Student Loans Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 9.20 % |
| Fastest Growing Market | Europe |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Student Loans Market Analysis
- The global education/student loans market is valued at USD 3,800 billion in the current year and is expected to register a CAGR of 9.2% during the forecast period.
- A student loan is the amount of money that is obtained to cover the expenses related to higher education or postsecondary education. They cover the cost of tuition and other educational costs. When students are in college, payments are frequently postponed, and depending on the lender, they may occasionally be postponed for an additional six months after receiving a degree.
- One of the advantages of the student loan is that it motivates educated but underprivileged people to continue their studies and find rewarding work, advancing their careers. These loans are designed so that the student does not have to repay the loan immediately but instead must do so once their education is complete by deducting payments from their income.
- Education remains a vital investment for future opportunities, so the student loan market responds to the imperative of bridging financial gaps to access education and enhance career prospects. The student loan market is driven by various factors, such as the pursuit of higher education, rising tuition costs, and the financial challenges faced by students.
- As living costs rise and colleges in various countries like Germany, Australia, and Canada raise their fees, students are forced to borrow more. The interest rate can be considerably lower than other loans, and the repayment plan can be postponed while the borrower is still enrolled in school, setting it apart from other loans.
Student Loans Market Trends
High Education Costs is Driving the Market
- Student loan debt is now the second-highest consumer debt category after mortgages. The growing demand for higher education results in a continued rise in tuition and fees and other related expenses to get a college degree. For many families, footing the bill by using their savings or investments will not suffice, which is why they need to rely on student loans. The average student loan debt grew as the total debt grew, and indebted borrower numbers stayed roughly the same.
- Since the spring of last year, the average student loan debt increased by 2.74%. During that same period, the average private student loan debt decreased by 14.58%, largely due to Wells Fargo's departure from the student loan market. All postsecondary students, including those earning certificates and associate's degrees, borrow at least USD 15,000 to pay for classes.
- Australia has been recognized as one of the most expensive countries in the world for international students. From tuition fees to living expenses, studying here is costly. In the previous year, 36 out of 45 universities in Australia ranked in the QS World University Rankings. The median monthly payment among student loan holders is USD 250. University graduates owe an average of USD 33,500 a year after they leave school. The average private nonprofit university student borrows USD 33,700 to complete a bachelor's degree.
Senior Student Loans Continue to Rise
- Crippling student debt is not exclusive to the young population. People aged 60-69 years old have as much debt as people in their 30s, averaging USD 35,637 in the previous year for the former and USD 36,406 for the latter. Senior student debt increased by a drastic 1.256% from USD 6.3 billion to USD 85.4 billion in only 13 years. According to The Consumer Financial Protection Bureau (CFPB), 73% of seniors co-signed loans for other people, usually their child or grandchild, while 27% obtained loans for their spouse or themselves.
- There are issues particular to older borrowers when it comes to repaying their student loan debt that younger borrowers might need to experience. For example, 9% of seniors delayed seeking healthcare services, while 31% had to either stop saving for retirement or use their nest eggs due to student loan debt.
- Moreover, since most student loan debt cannot be discharged in bankruptcy, some seniors suddenly found lenders garnishing part of their Social Security benefits or a portion of their tax refunds. In 2021, nearly 40% of senior borrowers were in default. With still so much debt to repay and not enough resources to utilize, more seniors might find it harder to achieve a comfortable retirement.
Student Loans Industry Overview
The global education/student loans market is fragmented. In many countries, student loans are offered by a variety of lenders, including government agencies, banks, and private financial institutions. There is a diverse range of loans with different terms and conditions that are available to students. Some of the major players in the market are Earnest, Juno, Credible, Citizens Bank, and Discover.
Student Loans Market Leaders
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Earnest
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Juno
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Credible
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Citizens Bank
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Discover
*Disclaimer: Major Players sorted in no particular order
Student Loans Market News
- October 2023: Discover unveiled its latest national brand campaign, titled "Especially for Everyone," featuring the acclaimed actress Jennifer Coolidge. In a groundbreaking move, Coolidge will take center stage in nationwide advertising efforts, spotlighting Discover's array of benefits and products. Of notable significance, this campaign marks the company's inaugural foray into promoting a deposit product, specifically highlighting Discover's Cashback Debit Checking Account.
