ANNEX A


The Trust Student Loan Pool as of October 31, 2015

 

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 90 days or more 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 October 31, 2015, 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 $22,374,372 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, 20 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.

 

 

 

 

 

 

COMPOSITION OF THE TRUST STUDENT LOANS AS OF THE STATISTICAL DISCLOSURE DATE
Aggregate Outstanding Principal Balance		$	912,278,295
Aggregate Outstanding Principal Balance – Treasury Bill		$	118,855,712
Percentage of Aggregate Outstanding Principal Balance – Treasury Bill			13.03	%
Aggregate Outstanding Principal Balance – One-Month LIBOR		$	793,422,583
Percentage of Aggregate Outstanding Principal Balance – One-Month LIBOR			86.97	%
Number of Borrowers			36,041
Average Outstanding Principal Balance Per Borrower		$	25,312
Number of Loans			60,637
Average Outstanding Principal Balance Per Loan – Treasury Bill		$	25,560
Average Outstanding Principal Balance Per Loan – One-Month LIBOR		$	14,172
Weighted Average Remaining Term to Scheduled Maturity		187 months
Weighted Average Annual Interest Rate			4.90	%

 

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.

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%			4,576			$	51,800,495				5.7	%
3.01% to 3.50%			8,488				101,272,074				11.1
3.51% to 4.00%			10,740				148,783,412				16.3
4.01% to 4.50%			19,450				251,977,008				27.6
4.51% to 5.00%			8,502				127,683,402				14.0
5.01% to 5.50%			1,368				28,648,272				3.1
5.51% to 6.00%			674				16,175,028				1.8
6.01% to 6.50%			665				19,820,663				2.2
6.51% to 7.00%			711				17,578,890				1.9
7.01% to 7.50%			618				15,407,625				1.7
7.51% to 8.00%			2,107				51,666,352				5.7
8.01% to 8.50%			1,229				32,830,753				3.6
Equal to or greater than 8.51%			1,509				48,634,322				5.3
Total			60,637			$	912,278,295				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 prospectus.

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			8,310			$	22,627,273				2.5	%
$  5,000.00-$ 9,999.99			5,180				39,386,071				4.3
$10,000.00-$14,999.99			5,454				67,101,788				7.4
$15,000.00-$19,999.99			3,248				56,153,581				6.2
$20,000.00-$24,999.99			2,453				55,099,551				6.0
$25,000.00-$29,999.99			2,127				58,103,097				6.4
$30,000.00-$34,999.99			1,473				47,609,352				5.2
$35,000.00-$39,999.99			1,115				41,645,000				4.6
$40,000.00-$44,999.99			931				39,603,919				4.3
$45,000.00-$49,999.99			810				38,382,992				4.2
$50,000.00-$54,999.99			640				33,512,938				3.7
$55,000.00-$59,999.99			577				33,101,859				3.6
$60,000.00-$64,999.99			501				31,246,930				3.4
$65,000.00-$69,999.99			399				26,919,119				3.0
$70,000.00-$74,999.99			367				26,611,967				2.9
$75,000.00-$79,999.99			313				24,225,322				2.7
$80,000.00-$84,999.99			254				20,895,068				2.3
$85,000.00-$89,999.99			225				19,674,943				2.2
$90,000.00-$94,999.99			185				17,072,296				1.9
$95,000.00-$99,999.99			163				15,907,252				1.7
$100,000.00 and above			1,316				197,397,978				21.6
Total			36,041			$	912,278,295				100.0	%

 

 

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			57,387			$	838,984,157				92.0	%
31-60 days			1,255				26,347,450				2.9
61-90 days			619				12,790,955				1.4
91-120 days			271				6,811,158				0.7
121-150 days			246				5,592,634				0.6
151-180 days			236				5,846,511				0.6
181-210 days			134				3,171,169				0.3
Greater than 210 days			489				12,734,260				1.4
Total			60,637			$	912,278,295				100.0	%

 

 

 

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			97			$	35,903				*
4 to 12			454				434,294				*
13 to 24			706				1,875,265				0.2	%
25 to 36			7,246				13,987,161				1.5
37 to 48			3,488				11,081,363				1.2
49 to 60			2,390				11,029,356				1.2
61 to 72			1,864				11,131,390				1.2
73 to 84			1,476				11,982,054				1.3
85 to 96			8,132				56,510,034				6.2
97 to 108			3,955				33,283,924				3.6
109 to 120			2,752				29,132,308				3.2
121 to 132			3,316				59,121,718				6.5
133 to 144			2,345				47,267,288				5.2
145 to 156			4,909				78,776,055				8.6
157 to 168			2,628				46,912,533				5.1
169 to 180			1,769				34,359,950				3.8
181 to 192			1,243				26,321,221				2.9
193 to 204			883				22,331,012				2.4
205 to 216			3,501				100,519,979				11.0
217 to 228			1,697				52,490,286				5.8
229 to 240			1,396				45,024,930				4.9
241 to 252			1,046				39,683,864				4.3
253 to 264			674				27,329,317				3.0
265 to 276			629				28,615,961				3.1
277 to 288			554				27,178,637				3.0
289 to 300			442				22,307,289				2.4
301 to 312			325				19,578,564				2.1
313 to 324			149				9,753,923				1.1
325 to 336			114				7,197,656				0.8
337 to 348			74				5,825,899				0.6
349 to 360			235				19,038,839				2.1
361 and above			148				12,160,324				1.3
Total			60,637			$	912,278,295				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 prospectus.

