Sallie Mae 2012 Annual Report Download - page 142

SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
4. Allowance for Loan Losses (Continued)
Key Credit Quality Indicators
FFELP Loans are substantially insured and guaranteed as to their principal and accrued interest in the event
of default; therefore, the key credit quality indicator for this portfolio is loan status. The impact of changes in
loan status is incorporated quarterly into the allowance for loan losses calculation.
For Private Education Loans, the key credit quality indicators are school type, FICO scores, the existence of
a cosigner, the loan status and loan seasoning. The school type/FICO score are assessed at origination and
maintained through the traditional/non-traditional loan designation. The other Private Education Loan key quality
indicators can change and are incorporated quarterly into the allowance for loan losses calculation. The following
table highlights the principal balance (excluding the receivable for partially charged-off loans) of our Private
Education Loan portfolio stratified by the key credit quality indicators.
Private Education Loans
Credit Quality Indicators
December 31, 2012 December 31, 2011
(Dollars in millions) Balance(3) % of Balance Balance(3) % of Balance
Credit Quality Indicators
School Type/FICO Scores:
Traditional ........................................ $35,347 92% $34,528 91%
Non-Traditional(1) ................................... 3,207 8 3,565 9
Total ............................................... $38,554 100% $38,093 100%
Cosigners:
With cosigner ...................................... $24,907 65% $23,507 62%
Without cosigner ................................... 13,647 35 14,586 38
Total ............................................... $38,554 100% $38,093 100%
Seasoning(2):
1-12 payments ..................................... $ 7,371 19% $ 9,246 24%
13-24 payments .................................... 6,137 16 6,837 18
25-36 payments .................................... 6,037 16 5,677 15
37-48 payments .................................... 4,780 12 3,778 10
More than 48 payments .............................. 8,325 22 6,033 16
Not yet in repayment ................................ 5,904 15 6,522 17
Total ............................................... $38,554 100% $38,093 100%
(1) Defined as loans to customers attending for-profit schools (with a FICO score of less than 670 at origination) and customers attending
not-for-profit schools (with a FICO score of less than 640 at origination).
(2) Number of months in active repayment for which a scheduled payment was due.
(3) Balance represents gross Private Education Loans.
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