Attached files
file | filename |
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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, 2019, 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 $2,246,267 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
|
$
|
740,817,957
|
||
Aggregate Outstanding Principal Balance – Treasury Bill
|
$
|
74,208,779
|
||
Percentage of Aggregate Outstanding Principal Balance – Treasury Bill
|
10.02
|
%
|
||
Aggregate Outstanding Principal Balance – One-Month LIBOR
|
$
|
666,609,178
|
||
Percentage of Aggregate Outstanding Principal Balance – One-Month LIBOR
|
89.98
|
%
|
||
Number of Borrowers
|
25,092
|
|||
Average Outstanding Principal Balance Per Borrower
|
$
|
29,524
|
||
Number of Loans
|
44,507
|
|||
Average Outstanding Principal Balance Per Loan – Treasury Bill
|
$
|
32,923
|
||
Average Outstanding Principal Balance Per Loan – One-Month LIBOR
|
$
|
15,777
|
||
Weighted Average Remaining Term to Scheduled Maturity
|
169 months
|
|||
Weighted Average Annual Interest Rate
|
4.78
|
%
|
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%
|
7,500
|
$
|
114,587,221
|
15.5
|
%
|
|||||||
3.01% to 3.50%
|
8,313
|
114,944,101
|
15.5
|
|||||||||
3.51% to 4.00%
|
7,770
|
118,605,578
|
16.0
|
|||||||||
4.01% to 4.50%
|
9,374
|
132,391,688
|
17.9
|
|||||||||
4.51% to 5.00%
|
3,210
|
50,077,600
|
6.8
|
|||||||||
5.01% to 5.50%
|
937
|
18,165,758
|
2.5
|
|||||||||
5.51% to 6.00%
|
822
|
16,442,048
|
2.2
|
|||||||||
6.01% to 6.50%
|
1,116
|
21,520,092
|
2.9
|
|||||||||
6.51% to 7.00%
|
1,541
|
30,894,254
|
4.2
|
|||||||||
7.01% to 7.50%
|
523
|
12,444,531
|
1.7
|
|||||||||
7.51% to 8.00%
|
1,222
|
32,902,261
|
4.4
|
|||||||||
8.01% to 8.50%
|
1,192
|
34,840,626
|
4.7
|
|||||||||
Equal to or greater than 8.51%
|
987
|
43,002,198
|
5.8
|
|||||||||
Total
|
44,507
|
$
|
740,817,957
|
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
|
4,433
|
$
|
12,285,153
|
1.7
|
%
|
||||||||
$5,000.00-$ 9,999.99
|
4,370
|
31,513,490
|
4.3
|
||||||||||
$10,000.00-$14,999.99
|
2,855
|
35,469,539
|
4.8
|
||||||||||
$15,000.00-$19,999.99
|
2,359
|
41,107,877
|
5.5
|
||||||||||
$20,000.00-$24,999.99
|
1,831
|
41,013,690
|
5.5
|
||||||||||
$25,000.00-$29,999.99
|
1,423
|
39,024,728
|
5.3
|
||||||||||
$30,000.00-$34,999.99
|
1,146
|
37,101,011
|
5.0
|
||||||||||
$35,000.00-$39,999.99
|
922
|
34,508,388
|
4.7
|
||||||||||
$40,000.00-$44,999.99
|
814
|
34,485,521
|
4.7
|
||||||||||
$45,000.00-$49,999.99
|
675
|
31,998,485
|
4.3
|
||||||||||
$50,000.00-$54,999.99
|
515
|
27,005,120
|
3.6
|
||||||||||
$55,000.00-$59,999.99
|
440
|
25,310,206
|
3.4
|
||||||||||
$60,000.00-$64,999.99
|
410
|
25,635,360
|
3.5
|
||||||||||
$65,000.00-$69,999.99
|
336
|
22,689,044
