GEOGRAPHIC DISTRIBUTION OF THE TRUST STUDENT LOANS AS OF THE STATISTICAL DISCLOSURE DATE
State		Number of Loans				Aggregate Outstanding Principal Balance				Percent of Pool by Outstanding Principal Balance
Alabama			378			$	6,884,977				0.8	%
Alaska			82				1,797,306				0.2
Arizona			1,608				28,525,280				3.2
Arkansas			277				4,400,155				0.5
California			4,627				85,377,975				9.7
Colorado			841				13,505,493				1.5
Connecticut			786				11,054,224				1.2
Delaware			138				2,101,032				0.2
District of Columbia			234				5,298,824				0.6
Florida			3,968				95,272,866				10.8
Georgia			1,649				35,066,925				4.0
Hawaii			167				3,580,102				0.4
Idaho			156				2,767,812				0.3
Illinois			2,065				31,759,330				3.6
Indiana			3,291				53,191,336				6.0
Iowa			239				3,306,212				0.4
Kansas			883				11,805,090				1.3
Kentucky			629				9,549,350				1.1
Louisiana			1,824				30,019,607				3.4
Maine			214				4,795,491				0.5
Maryland			1,434				28,527,281				3.2
Massachusetts			1,919				27,454,351				3.1
Michigan			895				17,424,702				2.0
Minnesota			505				8,201,988				0.9
Mississippi			395				7,615,308				0.9
Missouri			930				15,353,559				1.7
Montana			64				1,156,183				0.1
Nebraska			77				1,034,271				0.1
Nevada			275				5,337,979				0.6
New Hampshire			428				5,958,759				0.7
New Jersey			1,340				22,634,369				2.6
New Mexico			177				3,231,108				0.4
New York			3,947				62,780,647				7.1
North Carolina			1,204				21,921,381				2.5
North Dakota			19				336,868				*
Ohio			281				4,888,641				0.6
Oklahoma			643				9,370,677				1.1
Oregon			606				9,853,528				1.1
Pennsylvania			1,871				29,372,726				3.3
Rhode Island			138				1,766,953				0.2
South Carolina			547				10,513,413				1.2
South Dakota			50				945,609				0.1
Tennessee			734				12,939,034				1.5
Texas			3,962				66,799,895				7.6
Utah			139				3,494,207				0.4
Vermont			86				1,457,586				0.2
Virginia			1,582				25,825,678				2.9
Washington			1,278				19,449,196				2.2
West Virginia			265				3,870,037				0.4
Wisconsin			490				6,720,767				0.8
Wyoming			36				595,044				0.1
Other			425				7,755,655				0.9
Total			50,798			$	884,646,785				100.0	%

 

*     Represents a percentage greater than 0% but less than 0.05%.

We have based the geographic distribution shown in the table on the billing addresses of the borrowers of the trust student loans shown on the servicer’s records as of the statistical disclosure date.

Each of the trust student loans provides or will provide for the amortization of its outstanding principal balance over a series of regular payments.  Except as described below, each regular payment consists of an installment of interest which is calculated on the basis of the outstanding principal balance of the trust student loan.  The amount received is applied first to interest accrued to the date of payment and the balance of the payment, if any, is applied to reduce the unpaid principal balance.  Accordingly, if a borrower pays a regular installment before its scheduled due date, the portion of the payment allocable to interest for the period since the preceding payment was made will be less than it would have been had the payment been made as scheduled, and the portion of the payment applied to reduce the unpaid principal balance will be correspondingly greater.  Conversely, if a borrower pays a monthly installment after its scheduled due date, the portion of the payment allocable to interest for the period since the preceding payment was made will be greater than it would have been had the payment been made as scheduled, and the portion of the payment applied to reduce the unpaid principal balance will be correspondingly less.

In either case, subject to any applicable deferment periods or forbearance periods, and except as provided below, the borrower pays a regular installment until the final scheduled payment date, at which time the amount of the final installment is increased or decreased as necessary to repay the then outstanding principal balance of that trust student loan.

