Sallie Mae 2009 Annual Report Download - page 77

Allowance for FFELP Loan Losses
The provision for student loan losses represents the periodic expense of maintaining an allowance
sufficient to absorb incurred Risk Sharing losses, in the portfolio of FFELP loans.
The following table summarizes changes in the allowance for FFELP loan losses for the years ended
December 31, 2009, 2008 and 2007.
2009 2008 2007 2009 2008 2007 2009 2008 2007
On-Balance Sheet
Years Ended December 31,
Off-Balance Sheet
Years Ended December 31,
Managed Basis
Years Ended December 31,
Activity in Allowance for FFELP Loans
Allowance at beginning of
period . . ........... $ 138 $ 89 $ 20 $ 27 $ 29 $ 14 $ 165 $ 118 $ 34
Provision for FFELP loan
losses . . ........... 106 106 89 13 21 32 119 127 121
Charge-offs ........... (79) (58) (21) (15) (21) (15) (94) (79) (36)
Student loan sales and
securitization activity . . . (4) 1 1 — (2) (2) (4) (1) (1)
Allowance at end of
period . . ........... $ 161 $ 138 $ 89 $ 25 $ 27 $ 29 $ 186 $ 165 $ 118
Charge-offs as a percentage
of average loans in
repayment .......... .1% .1% .0% .1% .1% .1% .1% .1% .1%
Charge-offs as a percentage
of average loans in
repayment and
forbearance .......... .1% .1% .0% .1% .1% .1% .1% .1% .0%
Allowance as a percentage
of the ending total loans,
gross . . . ........... .1% .1% .1% .1% .1% .1% .1% .1% .1%
Allowance as a percentage
of ending loans in
repayment .......... .2% .2% .1% .2% .2% .2% .2% .2% .1%
Average coverage of charge-
offs............... 2.0 2.4 4.2 1.7 1.3 1.9 2.0 2.1 3.2
Ending total loans, gross . . . $119,027 $121,927 $107,165 $19,745 $22,134 $25,306 $138,772 $144,061 $132,471
Average loans in
repayment .......... $ 69,020 $ 66,392 $ 58,999 $14,293 $16,086 $18,624 $ 83,313 $ 82,478 $ 77,623
Ending loans in
repayment .......... $ 69,827 $ 70,174 $ 65,290 $13,707 $15,198 $17,296 $ 83,534 $ 85,372 $ 82,586
Total Provisions for Loan Losses
The following tables summarize the total loan provisions on both an on-balance sheet and on a Managed
Basis for the years ended December 31, 2009, 2008 and 2007.
Total on-balance sheet loan provisions
2009 2008 2007
Years Ended
December 31,
Private Education Loans. . . .................................. $ 967 $586 $ 884
FFELP Loans ............................................ 106 106 89
Mortgage and consumer loans ................................ 46 28 42
Total on-balance sheet provisions for loan losses................... $1,119 $720 $1,015
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