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Exhibit 99.1

 

THE TRUST STUDENT LOAN POOL AS OF JULY 31, 2018

The trust student loans owned by the trust were originally selected from a portfolio of consolidation student loans owned by Student Loan Marketing Association by employing several criteria, including requirements that each trust student loan as of the original cutoff date:

 

·

was guaranteed as to principal and interest by a guaranty agency under a guarantee agreement and the guaranty agency was, in turn, reinsured by the Department of Education in accordance with the FFELP;

 

·

contained terms in accordance with those required by the FFELP, the guarantee agreements and other applicable requirements;

 

·

was more than 120 days past the final disbursement;

 

·

was not more than 210 days past due;

 

·

did not have a borrower who was noted in the related records of the servicer as being currently involved in a bankruptcy proceeding; and

 

·

had special allowance payments, if any, based on the three-month commercial paper rate or the 91-day Treasury bill rate.

No trust student loan as of the original cutoff date was subject to the depositor’s or the Student Loan Marketing Association’s prior obligation to sell that loan to a third party. The Student Loan Marketing Association was dissolved on December 31, 2004 and all of its obligations were assumed by its affiliate, Navient Credit Finance Corporation.

Unless otherwise specified, all information with respect to the trust student loans is presented as of July 31, 2018, which is the statistical disclosure date.

The following tables provide a description of specified characteristics of the trust student loans as of the statistical disclosure date.  The aggregate outstanding principal balance of the loans in each of the following tables includes the principal balance due from borrowers, plus accrued interest of $2,337,393 to be capitalized as of the statistical disclosure date.  Percentages and dollar amounts in any table may not total 100% or whole dollars due to rounding.  The following tables also contain information concerning the total number of loans and total number of borrowers in the portfolio of trust student loans.  For ease of administration, the servicer separates a consolidation loan on its system into two separate loan segments representing subsidized and unsubsidized segments of the same loan.  The following tables reflect those loan segments within the number of loans.  In addition, 19 borrowers have more than one trust student loan.

The distribution by weighted average interest rate applicable to the trust student loans on any date following the statistical disclosure date may vary significantly from that in the following tables as a result of variations in the effective rates of interest applicable to the trust student loans and in rates of principal reduction.  Moreover, the information below about the weighted average remaining term to maturity of the trust student loans as of the statistical disclosure date may vary significantly from the actual term to maturity of any of the trust student loans as a result of prepayments or the granting of deferment and forbearance periods.

 

The following tables also contain information concerning the total number of loans and the total number of borrowers in the portfolio of trust student loans.

 

Percentages and dollar amounts in any table may not total 100% of the trust student loan balance, as applicable, due to rounding.

 

Aggregate Outstanding Principal Balance		$	653,914,025
Aggregate Outstanding Principal Balance – Treasury Bill		$	84,162,105
Percentage of Aggregate Outstanding Principal Balance – Treasury Bill			12.87	%
Aggregate Outstanding Principal Balance – One-Month LIBOR		$	569,750,727
Percentage of Aggregate Outstanding Principal Balance – One-Month LIBOR			87.13	%
Aggregate Outstanding Principal Balance – Treasury Bill Other		$	1,194
Percentage of Aggregate Outstanding Principal Balance – Treasury Bill Other			0.00	%
Number of Borrowers			20,324
Average Outstanding Principal Balance Per Borrower		$	32,174
Number of Loans			35,874
Average Outstanding Principal Balance Per Loan – Treasury Bill		$	28,705
Average Outstanding Principal Balance Per Loan – One-Month LIBOR		$	17,296
Average Outstanding Principal Balance Per Loan – Treasury Bill Other		$	1,194
Weighted Average Remaining Term to Scheduled Maturity		173 months
Weighted Average Annual Interest Rate			6.02	%

We determined the weighted average remaining term to maturity shown in the table from the statistical disclosure date to the stated maturity date of the applicable trust student loan without giving effect to any deferment or forbearance periods that may be granted in the future.  See Appendix A to the preliminary remarketing memorandum.

