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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 20, 2014
SLM CORPORATION
(Exact name of registrant as specified in its charter)
| Delaware | 001-13251 | 52-2013874 | ||
| (State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) | ||
| 300 Continental Drive, Newark, Delaware | 19713 | |||
| (Address of principal executive offices) | (Zip Code) | |||
Registrant’s telephone number, including area code: (302) 283-8000
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| ITEM 7.01 | REGULATION FD DISCLOSURE. |
SLM Corporation (the “Company”) frequently provides relevant information to its investors via posting to its corporate website. On February 20, 2014, a presentation entitled “Q4 2013 Investor Presentation” was made available on the Company’s web site at https:////www.salliemae.com/about/investors/webcasts/. In addition, the document is being furnished herewith as Exhibit 99.1.
The information contained in, or incorporated into, this Item 7.01, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
| ITEM 9.01 | FINANCIAL STATEMENTS AND EXHIBITS. |
| (d) | Exhibits |
| Exhibit |
Description | |
| 99.1* | Q4 2013 Investor Presentation. | |
| * | Furnished herewith. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| SLM CORPORATION | ||||||
| Date: February 20, 2014 | By: | /s/ Joseph A. DePaulo | ||||
| Joseph A. DePaulo | ||||||
| Executive Vice President – Banking and Finance | ||||||
EXHIBIT INDEX
| Exhibit Number |
Description | |
| 99.1* | Q4 2013 Investor Presentation. | |
| * | Furnished herewith. |
 SLM
CORPORATION Q4 2013 Investor Presentation
FEBRUARY 20, 2014
Exhibit 99.1 |
    2
Forward-Looking Statements; Non-GAAP Financial Measures
The
following
information
is
current
as
of
February
20,
2014
(unless
otherwise
noted)
and
should
be
read
in
connection
with
SLM
Corporation’s
Annual
Report
on
Form
10-K
for
the
year
ended
December
31,
2013
(the
“2013
Form
10-K”),
and
subsequent
reports
filed
with
the
Securities
and
Exchange
Commission
(the
“SEC”).
Definitions
for
capitalized
terms
in
this
presentation
not
defined
herein
can
be
found
in
the
2013
Form
10-K
(filed
with
the
SEC
on
February
19,
2014).
This
Presentation
contains
forward-looking
statements
and
information
based
on
management’s
current
expectations
as
of
the
date
of
this
presentation.
Statements
that
are
not
historical
facts,
including
statements
about
the
company’s
beliefs
or
expectations
and
statements
that
assume
or
are
dependent
upon
future
events,
are
forward-looking
statements.
Forward-looking
statements
are
subject
to
risks,
uncertainties,
assumptions
and
other
factors
that
may
cause
actual
results
to
be
materially
different
from
those
reflected
in
such
forward-looking
statements.
These
factors
include,
among
others,
the
risks
and
uncertainties
set
forth
in
Item
1A
“Risk
Factors”
and
elsewhere
in
the
company’s
Annual
Report
on
Form
10-K
for
the
year
ended
Dec.
31,
2013
and
subsequent
filings
with
the
Securities
and
Exchange
Commission;
increases
in
financing
costs;
limits
on
liquidity;
increases
in
costs
associated
with
compliance
with
laws
and
regulations;
changes
in
accounting
standards
and
the
impact
of
related
changes
in
significant
accounting
estimates;
any
adverse
outcomes
in
any
significant
litigation
to
which
the
company
is
a
party;
credit
risk
associated
with
the
company’s
exposure
to
third
parties,
including
counterparties
to
the
company’s
derivative
transactions;
and
changes
in
the
terms
of
student
loans
and
the
educational
credit
marketplace
(including
changes
resulting
from
new
laws
and
the
implementation
of
existing
laws).
The
company
could
also
be
affected
by,
among
other
things:
changes
in
its
funding
costs
and
availability;
reductions
to
its
credit
ratings
or
the
credit
ratings
of
the
United
States
of
America;
failures
of
its
operating
systems
or
infrastructure,
including
those
of
third-party
vendors;
damage
to
its
reputation;
failures
to
successfully
implement
cost-cutting
and
adverse
effects
of
such
initiatives
on
its
business;
risks
associated
with
restructuring
initiatives,
including
the
company’s
recently
announced
strategic
plan
to
separate
its
existing
operations
into
two
separate
publicly
traded
companies;
changes
in
the
demand
for
educational
financing
or
in
financing
preferences
of
lenders,
educational
institutions,
students
and
their
families;
changes
in
law
and
regulations
with
respect
to
the
student
lending
business
and
financial
institutions
generally;
increased
competition
from
banks
and
other
consumer
lenders;
the
creditworthiness
of
its
customers;
changes
in
the
general
interest
rate
environment,
including
the
rate
relationships
among
relevant
money-
market
instruments
and
those
of
its
earning
assets
vs.
its
funding
arrangements;
changes
in
general
economic
conditions;
and
changes
in
the
demand
for
debt
management
services.
The
preparation
of
the
company’s
consolidated
financial
statements
also
requires
management
to
make
certain
estimates
and
assumptions
including
estimates
and
assumptions
about
future
events.
These
estimates
or
assumptions
may
prove
to
be
incorrect.
All
forward-looking
statements
contained
in
this
release
are
qualified
by
these
cautionary
statements
and
are
made
only
as
of
the
date
of
this
release.
The
company
does
not
undertake
any
obligation
to
update
or
revise
these
forward-looking
statements
to
conform
the
statement
to
actual
results
or
changes
in
its
expectations
The
Company
reports
financial
results
on
a
GAAP
basis
and
also
provides
certain
core
earnings
performance
measures.
The
difference
between
the
Company’s
core
earnings
and
GAAP
results
for
the
periods
presented
were
the
unrealized,
mark-to-market
gains/losses
on
derivative
contracts
and
the
goodwill
and
acquired
intangible
asset
amortization
and
impairment.
These
items
are
recognized
in
GAAP
but
not
in
core
earnings
results.
The
Company
provides
core
earnings
measures
because
this
is
what
management
uses
when
making
management
decisions
regarding
the
Company’s
performance
and
the
allocation
of
corporate
resources.
The
Company’s
core
earnings
are
not
defined
terms
within
GAAP
and
may
not
be
comparable
to
similarly
titled
measures
reported
by
other
companies.
For
additional
information,
see
“Core
Earnings
—
Definition
and
Limitations”
in
the
Company’s
third
quarter
earnings
release
for
a
further
discussion
and
a
complete
reconciliation
between
GAAP
net
income
and
core
earnings.
For
additional
information
on
our
proposed
separation
described
herein,
please
see
our
Form
8-K
filed
with
the
SEC
on
December
20,
2013,
New
Corporation’s
Form
10,
as
amended,
filed
with
the
SEC
on
February
7,
2014
and
our
2013
Form
10-K
filed
with
the
SEC
on
February
19,
2014. |
    3
SLM Corporation
The U.S. Student Loan Market
Page 4
SLM Corporation Overview
Page 9
Credit Quality
Page 17
Funding Diversity and Liquidity
Page 30
Risk-Adjusted Capital
Page 40
FFELP ABS Appendix
Page 43
Private Education Loan ABS Appendix
Page 48
SLM Appendix
Page 69 |
    4
The U.S. Student Loan Market |
    5
Favorable Student Loan Market Trends
Source:
Trends
in
College
Pricing.©
2013
The
College
Board,.
www.collegeboard.org,
Note:
Academic
years,
average
published
tuition,
fees,
room
and
board
charges
at
four-year
institutions;
enrollment-weighted
Enrollment at Four-Year Degree Granting Institutions (in millions)
Source:U.S.
Department
ofEducation,
National
Center
for
Education
Statistics,Projections
of
Education
Statistics
to
2021
(NCES
2013
-008, January
2013),
tables
23
and25;2011
actualdata
from
Digest
of
EducationStatistics,
2012,
table226;
2012actual
data
from
Enrollment
in
Postsecondary
Institutions,
Fall
2012;
FinancialStatistics,
Fiscal
Year
2012;
Graduation Rates,Selected
Cohorts,
2004-09;
and
EmployeesinPostsecondary
Institutions,
Fall
2012.
Annual Cost of Education ($ thousands)
Source:
CBO
May
2013
Baseline
Projections
for
the
Student
Loan
Program
by
fiscal
year
Note:
Excludes
consolidation
volume
Federal Student Loan Origination Volume ($ billions)
Relationship Between Higher Education, Income and Employment
Source:
U.S.
Bureau
of
Labor
Statistics,
Current
Population
Survey,
2012
Annual
Social
and
Economic
Supplement.
Represents
median
earnings
for
a
full
time,
year-round
worker
over
age
25.
Unemployment
data
as
of
Annual
Average
2012.
Represents
unemployment
for
civilian
non-institutional
population
over
age
25. |
    6
College Grads Experience Lower Levels of Unemployment
Source: U.S. Bureau of Labor Statistics as of 12/31/2013
|
    7
Private Education loan volume has continued to grow as total enrollment and federal
loan originations have declined
Private Education Loans fill the gap between the total cost of education and other
available sources Role of Private Education Loans
Source: Trends in College Pricing
.©
2013 The College Board,. www.collegeboard.org,
U.S. Department of Education 2013
Cost of College (Based on a Four-Year Term)
Estimated Total Cost of Education (in billions)
2012/2013 Academic Year
Sources: Department of Education, College Board, McKinsey & Company, MeasureOne,
National Student Clearinghouse, Company Analysis
|
    8
2012-13 academic year market share approximately 51%
Private Education Loan Industry Originations
Source: Trends in Student Aid.©
2012 The College Board,.
www.collegeboard.org, industry data is
preliminary. Based on current dollars. Data reported by academic year, SLM quarterly data converted to academic year basis.