- July 2023: Earnest, a fintech company dedicated to enhancing accessibility and affordability in higher education, joined forces with Nova Credit, a cutting-edge credit bureau with a global reach. Together, they have introduced International Private Student Loans, opening up new opportunities for students around the world to pursue their educational dreams.
Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Government Initiatives are Driving the Market
4.2.2 Growing Aspirations for International Education is Driving the Market
4.3 Market Restraints
4.3.1 Creditworthiness Challenges are Restraining the Market
4.4 Market Opportunities
4.4.1 Online Education is Providing Opportunities for the Market
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Bargaining Power of Suppliers
4.5.2 Bargaining Power of Buyers
4.5.3 Threat of New Entrants
4.5.4 Threat of Substitutes
4.5.5 Intensity of Competitive Rivalry
4.6 Insights on Current Trends and Innovations in the Market
4.7 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Type
5.1.1 Federal/Government Loan
5.1.2 Private Loan
5.2 By Repayment Plan
5.2.1 Standard Repayment Plan
5.2.2 Graduated Repayment Plan
5.2.3 Revised Pay As You Earn (REPAYE)
5.2.4 Income-based (IBR)
5.2.5 Other Repayment Plans
5.3 By Age Group
5.3.1 24 or Younger
5.3.2 25 to 34
5.3.3 Above 35
5.4 By End User
5.4.1 Graduate Students
5.4.2 High School Student
5.4.3 Other End-Users
5.5 By Region
5.5.1 North America
5.5.2 Europe
5.5.3 Asia-Pacific
5.5.4 Latin America
5.5.5 Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Earnest
6.2.2 Juno
6.2.3 Credible
6.2.4 Citizens Bank
6.2.5 Discover
6.2.6 Mpower
6.2.7 Prodigy
6.2.8 Federal Student Aid
6.2.9 Sallie Mae
6.2.10 College Ave*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
Student Loans Industry Segmentation
A student loan is a specific type of loan made for students to assist them in covering the costs of their post-secondary education and any related expenses, including tuition, books, supplies, and living costs. Government agencies, private financial institutions, or educational institutions themselves typically provide these. These loans are designed to assist students who may need more immediate financial means to cover the full cost of their education.
The global education/student loans market is segmented by type (federal/government loan and private loan), by repayment plan (standard repayment plan, graduated repayment plan, revised pay as you earn (REPAYE), income-based, and other repayment plans), by age group (24 or younger, 25 to 34, and above 35), by end-user (graduate students, high school student, and other end-users), and by region (North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa).
The report offers market size and forecasts in value (USD) for all the above segments.
| By Type | |
| Federal/Government Loan | |
| Private Loan |
| By Repayment Plan | |
| Standard Repayment Plan | |
| Graduated Repayment Plan | |
| Revised Pay As You Earn (REPAYE) | |
| Income-based (IBR) | |
| Other Repayment Plans |
| By Age Group | |
| 24 or Younger | |
| 25 to 34 | |
| Above 35 |
| By End User | |
| Graduate Students | |
| High School Student | |
| Other End-Users |
| By Region | |
| North America | |
| Europe | |
| Asia-Pacific | |
| Latin America | |
| Middle East and Africa |
Frequently Asked Questions
What is the current Student Loans Market size?
The Student Loans Market is projected to register a CAGR of 9.20% during the forecast period (2024-2029)
Who are the key players in Student Loans Market ?
Earnest, Juno, Credible, Citizens Bank and Discover are the major companies operating in the Student Loans Market .
Which is the fastest growing region in Student Loans Market ?
Europe is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Student Loans Market ?
In 2024, the North America accounts for the largest market share in Student Loans Market .
What years does this Student Loans Market cover?
The report covers the Student Loans Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Student Loans Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Student Loans Market Industry Report
Statistics for the 2024 Student Loans market share, size and revenue growth rate, created by 糖心vlog传媒鈩� Industry Reports. Student Loans analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
