Sallie Mae 2008 Annual Report Download - page 59

Private Education Loan Delinquencies and Forbearance
The table below presents our Private Education Loan delinquency trends as of December 31, 2008, 2007
and 2006. Delinquencies have the potential to adversely impact earnings as they are an initial indication of the
borrower’s potential to possibly default and as a result command a higher loan loss reserve than loans in
current status. Delinquent loans also require increased servicing and collection efforts, resulting in higher
operating costs.
Balance % Balance % Balance %
December 31,
2008
December 31,
2007
December 31,
2006
On-Balance Sheet Private Education
Loan Delinquencies
Loans in-school/grace/deferment
(1)
....... $10,159 $ 8,151 $ 5,218
Loans in forbearance
(2)
................ 862 974 359
Loans in repayment and percentage of each
status:
Loans current ..................... 9,748 87.2% 6,236 88.5% 4,214 86.9%
Loans delinquent 31-60 days
(3)
........ 551 4.9 306 4.3 250 5.1
Loans delinquent 61-90 days
(3)
........ 296 2.6 176 2.5 132 2.7
Loans delinquent greater than
90 days
(3)
...................... 587 5.3 329 4.7 255 5.3
Total Private Education Loans in
repayment...................... 11,182 100% 7,047 100% 4,851 100%
Total Private Education Loans, gross...... 22,203 16,172 10,428
Private Education Loan unamortized
discount ......................... (535) (468) (365)
Total Private Education Loans .......... 21,668 15,704 10,063
Private Education Loan receivable for
partially charged-off loans ........... 222 118 64
Private Education Loan allowance for
losses ........................... (1,308) (1,004) (372)
Private Education Loans, net ........... $20,582 $14,818 $ 9,755
Percentage of Private Education Loans in
repayment ....................... 50.4% 43.6% 46.5%
Delinquencies as a percentage of Private
Education Loans in repayment ........ 12.8% 11.5% 13.1%
Loans in forbearance as a percentage of
loans in repayment and forbearance .... 7.2% 12.1% 6.9%
(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 established loan program servicing policies
and procedures.
(3)
The period of delinquency is based on the number of days scheduled payments are contractually past due.
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