Private Education Loan originations declined from their peak as a result of an
increase in federal student loan limits, an overall increase in the use of
federal student loans, an increase in federal grants, and tighter
underwriting standards. |
    9
SLM Corporation Overview |
    10
#1 saving, planning and paying for education
company with 40-years of leadership in the
education lending market
#1 servicer and collector of student loans in the
U.S. for FFELP
1
and Private Education Loans
Serving 25 million unique customers
$142
billion student loan portfolio, 74% of which
is insured or guaranteed
Fully independent private sector company with
scale and a broad franchise, traded on the
NASDAQ (ticker: SLM)
SLM Corporation
1
Federal Family Education Loan Program (“FFELP”).
|
    A
Brief Corporate History 11 |
    12
2013 “Core Earnings”
Summary
*
*
For
a
GAAP
to
“Core
Earnings”
reconciliation,
see
slide
70
($ millions, except per share amounts)
Q4 13
Q4 12
2013
2012
EPS (Reported)
$0.61
$0.55
$2.83
$2.16
Net Income
$275
$257
$1,290
$1,062
Net Interest Income
$674
$713
$2,712
$2,818
Loan Loss Provision
$190
$314
$839
$1,080
Fee and Other Income
$182
$218
$1,098
$828
Operating Expenses
$305
$226
$1,042
$897
Average Student Loans
$144,026
$164,800
$150,444
$169,815 |
    13
Consumer Lending Segment Earnings Detail –
“Core Earnings”
Basis
(1)
Includes
non-GAAP
adjustments
of
0.03%,
0.05%,
0.03%,
and
0.10%,
respectively,
related
to
the
accounting
for
derivative
instruments.
(2)
Calculated
as
Direct
Operating
Expenses
divided
by
Net
Interest
Income
after
Provision
plus
Total
Other
Income |
    14
Business Services Segment –
“Core Earnings”
Basis
(in millions)
Q4 13
Q4 12
2013
2012
Net Income
$184
$135
$599
$541
Intercompany Loan Servicing Revenue
$121
$158
$530
$670
Third-Party Loan Servicing Revenue
$41
$24
$142
$98
Guarantor Servicing Revenue
$10
$10
$39
$44
Contingency Revenue
$108
$95
$420
$356
Department of Education Accounts Serviced
5.7
4.3
Contingency Collections Inventory
$16,174
$15,328
2013
net
income
includes
$112
million
of
after
tax
income
from
discontinued
operations,
primarily
as
a
result
of
the
sale
of
our
Campus
Solutions
business
and
our
529
college
savings
plan
administration
business. |
    15
FFELP Loan Segment Earnings Detail –
“Core Earnings”
Basis
($ millions)
Q4 13
Q4 12
2013
2012
Average FFELP Loans
$105,518
$126,874
$112,152
$132,124
Net Interest Income after Provision - FFELP
$242
$279
$982
$1,092
Net Interest Margin - FFELP
(1)
0.91%
0.89%
0.88%
0.84%
Operating Expenses
$127
$165
$557
$702
OpEx Annualized as a % of Average FFELP Loans
0.48%
0.52%
0.50%
0.53%
Net Income
$82
$89
$515
$307
(1)
Includes
non-GAAP
adjustments
of
(0.43%),
(0.37%),
(0.41%)
and
(0.31%)
respectively,
related
to
the
accounting
for
derivative
instruments.
$312 million gain from residual interest sales in first half of 2013
|
    16
Operations Locations
Corporate Headquarters
Fishers, IN
•
Collections
•
Information Technology
•
Servicing
•
Fulfillment
•
Call Center
•
Sales
Reston, VA
•
Finance/Accounting
•
Legal
•
Information Technology
New York State
(Arcade, Perry,
Horseheads)
•
Collections
Cincinnati, OH
•
Collections
Salt Lake City, UT
•
Sallie Mae Bank
Wilkes-Barre, PA
•
Servicing
•
Call Center
Newark, DE Headquarters
•
Executive Offices
•
Credit &Collections
•
Customer Resolution
•
Servicing
•
Fraud
•
Business Development
Washington, DC
•
Government Relations
Moorestown, NJ
•
Collections
Newton, MA
•
Upromise
Rewards
•
Business Dev.
Muncie, IN
•
Collections |
    17
Credit Quality |
    18
Private Education Loan Portfolio Characteristics
–
$38 billion portfolio
–
26% of SLM’s total student loan portfolio
–
Approximately 68% of portfolio has a cosigner, typically a parent
–
Loans originated since 2009 are approximately 90% cosigned with average FICO
scores above 740
–
Higher education loans typically non-dischargeable in bankruptcy
–
Integrated underwriting, servicing and collections
SLM’s Private Education Loan Portfolio
As of December 31, 2013 |
    19
Smart
Option
Student
Loan
product
offers
three
repayment
choices
designed
to
help
borrowers
balance their goals and budget while in school
–
Interest Only -
Requires interest only payment during in-school period
–
Fixed Repayment -
Requires $25 monthly payments during in-school period
–
Deferred Repayment –
Allows the customer to defer payments while in-school
Variable and Fixed Interest Rate Options
Repayment
term
is
driven
by
cumulative
amount
borrowed
and
grade
level
Full communication with customers during in-school period
Full
collection
activities
are
employed
at
both
the
customer
and
cosigner
level
All loans are certified by the school’s financial aid office to ensure that
proceeds are used for education expenses
SLM’s Private Education Smart Option Student Loan Products
|
    20
Private Education Loans –
High Quality Originations
Originations of $2.7 bn in 2011 had an average winning FICO of 748 and 91% were
cosigned. Originations of $3.3 bn in 2012 had an average winning FICO of 748
and 90% were cosigned Originations of $3.8 bn in 2013 had an average winning
FICO of 745 and 90% were cosigned |
    Low Risk =
Smart Option, Legacy Traditional Cosigned, and Law/MBA/MED/CT/Other Moderate Risk =
Legacy Traditional Non-Cosigned Elevated Risk = Non-Traditional
Consumer Lending Segment –
High Quality Portfolio
2 1 |
    22
+
=
Private Education
Loans
(2)
25%
U.S. Government
Guaranteed Loans
(2)
75%
Charge-Offs
(1)
= 0.07%
Charge-Offs
(1)
= 2.29%
Total Charge-Offs
(1)
= 0.64%
(1)
All data as of Year Ended December 31, 2013. Annualized FFELP charge-offs as a
percentage of average FFELP Loans. Annualized Private Education Loan charge-offs as a
percentage of average Private Education Loans. Annualized total charge-offs as
a percentage of average FFELP Loans and Private Education Loans. (2)
Percentages of total student loan portfolio based upon average portfolio
balances. Student Loan Portfolio
(2)
SLM Loan Losses |
    Private Credit Default Performance
The probability of default substantially diminishes as the number of payments and
years of seasoning increases
23 |
     24
Private Education Loan Portfolio Performance
(1) Charge-offs as a percentage of average loans in repayment annualized for
the quarters presented Q413
Q313
Q213
Q113
Q412
Charge-offs - Traditional Portfolio
(1)
2.4%
2.1%
2.1%
2.5%
3.4%
Charge-offs - Non-Traditional Portfolio
(1)
9.9%
8.8%
9.1%
8.7%
13.2%
Charge-offs - Total Portfolio
(1)
2.9%
2.6%
2.7%
3.0%
4.2%
90+ Day Delinq as a % of Repay - Traditional Portfolio
3.5%
3.2%
3.1%
3.3%
3.9%
90+ Day Delinq as a % of Repay - Non-Traditional Portfolio
12.0%
11.1%
10.2%
11.2%
12.6%
90+ Day Delinq as a % of Repay - Total Portfolio
4.1%
3.8%
3.6%
3.9%
4.6%
Forb as a % of Forb & Repay - Traditional Portfolio
3.2%
3.2%
3.4%
3.2%
3.3%
Forb as a % of Forb & Repay - Non-Traditional Portfolio
5.5%
5.4%
5.5%
5.1%
5.1%
Forb as a % of Forb & Repay - Total Portfolio
3.4%
3.4%
3.5%
3.4%
3.5%
Allowance as a % of Loans in Repay - Traditional Portfolio
5.5%
5.5%
5.6%
5.7%
5.7%
Allowance as a % of Loans in Repay - Non-Traditional Portfolio
22.1%
22.4%
21.0%
21.0%
20.7%
Allowance as a % of Loans in Repay - Total Portfolio
6.7%
6.8%
6.8%
6.9%
6.9% |
    25
Private Education Loan Portfolio Performance
(1) Charge-offs as a percentage of average loans in repayment annualized for
the quarters presented |
    26
Private Education Loan Portfolio Performance –
Smart Option Only
(1) Ending total loans represents the gross principal balance, plus the receivable
for partially charged-off loans For the years ended December 31,
(Dollars in millions)
2013
2012 2011 Ending loans
(1)
...........................................................................
$
10,514
$
7,501
$
4,769
Ending loans in repayment ........................................................
7,728
5,774
4,195
Charge-offs as a percentage of average loans in repayment ....
0.6%
0.5%
0.3%
Delinquencies as a percentage of loans in repayment ..............
3.0%
2.9%
2.8%
Delinquencies greater than 90 days as a percentage of loans
in repayment ........................................................................
1.1%
1.0%
0.8%
Loans in forbearance as a percentage of loans in repayment
and forbearance ...................................................................
2.5%
2.1%
0.3%
Percentage of Private Education Loans with a cosigner ............
92%
93%
94%
Average FICO at origination.......................................................
