Attached files
file | filename |
---|---|
8-K - 8-K - SLM Student Loan Trust 2004-2 | form8k.htm |
Exhibit 99.1
ANNEX A
THE TRUST STUDENT LOAN POOL
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 statistical cutoff date (and with respect to each additional trust student loan as of its related subsequent 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 30 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 applicable cutoff date was subject to any prior obligation to sell that loan to a third party.
Unless otherwise specified, all information with respect to the trust student loans is presented as of November 30, 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 $2,375,240 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, 11 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.
A-1
The following tables also contain information concerning the total number of loans and the total number of borrowers in the portfolio of initial trust
student loans.
Percentages and dollar amounts in any table may not total 100% of the initial trust student loan balance, as applicable, due to rounding.
COMPOSITION OF THE TRUST STUDENT LOANS AS OF
THE STATISTICAL DISCLOSURE DATE
Aggregate Outstanding Principal Balance
|
$
|
825,482,955
|
||
Aggregate Outstanding Principal Balance – Treasury Bill
|
$
|
81,851,278
|
||
Percentage of Aggregate Outstanding Principal Balance – Treasury Bill
|
9.92
|
%
|
||
Aggregate Outstanding Principal Balance – One-Month LIBOR
|
$
|
743,626,010
|
||
Percentage of Aggregate Outstanding Principal Balance – One-Month LIBOR
|
90.08
|
%
|
||
Number of Borrowers
|
28,443
|
|||
Average Outstanding Principal Balance Per Borrower
|
$
|
29,022
|
||
Number of Loans
|
50,121
|
|||
Average Outstanding Principal Balance Per Loan – Treasury Bill
|
$
|
30,026
|
||
Average Outstanding Principal Balance Per Loan – One-Month LIBOR
|
$
|
15,690
|
||
Weighted Average Remaining Term to Scheduled Maturity
|
176 months
|
|||
Weighted Average Annual Interest Rate
|
4.77
|
%
|
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 3.13% 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.
A-2
DISTRIBUTION OF THE TRUST STUDENT LOANS
BY BORROWER INTEREST RATES AS OF THE STATISTICAL
DISCLOSURE DATE
Interest Rates
|
Number
of Loans
|
Aggregate
Outstanding
Principal Balance
|
Percent of Pool
by Outstanding
Principal Balance
|
|||||||||
Less than or equal to 3.00%
|
8,395
|
$
|
127,979,452
|
15.5
|
%
|
|||||||
3.01% to 3.50%
|
9,216
|
128,037,795
|
15.5
|
|||||||||
3.51% to 4.00%
|
8,611
|
131,993,652
|
16.0
|
|||||||||
4.01% to 4.50%
|
10,632
|
149,057,778
|
18.1
|
|||||||||
4.51% to 5.00%
|
3,621
|
56,007,971
|
6.8
|
|||||||||
5.01% to 5.50%
|
1,036
|
19,655,490
|
2.4
|
|||||||||
5.51% to 6.00%
|
925
|
18,648,766
|
2.3
|
|||||||||
6.01% to 6.50%
|
1,262
|
23,986,904
|
2.9
|
|||||||||
6.51% to 7.00%
|
1,771
|
34,557,589
|
4.2
|
|||||||||
7.01% to 7.50%
|
589
|
13,859,999
|
1.7
|
|||||||||
7.51% to 8.00%
|
1,446
|
36,335,994
|
4.4
|
|||||||||
8.01% to 8.50%
|
1,396
|
38,099,494
|
4.6
|
|||||||||
Equal to or greater than 8.51%
|
1,221
|
47,262,070
|
5.7
|
|||||||||
Total
|
50,121
|
$
|
825,482,955
|
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 – The Student Loan Marketing Association’s Student Loan Financing Business” in the
prospectus.