|
3.1
|
||||||||||
$70,000.00-$74,999.99
|
314
|
22,740,893
|
3.1
|
||||||||||
$75,000.00-$79,999.99
|
245
|
18,928,499
|
2.6
|
||||||||||
$80,000.00-$84,999.99
|
216
|
17,816,468
|
2.4
|
||||||||||
$85,000.00-$89,999.99
|
178
|
15,572,707
|
2.1
|
||||||||||
$90,000.00-$94,999.99
|
175
|
16,170,711
|
2.2
|
||||||||||
$95,000.00-$99,999.99
|
133
|
12,938,191
|
1.7
|
||||||||||
$100,000.00 and above
|
1,302
|
197,502,878
|
26.7
|
||||||||||
Total
|
25,092
|
$
|
740,817,957
|
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
|
42,597
|
$
|
696,989,463
|
94.1
|
%
|
|||||||
31-60 days
|
726
|
16,013,353
|
2.2
|
|||||||||
61-90 days
|
376
|
8,501,431
|
1.1
|
|||||||||
91-120 days
|
192
|
4,468,792
|
0.6
|
|||||||||
121-150 days
|
119
|
2,987,935
|
0.4
|
|||||||||
151-180 days
|
89
|
2,714,413
|
0.4
|
|||||||||
181-210 days
|
93
|
1,945,362
|
0.3
|
|||||||||
Greater than 210 days
|
315
|
7,197,209
|
1.0
|
|||||||||
Total
|
44,507
|
$
|
740,817,957
|
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
|
170
|
$
|
52,088
|
*
|
||||||||
4 to 12
|
782
|
854,281
|
0.1
|
%
|
||||||||
13 to 24
|
1,353
|
4,525,948
|
0.6
|
|||||||||
25 to 36
|
1,691
|
8,266,360
|
1.1
|
|||||||||
37 to 48
|
3,906
|
17,246,636
|
2.3
|
|||||||||
49 to 60
|
4,512
|
23,788,163
|
3.2
|
|||||||||
61 to 72
|
2,282
|
17,506,408
|
2.4
|
|||||||||
73 to 84
|
1,747
|
14,317,139
|
1.9
|
|||||||||
85 to 96
|
1,786
|
17,724,919
|
2.4
|
|||||||||
97 to 108
|
2,858
|
30,410,352
|
4.1
|
|||||||||
109 to 120
|
3,541
|
40,781,309
|
5.5
|
|||||||||
121 to 132
|
3,148
|
55,849,280
|
7.5
|
|||||||||
133 to 144
|
2,290
|
46,008,811
|
6.2
|
|||||||||
145 to 156
|
1,810
|
39,552,459
|
5.3
|
|||||||||
157 to 168
|
2,555
|
58,359,177
|
7.9
|
|||||||||
169 to 180
|
3,074
|
72,422,059
|
9.8
|
|||||||||
181 to 192
|
1,390
|
41,228,805
|
5.6
|
|||||||||
193 to 204
|
1,227
|
40,723,477
|
5.5
|
|||||||||
205 to 216
|
1,050
|
40,263,270
|
5.4
|
|||||||||
217 to 228
|
811
|
34,221,089
|
4.6
|
|||||||||
229 to 240
|
713
|
32,170,147
|
4.3
|
|||||||||
241 to 252
|
409
|
18,777,612
|
2.5
|
|||||||||
253 to 264
|
321
|
16,186,172
|
2.2
|
|||||||||
265 to 276
|
212
|
11,010,390
|
1.5
|
|||||||||
277 to 288
|
185
|
9,828,102
|
1.3
|
|||||||||
289 to 300
|
186
|
11,497,450
|
1.6
|
|||||||||
301 to 312
|
278
|
17,789,980
|
2.4
|
|||||||||
313 to 324
|
46
|
3,732,172
|
0.5
|
|||||||||
325 to 336
|
31
|
2,968,240
|
0.4
|
|||||||||
337 to 348
|
36
|
2,858,625
|
0.4
|
|||||||||
349 to 360
|
58
|
5,222,457
|
0.7
|
|||||||||
361 and above
|
49
|
4,674,582
|
0.6
|
|||||||||
Total
|
44,507
|
$
|
740,817,957
|
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
|
1,177
|
$
|
23,326,356
|
3.1
|
%
|
|||||||
Forbearance
|
2,094
|
50,849,234
|