746
746
746
|
    27
(Dollars in millions)
Loan Seasoning
December 31, 2013
Traditional Portfolio
Monthly Scheduled Payments Due
Not Yet in Repayment
6,088
Loans in Forbearance
432
9.2%
168
3.3%
151
2.9%
95
2.0%
123
1.2%
969
3.2%
Loans in Repayment-
Current
3,813
80.8%
4,451
87.5%
4,580
89.2%
4,370
91.6%
9,763
94.4%
26,977
89.8%
Loans in Repayment-
Delinq 31-60 days
133
2.8%
139
2.7%
132
2.6%
105
2.2%
165
1.6%
674
2.2%
Loans in Repayment-
Delinq 61-90 days
92
1.9%
94
1.8%
79
1.5%
60
1.3%
95
0.9%
420
1.4%
Loans in Repayment-
Delinq 90 + days
250
5.3%
237
4.7%
193
3.8%
140
2.9%
192
1.9%
1,012
3.4%
4,720
$
100%
5,089
$
100%
5,135
$
100%
4,770
$
100%
10,338
$
100%
30,052
$
100%
Charge-offs as a % of loans in repayment
5.0%
3.2%
2.2%
1.7%
1.1%
2.4%
Non-Traditional Portfolio
Monthly Scheduled Payments Due
Not Yet in Repayment
440
Loans in Forbearance
70
15.5%
21
4.9%
15
4.0%
11
3.4%
16
1.9%
133
5.5%
Loans in Repayment-
Current
243
53.9%
284
67.3%
276
74.3%
263
79.1%
725
86.0%
1,791
74.0%
Loans in Repayment-
Delinq 31-60 days
33
7.3%
28
6.7%
20
5.4%
16
4.7%
31
3.7%
128
5.3%
Loans in Repayment-
Delinq 61-90 days
25
5.6%
21
5.0%
15
4.1%
12
3.6%
20
2.3%
93
3.8%
Loans in Repayment-
Delinq 90 + days
80
17.7%
68
16.1%
45
12.2%
31
9.2%
51
6.1%
275
11.4%
451
$
100%
422
$
100%
371
$
100%
333
$
100%
843
$
100%
2,420
$
100%
Charge-offs as a % of loans in repayment
22.4%
12.9%
8.1%
7.0%
3.6%
9.9%
Total
Monthly Scheduled Payments Due
Not Yet in Repayment
6,528
Loans in Forbearance
502
9.7%
189
3.4%
166
3.0%
106
2.1%
139
1.2%
1,102
3.4%
Loans in Repayment-
Current
4,056
78.4%
4,735
85.9%
4,856
88.2%
4,633
90.8%
10,488
93.8%
28,768
88.6%
Loans in Repayment-
Delinq 31-60 days
166
3.2%
167
3.0%
152
2.8%
121
2.4%
196
1.8%
802
2.5%
Loans in Repayment-
Delinq 61-90 days
117
2.3%
115
2.1%
94
1.7%
72
1.4%
115
1.0%
513
1.6%
Loans in Repayment-
Delinq 90 + days
330
6.4%
305
5.6%
238
4.3%
171
3.3%
243
2.2%
1,287
3.9%
5,171
$
100%
5,511
$
100%
5,506
$
100%
5,103
$
100%
11,181
$
100%
32,472
$
100%
Charge-offs as a % of loans in repayment
6.5%
3.9%
2.5%
2.0%
1.3%
2.9%
More than 48 payments
Total
Total Loans in Repayment or Forbearance
Total Loans in Repayment or Forbearance
Loan Status
0-12 payments
13-24 payments
25-36 payments
37-48 payments
Total
Total Loans in Repayment or Forbearance
Loan Status
0-12 payments
13-24 payments
25-36 payments
37-48 payments
More than 48 payments
Total
Loan Status
0-12 payments
13-24 payments
25-36 payments
37-48 payments
More than 48 payments |
    28
September 30, 2013
Traditional Portfolio
Monthly Scheduled Payments Due
Not Yet in Repayment
6,112
Loans in Forbearance
451
8.5%
167
3.2%
142
2.4%
88
1.9%
123
1.3%
971
3.2%
Loans in Repayment-
Current
4,186
79.0%
4,688
87.9%
5,281
90.4%
4,153
91.7%
8,707
94.2%
27,015
89.3%
Loans in Repayment-
Delinq 31-60 days
204
3.9%
162
3.0%
155
2.6%
114
2.5%
177
1.9%
812
2.7%
Loans in Repayment-
Delinq 61-90 days
169
3.2%
106
2.0%
91
1.6%
65
1.4%
88
1.0%
519
1.7%
Loans in Repayment-
Delinq 90 + days
285
5.4%
209
3.9%
173
3.0%
112
2.5%
145
1.6%
924
3.1%
5,295
$
100%
5,332
$
100%
5,842
$
100%
4,532
$
100%
9,240
$
100%
30,241
$
100%
Charge-offs as a % of loans in repayment
4.6%
2.7%
1.7%
1.3%
0.9%
2.1%
Monthly Scheduled Payments Due
Not Yet in Repayment
429
Loans in Forbearance
78
13.9%
20
4.7%
15
3.8%
9
2.8%
15
1.9%
137
5.5%
Loans in Repayment-
Current
296
52.8%
299
68.9%
287
74.7%
271
79.8%
688
85.9%
1,841
73.1%
Loans in Repayment-
Delinq 31-60 days
43
7.7%
31
7.2%
25
6.6%
20
5.9%
35
4.4%
154
6.1%
Loans in Repayment-
Delinq 61-90 days
45
8.1%
25
5.8%
18
4.6%
12
3.5%
22
2.7%
122
4.8%
Loans in Repayment-
Delinq 90 + days
98
17.5%
58
13.4%
40
10.3%
27
8.0%
41
5.1%
264
10.5%
560
$
100%
433
$
100%
385
$
100%
339
$
100%
801
$
100%
2,518
$
100%
Charge-offs as a % of loans in repayment
16.2%
12.5%
7.3%
5.3%
3.6%
8.8%
Total
Monthly Scheduled Payments Due
Not Yet in Repayment
6,541
Loans in Forbearance
529
9.1%
187
3.3%
157
2.5%
97
2.0%
138
1.4%
1,108
3.4%
Loans in Repayment-
Current
4,482
76.6%
4,987
86.5%
5,568
89.4%
4,424
90.8%
9,395
93.6%
28,856
88.1%
Loans in Repayment-
Delinq 31-60 days
247
4.2%
193
3.3%
180
2.9%
134
2.7%
212
2.1%
966
2.9%
Loans in Repayment-
Delinq 61-90 days
214
3.6%
131
2.3%
109
1.8%
77
1.6%
110
1.1%
641
2.0%
Loans in Repayment-
Delinq 90 + days
383
6.5%
267
4.6%
213
3.4%
139
2.9%
186
1.8%
1,188
3.6%
5,855
$
100%
5,765
$
100%
6,227
$
100%
4,871
$
100%
10,041
$
100%
32,759
$
100%
Charge-offs as a % of loans in repayment
5.6%
3.4%
2.0%
1.6%
1.1%
2.6%
Total
Total Loans in Repayment or Forbearance
Loan Status
0-12 payments
13-24 payments
25-36 payments
37-48 payments
More than 48 payments
Total
Loan Status
0-12 payments
13-24 payments
25-36 payments
37-48 payments
More than 48 payments
More than 48 payments
Total
Total Loans in Repayment or Forbearance
Total Loans in Repayment or Forbearance
Loan Status
0-12 payments
13-24 payments
25-36 payments
37-48 payments
(Dollars in millions)
Loan Seasoning
Non-Traditional Portfolio |
    29
(Dollars in millions)
Loan Seasoning
December 31, 2012
Traditional
Portfolio
Monthly Scheduled Payments Due
Not Yet in Repayment
5,421
Loans in Forbearance
517
7.9%
173
3.1%
137
2.4%
74
1.7%
95
1.2%
996
3.3%
Loans in Repayment-
Current
5,109
78.3%
5,042
88.8%
5,090
90.4%
4,114
92.9%
7,242
94.5%
26,597
88.9%
Loans in Repayment-
Delinq 31-60 days
281
4.3%
160
2.8%
151
2.7%
98
2.2%
147
1.9%
837
2.8%
Loans in Repayment-
Delinq 61-90 days
137
2.1%
75
1.3%
67
1.2%
40
0.9%
56
0.7%
375
1.3%
Loans in Repayment-
Delinq 90 + days
484
7.4%
228
4.0%
184
3.3%
104
2.4%
121
1.6%
1,121
3.7%
6,528
$
100%
5,678
$
100%
5,629
$
100%
4,430
$
100%
7,661
$
100%
29,926
$
100%
Charge-offs as a % of loans in repayment
8.6%
3.1%
2.1%
1.5%
1.1%
3.4%
Non-Traditional Portfolio
Monthly Scheduled Payments Due
Not Yet in Repayment
483
Loans in Forbearance
85
10.1%
21
4.7%
12
2.9%
9
2.5%
13
2.0%
140
5.1%
Loans in Repayment-
Current
482
57.2%
324
70.6%
315
77.3%
289
82.7%
568
85.6%
1,978
72.6%
Loans in Repayment-
Delinq 31-60 days
72
8.5%
29
6.4%
24
5.9%
18
5.1%
32
4.8%
175
6.4%
Loans in Repayment-
Delinq 61-90 days
48
5.7%
20
4.3%
14
3.3%
9
2.6%
15
2.2%
106
3.9%
Loans in Repayment-
Delinq 90 + days
156
18.5%
65
14.1%
43
10.6%
25
7.1%
36
5.4%
325
11.9%
843
$
100%
459
$
100%
408
$
100%
350
$
100%
664
$
100%
2,724
$
100%
Charge-offs as a % of loans in repayment
26.6%
13.8%
8.1%
5.0%
3.7%
13.2%
Total Managed
Monthly Scheduled Payments Due
Not Yet in Repayment
5,904
Loans in Forbearance
602
8.2%
195
3.2%
149
2.5%
83
1.7%
107
1.3%
1,136
3.5%
Loans in Repayment-
Current
5,591
75.9%
5,366
87.4%
5,405
89.5%
4,403
92.1%
7,810
93.8%
28,575
87.5%
Loans in Repayment-
Delinq 31-60 days
353
4.8%
189
3.1%
175
2.9%
116
2.4%
179
2.1%
1,012
3.1%
Loans in Repayment-
Delinq 61-90 days
185
2.5%
95
1.6%
81
1.3%
49
1.0%
71
0.9%
481
1.5%
Loans in Repayment-
Delinq 90 + days
640
8.7%
292
4.8%
227
3.8%
129
2.7%
158
1.9%
1,446
4.4%
7,371
$
100%
6,137
$
100%
6,037
$
100%
4,780
$
100%
8,325
$
100%
32,650
$
100%
Charge-offs as a % of loans in repayment
10.6%
3.8%
2.5%
1.8%
1.3%
4.2%
Total
Total Loans in Repayment or Forbearance
Loan Status
0-12 payments
13-24 payments
25-36 payments
37-48 payments
More than 48 payments
Total
Loan Status
0-12 payments
13-24 payments
25-36 payments
37-48 payments
More than 48 payments
More than 48 payments
Total
Total Loans in Repayment or Forbearance
Total Loans in Repayment or Forbearance
Loan Status
0-12 payments
13-24 payments
25-36 payments