The servicer makes available to borrowers of student loans it holds (including the trust student loans) payment terms that may result in the lengthening of the remaining term of the student loans.  For example, not all of the loans sold to the trust provide for level payments throughout the repayment term of the loans.  Some student loans provide for interest only payments to be made for a designated portion of the term of the loans, with amortization of the principal of the loans occurring only when payments increase in the latter stage of the term of the loans.  Other loans provide for a graduated phase in of the amortization of principal with a greater portion of principal amortization being required in the latter stages than would be the case if amortization were on a level payment basis.  The servicer also offers an income-sensitive repayment plan, under which repayments are based on the borrower’s income.  Under that plan, ultimate repayment may be delayed up to five years.  Borrowers under trust student loans will continue to be eligible for the graduated payment and income-sensitive repayment plans.  These programs are applicable to the trust student loans and may be offered by the servicer to related borrowers at its discretion.

The following table provides certain information about trust student loans subject to the repayment terms described in the preceding paragraphs.

 

With respect to interest-only loans, as of the statistical disclosure date, there are 805 loans with an aggregate outstanding principal balance of $30,224,463 currently in an interest-only period.  These interest-only loans represent approximately 3.4% of the aggregate outstanding principal balance of the trust student loans.  Interest-only periods range up to 48 months in overall length.

The servicer may in the future offer repayment terms similar to those described above to borrowers of trust student loans who are not entitled to these repayment terms as of the statistical disclosure date.  If repayment terms are offered to and accepted by those borrowers, the weighted average life of the securities could be lengthened.

 

Guaranty Agencies for the Trust Student Loans.  The eligible lender trustee has entered into a separate guarantee agreement with each of the guaranty agencies listed below, under which each of the guarantors has agreed to serve as guarantor for specified trust student loans.

The following table provides information with respect to the portion of the trust student loans guaranteed by each guarantor.

DISTRIBUTION OF THE TRUST STUDENT LOANS BY GUARANTY AGENCY AS OF THE STATISTICAL DISCLOSURE DATE
Name of Guaranty Agency		Number of Loans				Aggregate Outstanding Principal Balance				Percent of Pool by Outstanding Principal Balance
American Student Assistance			1,281			$	16,375,932				1.9	%
College Assist			10				608,908				0.1
Educational Credit Management Corporation			1,225				21,161,653				2.4
Great Lakes Higher Education Corporation			427				10,165,400				1.1
Illinois Student Assistance Commission			1,361				19,410,222				2.2
Kentucky Higher Education Assistance Authority			348				4,277,828				0.5
Louisiana Office Of Student Financial Assistance			364				4,683,922				0.5
Michigan Guaranty Agency			381				6,575,793				0.7
New Jersey Higher Education Student Assistance Authority			1,379				20,608,447				2.3
New York State Higher Education Services Corporation			4,592				66,135,473				7.5
Northwest Education Loan Association			2,665				37,054,709				4.2
Oklahoma Guaranteed Student Loan Program			563				7,384,518				0.8
Pennsylvania Higher Education Assistance Agency			2,796				39,436,752				4.5
Tennessee Student Assistance Corporation			283				4,050,112				0.5
Texas Guaranteed Student Loan Corporation			1,761				31,157,405				3.5
United Student Aid Funds, Inc.			31,362				595,559,711				67.3
Total			50,798			$	884,646,785				100.0	%

SIGNIFICANT GUARANTOR INFORMATION

The information shown for the Significant Guarantor relates to all student loans, including but not limited to trust student loans, guaranteed by the Significant Guarantor.

We obtained the following information from various sources, including from the Significant Guarantor and/or from the Department of Education.  None of the depositor, Navient CFC, the servicer, their affiliates or the remarketing agents has audited or independently verified this information for accuracy or completeness.

 

UNITED STUDENT AID FUNDS, INC.

United Student Aid Funds, Inc. (“USA Funds”) was organized as a private, nonprofit corporation under the General Corporation Law of the State of Delaware in 1960.  In accordance with its Certificate of Incorporation, USA Funds: (i) maintains facilities for the provision of guarantee services with respect to approved education loans made to or for the benefit of eligible students attending approved educational institutions; (ii) guaranteed education loans made pursuant to certain loan programs under the Higher Education Act, as well as loans made under certain private loan programs; and (iii) serves as the designated guarantor for education-loan programs under the Higher Education Act of 1965, as amended (“the Act”) in Arizona, Hawaii and certain Pacific Islands, Indiana, Kansas, Maryland, Mississippi, Nevada and Wyoming.

USA Funds contracts with Navient Solutions, Inc. and Student Assistance Corporation. Student Assistance Corporation is a wholly owned subsidiary of Navient Solutions, Inc. Navient Solutions, Inc. and its subsidiaries are not sponsored by nor are they agencies of the United States of America.