6.9
|
|||||||||
Repayment
|
||||||||||||
First year in repayment
|
289
|
11,740,544
|
1.6
|
|||||||||
Second year in repayment
|
362
|
15,697,764
|
2.1
|
|||||||||
Third year in repayment
|
419
|
17,537,519
|
2.4
|
|||||||||
More than 3 years in repayment
|
40,166
|
621,666,541
|
83.9
|
|||||||||
Total
|
44,507
|
$
|
740,817,957
|
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 133.7 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
|
19.6
|
-
|
205.4
|
|||||||||
Forbearance
|
-
|
4.2
|
203.9
|
|||||||||
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 $23,326,356 aggregate outstanding principal balance of the trust student loans in deferment as of the statistical disclosure date, $17,541,295 or approximately 75.2%
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
|
232
|
$
|
4,383,133
|
0.6
|
%
|
|||||||
Alaska
|
75
|
1,125,131
|
0.2
|
|||||||||
Arizona
|
969
|
19,155,139
|
2.6
|
|||||||||
Arkansas
|
144
|
2,291,183
|
0.3
|
|||||||||
California
|
4,922
|
91,600,889
|
12.4
|
|||||||||
Colorado
|
816
|
14,703,946
|
2.0
|
|||||||||
Connecticut
|
558
|
7,745,059
|
1.0
|
|||||||||
Delaware
|
107
|
2,445,480
|
0.3
|
|||||||||
District of Columbia
|
193
|
2,858,523
|
0.4
|
|||||||||
Florida
|
6,654
|
97,176,740
|
13.1
|
|||||||||
Georgia
|
1,181
|
21,436,316
|
2.9
|
|||||||||
Hawaii
|
178
|
3,196,456
|
0.4
|
|||||||||
Idaho
|
184
|
2,848,841
|
0.4
|
|||||||||
Illinois
|
1,249
|
17,745,989
|
2.4
|
|||||||||
Indiana
|
826
|
13,169,557
|
1.8
|
|||||||||
Iowa
|
238
|
3,325,200
|
0.4
|
|||||||||
Kansas
|
808
|
12,668,139
|
1.7
|
|||||||||
Kentucky
|
253
|
3,934,962
|
0.5
|
|||||||||
Louisiana
|
751
|
13,284,691
|
1.8
|
|||||||||
Maine
|
92
|
1,317,599
|
0.2
|
|||||||||
Maryland
|
925
|
16,932,079
|
2.3
|
|||||||||
Massachusetts
|
1,143
|
15,730,445
|
2.1
|
|||||||||
Michigan
|
729
|
12,943,578
|
1.7
|
|||||||||
Minnesota
|
703
|
11,116,281
|
1.5
|
|||||||||
Mississippi
|
200
|
4,116,229
|
0.6
|
|||||||||
Missouri
|
962
|
16,438,332
|
2.2
|
|||||||||
Montana
|
106
|
1,705,925
|
0.2
|
|||||||||
Nebraska
|
132
|
1,981,625
|
0.3
|
|||||||||
Nevada
|
288
|
5,205,697
|
0.7
|
|||||||||
New Hampshire
|
183
|
2,388,646
|
0.3
|
|||||||||
New Jersey
|
1,094
|
16,931,240
|
2.3
|
|||||||||
New Mexico
|
152
|
2,992,319
|
0.4
|
|||||||||
New York
|
2,750
|
41,737,553
|
5.6
|
|||||||||
North Carolina
|
937
|
14,201,767
|
1.9
|
|||||||||
North Dakota
|
38
|
576,431
|
0.1
|
|||||||||
Ohio
|
3,462
|
65,802,683
|
8.9
|
|||||||||
Oklahoma
|
547
|
9,172,644
|
1.2
|
|||||||||
Oregon
|
697
|
12,859,226
|
1.7
|
|||||||||
Pennsylvania
|
1,074
|
17,431,736
|
2.4
|
|||||||||
Rhode Island
|
99
|
1,816,639
|
0.2
|
|||||||||
South Carolina
|
313
|
5,636,026
|
0.8
|
|||||||||
South Dakota
|