The weighted average annual borrower interest rate shown in the table is exclusive of special allowance payments.  The weighted average spread for special allowance payments to the 91-day Treasury bill rate was 3.10% as of the statistical disclosure date.

The weighted average spread for special allowance payments to the one-month LIBOR rate was 2.64% as of the statistical disclosure date.  See “Special Allowance Payments” in Appendix A to the preliminary remarketing memorandum.

For these purposes, the 91-day Treasury bill rate is the weighted average per annum discount rate, expressed on a bond equivalent basis and applied on a daily basis, for direct obligations of the United States with a maturity of thirteen weeks, as reported by the U.S. Department of the Treasury.

 

 

Interest Rates		Number of Loans				Aggregate Outstanding Principal Balance				Percent of Pool by Outstanding Principal Balance
Less than or equal to 3.00%			1			$	25,014				*
3.01% to 3.50%			2,312				31,539,545				4.8	%
3.51% to 4.00%			2,523				47,284,102				7.2
4.01% to 4.50%			6,787				86,629,603				13.2
4.51% to 5.00%			7,498				108,748,047				16.6
5.01% to 5.50%			1,853				29,162,771				4.5
5.51% to 6.00%			1,915				34,319,869				5.2
6.01% to 6.50%			2,866				54,065,826				8.3
6.51% to 7.00%			2,857				60,259,043				9.2
7.01% to 7.50%			1,201				27,822,866				4.3
7.51% to 8.00%			2,542				64,087,210				9.8
8.01% to 8.50%			2,689				74,208,234				11.3
Equal to or greater than 8.51%			830				35,761,895				5.5
Total			35,874			$	653,914,025				100.0	%

 

We determined the interest rates shown in the table above using the interest rates applicable to the trust student loans as of the statistical disclosure date.  Because trust student loans with different interest rates are likely to be repaid at different rates, this information is not likely to remain applicable to the trust student loans after the statistical disclosure date.  See Appendix A to the preliminary remarketing memorandum and “The Student Loan Pools – Sallie Mae’s Student Loan Financing Business” in the preliminary remarketing memorandum.

 

Range of Outstanding Principal Balance			Number of Borrowers				Aggregate Outstanding Principal Balance				Percent of Pool by Outstanding Principal Balance
Less than $5,000.00				2,905			$	8,111,247				1.2	%
$5,000.00-$ 9,999.99				3,561				26,177,823				4.0
$10,000.00-$14,999.99				2,137				26,512,088				4.1
$15,000.00-$19,999.99				1,905				33,204,290				5.1
$20,000.00-$24,999.99				1,601				35,833,937				5.5
$25,000.00-$29,999.99				1,262				34,612,430				5.3
$30,000.00-$34,999.99				1,028				33,381,797				5.1
$35,000.00-$39,999.99				861				32,245,966				4.9
$40,000.00-$44,999.99				650				27,598,620				4.2
$45,000.00-$49,999.99				590				27,958,941				4.3
$50,000.00-$54,999.99				526				27,591,701				4.2
$55,000.00-$59,999.99				420				24,134,174				3.7
$60,000.00-$64,999.99				371				23,144,086				3.5
$65,000.00-$69,999.99				284				19,137,696				2.9
$70,000.00-$74,999.99				264				19,141,518				2.9
$75,000.00-$79,999.99				213				16,478,791				2.5
$80,000.00-$84,999.99				175				14,441,016				2.2
$85,000.00-$89,999.99				162				14,181,558				2.2
$90,000.00-$94,999.99				134				12,404,491				1.9
$95,000.00-$99,999.99				126				12,286,638				1.9
$100,000.00 and above				1,149				185,335,217				28.3
Total				20,324			$	653,914,025				100.0	%

 