Effective December 13, 2004, USA Funds became the sole member of the Northwest Education Loan Association, a guarantor serving the states of Washington, Idaho and the Northwest.

For the purpose of providing loan guarantees under the Act, USA Funds has entered into various agreements (collectively, the “Federal Reinsurance Agreements”) with the U.S. Secretary of Education (the “Secretary”). Pursuant to the Federal Reinsurance Agreements, USA Funds serves as a “guaranty agency” as defined in Section 435(j) of the Act. The Act allows the Secretary, after giving the guaranty agency notice and the opportunity for a hearing, to terminate the Federal Reinsurance Agreements if the Secretary determines that the administrative or financial condition of the guaranty agency jeopardizes the agency’s continued ability to perform its responsibilities under its guaranty agreement, it is necessary to protect the federal financial interest, or to ensure the continued availability of loans to student- or parent- borrowers.

Reinsurance is paid to USA Funds by the Secretary in accordance with a formula based on the annual default rate of loans guaranteed by USA Funds under the Act and the disbursement date of loans. The rate of reinsurance ranges from 100 percent to 75 percent of USA Funds’ losses on default-claim payments made to lenders. The Higher Education Amendments of 1998

(the “1998 Reauthorization Law”) reduced the reinsurance coverage for loans in default made on or after Oct. 1, 1998, to a range from 95 percent to 75 percent based upon the annual default claims rate of the guaranty agency. Reinsurance on non-default claims remains at 100 percent.

The 1998 Reauthorization Law requires guaranty agencies to establish two (2) separate funds, a federal reserve fund (property of the United States) and an agency operating fund (property of the guaranty agency). The federal reserve fund is to be used to pay lender claims and to pay a default-aversion fee to the agency operating fund. The agency operating fund is to be used by the guaranty agency to pay its operating expenses.

On March, 30, 2010, President Obama signed into law the Health Care and Education Reconciliation Act of 2010 (Public Law 111-152), which ended the origination and guarantee of new loans under the Federal Family Education Loan Program, effective for loans whose first disbursement was after June 30, 2010. As a result of the statute, USA Funds will continue to administer a portfolio of outstanding FFELP loans, but no longer may guarantee new federal student loans.

As of September 30, 2014, USA Funds held net assets on behalf of the federal reserve fund of approximately $157 million. Through September 30, 2014, the outstanding, unpaid, aggregate amount of principal and interest on loans that had been directly guaranteed by USA Funds under the Federal Family Education Loan Program was approximately $56.8 billion.  Also, as of September 30, 2014, USA Funds had operating fund assets totaling almost $1.3 billion, which includes the $157 million of net assets held on behalf of the Federal Reserve Fund.

USA Funds’ “reserve ratio” complies with the U.S. Department of Education definition, which is determined by dividing the fund balance reserves in a guarantor’s federal reserve fund, by the total amount of loans outstanding. Following this formula, the reserve ratio for the federal reserve fund administered by USA Funds for the last five fiscal years was as follows:

USA Funds’ “recovery rate,” which provides a measure of the effectiveness of the collection efforts against defaulted borrowers after the guarantee claim has been satisfied, is determined by dividing the amount recovered from borrowers by USA Funds during the fiscal year by the aggregate amount of default claims paid by USA Funds outstanding at the end of the prior fiscal year. For the last five fiscal years, the “recovery rate” was as follows:

		Recovery Rate
		Federal Fiscal Year
Guarantor		2010		2011		2012		2013		2014
United Student Aid Funds, Inc.		32.90%		32.17%		31.82%		30.55%		32.01%

		Loss Rate
		Federal Fiscal Year
Guarantor		2010		2011		2012		2013		2014
United Student Aid Funds, Inc.		4.66%		4.71%		4.73%		4.74%		4.73%

 

In addition, USA Funds’ “claims rate” represents the percentage of federal reinsurance claims paid by the Secretary during any fiscal year, less amounts remitted to the Secretary for defaulted loans that are rehabilitated relative to USA Funds’ existing portfolio of loans in repayment at the end of the prior fiscal year. For the last five fiscal years, the “claims rate” was as follows:

USA Funds is headquartered in Fishers, Indiana. USA Funds will provide a copy of its most recent annual report upon receipt of a written request directed to its headquarters at P.O. Box 6028, Indianapolis, Indiana 46206-6028, Attention: Vice President, Corporate and Marketing Communications.