39
|
839,602
|
0.1
|
|||||||||
Tennessee
|
557
|
10,276,409
|
1.4
|
|||||||||
Texas
|
3,142
|
51,281,708
|
6.9
|
|||||||||
Utah
|
167
|
4,176,315
|
0.6
|
|||||||||
Vermont
|
59
|
1,105,075
|
0.1
|
|||||||||
Virginia
|
1,077
|
16,775,071
|
2.3
|
|||||||||
Washington
|
1,646
|
26,637,063
|
3.6
|
|||||||||
West Virginia
|
130
|
2,262,842
|
0.3
|
|||||||||
Wisconsin
|
320
|
4,818,182
|
0.7
|
|||||||||
Wyoming
|
41
|
921,678
|
0.1
|
|||||||||
Other
|
365
|
7,593,938
|
1.0
|
|||||||||
Total
|
44,507
|
$
|
740,817,957
|
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
|
22,683
|
$
|
293,381,718
|
39.6
|
%
|
|||||||
Other Repayment Options(1)
|
17,267
|
309,613,090
|
41.8
|
|||||||||
Income-driven Repayment(2)
|
4,557
|
137,823,149
|
18.6
|
|||||||||
Total
|
44,507
|
$
|
740,817,957
|
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 443 loans with an aggregate outstanding principal balance of $15,402,513 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.
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
|
22,028
|
$
|
306,456,403
|
41.4
|
%
|
|||||||
Unsubsidized
|
22,479
|
434,361,554
|
58.6
|
|||||||||
Total
|
44,507
|
$
|
740,817,957
|
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
|
524
|
$
|
21,367,290
|
2.9
|
%
|
|||||||
October 1, 1993 through June 30, 2006
|
43,983
|
719,450,667
|
97.1
|
|||||||||
July 1, 2006 and later
|
0
|
0
|
0.0
|
|||||||||
Total
|
44,507
|
$
|
740,817,957
|
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
|
1,313
|
$
|
14,687,971
|
2.0
|
%
|
|||||||
College Assist
|
28
|
571,713
|
0.1
|
|||||||||
Educational Credit Management Corporation
|
969
|
18,258,635
|
2.5
|
|||||||||
Florida Off Of Student Fin'l Assistance
|
7,401
|
95,727,980
|
12.9
|
|||||||||
Great Lakes Higher Education Corporation
|
19,520
|
392,575,828
|
53.0
|
|||||||||
Illinois Student Assistance Comm
|
1,064
|
14,068,322
|
1.9
|
|||||||||
Kentucky Higher Educ. Asst. Auth.
|
176
|
2,200,646
|
0.3
|
|||||||||
Louisiana Office Of Student Financial Asst
|
266
|
3,650,169
|
0.5
|
|||||||||
Michigan Guaranty Agency
|
461
|
5,962,858
|
0.8
|
|||||||||
Nebraska National Student Loan Program
|
7
|
236,337
|
*
|
|||||||||
New Jersey Higher Ed Student Assistance Authority
|
2,184
|
27,822,596
|
3.8
|
|||||||||
New York State Higher Ed Services Corp
|
4,806
|
66,604,855
|
9.0
|
|||||||||
Oklahoma Guaranteed Stud Loan Prog
|
378
|
5,710,096
|
0.8
|
|||||||||
Pennsylvania Higher Education Assistance Agency
|
3,140
|
48,223,018
|
6.5
|
|||||||||
Texas Guaranteed Student Loan Corp
|
2,792
|
44,518,111
|
6.0
|
|||||||||
United Student Aid Funds, Inc.
|
2
|
-1,176
|
*
|
|||||||||
Total
|
44,507
|
$
|
740,817,957
|
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.