A-3
DISTRIBUTION OF THE TRUST STUDENT LOANS BY
OUTSTANDING PRINCIPAL BALANCE PER BORROWER
AS OF THE STATISTICAL DISCLOSURE DATE
Range of Outstanding
Principal Balance
|
Number of
Borrowers
|
Aggregate
Outstanding
Principal Balance
|
Percent of Pool
by Outstanding
Principal Balance
|
||||||||||
Less than $5,000.00
|
4,684
|
$
|
12,026,242
|
1.5
|
%
|
||||||||
$
|
5,000.00-$ 9,999.99
|
5,405
|
39,844,137
|
4.8
|
|||||||||
$
|
10,000.00-$14,999.99
|
3,301
|
40,706,473
|
4.9
|
|||||||||
$
|
15,000.00-$19,999.99
|
2,633
|
45,966,011
|
5.6
|
|||||||||
$
|
20,000.00-$24,999.99
|
2,119
|
47,413,310
|
5.7
|
|||||||||
$
|
25,000.00-$29,999.99
|
1,624
|
44,452,028
|
5.4
|
|||||||||
$
|
30,000.00-$34,999.99
|
1,258
|
40,767,986
|
4.9
|
|||||||||
$
|
35,000.00-$39,999.99
|
1,053
|
39,387,891
|
4.8
|
|||||||||
$
|
40,000.00-$44,999.99
|
906
|
38,423,043
|
4.7
|
|||||||||
$
|
45,000.00-$49,999.99
|
723
|
34,254,166
|
4.1
|
|||||||||
$
|
50,000.00-$54,999.99
|
593
|
31,051,402
|
3.8
|
|||||||||
$
|
55,000.00-$59,999.99
|
492
|
28,279,879
|
3.4
|
|||||||||
$
|
60,000.00-$64,999.99
|
456
|
28,504,705
|
3.5
|
|||||||||
$
|
65,000.00-$69,999.99
|
370
|
24,971,374
|
3.0
|
|||||||||
$
|
70,000.00-$74,999.99
|
326
|
23,573,848
|
2.9
|
|||||||||
$
|
75,000.00-$79,999.99
|
297
|
22,997,703
|
2.8
|
|||||||||
$
|
80,000.00-$84,999.99
|
238
|
19,615,568
|
2.4
|
|||||||||
$
|
85,000.00-$89,999.99
|
194
|
16,953,344
|
2.1
|
|||||||||
$
|
90,000.00-$94,999.99
|
173
|
15,970,960
|
1.9
|
|||||||||
$
|
95,000.00-$99,999.99
|
183
|
17,843,474
|
2.2
|
|||||||||
$100,000.00 and above
|
1,415
|
212,479,412
|
25.7
|
||||||||||
Total
|
28,443
|
$
|
825,482,955
|
100.0
|
%
|
A-4
DISTRIBUTION OF THE TRUST STUDENT LOANS
BY DELINQUENCY STATUS AS OF THE
STATISTICAL DISCLOSURE DATE
Number of Days
Delinquent
|
Number
of Loans
|
Aggregate
Outstanding
Principal Balance
|
Percent of Pool
by Outstanding
Principal Balance
|
|||||||||
0-30 days
|
48,276
|
$
|
787,661,033
|
95.4
|
%
|
|||||||
31-60 days
|
690
|
12,759,537
|
1.5
|
|||||||||
61-90 days
|
308
|
6,628,937
|
0.8
|
|||||||||
91-120 days
|
176
|
3,787,926
|
0.5
|
|||||||||
121-150 days
|
137
|
2,964,300
|
0.4
|
|||||||||
151-180 days
|
90
|
1,921,005
|
0.2
|
|||||||||
181-210 days
|
78
|
1,837,458
|
0.2
|
|||||||||
Greater than 210 days
|
366
|
7,922,760
|
1.0
|
|||||||||
Total
|
50,121
|
$
|
825,482,955
|
100.0
|
%
|
A-5
DISTRIBUTION OF THE TRUST STUDENT LOANS
BY REMAINING TERM TO SCHEDULED MATURITY
AS OF THE STATISTICAL DISCLOSURE DATE
Number of Months
Remaining to
Scheduled Maturity
|
Number
of Loans
|
Aggregate
Outstanding
Principal Balance
|
Percent of Pool
by Outstanding
Principal Balance
|
|||||||||
0 to 3
|
336
|
$
|
70,344
|
*
|
||||||||
4 to 12
|
1,002
|
830,812
|
0.1
|
%
|
||||||||
13 to 24
|
1,699
|
3,139,913
|
0.4
|
|||||||||
25 to 36
|
1,720
|
5,741,017
|
0.7
|
|||||||||
37 to 48
|
2,035
|
8,792,994
|
1.1
|
|||||||||
49 to 60
|
4,447
|
19,759,670
|
2.4
|
|||||||||
61 to 72
|
5,003
|
26,091,121
|
3.2
|
|||||||||
73 to 84
|
2,462
|
18,377,298
|
2.2
|
|||||||||
85 to 96
