Caroline Lauda

Caroline Lauda asked about the opportunities arising from the Plus Reform and other federal government policy changes. She also inquired if there were any observable differences in the performance of graduate loans versus undergraduate loans in terms of delinquency entry and roll rates.

Answer

CEO Jon Witter described Plus Reform as a significant opportunity for the private student lending market to support families, estimating a potential $4 billion to $5 billion increase in annual originations when fully implemented. He noted that this would phase in over several years, not all in year one. Regarding loan performance, Jon Witter explained that while there are different graduate programs and performance varies, all are governed by the same return and lifetime loss thresholds. He stated that despite surface-level differences in timing and patterns, the underlying decision and governance framework is consistent, and the company values graduate loans as much as other loans.

Caroline Lauda asked about the opportunities arising from Plus Reform and other federal government policy changes. She also inquired if there were any observable differences in the performance of graduate versus undergraduate loans, particularly concerning delinquency and roll rates.

Answer

CEO Jon Witter described Plus Reform as a significant opportunity for the private student lending market, estimating a potential $4 billion-$5 billion increase in annual originations when fully implemented, phasing in over several years. He noted that while graduate and undergraduate programs have different patterns, they are all governed by the same return and lifetime loss thresholds, ensuring comparable underlying quality.