ASCENDIUM EDUCATION SOLUTIONS, INC.
Ascendium Education Solutions, Inc. f/k/a Great Lakes Higher Education Guaranty Corporation (“Ascendium”) is a Wisconsin nonstock, nonprofit corporation, the sole member of which is Ascendium Education Group, Inc.
f/k/a Great Lakes Higher Education Corporation (“Ascendium Education Group”). Ascendium’s predecessor organization, Ascendium Education Group, was organized as a Wisconsin nonstock, nonprofit corporation and began guaranteeing student loans under
the Higher Education Act in 1967. Ascendium is the designated guaranty agency under the Higher Education Act for Wisconsin, Arkansas, Iowa, Minnesota, Montana, North Dakota, Ohio, South Dakota, Puerto Rico and the Virgin Islands. On January 1,
2002, Ascendium Education Group (and Ascendium directly and through its support services agreement with Ascendium Education Group), outsourced certain aspects of its student loan program guaranty support operations to Great Lakes Educational Loan
Services, Inc. (“GLELSI”). Ascendium continues as the “guaranty agency” as defined in Section 435(j) of the Higher Education Act and continues its default aversion, claim purchase and compliance, collection support and federal reporting
responsibilities as well as custody and responsibility for all revenues, expenses and assets related to that status. The primary operations center for Ascendium Education Group and its affiliates (including Ascendium) is in Madison, Wisconsin,
which includes operational staff offices for guaranty functions. Ascendium also maintain offices in; Eagan, Minnesota; Aberdeen, South Dakota; and Indianapolis, Indiana. Ascendium will provide a copy of Ascendium Education Group’s most recent
consolidated financial statements on receipt of a written request directed to 2501 International Lane, Madison, Wisconsin 53704, Attention: Chief Financial Officer.
United Student Aid Funds, Inc. (“USAF”) was organized as a private, nonprofit corporation under the General Corporation Law of the State of Delaware in 1960. USAF (i) maintained 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) served 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.
A-14
USAF was the sole member of the Northwest Education Loan Association (“NELA”), a guarantor serving the states of Washington, Idaho and the Northwest. Ascendium Education Group became a member of USAF effective January
1, 2017.
Effective as of December 31, 2018, NELA was dissolved, with its remaining assets going to its sole member, USAF. Immediately thereafter, USAF was merged into Ascendium. Thus, the portfolios previously held by USAF
and NELA are now held by Ascendium.
The information in the following tables has been provided to the Issuer from reports provided by or to the U.S. Department of Education and has not been verified by the Issuer, Ascendium, or the initial purchasers. No
representation is made by the Issuer, Ascendium, or the initial purchasers as to the accuracy or completeness of this information. Prospective investors may consult the U.S. Department of Education Data Books and Web sites
http://www2.ed.gov/finaid/prof/resources/data/opeloanvol.html and http://www.fp.ed.gov/pubs.html for further information concerning Ascendium or any other guaranty agency.
Guaranty Volume. Pursuant to the SAFRA Act, part of the Health Care and Education Reconciliation Act of 2010, Ascendium, the former USAF, and the former NELA ceased issuing new
loan guarantees on June 30, 2010. The most recent year for which the U.S. Department of Education has issued guaranty volume information is 2009. Ascendium issued $7.0 billion in new loan guarantees in that year.
