Sallie Mae 2010 Annual Report Download - page 67

Consumer Lending Portfolio Performance
Private Education Loan Delinquencies and Forbearance
The table below presents our Private Education Loan delinquency trends as of December 31, 2010, 2009
and 2008. Delinquencies have the potential to adversely impact earnings as they are an indication of the
borrower’s potential to possibly default and as a result require a higher loan loss reserve than loans in current
status. Delinquent loans also require increased servicing and collection efforts, resulting in higher operating
costs.
(Dollars in millions) Balance % Balance % Balance %
December 31,
2010
December 31,
2009
December 31,
2008
GAAP-Basis Private Education
Loan Delinquencies
Loans in-school/grace/deferment
(1)
....... $ 8,340 $ 8,910 $10,159
Loans in forbearance
(2)
................ 1,340 967 862
Loans in repayment and percentage of each
status:
Loans current ..................... 24,888 89.4% 12,421 86.4% 9,748 87.2%
Loans delinquent 31-60 days
(3)
........ 1,011 3.6 647 4.5 551 4.9
Loans delinquent 61-90 days
(3)
........ 471 1.7 340 2.4 296 2.6
Loans delinquent greater than
90 days
(3)
...................... 1,482 5.3 971 6.7 587 5.3
Total Private Education Loans in
repayment...................... 27,852 100% 14,379 100% 11,182 100%
Total Private Education Loans, gross...... 37,532 24,256 22,203
Private Education Loan unamortized
discount ......................... (894) (559) (535)
Total Private Education Loans .......... 36,638 23,697 21,668
Private Education Loan receivable for
partially charged-off loans ........... 1,039 499 222
Private Education Loan allowance for
losses ........................... (2,021) (1,443) (1,308)
Private Education Loans, net ........... $35,656 $22,753 $20,582
Percentage of Private Education Loans in
repayment ....................... 74.2% 59.3% 50.4%
Delinquencies as a percentage of Private
Education Loans in repayment ........ 10.6% 13.6% 12.8%
Loans in forbearance as a percentage of
loans in repayment and forbearance .... 4.6% 6.3% 7.2%
(1) Loans for borrowers who may still 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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