|
1,887
|
16,264,440
|
2.0
|
|||||||||
97 to 108
|
2,039
|
22,243,133
|
2.7
|
|||||||||
109 to 120
|
3,277
|
38,120,289
|
4.6
|
|||||||||
121 to 132
|
5,309
|
82,424,863
|
10.0
|
|||||||||
133 to 144
|
2,801
|
55,558,966
|
6.7
|
|||||||||
145 to 156
|
1,809
|
38,816,742
|
4.7
|
|||||||||
157 to 168
|
1,539
|
35,095,172
|
4.3
|
|||||||||
169 to 180
|
2,665
|
63,595,145
|
7.7
|
|||||||||
181 to 192
|
3,025
|
78,734,443
|
9.5
|
|||||||||
193 to 204
|
1,410
|
43,965,771
|
5.3
|
|||||||||
205 to 216
|
1,213
|
43,588,148
|
5.3
|
|||||||||
217 to 228
|
1,124
|
45,947,821
|
5.6
|
|||||||||
229 to 240
|
860
|
36,732,868
|
4.4
|
|||||||||
241 to 252
|
716
|
33,499,339
|
4.1
|
|||||||||
253 to 264
|
403
|
19,226,790
|
2.3
|
|||||||||
265 to 276
|
337
|
18,069,779
|
2.2
|
|||||||||
277 to 288
|
211
|
11,423,794
|
1.4
|
|||||||||
289 to 300
|
251
|
15,483,125
|
1.9
|
|||||||||
301 to 312
|
277
|
22,161,340
|
2.7
|
|||||||||
313 to 324
|
44
|
2,851,398
|
0.3
|
|||||||||
325 to 336
|
43
|
3,617,305
|
0.4
|
|||||||||
337 to 348
|
38
|
3,499,587
|
0.4
|
|||||||||
349 to 360
|
95
|
7,710,108
|
0.9
|
|||||||||
361 and above
|
44
|
4,049,421
|
0.5
|
|||||||||
Total
|
50,121
|
$
|
825,482,955
|
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 – The Student Loan Marketing Association’s Student Loan Financing Business” in the prospectus.
A-6
DISTRIBUTION OF THE TRUST STUDENT LOANS
BY CURRENT BORROWER PAYMENT STATUS
AS OF THE STATISTICAL DISCLOSURE DATE
Current Borrower Payment Status
|
Number
of Loans
|
Aggregate
Outstanding
Principal Balance
|
Percent of Pool
by Outstanding
Principal Balance
|
|||||||||
Deferment
|
1,519
|
$
|
29,714,037
|
3.6
|
%
|
|||||||
Forbearance
|
2,704
|
65,189,078
|
7.9
|
|||||||||
Repayment
|
||||||||||||
First year in repayment
|
407
|
15,343,937
|
1.9
|
|||||||||
Second year in repayment
|
453
|
17,860,111
|
2.2
|
|||||||||
Third year in repayment
|
532
|
20,125,977
|
2.4
|
|||||||||
More than 3 years in repayment
|
44,506
|
677,249,815
|
82.0
|
|||||||||
Total
|
50,121
|
$
|
825,482,955
|
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 – The Student Loan Marketing Association’s Student Loan Financing Business” in the prospectus.
The weighted average number of months in repayment for all trust student loans currently in repayment is approximately 127.0 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.
A-7
SCHEDULED WEIGHTED AVERAGE REMAINING MONTHS IN
STATUS OF THE TRUST STUDENT LOANS BY
CURRENT BORROWER PAYMENT STATUS AS OF THE
STATISTICAL DISCLOSURE DATE
Scheduled Months in Status Remaining
|
||||||||||||
Current Borrower
Payment Status
|
Deferment
|
Forbearance
|
Repayment
|
|||||||||
Deferment
|
18.0
|
-
|
203.1
|
|||||||||
Forbearance
|
-
|
4.9
|
194.8
|
|||||||||
Repayment
|
-
|
-
|
172.3
|
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 $29,714,037 aggregate outstanding principal balance of the trust student loans in deferment as of the statistical disclosure date, $22,148,910 or approximately 74.5% 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.