Reserve Ratio. The reserve ratios for Ascendium, the former USAF and the former NELA are as follows:
The Ascendium Portfolio (Without Consideration of USAF and NELA)
Following are Ascendium’s reserve fund levels as calculated in accordance with 34 CFR 682.410(a)(10) for the last five federal fiscal years:
Federal Fiscal Year
|
Federal Guaranty Reserve
Fund Level1
|
2014
|
0.94%
|
2015
|
1.05%
|
2016
|
1.37%
|
2017
|
1.80%
|
2018
|
2.21%
|
1 In accordance with Section 428(c)(9) of the Higher Education Act, does not include loans transferred from the former Higher Education Assistance Foundation, Northstar Guarantee Inc., Ohio Student Aid Commission or Puerto
Rico Higher Education Assistance Corporation. (The minimum reserve fund ratio under the Higher Education Act is 0.25%.)
A-15
The U.S. Department of Education’s website at http://www.fp.ed.gov/pubs.html has posted reserve ratios for Ascendium for federal years 2014, 2015, 2016, 2017 and 2018 of 0.699%, 0.648%, 0.608%,
0.827%, 1.000% and 1.480%, respectively. Ascendium believes the Department of Education has not calculated the reserve ratio in accordance with the Act and the correct ratio should be 0.94%, 1.05%, 1.37%, 1.80% and 2.21% respectively, as shown
above and as explained in the following footnote. On November 17, 2006, the U.S. Department of Education advised Ascendium that beginning in Federal Fiscal Year 2006 it will publish reserve ratios that include loan loss provision and deferred
revenues. Ascendium believes this change more closely approximates the statutory calculation. According to the U.S. Department of Education, available cash reserves may not always be an accurate barometer of a guarantor’s financial health.
The Former USAF Portfolio Now Held by Ascendium
Following are USAF’s reserve fund levels as calculated in accordance with 34 CFR 682.410(a)(10) for the last five federal fiscal years:
Federal Fiscal Year
|
Federal Guaranty Reserve
Fund Level1
|
2014
|
0.277%
|
2015
|
0.251%
|
2016
|
0.308%
|
2017
|
0.350%
|
2018
|
0.363%
|
The Former NELA Portfolio Now Held by Ascendium
Following are NELA’s reserve fund levels as calculated in accordance with 34 CFR 682.410(a)(10) for the last five federal fiscal years:
Federal Fiscal Year
|
Federal Guaranty Reserve
Fund Level1
|
2014
|
0.377%
|
2015
|
0.295%
|
2016
|
0.373%
|
2017
|
0.430%
|
2018
|
0.460%
|
Claims Rate. The claims rate for Ascendium, USAF and NELA are as follows:
A-16
The Ascendium Portfolio (Without Consideration of USAF and NELA)
For the past five federal fiscal years, Ascendium’s claims rate has not exceeded 5%, and, as a result, the highest allowable reinsurance has been paid on all Ascendium’s claims. The actual claims
rates are as follows:
Federal Fiscal Year
|
Claims Rate
|
2014
|
2.05%
|
2015
|
0.96%
|
2016
|
1.00%
|
2017
|
0.35%
|
2018
|
0.35%
|
The Former USAF Portfolio Now Held by Ascendium
For the past five federal fiscal years, USAF’s claims rate has not exceeded 5%, and, as a result, the highest allowable reinsurance has been paid on all USAF’s claims. The actual claims rates are
as follows:
Federal Fiscal Year
|
Claims Rate
|
2014
|
4.73%
|
2015
|
4.71%
|
2016
|
0.60%
|
2017
|
0.67%
|
2018
|
2.15%
|
As a result of various statutory and regulatory changes over the past several years, historical rates may not be an accurate indicator of current delinquency or default trends or future claims
rates.
The Former NELA Portfolio Now Held by Ascendium
For the past five federal fiscal years, NELA’s claims rate has not exceeded 5%, and, as a result, the highest allowable reinsurance has been paid on all NELA’s claims. The actual claims rates are
as follows:
Federal Fiscal Year
|
Claims Rate
|
2014
|
1.37%
|
2015
|
0.60%
|
2016
|
1.31%
|
2017
|
0.63%
|
2018
|
1.52%
|
A-17
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.
A-18
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.
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-19