Sallie Mae 2007 Annual Report Download - page 149
Download and view the complete annual report
Please find page 149 of the 2007 Sallie Mae annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139 -
140 -
141 -
142 -
143 -
144 -
145 -
146 -
147 -
148 -
149 -
150 -
151 -
152 -
153 -
154 -
155 -
156 -
157 -
158 -
159 -
160
-
161
-
162
-
163
-
164
-
165
-
166
-
167
-
168
-
169
-
170
-
171
-
172
-
173
-
174
-
175
-
176
-
177
-
178
-
179
-
180
-
181
-
182
-
183
-
184
-
185
-
186
-
187
-
188
-
189
-
190
-
191
-
192
-
193
-
194
-
195
-
196
-
197
-
198
-
199
-
200
-
201
-
202
-
203
-
204
-
205
-
206
-
207
-
208
-
209
-
210
-
211
-
212
-
213
-
214
-
215
-
216
-
217
-
218
-
219
 |
 |
4. Allowance for Loan Losses (Continued)
Allowance for Private Education Loan Losses
The Company’s allowance for Private Education Loan losses is an estimate of losses incurred in the
portfolio at the balance sheet date that will be charged off in subsequent periods. The maturing of the
Company’s Private Education Loan portfolios has provided more historical data on borrower default behavior
such that those portfolios can now be analyzed to determine the effects that the various stages of delinquency
have on borrower default behavior and ultimate charge-off. In 2005, the Company changed its estimate of the
allowance for loan losses to include a migration analysis of delinquent and current accounts, in addition to
other considerations. A migration analysis is a technique used to estimate the likelihood that a loan receivable
may progress through the various delinquency stages and ultimately charge off. Additionally, other factors are
considered, including external factors and forecasting data, which can result in adjustments to the formula-
based migration analysis. Prior to 2005, the Company calculated its allowance for Private Education Loan
losses by estimating the probable losses in the portfolio based primarily on loan characteristics and where
pools of loans were in their life with less emphasis on current delinquency status of the loan. Also, in the prior
methodology for calculating the allowance, some loss rates were based on proxies and extrapolations of
FFELP loan loss data.
Also in 2005, the Company transitioned to a migration analysis to revise its estimates pertaining to its
non-accrual policy for interest income. Under this methodology, the amount of uncollectible accrued interest
on Private Education Loans is estimated and written off against current period interest income. Under the
Company’s prior methodology, Private Education Loans continued to accrue interest, including in periods of
forbearance, until they were charged off, at which time, the loans were placed on non-accrual status and all
previously accrued interest was reversed against income in the month of charge-off. The allowance for loan
losses provided for a portion of the probable losses in accrued interest receivable prior to charge-off.
F-28
SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands, except per share amounts, unless otherwise stated)