A-8
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
|
268
|
$
|
5,293,651
|
0.6
|
%
|
|||||||
Alaska
|
82
|
1,393,014
|
0.2
|
|||||||||
Arizona
|
1,107
|
21,233,770
|
2.6
|
|||||||||
Arkansas
|
158
|
2,491,196
|
0.3
|
|||||||||
California
|
5,454
|
100,532,544
|
12.2
|
|||||||||
Colorado
|
935
|
17,056,665
|
2.1
|
|||||||||
Connecticut
|
616
|
8,586,804
|
1.0
|
|||||||||
Delaware
|
107
|
2,368,170
|
0.3
|
|||||||||
District of Columbia
|
214
|
3,505,817
|
0.4
|
|||||||||
Florida
|
7,557
|
109,107,956
|
13.2
|
|||||||||
Georgia
|
1,299
|
22,916,286
|
2.8
|
|||||||||
Hawaii
|
183
|
3,657,776
|
0.4
|
|||||||||
Idaho
|
200
|
3,051,965
|
0.4
|
|||||||||
Illinois
|
1,399
|
20,634,490
|
2.5
|
|||||||||
Indiana
|
947
|
14,201,860
|
1.7
|
|||||||||
Iowa
|
290
|
3,899,267
|
0.5
|
|||||||||
Kansas
|
903
|
13,730,124
|
1.7
|
|||||||||
Kentucky
|
275
|
4,334,305
|
0.5
|
|||||||||
Louisiana
|
842
|
14,922,490
|
1.8
|
|||||||||
Maine
|
107
|
1,563,482
|
0.2
|
|||||||||
Maryland
|
1,049
|
19,245,502
|
2.3
|
|||||||||
Massachusetts
|
1,299
|
18,066,344
|
2.2
|
|||||||||
Michigan
|
814
|
14,633,644
|
1.8
|
|||||||||
Minnesota
|
778
|
11,912,355
|
1.4
|
|||||||||
Mississippi
|
222
|
4,472,639
|
0.5
|
|||||||||
Missouri
|
1,078
|
17,743,911
|
2.1
|
|||||||||
Montana
|
122
|
1,863,538
|
0.2
|
|||||||||
Nebraska
|
142
|
2,013,292
|
0.2
|
|||||||||
Nevada
|
327
|
5,982,518
|
0.7
|
|||||||||
New Hampshire
|
205
|
2,774,900
|
0.3
|
|||||||||
New Jersey
|
1,228
|
18,722,419
|
2.3
|
|||||||||
New Mexico
|
168
|
3,113,013
|
0.4
|
|||||||||
New York
|
3,122
|
47,211,619
|
5.7
|
|||||||||
North Carolina
|
1,039
|
15,953,154
|
1.9
|
|||||||||
North Dakota
|
40
|
643,186
|
0.1
|
|||||||||
Ohio
|
3,959
|
73,003,220
|
8.8
|
|||||||||
Oklahoma
|
616
|
10,304,633
|
1.2
|
|||||||||
Oregon
|
797
|
14,484,670
|
1.8
|
|||||||||
Pennsylvania
|
1,196
|
19,575,863
|
2.4
|
|||||||||
Rhode Island
|
109
|
1,635,177
|
0.2
|
|||||||||
South Carolina
|
347
|
6,269,920
|
0.8
|
|||||||||
South Dakota
|
45
|
976,919
|
0.1
|
|||||||||
Tennessee
|
608
|
11,404,690
|
1.4
|
|||||||||
Texas
|
3,514
|
56,871,897
|
6.9
|
|||||||||
Utah
|
195
|
4,392,007
|
0.5
|
|||||||||
Vermont
|
73
|
1,112,100
|
0.1
|
|||||||||
Virginia
|
1,255
|
19,110,933
|
2.3
|
|||||||||
Washington
|
1,866
|
29,855,201
|
3.6
|
|||||||||
West Virginia
|
156
|
2,663,983
|
0.3
|
|||||||||
Wisconsin
|
348
|
5,263,796
|
0.6
|
|||||||||
Wyoming
|
43
|
948,421
|
0.1
|
|||||||||
Other
|
418
|
8,775,861
|
1.1
|
|||||||||
Total
|
50,121
|
$
|
825,482,955
|
100.0
|
%
|
A-9
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.
A-10
The following table provides certain information about trust student loans subject to the repayment terms described in the preceding
paragraphs.
