Sallie Mae 2013 Annual Report Download - page 164

SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
3. Student Loans (Continued)
Similar to FFELP loans, Private Education Loans are generally non-dischargeable in bankruptcy. Most loans
have repayment terms of 15 years or more, and for loans made prior to 2009, payments are typically deferred
until after graduation; however, since 2009 we began to encourage interest-only or fixed payment options while
the customer is enrolled in school and today, the majority of new loans make payments while in school.
The estimated weighted average life of student loans in our portfolio was approximately 7.5 years and 8.0
years at December 31, 2013 and 2012, respectively. The following table reflects the distribution of our student
loan portfolio by program.
December 31,
2013
Year Ended
December 31, 2013
(Dollars in millions)
Ending
Balance
%of
Balance
Average
Balance
Average
Effective
Interest
Rate
FFELP Stafford and Other Student Loans, net(1) ................. $ 40,021 28% $ 42,039 2.01%
FFELP Consolidation Loans, net ............................. 64,567 46 70,113 2.82
Private Education Loans, net ................................ 37,512 26 38,292 6.60
Total student loans, net ..................................... $142,100 100% $150,444 3.56%
December 31,
2012
Year Ended
December 31, 2012
(Dollars in millions)
Ending
Balance
%of
Balance
Average
Balance
Average
Effective
Interest
Rate
FFELP Stafford and Other Student Loans, net(1) ................. $ 44,289 27% $ 47,629 1.98%
FFELP Consolidation Loans, net ............................. 81,323 50 84,495 2.73
Private Education Loans, net ................................ 36,934 23 37,691 6.58
Total student loans, net ..................................... $162,546 100% $169,815 3.38%
(1) The FFELP category is primarily Stafford Loans, but also includes federally guaranteed PLUS and HEAL Loans.
As of December 31, 2013 and 2012, 76 percent and 75 percent, respectively, of our student loan portfolio
was in repayment.
Loan Sales
In 2013, we sold Residual Interests in FFELP Loan securitization trusts to third parties. We will continue to
service the student loans in the trusts under existing agreements. As a result of these transactions, we removed
securitization trust assets of $12.5 billion and the related liabilities of $12.1 billion from the balance sheet and
recorded a $312 million gain as part of “gains on sales of loans and investments” in 2013.
Certain Collection Tools — Private Education Loans
Forbearance involves granting the customer a temporary cessation of payments (or temporary acceptance of
smaller than scheduled payments) for a specified period of time. Using forbearance extends the original term of
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