Sallie Mae 2014 Annual Report Download - page 114

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SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Dollars in thousands, unless otherwise noted)
6.
Allowance for Loan Losses (Continued)
Key Credit Quality Indicators
FFELP Loans are at least 97 percent insured and guaranteed as to their principal and accrued interest in the event of
default; therefore, there are no key credit quality indicators associated with FFELP Loans. Included within our FFELP portfolio
as of December 31, 2014 are $785 million of FFELP rehabilitation loans. These loans have previously defaulted but have
subsequently been brought current according to a loan rehabilitation agreement. The credit performance on rehabilitation loans
is worse than the remainder of our FFELP portfolio. At December 31, 2014 and 2013, 62.1 percent and 62.9 percent of our
FFELP portfolio consisted of rehabilitation loans.
For Private Education Loans, the key credit quality indicators are FICO scores, the existence of a cosigner, the loan status
and loan seasoning. The FICO scores are assessed at origination and maintained through the loan's term. The following table
highlights the gross principal balance of our Private Education Loan portfolio stratified by key credit quality indicators.
December 31, 2014
December 31, 2013
Credit Quality Indicators:
Balance
(1)
% of Balance
Balance
(1)
% of Balance
Cosigners:
With cosigner ...................................
$
7,465,339
90
%
$
5,898,751
90
%
Without cosigner ..............................
846,037
10
664,591
10
Total ..................................................
$
8,311,376
100
%
$
6,563,342
100
%
FICO at Origination:
Less than 670 ...................................
$
558,801
7
%
$
461,412
7
%
670-699 ...........................................
1,227,860
15
1,364,286
21
700-749 ...........................................
2,626,238
32
1,649,192
25
Greater than or equal to 750...............
3,898,477
46
3,088,452
47
Total ..................................................
$
8,311,376
100
%
$
6,563,342
100
%
Seasoning
(2)
:
1-12 payments..................................
$
2,373,117
29
%
$
1,840,538
28
%
13-24 payments ................................
1,532,042
18
1,085,393
17
25-36 payments ................................
755,143
9
669,685
10
37-48 payments ................................
411,493
5
362,124
6
More than 48 payments .....................
212,438
3
30,891
—
Not yet in repayment ........................
3,027,143
36
2,574,711
39
Total ..................................................
$
8,311,376
100
%
$
6,563,342
100
%
___________
(1) Balance represents gross Private Education Loans.
(2) Number of months in active repayment for which a scheduled payment was due.
F-30