Sallie Mae 2011 Annual Report Download - page 200

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SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
18. Concentrations of Risk (Continued)
longer earn the origination fee paid by the Guarantor. The portfolio that generates the maintenance fee is now in
runoff, and the maintenance fees we earn will decline ratably with the portfolio. We earned maintenance fees of
$45.9 million in 2011.
Our student loan contingent collection business is also affected by HCERA. We currently have 13
Guarantors as clients. We earn revenue from Guarantors for collecting defaulted loans as well as for managing
their portfolios of defaulted loans. In 2011, collection revenue from Guarantor clients totaled $246 million. We
anticipate that revenue from Guarantors will be relatively stable through 2012 and then begin to steadily decline
as the portfolio of defaulted loans we manage is resolved and amortizes.
Concentration Risk in the Servicing of Direct Loans
The DSLP is serviced by four private sector institutions, including Sallie Mae. Defaulted Direct Loans are
collected by 22 private sector companies, including Sallie Mae. Because of the concentration of our business in
servicing and collecting on Direct Loans, we are exposed to risks associated with ED reducing the amount of new
loan servicing and collections allocated to us or the termination of our servicing or collections contracts.
F-91