Doesn't Meet Demand in the Student Loan Market

Dec, 17th 2016

Does the market for refinancing student loans have room to expand? Several industry observers and lenders think it does.

In a March 2015 report, Goldman Sachs estimated that $211 billion in student loans could qualify for refinancing at lower interest rates. An April 2016 Citizens Bank survey found that more than half of student loan borrowers haven't looked into refinancing, suggesting the size of an untapped market.

In an analysis last month in its 2016 Student Loan Financing Report, San Francisco-based Credible, an aggregator of student loan refinance vendors, found that in the last year and a half, refinancing has expanded beyond graduates with six figure incomes and perfect credit scores. The report said that up to 8 million borrowers might be able to...

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