Sallie Mae 2009 Annual Report Download - page 162

4. Allowance for Loan Losses (Continued)
Allowance for FFELP Loan Losses
The following table summarizes changes in the allowance for student loan losses for federally insured
student loan portfolios for the years ended December 31, 2009, 2008, and 2007.
2009 2008 2007
Years Ended December 31,
Allowance at beginning of year.............. $ 137,543 $ 88,729 $ 20,315
Provisions for student loan losses ............. 106,221 105,568 89,083
Charge-offs ............................. (78,861) (57,510) (21,235)
Increase/decrease for student loan sales and
securitizations .......................... (3,735) 756 566
Allowance at end of year .................. $ 161,168 $ 137,543 $ 88,729
Charge-offs as a percentage of average loans in
repayment ............................. .1% .1% .04%
Charge-offs as a percentage of average loans in
repayment and forbearance ................ .1% .1% .03%
Allowance as a percentage of the ending total
loans, gross............................ .1% .1% .1%
Allowance as a percentage of the ending loans in
repayment ............................. .2% .2% .1%
Allowance coverage of charge-offs ............ 2.0 2.4 4.2
Ending total loans, gross .................... $119,026,931 $121,926,798 $107,164,729
Average loans in repayment ................. $ 69,020,295 $ 66,392,120 $ 58,999,119
Ending loans in repayment .................. $ 69,826,790 $ 70,174,192 $ 65,289,865
The Company maintains an allowance for Risk Sharing loan losses on its FFELP portfolio. The level of
Risk Sharing has varied for the Company over the past few years with legislative changes. As of December 31,
2009, 50 percent of the on-balance sheet FFELP loan portfolio was subject to three-percent Risk Sharing,
49 percent was subject to two-percent Risk Sharing and the remaining 1 percent was not subject to any Risk
Sharing.
F-35
SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Dollars in thousands, except per share amounts, unless otherwise stated)