DISTRIBUTION OF THE TRUST STUDENT LOANS BY REPAYMENT
TERMS AS OF THE STATISTICAL DISCLOSURE DATE
Loan Repayment Terms
|
Number
of Loans
|
Aggregate
Outstanding
Principal Balance
|
Percent of Pool
by Outstanding
Principal Balance
|
|||||||||
Level Repayment
|
25,994
|
$
|
337,425,772
|
40.9
|
%
|
|||||||
Other Repayment Options(1)
|
19,480
|
349,788,610
|
42.4
|
|||||||||
Income-driven Repayment(2)
|
4,647
|
138,268,573
|
16.8
|
|||||||||
Total
|
50,121
|
$
|
825,482,955
|
100.0
|
%
|
(1) |
Includes, among others, graduated repayment and interest-only period loans.
|
(2) |
Includes income sensitive and income based repayment.
|
With respect to interest-only loans, as of the statistical disclosure date, there are 531 loans with an aggregate outstanding principal balance of $17,883,367 currently in an interest-only period. These interest-only loans represent approximately 2.2% 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.
DISTRIBUTION OF THE TRUST STUDENT LOANS BY LOAN
TYPE AS OF THE STATISTICAL DISCLOSURE DATE
Loan Type
|
Number
of Loans
|
Aggregate
Outstanding
Principal Balance
|
Percent of Pool
by Outstanding
Principal Balance
|
|||||||||
Subsidized
|
24,793
|
$
|
343,701,196
|
41.6
|
%
|
|||||||
Unsubsidized
|
25,328
|
481,781,759
|
58.4
|
|||||||||
Total
|
50,121
|
$
|
825,482,955
|
100.0
|
%
|
A-11
The following table provides information about the trust student loans regarding date of disbursement.
DISTRIBUTION OF THE TRUST STUDENT LOANS
BY DATE OF DISBURSEMENT AS OF
THE STATISTICAL DISCLOSURE DATE
Disbursement Date
|
Number
of Loans
|
Aggregate
Outstanding
Principal Balance
|
Percent of Pool
by Outstanding
Principal Balance
|
|||||||||
September 30, 1993 and earlier
|
656
|
$
|
23,629,971
|
2.9
|
%
|
|||||||
October 1, 1993 through June 30, 2006
|
49,465
|
801,852,984
|
97.1
|
|||||||||
July 1, 2006 and later
|
0
|
0
|
0.0
|
|||||||||
Total
|
50,121
|
$
|
825,482,955
|
100.0
|
%
|
A-12
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
|
1,489
|
$
|
17,289,186
|
2.1
|
%
|
|||||||
College Assist
|
30
|
593,785
|
0.1
|
|||||||||
Educational Credit Management Corporation
|
1,126
|
20,680,255
|
2.5
|
|||||||||
Florida Off Of Student Fin'l Assistance
|
8,381
|
106,550,075
|
12.9
|
|||||||||
Great Lakes Higher Education Corporation
|
847
|
17,350,243
|
2.1
|
|||||||||
Illinois Student Assistance Comm
|
1,181
|
15,850,339
|
1.9
|
|||||||||
Kentucky Higher Educ. Asst. Auth.
|
205
|
2,581,870
|
0.3
|
|||||||||
Louisiana Office Of Student Financial Asst
|
303
|
4,266,846
|
0.5
|
|||||||||
Michigan Guaranty Agency
|
531
|
6,898,674
|
0.8
|
|||||||||
Nebraska National Student Loan Program
|
7
|
222,905
|
*
|
|||||||||
New Jersey Higher Ed Student Assistance Authority
|
2,479
|
31,137,121
|
3.8
|
|||||||||
New York State Higher Ed Services Corp
|
5,399
|
74,288,522
|
9.0
|
|||||||||
Northwest Education Loan Association
|
3,526
|
48,576,284
|
5.9
|
|||||||||
Oklahoma Guaranteed Stud Loan Prog
|
435
|
6,425,585
|
0.8
|
|||||||||
Pennsylvania Higher Education Assistance Agency
|
3,507
|
53,679,566
|
6.5
|
|||||||||
Texas Guaranteed Student Loan Corp
|
3,167
|
50,215,353
|
6.1
|
|||||||||
United Student Aid Funds, Inc.
|
17,508
|
368,876,345
|
44.7
|
|||||||||
Total
|
50,121
|
$
|
825,482,955
|
100.0
|
%
|
*
|
Represents a percentage greater than 0% but less than 0.05%.
|
A-13
SIGNIFICANT GUARANTOR INFORMATION
The information shown for the Significant Guarantors relates to all student loans, including but not limited to initial trust student
loans, guaranteed by the Significant Guarantors.