Number of Days Delinquent		Number of Loans				Aggregate Outstanding Principal Balance				Percent of Pool by Outstanding Principal Balance
0-30 days			34,034			$	600,442,598				91.8	%
31-60 days			611				14,760,147				2.3
61-90 days			328				9,114,492				1.4
91-120 days			164				4,531,705				0.7
121-150 days			104				3,365,253				0.5
151-180 days			148				4,300,041				0.7
181-210 days			122				5,303,336				0.8
Greater than 210 days			363				12,096,454				1.8
Total			35,874			$	653,914,025				100.0	%

 

Number of Months Remaining to Scheduled Maturity		Number of Loans				Aggregate Outstanding Principal Balance				Percent of Pool by Outstanding Principal Balance
0 to 3			127			$	44,428				*
4 to 12			549				533,238				0.1	%
13 to 24			1,130				2,625,758				0.4
25 to 36			1,188				4,334,898				0.7
37 to 48			1,856				8,851,685				1.4
49 to 60			4,840				20,923,963				3.2
61 to 72			1,906				13,019,137				2.0
73 to 84			1,542				13,509,978				2.1
85 to 96			1,432				14,838,231				2.3
97 to 108			1,578				19,784,645				3.0
109 to 120			3,410				41,378,595				6.3
121 to 132			2,621				52,404,513				8.0
133 to 144			1,873				43,998,084				6.7
145 to 156			1,519				39,514,849				6.0
157 to 168			1,473				40,106,092				6.1
169 to 180			3,146				77,378,849				11.8
181 to 192			1,139				36,799,203				5.6
193 to 204			940				32,812,129				5.0
205 to 216			812				31,767,041				4.9
217 to 228			625				26,475,044				4.0
229 to 240			618				28,515,672				4.4
241 to 252			333				15,949,329				2.4
253 to 264			260				14,264,364				2.2
265 to 276			209				12,057,514				1.8
277 to 288			135				8,655,617				1.3
289 to 300			188				12,320,883				1.9
301 to 312			227				21,331,857				3.3
313 to 324			49				3,961,774				0.6
325 to 336			27				2,925,931				0.4
337 to 348			58				5,970,350				0.9
349 to 360			44				4,804,852				0.7
361 and above			20				2,055,525				0.3
Total			35,874			$	653,914,025				100.0	%

 

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

 

We have determined the number of months remaining to scheduled maturity shown in the table from the statistical disclosure date to the stated maturity date of the applicable trust student loan without giving effect to any deferment or forbearance periods that may be granted in the future.  See Appendix A to the preliminary remarketing memorandum and “The Student Loan Pools –Sallie Mae’s Student Loan Financing Business” in the original prospectus.

 

Current Borrower Payment Status		Number of Loans				Aggregate Outstanding Principal Balance				Percent of Pool by Outstanding Principal Balance
Deferment			1,189			$	26,957,720				4.1	%
Forbearance			1,857				52,995,199				8.1
Repayment
First year in repayment			290				14,994,064				2.3
Second year in repayment			333				17,284,518				2.6
Third year in repayment			397				20,200,927				3.1
More than 3 years in repayment			31,808				521,481,596				79.7
Total			35,874			$	653,914,025				100.0	%

Current borrower payment status refers to the status of the borrower of each trust student loan as of the statistical disclosure date.  The borrower:

·

may have temporarily ceased repaying the loan through a deferment or a forbearance period; or

·

may be currently required to repay the loan – repayment.

See Appendix A to the preliminary remarketing memorandum and “The Student Loan Pools –Sallie Mae’s Student Loan Financing Business” in the original prospectus.

The weighted average number of months in repayment for all trust student loans currently in repayment is approximately 125.8 calculated as the term to maturity at the commencement of repayment less the number of months remaining to scheduled maturity as of the statistical disclosure date.

