Sallie Mae 2011 Annual Report Download - page 147

SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
4. Allowance for Loan Losses (Continued)
At December 31, 2011 and 2010, all of our troubled debt restructuring loans had a related allowance
recorded. The following table provides the recorded investment, unpaid principal balance and related allowance
for our troubled debt restructuring loans.
Troubled Debt Restructuring Loans
(Dollars in millions)
Recorded
Investment(1)
Unpaid
Principal
Balance
Related
Allowance
December 31, 2011
Private Education Loans — Traditional .................... $4,201 $4,259 $546
Private Education Loans — Non-Traditional ................ 1,048 1,054 216
Total ............................................... $5,249 $5,313 $762
December 31, 2010
Private Education Loans — Traditional .................... $ 264 $ 267 $ 66
Private Education Loans — Non-Traditional ................ 175 177 48
Total ............................................... $ 439 $ 444 $114
(1) The recorded investment is equal to the unpaid principal balance and accrued interest receivable net of unamortized deferred fees
and costs.
The following table provides the average recorded investment and interest income recognized for our
troubled debt restructuring loans.
Years Ended December 31,
2011 2010 2009
(Dollars in millions)
Average
Recorded
Investment
Interest
Income
Recognized
Average
Recorded
Investment
Interest
Income
Recognized
Average
Recorded
Investment
Interest
Income
Recognized
Private Education Loans — Traditional . . . $1,960 $121 $210 $ 6 $23 $ 1
Private Education Loans — Non-
Traditional ........................ 560 48 156 7 28 —
Total ............................... $2,520 $169 $366 $13 $51 $ 1
The following table provides the amount of modified loans that resulted in a troubled debt restructuring, as
well as, charge-offs occurring in the troubled debt restructuring portfolio. The majority of our loans that are
considered troubled debt restructurings involve a temporary forbearance of payments and do not change the
contractual interest rate of the loan.
Years Ended December 31,
2011 2010 2009
(Dollars in millions)
Modified
Loans(1)
Charge-
offs(2)
Modified
Loans(1)
Charge-
offs(2)
Modified
Loans(1)
Charge-
offs(2)
Private Education Loans — Traditional ............ $4,103 $ 99 $171 $18 $ 80 $—
Private Education Loans — Non-Traditional ........ 951 55 106 25 94 1
Total ..................................... $5,054 $154 $277 $43 $174 $ 1
(1) Represents period ending balance of loans that have been modified during the period.
(2) Represents loans that charge off at 212 days delinquent during the period that are classified as troubled debt restructurings.
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