Sallie Mae 2008 Annual Report Download - page 154

4. Allowance for Loan Losses (Continued)
The table below shows the Company’s FFELP loan delinquency trends as of December 31, 2008, 2007
and 2006. Delinquencies have the potential to adversely impact earnings if the account charges off and results
in increased servicing and collection costs.
Balance % Balance % Balance %
2008 2007 2006
December 31,
(Dollars in millions)
Loans in-school/grace/deferment
(1)
..... $ 39,270 $ 31,200 $23,171
Loans in forbearance
(2)
.............. 12,483 10,675 8,325
Loans in repayment and percentage of
each status:
Loans current ................... 58,811 83.8% 55,128 84.4% 45,664 86.0%
Loans delinquent 31-60 days
(3)
...... 4,044 5.8 3,650 5.6 2,787 5.2
Loans delinquent 61-90 days........ 2,064 2.9 1,841 2.8 1,468 2.8
Loans delinquent greater than
90 days . . ................... 5,255 7.5 4,671 7.2 3,207 6.0
Total FFELP loans in repayment ..... 70,174 100% 65,290 100% 53,126 100%
Total FFELP loans, gross ............ 121,927 107,165 84,622
FFELP loan unamortized premium ..... 2,431 2,259 1,563
Total FFELP loans ................. 124,358 109,424 86,185
FFELP loan allowance for losses ...... (138) (89) (20)
FFELP loans, net .................. $124,220 $109,335 $86,165
Percentage of FFELP loans in
repayment . . ................... 57.6% 60.9% 62.8%
Delinquencies as a percentage of FFELP
loans in repayment ............... 16.2% 15.6% 14.0%
FFELP loans in forbearance as a
percentage of loans in repayment and
forbearance . ................... 15.1% 14.1% 13.5%
(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,
as well as, loans for borrowers who have requested extension of grace period during employment transition or who have tempo-
rarily ceased making full payments due to hardship or other factors.
(2)
Loans for borrowers who have used their allowable deferment time or do not qualify for deferment, that need additional time to
obtain employment or who have temporarily ceased making full payments due to hardship or other factors.
(3)
The period of delinquency is based on the number of days scheduled payments are contractually past due.
F-34
SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Dollars in thousands, except per share amounts, unless otherwise stated)