 

		Scheduled Months in Status Remaining
Current Borrower Payment Status		Deferment				Forbearance				Repayment
Deferment			18.1				-				198.2
Forbearance			-				4.2				193.2
Repayment			-				-				168.9

We have determined the scheduled weighted average remaining months in status shown in the previous table without giving effect to any deferment or forbearance periods that may be granted in the future.  Of the $26,957,720 aggregate outstanding principal balance of the trust student loans in deferment as of the statistical disclosure date, $18,873,893 or approximately 70.0% of such loans are to borrowers who had not graduated as of that date.  We expect that a significant portion of these loans could qualify for additional deferments or forbearances at the end of their current deferment periods as the related borrowers continue their education beyond their current degree programs.  As a result, the overall duration of any applicable deferment and forbearance periods as well as the likelihood of future deferment and forbearance periods within this pool of trust student loans is likely to be higher than in other pools of student loans without similar numbers of in-school consolidation loans.  See Appendix A to the preliminary remarketing memorandum.

 

State		Number of Loans				Aggregate Outstanding Principal Balance				Percent of Pool by Outstanding Principal Balance
Alabama			282			$	5,582,284				0.9	%
Alaska			52				824,086				0.1
Arizona			1,067				19,353,252				3.0
Arkansas			190				3,332,020				0.5
California			3,274				62,186,548				9.5
Colorado			561				9,482,005				1.5
Connecticut			568				7,925,095				1.2
Delaware			99				1,413,009				0.2
District of Columbia			147				2,810,217				0.4
Florida			2,925				75,545,077				11.6
Georgia			1,229				26,810,363				4.1
Hawaii			118				3,001,462				0.5
Idaho			123				2,461,124				0.4
Illinois			1,371				22,499,810				3.4
Indiana			2,264				38,874,700				5.9
Iowa			161				2,122,658				0.3
Kansas			568				7,695,910				1.2
Kentucky			412				6,912,107				1.1
Louisiana			1,310				21,633,222				3.3
Maine			145				3,542,054				0.5
Maryland			1,074				22,180,448				3.4
Massachusetts			1,272				19,840,194				3.0
Michigan			655				12,722,268				1.9
Minnesota			382				6,124,391				0.9
Mississippi			300				5,968,914				0.9
Missouri			677				11,237,045				1.7
Montana			46				993,446				0.2
Nebraska			68				1,016,126				0.2
Nevada			190				4,247,692				0.6
New Hampshire			309				4,361,116				0.7
New Jersey			939				16,493,055				2.5
New Mexico			126				2,815,114				0.4
New York			2,742				45,319,564				6.9
North Carolina			897				17,648,844				2.7
North Dakota			13				318,184				*
Ohio			221				4,037,064				0.6
Oklahoma			447				6,920,360				1.1
Oregon			452				7,830,922				1.2
Pennsylvania			1,305				21,392,289				3.3
Rhode Island			101				1,314,204				0.2
South Carolina			417				8,449,756				1.3
South Dakota			31				426,810				0.1
Tennessee			488				9,266,857				1.4
Texas			2,835				48,966,118				7.5
Utah			97				2,782,197				0.4
Vermont			65				1,081,070				0.2
Virginia			1,107				18,901,303				2.9
Washington			935				13,924,189				2.1
West Virginia			179				3,013,046				0.5
Wisconsin			322				4,453,435				0.7
Wyoming			26				447,694				0.1
Other			290				5,413,307				0.8
Total			35,874			$	653,914,025				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.

 

Loan Repayment Terms		Number of Loans				Aggregate Outstanding Principal Balance				Percent of Pool by Outstanding Principal Balance
Level Repayment			19,025			$	272,992,931				41.7	%
Other Repayment Options(1)			13,256				246,957,656				37.8
Income-driven Repayment(2)			3,593				133,963,438				20.5
Total			35,874			$	653,914,025				100.0	%

 

 

With respect to interest-only loans, as of the statistical disclosure date, there are 403 loans with an aggregate outstanding principal balance of $13,171,373 currently in an interest-only period.  These interest-only loans represent approximately 2.0% 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.