We obtained the following information from various sources, including from the related Significant Guarantor and/or
from the Department of Education. None of the depositor, the sellers, 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 and Student Assistance Corporation. Student Assistance Corporation is a wholly owned
subsidiary of Navient Solutions. Navient Solutions 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, 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 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.
A-14
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
|
%
|
A-15
FLORIDA OFFICE OF STUDENT FINANCIAL ASSISTANCE
The Department of Education (Department), Office of Student Financial Assistance (OSFA), administers the Federal Family Education Loan
Program (FFELP) that provides low-cost educational loans to assist students and their parents in paying for the cost of higher education. OSFA is the designated guaranty agency for the State of Florida, for all loans with first disbursement
prior to July 1, 2010, and utilizes the FFELP System, a mainframe-based student loan information system administered by the Northwest Regional Data Center (NWRDC). The FFELP System, in the past, based on specified criteria, determined whether an
educational loan will be guaranteed and, if guaranteed, maintained information relating to the loan.
The Department established OSFA pursuant to Section 1001.20(4)(d), Florida Statutes. By law, OSFA is responsible for providing access to
and administering State and Federal grants, scholarships, and loans to those students seeking financial assistance for postsecondary study pursuant to program criteria and eligibility requirements.
FFELP provided and manages low-cost educational loans authorized by the Higher Education Act to assist students and their parents in
paying for the cost of higher education. Prior to July, 2010, through FFELP, private lenders made federally guaranteed student loans to parents and students. Commercial lenders (e.g., Navient) used their private capital to finance loans under
FFELP but received subsidies from the Federal Government. Upon approval of the application, a FFELP loan was made to the student (borrower) by a participating financial institution. To protect the financial institution from loss in the event of
the borrower’s death, disability, or default, the loan was guaranteed by a guarantor.
Nonprofit and state guaranty agencies were established to guarantee student loans made by lenders under FFELP. The Department, through
the business users within OSFA’s program office, served as the State of Florida guaranty agency for FFELP and provided certain administrative and oversight functions, while the United States Department of Education provided reinsurance to the
guaranty agency.
Beginning July 1, 2010, all new student loans were made under the Direct Loan Program whereby the Federal Government lends directly to
students. OSFA continues to use the FFELP System to manage and maintain information related to all FFELP loans with first disbursements prior to July 1, 2010, and provide customer service to schools, lenders, and borrowers through default
prevention, collections, and dissemination of information.
The FFELP System resides on a mainframe computer located at the Northwest Regional Data Center (NWRDC). The Department uses, among other
things, mainframe security software to control access to the FFELP System, including application programs and data files.
As of September 30, 2014, OSFA held net assets on behalf of the Federal Reserve Fund of approximately $19,861,865. Through September, 30,
2014, the outstanding, unpaid, aggregate amount of principal and interest on loans that had been directly guaranteed by OSFA under the Federal Family Education Loan Program was approximately $1,651,811,788. Also, as of September 30, 2014, OSFA
had Operating Fund assets totaling almost $41,463,446.
A-16
OSFA’s “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 OSFA for the last five fiscal years was as follows:
Fiscal Year
|
Reserve Ratio
|
|||
2014
|
1.20
|
%
|
||
2013
|
1.07
|
%
|
||
2012
|
1.02
|
%
|
||
2011
|
0.99
|
%
|
||
2010 |
0.92
|
%
|
OSFA’s “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 OSFA during the fiscal year by the aggregate amount of default claims paid by OSFA outstanding at the end of the prior fiscal year. For the last
five fiscal years, the “recovery rate” was as follows:
Fiscal Year
|
Recovery Rate
|
|||
2014
|
19.98
|
%
|
||
2013
|
18.36
|
%
|
||
2012
|
18.99
|
%
|
||
2011
|
20.70
|
%
|
||
2010 |
24.71
|
%
|
In addition, OSFA’s “trigger 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 OSFA’s existing portfolio of loans in repayment at the end of the prior fiscal year. For the last five fiscal years, the “trigger rate” was as follows:
Fiscal Year
|
Trigger Rate
|
|||
2014
|
2.74
|
%
|
||
2013
|
4.48
|
%
|
||
2012
|
4.24
|
%
|
||
2011
|
4.50
|
%
|
||
2010 |
4.43
|
%
|
OSFA is located in Tallahassee, Florida. OSFA will provide a copy of its most recent financial statement upon receipt of a written
request directed to Levis Hughes, Chief at 325 W. Gaines St, Suite 1314, Tallahassee, FL 32399.
A-17