37-48 payments |
    30
Funding Diversity and Liquidity |
    31
Issued $3.1 billion of Private ABS
Issued $6.5 billion of FFELP ABS
Sold $629 million of legacy FFELP Class B notes held by the issuer or an
affiliate Refinanced $1.3 billion of FFELP reset rate notes to term
Issued $3.8 billion of long-term unsecured debt
Closed on a $6.8 billion FFELP ABCP facility and a $1.1 billion Private ABCP
facility On January 10, 2014, closed on an $8 billion FFELP ABCP
facility Sold residual interests in five FFELP securitization trusts totaling
$12.5 billion of assets Returned $864 million to shareholders through share
repurchases and dividends 2013 Capital Markets Summary
|
    32
Non-Consolidation FFELP
Non-Consolidation FFELP
Non-Consolidation FFELP
Issue
$994M SLM Trust 2014-1
$996M SLM Trust 2013-6
$996M SLM Trust 2013-5
Pricing Date
January 15, 2014
November 6, 2013
September 11, 2013
Collateral
US Govt. Guaranteed or Insured
FFELP Stafford and Plus Loans
US Govt. Guaranteed or Insured
FFELP Stafford and Plus Loans
US Govt. Guaranteed or Insured
FFELP Stafford and Plus Loans
Prepayment
Speed
(1)
6% Constant Prepayment Rate
6% Constant Prepayment Rate
6% Constant Prepayment Rate
Tranching
Moody’s
Amt
WAL
(1)
Pricing
(2)
A-1 Aaa $272
1.3 L+28 A-2
Aaa $184 3.3 L+38
A-3 Aaa $511
6.8 L+60 B
Aa1 $27 9.2 L+210
Moody’s
Amt
WAL
(1)
Pricing
(2)
A-1 Aaa $266
1.3 L+28 A-2
Aaa $192 3.3 L+50
A-3 Aaa $511
6.8 L+65 B
Aa1 $27 9.2 L+220
Moody’s
Amt
WAL
(1)
Pricing
(2)
A-1 Aaa $203
1.0 L+26 A-2
Aaa $256 3.0 L+45
A-3 Aaa $509
6.8 L+70 B
Aa1 $27 9.1 L+220
Recent SLM FFELP ABS Transactions
(1)
Estimated based on a variety of assumptions concerning loan repayment behavior, as
more fully described in the related prospectus, which may be obtained at
http://www2.salliemae.com/investors/debtasset/slmsltrusts/. Actual average life may
vary significantly from estimates. (2)
Pricing represents the yield to expected call. |
    33
Recent SLM Private Education Loan ABS Transactions
(1)
Estimated based on a variety of assumptions concerning loan repayment behavior, as
more fully described in the related prospectus, which may be obtained at
http://www2.salliemae.com/investors/debtasset/slmsltrusts/. Actual average life may
vary significantly from estimates. (2)
Yield on fixed rate A-2 tranches were 2.96%, 1.86% and 1.78%, for 2013-C,
2013-B, and 2012-A, respectively. Yield on fixed rate B tranches were 4.86%, 3.69% and
3.48%, for 2013-C, 2013-B and 2013-A, respectively.
Private Education Loans
Private Education Loans
Private Education Loans
Issue
$624M SLM Trust 2013-C
$1,135M SLM Trust 2013-B
$1,108M SLM Trust 2013-A
Pricing Date
September 18, 2013
April 25, 2013
February 27, 2013
Collateral
Private Education Loans
Private Education Loans
Private Education Loans
Prepayment Speed
(1)
4%
4%
4%
Tranching
Moody’s
Amt
WAL
(1)
Pricing
(2)
A-1 Aaa
$300 1.8 L+85
A-2A Aaa
$131 4.5 s+135
A-2B Aaa
$131 4.5 L+140
B
A $62
5.9
s+275
Total
$624 3.3 L+147
Moody’s
Amt
WAL
(1)
Pricing
(2)
A-1 Aaa
$680 1.7 L+65
A-2A Aaa
$245 4.8 s+105
A-2B Aaa
$100 4.8 L+110
B
A $110 6.0
s+260
Total
$1,135 3.1 L+120
Moody’s
Amt
WAL
(1)
Pricing
(2)
A-1 Aaa
$690 1.8 L+60 A-2A
Aaa $143 4.6 s+95
A-2B Aaa
$143 4.6 L+105
B
A $132 5.7
s+238
Total
$1,108 2.9 L+115 |
    High Percentage of Student Loans Funded to Term
*
Gross loans, Numbers may not add due to rounding.
Funded to Term, $107 Bn
FFELP Consolidation Term ABS, $58 Bn
FFELP Non-Consolidation Term ABS, $30 Bn
Private Term ABS, $19 Bn
34 |
    35
Note: Does not include Sallie Mae Bank or Subsidiary funding
Total unsecured debt outstanding of $18.4 billion
Unsecured Debt Maturities |
    36
Secured Cash Flow
Note: Totals may not add due to rounding
*
Net residual represents excess distribution, net of payments on floor contracts and
receipts from basis swaps |
    37
Projected Cash Flows From FFELP Portfolio
*
Assumptions
No Floor Income, CPR/CDR = Stafford & Plus (4.0%), Consolidation
(3.0%) * These projections are based on internal estimates and assumptions and
are subject to ongoing review and modification. These projections may prove to be incorrect.
($ in Millions)
Total Cash Flows from Projected Excess Spread = $7.1 Billion
Total Cash Flows from Projected Servicing Revenues = $4.2 Billion
as of 12/31/13
2014
2015
2016
2017
2018
2019
2020
2021
Projected FFELP Average Balance
$96,853
$88,030
$79,262
$71,184
$63,557
$56,085
$49,072
$42,464
Projected Excess Spread
$746
$747
$707
$701
$647
$567
$496
$442
Projected Servicing Revenue
$541
$501
$457
$417
$376
$331
$288
$246
Projected Total Revenue
$1,287
$1,248
$1,164
$1,118
$1,023
$898
$784
$689
2022
2023
2024
2025
2026
2027
2028
2029 -
2033
Projected FFELP Average Balance
$36,318
$30,699
$25,860
$21,938
$18,260
$14,780
$11,475
$4,822
Projected Excess Spread
$386
$333
$262
$223
$196
$168
$135
$351
Projected Servicing Revenue
$207
$172
$143
$121
$102
$83
$65
$154
Projected Total Revenue
$593
$505
$404
$344
$298
$251
$201
$505 |
    38
Bank charter
–
Utah based ILC regulated by FDIC and Utah Department of Financial Institutions
(UDFI) –
Charter granted October 2005
Current bank activity
–
Total assets of $10.7 billion at December 31, 2013
–
Originates Sallie Mae’s Private Education Loans
–
Funded through affiliate, brokered and direct retail deposits
–
17.3% Total Risk-based Capital at December 31, 2013
–
Dividends of $120 million paid in 2013
Deposit taking activities
–
Deposits totaled $9.3 billion at December 31, 2013
•
$5.9 billion Brokered Deposits
•
$3.4 billion Direct Retail and other affiliate and non-affiliate
Deposits –
Brokered
Deposit
term
portfolio
has
a
weighted
average
maturity
of
23.6
months
–
Total deposits increased 19% over 4Q12 and 15% versus 3Q13
Sallie Mae Bank |
    39
Sallie Mae Bank –
Capital & Deposits
*Primarily affiliate deposit accounts with no stated maturities
|
    40
Risk-Adjusted Capital |
    41
Strong Capital Position
*
“Tangible
Economic
Capital”
and
“Available
Risk
Capital”
are
non-GAAP
financial
measures.
The
reconciliation
to
GAAP
capital
is
shown
on
this
slide.
($ in Billions)
Q4 13
Q3 13
Q4 12
Q1 13
Q4 12
Q3 12
GAAP Capital
$5.6
$5.6
$5.1
Goodwill & Intangibles
(0.4)
(0.4)
(0.4)
Derivative Mark-to-Market
0.9
0.9
1.1
Unamortized Premiums from Floors
0.4
0.4
0.6
Tangible Economic Capital
$6.5
$6.5
$6.2
Private Loan Reserve
2.1
2.1
2.2
Available Risk Capital
$8.6
$8.7
$8.4
Risk Assets (Before Loan Loss Reserves)
Private Credit
$39.6
$39.9
$39.1
Other Risk Assets
1.1
1.1
1.0
Total Risk Assets
$40.7
$41.0
$40.1
Capital to Risk Assets:
21.1%
21.2%
21.0% |
    42
Capital Allocation
SLM
allocates
capital
internally
based
on
the
risk
of
the
assets
it
supports
Assets
0.50%
12%
Capital
Allocation
0% -
15%*
Cash,
Investments,
Other Assets
11% of
Assets
Private
Education
Loans
24% of
Assets
FFELP
Loans
66% of
Assets
Based on Risk
*Other Assets includes $424 million of goodwill & intangible assets for which
capital is allocated at 100% |
    43
FFELP ABS Appendix |
    44
Federal Student Loan Market
Outstanding Government Student Loan Market Distribution
FFYE 9/30/2013 ($ in billions)
Source: Department of Education, U.S. Department of Education FY 2013 Agency
Financial Report |
    45
Issue size of $0.5B to $1.5B
Tranches or pass-through denominated in
US$
AAA rated senior tranches make up to 97%
of issue structure
Floating rate tied to 1 mo. LIBOR
Amortizing tranches with 1 to 15(+) year
average lives
Master servicer is Sallie Mae, Inc.