Loan Type		Number of Loans				Aggregate Outstanding Principal Balance				Percent of Pool by Outstanding Principal Balance
Subsidized			17,698			$	277,185,761				42.4	%
Unsubsidized			18,176				376,728,264				57.6
Total			35,874			$	653,914,025				100.0	%

 

Disbursement Date		Number of Loans				Aggregate Outstanding Principal Balance				Percent of Pool by Outstanding Principal Balance
September 30, 1993 and earlier			109			$	3,737,663				0.6	%
October 1, 1993 through June 30, 2006			35,765				650,176,362				99.4
July 1, 2006 and later			0				0				0.0
Total			35,874			$	653,914,025				100.0	%

 

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.

Name of Guaranty Agency		Number of Loans				Aggregate Outstanding Principal Balance				Percent of Pool by Outstanding Principal Balance
American Student Assistance			1,174			$	14,883,584				1.8	%
College Assist			10				598,516				0.1
Educational Credit Management Corporation			1,361				23,381,754				2.9
Great Lakes Higher Education Corporation			390				9,435,123				1.2
Illinois Student Assistance Comm			1,204				18,029,394				2.2
Kentucky Higher Educ. Asst. Auth.			300				3,830,947				0.5
Louisiana Office Of Student Financial Asst			324				4,263,386				0.5
Michigan Guaranty Agency			347				6,138,388				0.8
New Jersey Higher Ed Student Assistance Authority			1,270				18,998,765				2.3
New York State Higher Ed Services Corp			4,160				60,214,547				7.4
Northwest Education Loan Association			2,407				33,751,821				4.1
Oklahoma Guaranteed Stud Loan Prog			501				6,836,968				0.8
Pennsylvania Higher Education Assistance Agency			2,500				35,914,190				4.4
Texas Guaranteed Student Loan Corp			1,602				28,777,266				3.5
United Student Aid Funds, Inc.			28,452				548,909,381				67.4
Total			46,002			$	813,964,028				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, LLC and Student Assistance Corporation.  Student Assistance Corporation is a wholly owned subsidiary of Navient Solutions, LLC.  Navient Solutions, LLC and its subsidiaries are not sponsored by nor are they agencies of the United States of America.

 

USA Funds is the sole member of the Northwest Education Loan Association, a guarantor serving the states of Washington, Idaho and the Northwest.  USA Funds, Inc. became a member of Great Lakes Higher Education Corporation, effective January 1, 2017.

 

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, USAF 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 Consolidated Appropriations Act of 2016 provided for 100 percent reinsurance on all FFEL Program claims purchased beginning December 2015 and beyond.  Prior to that, 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, 2016, USA Funds held net assets on behalf of the Federal Reserve Fund of approximately $143 million.  Through September 30, 2016, 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 $46.6 billion.  Also, as of September 30, 2016, USA Funds had operating fund assets totaling over $1.1 billion, which includes the $143 million of net assets held on behalf of the Federal Reserve Fund.

 

USA Funds’ “reserve ratio” complies with the 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:

 

		Reserve Ratio
		Federal Fiscal Year
Guarantor		2013				2014				2015				2016				2017
United Student Aid Funds, Inc.			0.354	%			0.277	%			0.251	%			0.308	%			0.350	%

For the past five federal fiscal years, USA Funds; claims rate has not exceeded 5% and, as a result, the highest allowable reinsurance has been paid on all USA Funds’ claims.  The actual claims rates are as follows:

 

		Claims Rate
		Federal Fiscal Year
Guarantor		2013				2014				2015				2016				2017
United Student Aid Funds, Inc.			4.74	%			4.73	%			4.71	%			0.60	%			0.67	%

NEW YORK STATE HIGHER EDUCATION SERVICES CORPORATION

 

New York State Higher Education Services Corporation (“HESC”) was organized in 1975 as an agency of the State of New York, pursuant to an act of the New York legislature, to expand educational opportunities for students.  HESC administers the New York Tuition Assistance Program and a variety of state scholarships in addition to acting as a guarantee agency under the Federal Family Education Loan Program (FFELP).  HESC is the designated guarantee agency for the State of New York, and guarantees all types of FFELP loans.  In 2009, the New York State Legislature created the New York Higher Education Loan Program (NYHELPs) and designated HESC as its administrator.  NYHELPs is a private student loan program for New York State residents attending participating institutions in the State.  However, no new funding has been recommended for the NYHELPs loan program after March 31, 2012 due to its continued underutilization.  As a result, no new NYHELPs loans will be made while the program is evaluated to determine how it can best serve New York State students and families.

