Sallie Mae 2007 Annual Report Download - page 72

Balance % Balance % Balance %
December 31,
2007
December 31,
2006
December 31,
2005
Managed Basis Private Education
Loan Delinquencies
Loans in-school/grace/deferment
(1)
....... $13,114 $10,826 $ 7,980
Loans in forbearance
(2)
................ 2,391 1,181 917
Loans in repayment and percentage of each
status:
Loans current ..................... 13,639 91.7% 10,633 91.3% 7,757 93.3%
Loans delinquent 31-60 days
(3)
........ 508 3.4 472 4.0 302 3.6
Loans delinquent 61-90 days
(3)
........ 260 1.8 192 1.7 112 1.4
Loans delinquent greater than 90 days
(3)
. . 459 3.1 346 3.0 144 1.7
Total Private Education Loans in
repayment...................... 14,866 100% 11,643 100% 8,315 100%
Total Private Education Loans, gross...... 30,371 23,650 17,212
Private Education Loan unamortized
discount ......................... (823) (668) (493)
Total Private Education Loans .......... 29,548 22,982 16,719
Private Education Loan allowance for
losses ........................... (1,220) (394) (282)
Private Education Loans, net ........... $28,328 $22,588 $16,437
Percentage of Private Education Loans in
repayment ....................... 48.9% 49.2% 48.3%
Delinquencies as a percentage of Private
Education Loans in repayment ........ 8.3% 8.7% 6.7%
Loans in forbearance as a percentage of
loans in repayment and forbearance .... 13.9% 9.2% 9.9%
(1)
Loans for borrowers who still may be attending school or engaging in other permitted educational activities and are not yet
required to make payments on the loans, e.g., residency periods for medical students or a grace period for bar exam preparation.
(2)
Loans for borrowers who have requested extension of grace period generally during employment transition or who have tempo-
rarily ceased making full payments due to hardship or other factors, consistent with the established loan program servicing poli-
cies and procedures.
(3)
The period of delinquency is based on the number of days scheduled payments are contractually past due.
Forbearance — Managed Basis Private Education Loans
Private Education Loans are made to parent and student borrowers in accordance with our underwriting
policies. These loans generally supplement federally guaranteed student loans, which are subject to federal
lending caps. Private Education Loans are not federally guaranteed or insured against any loss of principal or
interest. Student borrowers use the proceeds of these loans to obtain higher education, which increases the
likelihood of obtaining employment at higher income levels than would be available without the additional
education. As a result, the borrowers’ repayment capability improves between the time the loan is made and
the time they enter the post-education work force. We generally allow the loan repayment period on most
higher education Private Education Loans to begin six months after the borrower leaves school (consistent with
our federally regulated FFELP loans). This provides the borrower time after graduation to obtain a job to
service the debt. For borrowers that need more time or experience other hardships, we permit additional delays
in payment or partial payments (both referred to as forbearances) when we believe additional time will
improve the borrower’s ability to repay the loan. Forbearance is also granted to borrowers who may experience
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