Insurance or guarantee of underlying collateral
insulates bondholders from virtually any loss
of principal
(1)
Formerly a 20% risk-weighted asset, now a
<10% risk-weighted under Basel II’s IRB
methodology
Offer significantly higher yields than
government agency securities with
comparable risk profiles
Short (1-3 yrs), intermediate (3-7 yrs), long (7-
10 yrs) and very long (10-15+ yrs) term
tranches available at new issue and in
secondary
SLM FFELP ABS Issue Characteristics
(1) Principal and accrued interest on underlying FFELP loan collateral carry
insurance or guarantee of 97%-100% dependent on origination year and on meeting
the servicing requirements of the U.S. Department of Education.
Typical SLM FFELP ABS Transaction Features
Unique Characteristics of FFELP Loan ABS |
    46
SLM Stafford/PLUS ABS Trusts
Annualized CPRs for SLM Stafford/PLUS ABS Trusts have decreased significantly as
incentives for borrowers to consolidate have declined After a temporary
increase in mid 2012 due to the Special Direct Consolidation Loan program,
CPRs decreased in the fourth quarter Historical SLM Stafford/PLUS ABS
CPRs * Average CPR is the simple (non-weighted) average of four Quarterly
CPR calculations for each calendar year. Quarterly CPR assumes School and Grace loans are not
scheduled
to
make
payments.
Deferment,
Forbearance
and
Repayment
loans
are
scheduled
to
make
payments.
Prepayment Analysis |
    47
CPRs for SLM Consolidation ABS Trusts have declined significantly following
legislation that prevented in-school and re-consolidation of borrowers’
loans
After a temporary increase in mid 2012 due to the Special Direct
Consolidation Loan program, CPRs decreased in the fourth quarter
SLM Consolidation ABS Trusts
Historical Consolidation ABS CPRs
* Average CPR is the simple (non-weighted) average of four Quarterly CPR
calculations for each calendar year. Quarterly CPR assumes School and Grace loans are
not scheduled to make payments. Deferment, Forbearance and Repayment loans are
scheduled to make payments. Prepayment Analysis
|
    48
Private Education Loan ABS Appendix |
    49
SLM Private Education Loan ABS Issuance Profile
Sallie Mae is among largest issuers of ABS globally, having issued over $250
billion in Private and FFELP ABS transactions to date
Sallie Mae has been the market leader in Private Education Loans
since the late ’80s,
with expected originations of $4.0 billion in 2014
Prior to the financial crisis, Sallie Mae was a programmatic issuer of Private
Education Loan ABS
In 2011, Sallie Mae reestablished programmatic issuance of Private Education Loan
ABS
Executed 3 transactions in 2011 totaling $2.1 billion
Executed 5 transactions in 2012 totaling $4.2 billion
Executed 4 transactions in 2013 totaling $3.1 billion
|
    50
Issue size of $500M to $1.5B
Triple-A rated senior notes, Single-A rated
subordinated notes
20-30% Triple-A overcollateralization
Multiple tranches with 2, 5, and/or 7 yr average
lives
Fixed rate or floating rate tied to 1 month LIBOR
Full-turbo structure
Collateralized by loans made to students and
parents to fund college tuition, room and board
Underwritten using FICO, Custom Scorecard &
judgmental criteria w/ risk based pricing
~80% with cosigners, typically a parent
Typically non-dischargeable in bankruptcy
Serviced exclusively by Sallie Mae
Recent SLM Private Education Loan ABS Characteristics
Recent SLM Private Loan ABS Structures
Collateral Characteristics |
    51
(1) Smart Option loans subject to interim interest only and $25 fixed monthly
payments are classified as in Repayment. (2) Assumes
Prime/LIBOR spread of 3.05% for 2013-C, 2013-B and 2013-A and 2.75% for all previous transactions. SLM Private
Education Loan ABS Summary |
    52
Constraining rating agency triple-A gross default stress levels at
issuance Source: Sallie Mae, Moody’s, Standard & Poor’s,
Fitch. |
    53
Private Education ABS Trusts: Forbearance
Forbearance usage is typically highest when loans enter repayment, and declines as
loans season Use of forbearance as a collection tool peaked in early 2008;
forbearance has since declined as a result of changes in SLM’s
forbearance strategy |
    54
SLM Private Education ABS Trusts: 90+ Day Delinquencies
As expected, later stage delinquency has remained elevated in recent periods due
to tightening of forbearance policy and the current economic
environment Increased emphasis on cash payment during delinquency means
more borrowers remain in delinquency instead
of receiving forbearance
Because they are paying, fewer delinquent borrowers are expected
to default |
    55
SLM Private Education ABS Trusts: Annualized Gross Charge-offs
Charge-offs have declined steadily since late 2009, after an increase resulting
from changes to forbearance policy and a weak economic environment
(1) For SLM Private Education Student Loan Trusts issued prior to 2005-B, the
servicer has the option, but not the obligation, to repurchase loans that (i) become 180+ days
delinquent and/or (ii) have a borrower who filed for bankruptcy or died. Prior to
November 1, 2008, the servicer exercised this repurchase option and actual charge-offs in these
trusts equalled zero. Beginning November 1, 2008, the servicer ceased
purchasing from the trust loans that are more than 180 days delinquent. For the purposes of comparison
across all deals, this chart reflects trust charge-offs for SLM Private
Education Student Loan Trusts issued prior to 2005-B as if the servicer had never exercised its repurchase
option. |
    56
SLM Private Education Loan Gross Defaults
As of November 30, 2013
For SLM Private Education Loan Trusts issued prior to 2005-B, the servicer has
the option, but not the obligation, to repurchase loans that (i) become 180+ days delinquent and/or (ii)
have
a
borrower
who
filed
for
bankruptcy
or
died.
Prior
to
November
1,
2008,
the
servicer
exercised
this
repurchase
option
and
actual
charge-offs
in
these
trusts
equaled
zero. Beginning
November 1, 2008, the servicer ceased purchasing from the trust loans that are more
than 180 days delinquent. For the purposes of comparison across all deals, this chart reflects trust charge-
offs for SLM Private Education Loan Trusts issued prior to 2005-B as if the
servicer had never exercised its repurchase option. (1)
Charge-offs
per
the
servicer’s
portfolio
definition
which
is
generally
212+
days
delinquent.
Includes
loans
for
which
a
borrower
has
filed
bankruptcy
which
have
subsequently
become 212+ days
delinquent.
(2)
Charge-offs due to a borrower’s bankruptcy filing for which the loan is now
current or paid off. (3)
Charge-offs
due
to
a
borrower’s
bankruptcy
filing
or
death
for
which
the
loan
is
not
current
or
paid
off
but
has
not
become
212+
days
delinquent.
These
loans
are
in
various
statuses including:
bankruptcy stay, deferment, forbearance or delinquency.
|
    57
Recoveries
Recoveries are typically realized over many years as a result of
the prevalent use of long-
term payment plans
While student loans are generally non-dischargeable in bankruptcy, the
proceedings can postpone recoveries until after borrowers emerge from
bankruptcy In 2005, Sallie Mae changed its recovery practices
–
The 2005 cohort had a recovery rate of 27% eight years after default
Recovery experience for more recent cohorts has varied based on economic
conditions and the characteristics of defaulted loans
In Q3 2011, Sallie Mae provided additional provision for loan loss to provide for
potential uncertainty regarding future recoveries due to continued high
unemployment rates; the 27% life-of loan recovery expectation remains
in place |
    58
SLM Private Education Loan ABS Trusts –
Prepayment Analysis
Historical SLM Private Education Loan ABS CPRs
Constant prepayment rates increased in 2007 due to the introduction of Private
Education Consolidation loans, then declined following SLM’s decision
to suspend its consolidation loan program in 2008 |
    59
The following cohort default triangles provide loan performance information for
certain Private Education Loans of SLM Corporation and its consolidated
subsidiaries that meet such subsidiaries’
current securitization criteria
(including those criteria listed below):
–
Program types include Undergraduate/Graduate
(1)
, Direct-to-Consumer (“DTC”)
(2)
, Career Training
(3)
, Private
Consolidation
Loans
and
Smart
Option
(interest
only)
loans
–
FICO scores are based on the greater of the borrower and cosigner scores as of a
date near the loan application and must be at least:
•
Undergraduate/Graduate at not-for-profit schools:
640
•
Undergraduate/Graduate at for-profit schools:
670 •
DTC loans: 670
•
Career Training loans: 670
•
Private Consolidation loans: 640
–
Excludes loans made at selected schools that have historically experienced higher
rates of default The cohort default triangles are not representative of the
characteristics of the portfolio of Private Education Loans of SLM
Corporation and its consolidated subsidiaries as a whole or any particular securitization trust
Cohort Default Triangles
(1)
Undergraduate/Graduate loans marketed under the Signature Student Loan brand.
(2)
Direct-to-Consumer Loans marketed under the Tuition Answer brand.
(3)
Career Training loans provide eligible borrowers financing at technical, trade,
K-12 or tutoring schools. |
    60
The cohort default triangles featured on subsequent slides are segmented by loan
program type, FICO score, cosigner status, and school type
Terms and calculations used in the cohort default triangles are defined
below: –
Repayment Year
–
The calendar year loans entered repayment
–
Disbursed
Principal
Entering
Repayment
–
The
amount
of
principal
entering
repayment
in
a
given year, based on disbursed principal prior to any interest
capitalization –
Years
in
Repayment
–
Measured
in
years
between
repayment
start
date
and
default
date.
Zero represents defaults that occurred prior to the start of repayment.
