Private Student Loans. Report to the Senate Committee on Banking, Housing, and Urban Affairs, the Senate Committee on Health, Education, Labor, and Pensions, the House of Representatives Committee on Financial Services, and the House of Representatives Committee on Education and the Workforce

American consumers owe more than $150 billion in outstanding private student loan debt. While this amount is significantly less than the amount outstanding on student loans guaranteed by the federal government, the private student loan ("PSL") product is an important component of higher education finance and does not appear to be well understood by the public. In this Report, the Consumer Financial Protection Bureau and the US Department of Education seek to highlight key attributes of the private student loan marketplace, as well as consumer protection issues which policymakers may wish to address. This paper presents the following key findings: (1) In the last decade, private student loan origination rapidly grew and then precipitously declined; (2) During the growth period, private student lender underwriting standards loosened; (3) Since 2008, lenders have changed their underwriting and marketing practices; (4) Many borrowers might not have clearly understood the differences between federal and private students loans; (5) Some groups of borrowers used private student loans substantially more than others; (6) Many borrowers are struggling to repay their private student loans; and (7) Private student lenders are heterogeneous, with some distinct sectors that present varying levels of risk. Appended are: (1) Further Information about Data Sources; and (2) Additional Figures and Tables. Student Loan Glossary is included. (Contains 24 figures, 22 tables, 7 footnotes, and 210 references and notes.)