Sallie Mae 2012 Annual Report Download - page 75

The table below stratifies the portfolio of Private Education Loans in forbearance by the cumulative number
of months the customer has used forbearance as of the dates indicated. As detailed in the table below, there has
been a continuing decline in the average months of forbearance used in our portfolio.
December 31,
2012 2011 2010
(Dollars in millions)
Forbearance
Balance
%of
Total
Forbearance
Balance
%of
Total
Forbearance
Balance
%of
Total
Cumulative number of months
customer has used forbearance:
Up to 12 months .................. $ 883 78% $ 887 64% $ 958 71%
13 to 24 months .................. 186 16 446 32 343 26
More than 24 months .............. 67 6 53 4 39 3
Total ........................... $1,136 100% $1,386 100% $1,340 100%
Private Education Loan Repayment Options
Certain loan programs allow customers 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, 2012.
Loan Program
(Dollars in millions)
Signature and
Other Smart Option
Career
Training Total
$ in repayment ................. $24,261 $5,774 $1,479 $31,514
$ in total ...................... $29,522 $7,493 $1,539 $38,554
Payment method by enrollment
status:
In-school/grace ............ Deferred(1) Deferred(1),
interest-only or fixed
$25/month
Interest-only or fixed
$25/month
Repayment ................ Level principal 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 feature that may be selected at the option of the customer. Customers elect to participate in this program
at the time they enter repayment following their grace period. This program is available to customers in
repayment, after their grace period, who would like a temporary lower payment from the required principal and
interest payment amount. Customers 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 customer participates in this program. As of December 31, 2012
and 2011, customers in repayment owing approximately $6.6 billion (21 percent of loans in repayment) and
$7.2 billion (24 percent of loans in repayment), respectively, were enrolled in the interest-only program. Of these
amounts, 10 percent and 11 percent were non-traditional loans as of December 31, 2012 and 2011, respectively.
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