–
Periodic
Defaults
–
Defaulted
principal
in
each
Year
in
Repayment
as
a
percentage
of
the
disbursed principal entering repayment in each Repayment Year
•
Defaulted principal includes any interest capitalization that occurred prior to
default •
Defaulted principal is not reduced by any amounts recovered after the loan
defaulted •
Because the numerator includes capitalized interest while the denominator does
not, default rates are higher than if the numerator and denominator both
included capitalized interest –
Total
–
The sum of Periodic Defaults across Years in Repayment for each
Repayment Year
Cohort Default Triangles |
    61
Cohort Default Triangles
Note: Data as of 12/31/13.
(1)
Undergraduate/Graduate loans marketed under the Signature Student Loan brand.
(2)
Periodic
Defaults
for
the
most
recent
calendar
Year
in
Repayment
are
for
a
partial
year.
(3)
Numerator is the amount of principal in each cohort that defaulted in each Year in
Repayment. Denominator is the amount of disbursed principal for that Repayment Year.
Undergraduate/Graduate
(1) |
    62
Undergraduate/Graduate
(1)
Without Co-signer
Undergraduate/Graduate
(1)
With Co-signer
Note: Data as of 12/31/13.
(1)
Undergraduate/Graduate loans marketed under the Signature Student Loan brand.
(2)
Periodic
Defaults
for
the
most
recent
calendar
Year
in
Repayment
are
for
a
partial
year.
(3)
Numerator is the amount of principal in each cohort that defaulted in each Year in
Repayment. Denominator is the amount of disbursed principal for that Repayment Year.
Cohort Default Triangles
Disbursed Principal
Entering
Repayment Year
Repayment ($m)
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Total
1998
$6
0.0%
0.0%
0.0%
0.0%
0.0%
0.1%
0.6%
1.0%
0.4%
0.0%
0.2%
1.1%
0.1%
0.0%
0.0%
0.1%
3.6%
1999
$14
0.0%
0.0%
0.0%
0.0%
0.4%
0.1%
0.9%
0.4%
0.2%
0.1%
0.4%
0.0%
0.1%
0.1%
0.1%
0.1%
2.9%
2000
$37
0.0%
0.0%
0.0%
0.5%
0.5%
0.7%
0.7%
0.4%
0.7%
1.2%
0.8%
0.9%
0.2%
0.5%
0.1%
7.2%
2001
$90
0.0%
0.0%
0.1%
0.7%
0.9%
0.6%
1.2%
1.0%
1.7%
1.4%
1.1%
0.8%
0.4%
0.1%
10.0%
2002
$196
0.0%
0.2%
0.1%
0.8%
0.6%
1.4%
0.8%
1.9%
1.5%
1.1%
0.7%
0.6%
0.1%
10.0%
2003
$367
0.0%
0.1%
0.3%
0.6%
0.9%
1.1%
2.2%
1.9%
1.4%
0.9%
0.7%
0.2%
10.2%
2004
$632
0.0%
0.2%
0.2%
1.0%
1.0%
2.2%
2.1%
1.4%
1.1%
0.9%
0.2%
10.3%
2005
$844
0.0%
0.0%
0.2%
1.4%
2.5%
2.3%
1.6%
1.2%
0.9%
0.2%
10.2%
2006
$1,121
0.0%
0.0%
0.7%
2.4%
2.4%
1.8%
1.3%
1.1%
0.3%
10.0%
2007
$1,409
0.0%
0.2%
2.0%
2.9%
2.0%
1.5%
1.2%
0.4%
10.2%
2008
$1,759
0.0%
1.2%
2.6%
2.7%
1.7%
1.6%
0.4%
10.2%
2009
$2,098
0.0%
1.9%
2.4%
2.3%
1.8%
0.5%
8.9%
2010
$1,887
0.0%
2.0%
2.3%
2.2%
0.5%
7.0%
2011
$1,366
0.0%
1.6%
2.7%
0.6%
4.9%
2012
$856
0.0%
1.7%
1.0%
2.7%
2013
$412
0.0%
0.4%
0.4%
Periodic Defaults by Years in Repayment
(2),(3)
Disbursed Principal
Entering
Repayment Year
Repayment ($m)
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Total
1998
$5
0.0%
0.0%
0.0%
0.0%
0.0%
0.2%
0.2%
0.6%
0.4%
0.4%
3.1%
0.2%
0.8%
0.8%
0.0%
0.2%
6.8%
1999
$14
0.0%
0.0%
0.0%
0.3%
1.3%
1.1%
1.9%
0.4%
0.3%
1.8%
0.6%
0.5%
1.4%
0.6%
0.1%
0.4%
10.7%
2000
$33
0.0%
0.0%
0.0%
0.8%
1.7%
2.1%
0.6%
1.5%
2.3%
2.0%
1.1%
0.7%
0.7%
0.4%
0.0%
13.9%
2001
$97
0.0%
0.0%
0.1%
1.5%
1.9%
1.2%
2.3%
1.5%
2.9%
2.3%
1.8%
0.9%
0.7%
0.1%
17.1%
2002
$190
0.0%
0.2%
0.2%
1.6%
1.7%
2.3%
2.4%
2.8%
2.4%
1.5%
1.1%
0.6%
0.2%
17.0%
2003
$315
0.0%
0.2%
0.9%
1.4%
2.9%
2.3%
3.3%
3.0%
2.3%
1.5%
0.8%
0.2%
18.8%
2004
$499
0.0%
0.3%
0.4%
3.1%
2.8%
4.1%
3.8%
2.3%
1.7%
1.3%
0.3%
20.2%
2005
$694
0.0%
0.1%
0.7%
3.9%
5.3%
4.7%
2.7%
2.1%
1.6%
0.3%
21.2%
2006
$892
0.0%
0.2%
2.7%
5.3%
5.4%
3.4%
2.3%
1.9%
0.4%
21.7%
2007
$1,044
0.0%
0.8%
5.5%
6.9%
4.3%
2.8%
2.4%
0.6%
23.2%
2008
$1,176
0.1%
4.0%
6.5%
5.8%
3.7%
3.0%
0.8%
24.0%
2009
$1,173
0.0%
6.0%
6.0%
5.6%
3.8%
1.0%
22.4%
2010
$926
0.0%
6.6%
6.7%
5.9%
1.1%
20.3%
2011
$522
0.0%
6.6%
8.9%
1.8%
17.3%
2012
$254
0.1%
7.0%
3.8%
10.9%
2013
$125
0.1%
1.3%
1.5%
Periodic Defaults by Years in Repayment
(2),(3) |
    63
Note: Data as of 12/31/13.
(1)
Undergraduate/Graduate loans marketed under the Signature Student Loan brand.
(2)
Periodic
Defaults
for
the
most
recent
calendar
Year
in
Repayment
are
for
a
partial
year.
(3)
Numerator is the amount of principal in each cohort that defaulted in each Year in
Repayment. Denominator is the amount of disbursed principal for that Repayment Year.
Undergraduate/Graduate
(1)
Non-Profit
Undergraduate/Graduate
(1)
For-Profit
Cohort Default Triangles
Disbursed Principal
Entering
Repayment Year
Repayment ($m)
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Total
1998
$11
0.0%
0.0%
0.0%
0.0%
0.0%
0.2%
0.4%
0.4%
0.4%
0.2%
1.1%
0.7%
0.3%
0.4%
0.0%
0.1%
4.2%
1999
$26
0.0%
0.0%
0.0%
0.0%
0.8%
0.5%
1.2%
0.4%
0.3%
1.0%
0.5%
0.2%
0.5%
0.4%
0.1%
0.1%
6.1%
2000
$68
0.0%
0.0%
0.0%
0.6%
1.0%
1.4%
0.5%
0.9%
1.4%
1.3%
1.0%
0.8%
0.5%
0.5%
0.0%
10.0%
2001
$180
0.0%
0.0%
0.1%
1.0%
1.4%
0.9%
1.7%
1.2%
2.4%
1.8%
1.5%
0.8%
0.6%
0.1%
13.3%
2002
$360
0.0%
0.2%
0.2%
1.2%
1.0%
1.8%
1.6%
2.3%
2.0%
1.3%
0.9%
0.6%
0.1%
13.2%
2003
$630
0.0%
0.2%
0.6%
0.8%
1.8%
1.6%
2.6%
2.4%
1.7%
1.1%
0.7%
0.2%
13.7%
2004
$1,006
0.0%
0.2%
0.2%
1.8%
1.6%
2.9%
2.6%
1.7%
1.3%
1.1%
0.2%
13.8%
2005
$1,362
0.0%
0.0%
0.4%
2.4%
3.5%
3.2%
2.0%
1.5%
1.2%
0.2%
14.4%
2006
$1,767
0.0%
0.1%
1.5%
3.5%
3.6%
2.4%
1.7%
1.4%
0.3%
14.5%
2007
$2,105
0.0%
0.4%
3.4%
4.3%
2.8%
1.9%
1.7%
0.4%
15.0%
2008
$2,460
0.0%
2.2%
3.9%
3.6%
2.4%
2.1%
0.5%
14.8%
2009
$2,705
0.0%
3.2%
3.4%
3.4%
2.4%
0.6%
13.0%
2010
$2,404
0.0%
3.4%
3.6%
3.2%
0.6%
10.9%
2011
$1,678
0.0%
2.8%
4.2%
0.8%
7.8%
2012
$1,010
0.0%
2.8%
1.5%
4.3%
2013
$485
0.0%
0.5%
0.6%
Periodic Defaults by Years in Repayment
(2),(3)
Disbursed Principal
Entering
Repayment Year
Repayment ($m)
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Total
1998
$0.36
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
13.6%
0.0%
0.0%
12.6%
0.0%
5.1%
0.0%
0.4%
0.0%
31.7%
1999
$2
0.0%
0.0%
0.0%
2.3%
1.4%
2.1%
4.8%
0.0%
0.0%
0.0%
0.0%
0.9%
5.3%
0.0%
0.0%
2.5%
19.3%
2000
$2
0.0%
0.0%
0.0%
0.0%
2.8%
0.7%
3.2%
3.2%
3.7%
8.9%
0.0%
1.6%
0.0%
0.0%
0.0%
24.3%
2001
$7
0.0%
0.1%
0.1%
4.7%
2.2%
1.1%
4.3%
2.2%
0.8%
3.5%
1.5%
1.8%
0.4%
0.0%
22.8%
2002
$27
0.0%
0.0%
0.3%
1.9%
2.2%
2.1%
2.0%
2.8%
1.8%
1.3%
0.8%
0.7%
0.4%
16.4%
2003
$52
0.0%
0.2%
0.7%
2.4%
2.7%
2.2%
3.8%
3.0%
2.4%
1.5%
0.9%
0.3%
20.2%
2004
$126
0.0%
0.3%
0.6%
3.2%
3.0%
3.9%
4.6%
2.3%
1.8%
1.3%
0.4%
21.6%
2005
$175
0.0%
0.0%
0.7%
3.7%
5.3%
4.9%
2.7%
1.9%
1.3%
0.5%
21.1%
2006
$246
0.0%
0.2%
2.1%
4.9%
5.0%
3.2%
2.1%
1.8%
0.6%
19.9%
2007
$348
0.0%
0.5%
4.3%
6.5%
4.0%
2.5%
2.1%
0.7%
20.5%
2008
$475
0.0%
3.0%
5.9%
5.5%
3.1%
2.5%
0.8%
20.8%
2009
$567
0.0%
4.2%
5.0%
4.2%
3.1%
0.9%
17.5%
2010
$410
0.1%
4.5%
4.5%
4.5%
1.2%
14.7%
2011
$211
0.1%
4.4%
6.2%
1.6%
12.2%
2012
$101
0.1%
4.1%
3.1%
7.2%
2013
$51
0.2%
1.4%
1.6%
Periodic Defaults by Years in Repayment
(2),(3) |
    64
Undergraduate/Graduate
(1)
Loans, FICO 740-850
(2)
Undergraduate/Graduate
(1)
Loans, FICO 700-739
(2)
Note: Data as of 12/31/13.
