Sallie Mae 2010 Annual Report Download - page 75

The following tables summarize the activity in the receivable for partially charged-off loans for the years
ended December 31, 2010, 2009 and 2008.
(Dollars in millions) 2010 2009 2008 2010(2) 2009 2008 2010 2009 2008
Years Ended
December 31,
Years Ended
December 31,
Years Ended
December 31,
GAAP-Basis Off-Balance Sheet “Core Earnings” Basis
Activity in Receivable for Partially Charged-Off Loans
Receivable at beginning of
period.................. $ 499 $222 $118 $ 229 $ 92 $28 $ 728 $314 $146
Expected future recoveries of
current period defaults
(1)
.... 415 320 140 — 154 72 415 474 212
Recoveries ................ (104) (43) (36) — (17) (8) (104) (60) (44)
Consolidation of securitization
trusts
(2)
................. 229 — — (229) — — — — —
Receivable at end of period.... $1,039 $499 $222 $ — $229 $92 $1,039 $728 $314
(1) Net of any current period recoveries that were less than expected.
(2) Upon the adoption of the new consolidation accounting guidance on January 1, 2010, we consolidated all of our off-balance sheet
securitization trusts.
Private Education Loan Repayment Options
Certain loan programs allow borrowers to select from a variety of repayment options depending on their
loan type and their enrollment/loan status, which include the ability to extend their repayment term or change
their monthly payment. The chart below provides the optional repayment offerings in addition to the standard
level principal and interest payments as of December 31, 2010.
(Dollars in millions)
Signature and
Other Smart Option
Career
Training Total
Loan Program
$ in Repayment ............ $23,179 $2,532 $2,141 $27,852
$ in Total ................. 32,779 2,536 2,217 37,532
Payment method by enrollment
status:
In-school/Grace........... Deferred
(1)
Interest-only or
fixed $25/month
Interest-only or
fixed $25/month
Repayment .............. Levelprincipal
and interest or
graduated
Level principal
and interest
Level principal
and interest
(1) “Deferred” includes loans for which no payments are required and interest charges are capitalized into the loan balance.
The graduated repayment program that is part of Signature and Other Loans includes an interest-only
payment option. This program is available to borrowers in repayment, after their grace period, who would like
a temporary lower payment from the required principal and interest payment amount. Borrowers participating
in this program pay monthly interest with no amortization of their principal balance for up to 48 payments
after entering repayment (dependent on the loan product type). The maturity date of the loan is not extended
when a borrower participates in this program. As of December 31, 2010 and 2009, borrowers in repayment
owing approximately $7.5 billion (27 percent of loans in repayment) and $7.0 billion (29 percent of loans in
repayment), respectively, were enrolled in the interest-only program.
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