 

As a result of the 3/30/2010 enactment of the Health Care and Education Reconciliation Act of 2010 (HCERA) (HR4872), the FFELP was eliminated effective 7/1/2010.  No new (first disbursed) Stafford, PLUS or consolidation loans may be disbursed through the FFELP after 6/30/2010.  Existing FFELP loans will continue to be eligible for program benefits.  Beginning 7/1/2010, all new Stafford, PLUS and consolidation loans will be made under the U. S. Department of Education’s Direct Loan Program.

 

For the FFELP, HESC will continue to have the responsibility for providing collection assistance to lenders for delinquent loans, paying lender claims for loans in default, and collection activities on loans after purchase by HESC.  In addition to the FFELP, HESC continues to perform residual administrative activities of the State guaranteed loan program in which no new loans have been guaranteed since 1984.

 

HESC has a Federal Student Loan Reserve Fund (the “Federal Fund”) and an Agency Operating Fund to account for FFELP activity.  The Federal Fund assets, and earnings on those assets, are restricted in use and are considered property of the Department of Education.  The Agency Operating Fund is considered property of HESC, and its assets and earnings may be used generally for guarantee agency and other student financial aid related activities.

 

As of September 30, 2014, HESC had total FFELP assets of approximately $149 million (including balances for both the Federal Fund and the Agency Operating Fund) and had a total of approximately $16.5 billion in original principal amount of loans outstanding.

 

Guarantee Volume.  HESC guaranteed the following amounts for the last five federal fiscal years ended September 30 (excluding consolidation loans):

 

		Loans Guaranteed ($ Millions)
		Federal Fiscal Year
Guarantor		2010				2011				2012				2013				2014
New York State Higher Education Services Corporation		$	799			$	0			$	0			$	0			$	0

Reserve Ratio.  A guarantee agency’s reserve ratio is determined by dividing its Federal Fund Balance by the original principal amount of loans outstanding.  HESC’s reserve ratio for the last five federal fiscal years ending September 30 is as follows:

 

		Reserve Ratio as of Close of Federal Fiscal Year
Guarantor		2010				2011				2012				2013				2014
New York State Higher Education Services Corporation			0.33	%			0.28	%			0.28	%			0.25	%			0.29	%

Recovery Rates.  The Department of Education calculates a guaranty agency’s recovery rate by dividing the amount recovered from borrowers during a federal fiscal year by the guaranty agency’s outstanding default loan portfolio (beginning inventory) at the end of the prior federal fiscal year.  HESC’s recovery rate for each of the past five federal fiscal years ending September 30 provided below uses the Department of Education’s calculation method:

 

		Recovery Rate Federal Fiscal Year
Guarantor		2010				2011				2012				2013				2014
New York State Higher Education Services Corporation			23.46	%			26.68	%			27.26	%			25.56	%			22.74	%

Claims Rate.  A guaranty agency’s claims rate is determined by dividing the amount of federal reinsurance claims paid by the Department of Education during a federal fiscal year by the original principal amount of loans in repayment at the end of the prior federal fiscal year.  HESC’s claims rate for each of the past five federal fiscal years ending September 30 is as follows:

 

		Claims Rate Federal Fiscal Year
Guarantor		2010				2011				2012				2013				2014
New York State Higher Education Services Corporation			1.86	%			2.17	%			1.59	%			1.51	%			1.52	%

 

HESC is headquartered at 99 Washington Avenue, Albany, New York 12255.  Its most recent annual report is available on its web site.

 

 

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