(1)
Undergraduate/Graduate loans marketed under the Signature Student Loan brand.
(2)
FICO scores are based on the greater of the borrower and co-borrower scores as
of a date near the loan application. (3)
Periodic
Defaults
for
the
most
recent
calendar
Year
in
Repayment
are
for
a
partial
year.
(4)
Numerator is the amount of principal in each cohort that defaulted in each Year in
Repayment. Denominator is the amount of disbursed principal for that Repayment Year.
Cohort Default Triangles
Disbursed Principal
Entering
Repayment Year
Repayment ($m)
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Total
1998
$3
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.2%
0.0%
0.4%
0.4%
0.9%
0.9%
0.0%
0.0%
0.0%
0.0%
2.8%
1999
$6
0.0%
0.0%
0.0%
0.0%
0.5%
0.3%
1.7%
0.5%
0.2%
0.2%
0.0%
0.2%
0.0%
0.4%
0.0%
0.8%
4.8%
2000
$22
0.0%
0.0%
0.0%
0.3%
0.4%
0.4%
0.2%
0.3%
1.0%
1.0%
0.4%
0.5%
0.0%
0.2%
0.1%
4.8%
2001
$64
0.0%
0.0%
0.0%
0.5%
0.4%
0.4%
1.1%
0.8%
1.0%
0.7%
0.6%
0.7%
0.4%
0.1%
6.7%
2002
$137
0.0%
0.2%
0.1%
0.5%
0.4%
0.8%
0.6%
1.1%
0.9%
0.6%
0.5%
0.4%
0.1%
6.3%
2003
$249
0.0%
0.1%
0.2%
0.4%
0.6%
0.7%
1.2%
1.4%
0.9%
0.7%
0.6%
0.1%
6.9%
2004
$424
0.0%
0.1%
0.1%
0.7%
0.7%
1.4%
1.3%
0.9%
0.8%
0.7%
0.2%
6.9%
2005
$574
0.0%
0.0%
0.2%
1.0%
1.5%
1.5%
1.1%
0.9%
0.6%
0.2%
6.9%
2006
$762
0.0%
0.0%
0.5%
1.4%
1.5%
1.1%
0.8%
0.7%
0.2%
6.2%
2007
$938
0.0%
0.1%
1.2%
1.6%
1.1%
1.0%
0.8%
0.3%
6.1%
2008
$1,131
0.0%
0.7%
1.5%
1.4%
1.0%
1.0%
0.2%
5.9%
2009
$1,346
0.0%
1.1%
1.4%
1.4%
1.2%
0.3%
5.5%
2010
$1,217
0.0%
1.4%
1.5%
1.5%
0.4%
4.8%
2011
$844
0.0%
1.1%
1.7%
0.4%
3.3%
2012
$513
0.0%
1.3%
0.6%
1.9%
2013
$251
0.0%
0.3%
0.4%
Periodic Defaults by Years in Repayment
(3),(4)
Disbursed Principal
Entering
Repayment Year
Repayment ($m)
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Total
1998
$3
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.5%
2.2%
0.0%
0.0%
0.0%
0.0%
0.1%
0.8%
0.0%
0.0%
3.6%
1999
$8
0.0%
0.0%
0.0%
0.0%
0.5%
0.4%
0.7%
0.0%
0.3%
1.5%
0.7%
0.1%
0.8%
0.1%
0.0%
0.0%
5.1%
2000
$20
0.0%
0.0%
0.0%
0.4%
0.7%
1.3%
0.8%
1.1%
0.8%
1.3%
0.7%
0.6%
0.4%
0.8%
0.0%
8.8%
2001
$54
0.0%
0.0%
0.1%
0.9%
1.2%
0.5%
1.4%
0.9%
1.9%
1.4%
1.2%
0.9%
0.5%
0.0%
11.0%
2002
$111
0.0%
0.1%
0.1%
1.1%
1.0%
1.7%
1.4%
2.2%
1.4%
1.3%
0.8%
0.5%
0.1%
11.7%
2003
$194
0.0%
0.2%
0.5%
0.8%
1.5%
1.5%
2.4%
1.9%
1.8%
1.2%
0.7%
0.2%
12.7%
2004
$321
0.0%
0.2%
0.2%
1.7%
1.5%
2.5%
2.8%
1.8%
1.4%
1.0%
0.2%
13.4%
2005
$439
0.0%
0.0%
0.4%
2.2%
3.3%
2.9%
2.1%
1.4%
1.1%
0.2%
13.8%
2006
$553
0.0%
0.1%
1.3%
3.1%
3.4%
2.3%
1.6%
1.2%
0.4%
13.5%
2007
$659
0.0%
0.3%
2.8%
4.1%
2.7%
1.7%
1.6%
0.4%
13.7%
2008
$782
0.0%
2.0%
3.8%
3.5%
2.4%
2.0%
0.5%
14.2%
2009
$883
0.0%
3.0%
3.5%
3.4%
2.5%
0.7%
13.0%
2010
$740
0.0%
3.4%
3.7%
3.3%
0.6%
11.0%
2011
$486
0.0%
2.9%
4.2%
0.9%
8.0%
2012
$284
0.1%
2.6%
1.6%
4.3%
2013
$136
0.0%
0.5%
0.6%
Periodic Defaults by Years in Repayment
(3),(4) |
    65
Note: Data as of 12/31/13.
(1)
Undergraduate/Graduate loans marketed under the Signature Student Loan brand.
(2)
FICO scores are based on the greater of the borrower and co-borrower scores as
of a date near the loan application. (3)
Periodic
Defaults
for
the
most
recent
calendar
Year
in
Repayment
are
for
a
partial
year.
(4)
Numerator is the amount of principal in each cohort that defaulted in each Year in
Repayment. Denominator is the amount of disbursed principal for that Repayment Year.
