Sallie Mae Moves Out Of The Red
RESTON, Va. – Student loan giant Sallie Mae reported a $338 million net for the second quarter, compared to a $123 million loss for last year’s second quarter, which included a $495 million loss on financial derivatives.
The country’s student loan provider said the effects of the student loan reforms are starting to show, with federal loan originations down 16% to $3.1 billion for the quarter. Private student loan originations ere down 43% for the quarter to $219 million as more players are entering the market and more student are enrolling at lower cost institutions, the company said.
Managed private education loan charge-offs were $336 million in the second quarter, compared to $355 million in the year-ago quarter. Delinquencies as a percentage of private education loans in repayment declined to 11.9% percent from the previous quarter’s 12.2%.
For the first six months of the year Sallie Mae reported $578 million in net income, compared to a loss of $144 million for the first six months last year.