Sallie Mae 2012 Annual Report Download - page 145

SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
4. Allowance for Loan Losses (Continued)
Private Education Non-Traditional Loan
Delinquencies
December 31,
2012 2011 2010
(Dollars in millions) Balance % Balance % Balance %
Loans in-school/grace/deferment(1) ........................ $ 483 $ 656 $ 921
Loans in forbearance(2) ................................. 140 191 184
Loans in repayment and percentage of each status:
Loans current ....................................... 1,978 76.5% 2,012 74.0% 2,038 72.6%
Loans delinquent 31-60 days(3) ......................... 175 6.8 208 7.7 217 7.7
Loans delinquent 61-90 days(3) ......................... 106 4.1 127 4.7 131 4.7
Loans delinquent greater than 90 days(3) .................. 325 12.6 371 13.6 422 15.0
Total non-traditional loans in repayment ................. 2,584 100% 2,718 100% 2,808 100%
Total non-traditional loans, gross ......................... 3,207 3,565 3,913
Non-traditional loans unamortized discount ................. (83) (81) (93)
Total non-traditional loans .............................. 3,124 3,484 3,820
Non-traditional loans receivable for partially charged-off
loans ............................................. 550 536 482
Non-traditional loans allowance for losses .................. (534) (629) (791)
Non-traditional loans, net ............................... $3,140 $3,391 $3,511
Percentage of non-traditional loans in repayment ............. 80.6% 76.2% 71.8%
Delinquencies as a percentage of non-traditional loans in
repayment ......................................... 23.4% 26.0% 27.4%
Loans in forbearance as a percentage of loans in repayment and
forbearance ........................................ 5.1% 6.6% 6.1%
(1) Deferment includes customers who have returned to school or are engaged 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 customers who have requested extension of grace period generally during employment transition or who have temporarily
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.
Receivable for Partially Charged-Off Private Education Loans
At the end of each month, for loans that are 212 days past due, we charge off the estimated loss of a
defaulted loan balance. Actual recoveries are applied against the remaining loan balance that was not charged off.
We refer to this remaining loan balance as the “receivable for partially charged-off loans.” If actual periodic
recoveries are less than expected, the difference is immediately charged off through the allowance for loan losses
with an offsetting reduction in the receivable for partially charged-off Private Education Loans. If actual periodic
recoveries are greater than expected, they will be reflected as a recovery through the allowance for Private
Education Loan losses once the cumulative recovery amount exceeds the cumulative amount originally expected
to be recovered. Private Education Loans which defaulted between 2008 and 2011 for which we have previously
charged off estimated losses have, to varying degrees, not met our post-default recovery expectations to date and
may continue not to do so. According to our policy, we have been charging off these periodic shortfalls in
expected recoveries against our allowance for Private Education Loan losses and the related receivable for
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