Sallie Mae 2007 Annual Report Download - page 151
Download and view the complete annual report
Please find page 151 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)
portfolio is particularly impacted by the weakening U.S. economy, as evidenced by recently released economic
indicators, certain credit-related trends in the Company’s portfolio and a further tightening of forbearance
policies. The Company has recently taken actions to terminate these non-traditional loan programs because the
performance of these loans is materially different from the Company’s original expectations and from the rest
of the Company’s Private Education Loan programs. The Company charges off loans after 212 days of
delinquency. Accordingly, the Company believes that charge-offs occurring late in 2007 represent losses
incurred at the onset of the current economic downturn and do not incorporate the full-effect of the general
economic downturn that became evident in the fourth quarter of 2007. In addition, the Company has
historically been able to mitigate its losses during varying economic environments through the use of
forbearance and other collection management strategies. With the continued weakening of the U.S. economy,
and the projected continued recessionary conditions, the Company believes that those strategies as they relate
to the non-traditional portion of the loan portfolio will not be as effective as they have been in the past. For
these reasons, the Company recorded additional provision in the fourth quarter of 2007.
The table below shows the Company’s Private Education Loan delinquency trends as of December 31,
2007, 2006 and 2005. Delinquencies have the potential to adversely impact earnings if the account charges off
and results in increased servicing and collection costs.
F-30
SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands, except per share amounts, unless otherwise stated)