Undergraduate/Graduate
(1)
Loans, FICO 670-699
(2)
Undergraduate/Graduate
(1)
Loans, FICO 640-669
(2)
Cohort Default Triangles
Disbursed Principal
Entering
Repayment Year
Repayment ($m)
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Total
1998
$3
0.0%
0.0%
0.0%
0.0%
0.0%
0.6%
0.6%
0.3%
0.5%
0.3%
2.8%
0.0%
0.5%
0.3%
0.1%
0.3%
6.2%
1999
$7
0.0%
0.0%
0.0%
0.5%
1.4%
0.5%
1.3%
0.3%
0.3%
0.1%
0.7%
0.5%
1.3%
0.4%
0.0%
0.0%
7.3%
2000
$14
0.0%
0.0%
0.0%
0.9%
1.4%
1.9%
0.2%
1.0%
0.9%
1.4%
1.4%
1.0%
0.9%
0.4%
0.0%
11.4%
2001
$37
0.0%
0.0%
0.1%
1.3%
2.1%
1.5%
1.9%
1.6%
2.7%
2.9%
2.0%
0.8%
0.6%
0.2%
17.6%
2002
$77
0.0%
0.2%
0.3%
1.6%
1.8%
2.4%
2.4%
2.9%
2.7%
1.5%
1.1%
0.7%
0.2%
17.9%
2003
$134
0.0%
0.1%
0.8%
1.3%
2.8%
2.2%
3.7%
3.3%
2.2%
1.3%
0.7%
0.2%
18.6%
2004
$222
0.0%
0.3%
0.5%
2.9%
2.6%
4.2%
3.8%
2.3%
1.7%
1.3%
0.3%
19.8%
2005
$298
0.0%
0.1%
0.7%
3.8%
5.2%
4.9%
2.8%
1.9%
1.5%
0.3%
21.2%
2006
$402
0.0%
0.2%
2.6%
5.5%
5.5%
3.6%
2.4%
1.9%
0.4%
22.2%
2007
$505
0.0%
0.7%
5.6%
7.4%
4.7%
3.0%
2.4%
0.6%
24.4%
2008
$623
0.0%
3.8%
6.9%
6.3%
3.7%
3.1%
0.9%
24.9%
2009
$664
0.1%
5.7%
6.1%
5.9%
3.8%
1.0%
22.6%
2010
$546
0.0%
6.1%
6.2%
5.6%
1.1%
19.0%
2011
$357
0.0%
5.0%
7.7%
1.6%
14.2%
2012
$200
0.1%
4.8%
2.8%
7.7%
2013
$95
0.0%
1.1%
1.2%
Periodic Defaults by Years in Repayment
(3),(4)
Disbursed Principal
Entering
Repayment Year
Repayment ($m)
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Total
1998
$2
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.3%
0.5%
0.9%
0.0%
2.9%
2.3%
1.3%
0.2%
0.0%
0.3%
8.6%
1999
$6
0.0%
0.0%
0.0%
0.0%
1.1%
1.3%
2.3%
0.9%
0.3%
2.1%
0.5%
0.1%
0.7%
0.5%
0.4%
0.3%
10.6%
2000
$14
0.0%
0.0%
0.0%
1.3%
2.5%
2.3%
1.4%
1.6%
3.8%
3.0%
1.9%
1.5%
0.7%
0.5%
0.1%
20.6%
2001
$32
0.0%
0.0%
0.1%
2.3%
2.9%
2.0%
3.4%
2.6%
5.2%
3.8%
2.8%
1.1%
1.0%
0.2%
27.4%
2002
$61
0.0%
0.2%
0.4%
2.7%
2.3%
3.9%
3.1%
4.6%
4.2%
2.4%
1.8%
1.2%
0.3%
27.0%
2003
$107
0.0%
0.3%
1.3%
2.1%
4.1%
3.3%
5.4%
4.5%
3.5%
2.1%
1.4%
0.3%
28.4%
2004
$165
0.0%
0.5%
0.5%
4.4%
3.9%
6.4%
5.7%
3.5%
2.4%
2.1%
0.4%
29.8%
2005
$226
0.0%
0.1%
0.9%
5.4%
8.2%
7.0%
3.8%
3.3%
2.2%
0.4%
31.2%
2006
$296
0.0%
0.2%
3.7%
8.1%
7.8%
4.8%
3.5%
2.9%
0.8%
31.8%
2007
$351
0.0%
1.1%
8.0%
9.8%
6.0%
3.9%
3.3%
0.8%
33.0%
2008
$398
0.0%
5.4%
8.5%
8.1%
5.2%
4.2%
1.1%
32.6%
2009
$379
0.0%
8.2%
7.9%
7.3%
4.8%
1.2%
29.4%
2010
$311
0.0%
8.0%
8.3%
7.6%
1.2%
25.1%
2011
$202
0.0%
7.7%
10.2%
1.9%
19.8%
2012
$114
0.0%
7.4%
3.9%
11.3%
2013
$55
0.0%
1.3%
1.3%
Periodic Defaults by Years in Repayment
(3),(4) |
    66
Private Consolidation Loans Without Co-signer
Private Consolidation Loans With Co-signer
Note: Data as of 12/31/13.
(1)
Periodic
Defaults
for
the
most
recent
calendar
Year
in
Repayment
are
for
a
partial
year.
(2)
Numerator is the amount of principal in each cohort that defaulted in each Year in
Repayment. Denominator is the amount of disbursed principal for that Repayment Year.
Cohort Default Triangles
Disbursed Principal
Entering
Repayment Year
Repayment ($m)
0
1
2
3
4
5
6
7
8
Total
2006
$249
0.0%
0.1%
0.1%
0.5%
0.6%
0.6%
0.4%
0.3%
0.1%
2.7%
2007
$675
0.0%
0.0%
0.2%
0.4%
0.6%
0.4%
0.4%
0.2%
2.3%
2008
$376
0.0%
0.1%
0.4%
0.6%
0.6%
0.6%
0.4%
2.6%
Periodic Defaults by Years in Repayment
(1),(2)
Disbursed Principal
Entering
Repayment Year
Repayment ($m)
0
1
2
3
4
5
6
7
8
Total
2006
$125
0.0%
0.4%
0.9%
1.5%
1.6%
1.5%
1.0%
1.1%
0.2%
8.3%
2007
$295
0.0%
0.0%
0.9%
1.0%
1.3%
1.0%
1.0%
0.4%
5.6%
2008
$133
0.0%
0.2%
1.7%
2.1%
1.7%
1.7%
1.3%
8.6%
Periodic Defaults by Years in Repayment
(1),(2) |
      67
Note: Data as of 12/31/13.
(1)
FICO scores are based on the greater of the borrower and co-borrower scores as
of a date near the loan application. (2)
Periodic
Defaults
for
the
most
recent
calendar
Year
in
Repayment
are
for
a
partial
year.
(3)
Numerator is the amount of principal in each cohort that defaulted in each Year in
Repayment. Denominator is the amount of disbursed principal for that Repayment Year.
DTC With Co-signer, FICO 670
(1)
DTC Without Co-signer, FICO 670
(1)
Cohort Default Triangles
Disbursed Principal
Entering
Repayment Year
Repayment ($m)
0
1
2
3
4
5
6
7
8
9
10
Total
2004
$8
0.0%
0.0%
0.0%
0.0%
0.0%
0.5%
0.1%
0.4%
0.0%
0.2%
0.0%
1.3%
2005
$65
0.0%
0.1%
0.8%
0.8%
1.4%
2.1%
1.2%
0.9%
0.8%
0.5%
8.6%
2006
$139
0.0%
0.7%
1.8%
4.4%
4.8%
2.4%
2.0%
2.1%
0.6%
18.7%
2007
$245
0.0%
0.6%
4.7%
6.2%
4.2%
2.7%
2.6%
0.8%
21.7%
2008
$369
0.0%
2.9%
5.9%
4.9%
3.6%
2.8%
1.0%
21.0%
2009
$398
0.0%
3.7%
4.1%
4.0%
3.1%
1.0%
15.8%
2010
$316
0.0%
3.5%
4.0%
4.6%
1.4%
13.6%
2011
$193
0.1%
3.7%
5.2%
1.9%
10.9%
2012
$105
0.0%
3.2%
3.3%
6.5%
2013
$24
0.0%
0.7%
0.7%
Periodic Defaults by Years in Repayment
(2),(3)
Disbursed Principal
Entering
Repayment Year
Repayment ($m)
0
1
2
3
4
5
6
7
8
9
10
Total
2004
$2
0.0%
0.0%
1.6%
1.2%
0.6%
4.7%
2.2%
3.0%
1.2%
4.2%
0.0%
18.8%
2005
$19
0.0%
1.0%
2.1%
2.4%
4.1%
6.5%
2.8%
1.6%
1.0%
0.1%
21.5%
2006
$66
0.0%
1.4%
2.5%
6.6%
6.4%
4.0%
2.7%
2.6%
0.5%
26.7%
2007
$158
0.0%
1.0%
5.8%
8.1%
4.6%
3.8%
3.2%
0.8%
27.4%
2008
$256
0.0%
3.7%
7.9%
7.3%
4.1%
3.9%
1.2%
28.2%
2009
$235
0.0%
6.7%
6.2%
6.8%
5.0%
1.4%
26.2%
2010
$152
0.1%
8.3%
6.9%
8.7%
1.6%
25.6%
2011
$89
0.1%
7.8%
10.0%
3.0%
21.0%
2012
$47
0.0%
6.1%
5.9%
12.1%
2013
$5
0.0%
1.8%
1.8%
Periodic Defaults by Years in Repayment
(2),(3) |
        68
68
Note: Data as of 12/31/13.
(1)
FICO scores are based on the greater of the borrower and co-borrower scores as
of a date near the loan application. (2)
Periodic
Defaults
for
the
most
recent
calendar
Year
in
Repayment
are
for
a
partial
year.
(3)
Numerator is the amount of principal in each cohort that defaulted in each Year in
Repayment. Denominator is the amount of disbursed principal for that Repayment Year.
Career Training Loans, 670+ FICO
(1)
Cohort Default Triangles
Disbursed Principal
Entering
Repayment Year
Repayment ($m)
0
1
2
3
4
5
6
7
8
9
10
11
Total
2003
$291
0.0%
0.4%
1.4%
1.6%
1.8%
1.4%
1.3%
1.0%
0.8%
0.5%
0.4%
0.1%
10.8%
2004
$383
0.0%
0.4%
1.5%
2.3%
1.7%
1.8%
1.7%
1.1%
0.8%
0.5%
0.2%
12.1%
2005
$513
0.0%
0.3%
2.2%
2.2%
2.5%
2.2%
1.5%
1.0%
0.7%
0.3%
12.8%
2006
$633
0.0%
0.4%
2.5%
3.5%
3.2%
2.2%
1.5%
1.0%
0.3%
14.7%
2007
$675
0.0%
0.5%
3.5%
3.9%
2.9%
1.8%
1.2%
0.5%
14.4%
2008
$594
0.0%
0.6%
4.2%
3.5%
2.2%
1.4%
0.6%
12.6%
2009
$186
0.0%
0.2%
1.9%
1.9%
1.3%
0.6%
5.9%
2010
$24
0.0%
0.5%
0.9%
0.8%
0.3%
2.5%
Periodic Defaults by Years in Repayment
(2),(3) |
    69
SLM Appendix |
    70
Differences between “Core Earnings”
and GAAP |
    71
SLM student loan trust data (Debt/asset backed securities –
SLM Student Loan
Trusts)
–
Static pool information –
Detailed portfolio stratifications by trust as of the cutoff date
–
Accrued interest factors
–
Quarterly distribution factors
–
Historical trust performance -
monthly charge-off, delinquency, loan status, CPR, etc. by trust
–
Since issued CPR –
monthly CPR data by trust since issuance
SLM student loan performance by trust –
Issue details
–
Current and historical monthly distribution reports
–
Distribution factors
–
Current rates
–
Prospectus for public transactions and Rule 144A transactions are available
through underwriters Additional information (Webcasts and presentations)
–
Archived and historical webcasts, transcripts and investor presentations
Sallie Mae Investor Relations Website
www.salliemae.com/investors |