 

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			2,538			$	48,914,864				5.4	%
Forbearance			3,236				80,076,773				8.8
Repayment
First year in repayment			935				33,466,554				3.7
Second year in repayment			726				25,547,375				2.8
Third year in repayment			903				27,943,968				3.1
More than 3 years in repayment			52,299				696,328,762				76.3
Total			60,637			$	912,278,295				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 prospectus.

The weighted average number of months in repayment for all trust student loans currently in repayment is approximately 104.9 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 WEIGHTED AVERAGE REMAINING MONTHS IN

STATUS OF THE TRUST STUDENT LOANS BY

CURRENT BORROWER PAYMENT STATUS AS OF THE

STATISTICAL DISCLOSURE DATE

 

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 $48,914,864 aggregate outstanding principal balance of the trust student loans in deferment as of the statistical disclosure date, $26,793,792 or approximately 54.8% 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			452			$	7,777,052				0.9	%
Alaska			130				1,754,685				0.2
Arizona			1,365				23,284,348				2.6
Arkansas			344				5,409,520				0.6
California			5,734				100,001,549				11.0
Colorado			1,027				12,517,880				1.4
Connecticut			1,166				15,792,664				1.7
Delaware			171				2,520,180				0.3
District of Columbia			247				4,527,354				0.5
Florida			3,405				66,645,380				7.3
Georgia			1,756				30,188,193				3.3
Hawaii			202				2,572,312				0.3
Idaho			190				2,715,867				0.3
Illinois			3,038				42,107,470				4.6
Indiana			1,929				24,659,831				2.7
Iowa			315				4,390,886				0.5
Kansas			1,058				12,462,987				1.4
Kentucky			435				6,303,360				0.7
Louisiana			1,888				30,126,215				3.3
Maine			249				3,335,539				0.4
Maryland			1,655				26,545,218				2.9
Massachusetts			2,248				27,067,788				3.0
Michigan			1,342				22,893,168				2.5
Minnesota			888				13,512,673				1.5
Mississippi			500				8,319,455				0.9
Missouri			1,318				17,655,404				1.9
Montana			128				1,507,640				0.2
Nebraska			117				1,300,421				0.1
Nevada			360				5,331,423				0.6
New Hampshire			440				6,169,135				0.7
New Jersey			1,888				27,580,504				3.0
New Mexico			199				3,291,130				0.4
New York			5,173				70,497,947				7.7
North Carolina			1,284				19,552,500				2.1
North Dakota			39				709,500				0.1
Ohio			384				7,223,063				0.8
Oklahoma			1,308				17,720,377				1.9
Oregon			952				14,276,777				1.6
Pennsylvania			2,591				37,655,262				4.1
Rhode Island			203				3,114,651				0.3
South Carolina			551				9,508,229				1.0
South Dakota			53				539,327				0.1
Tennessee			1,056				16,312,730				1.8
Texas			5,038				76,204,053				8.4
Utah			166				2,536,291				0.3
Vermont			111				1,221,419				0.1
Virginia			1,905				24,700,436				2.7
Washington			1,952				25,685,405				2.8
West Virginia			301				4,063,007				0.4
Wisconsin			796				10,223,409				1.1
Wyoming			66				707,591				0.1
Other			524				9,559,090				1.0
Total			60,637			$	912,278,295				100.0	%

 

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.

DISTRIBUTION OF THE TRUST STUDENT LOANS BY REPAYMENT

TERMS AS OF THE STATISTICAL DISCLOSURE DATE

 

(1)  Includes, among others, graduated repayment and interest-only period loans.

With respect to interest-only loans, as of the statistical disclosure date, there are 898 loans with an aggregate outstanding principal balance of $30,463,148currently in an interest-only period.  These interest-only loans represent approximately 3.3% 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

 

 

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			2,503			$	28,795,888				3.2	%
College Assist			34				795,009				0.1
Educational Credit Management Corporation			984				17,297,255				1.9
Great Lakes Higher Education Corporation			624				12,820,383				1.4
Illinois Student Assistance Commission			2,527				31,568,646				3.5
Kentucky Higher Education Assistance Authority			278				3,425,535				0.4
Louisiana Office Of Student Financial Assistance			298				4,190,118				0.5
Michigan Guaranty Agency			878				11,759,526				1.3
Montana Guaranteed Student Loan Program			7				45,642				*
New Jersey Higher Education Student Assistance Authority			2,274				24,150,275				2.6
New York State Higher Education Services Corporation			7,432				92,288,650				10.1
Northwest Education Loan Association			4,702				59,764,237				6.6
Oklahoma Guaranteed Student Loan Program			1,353				17,188,946				1.9
Pennsylvania Higher Education Assistance Agency			5,428				71,071,021				7.8
Tennessee Student Assistance Corporation			640				8,503,465				0.9
Texas Guaranteed Student Loan Corporation			3,784				58,865,943				6.5
United Student Aid Funds, Inc.			26,891				469,747,756				51.5
Total			60,637			$	912,278,295				100.0	%

 

 

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

 

 

SIGNIFICANT GUARANTOR INFORMATION

 

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

 

We obtained the following information from various sources, including from the related Significant Guarantors 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, Inc. and Student Assistance Corporation. Student Assistance Corporation is a wholly owned subsidiary of Navient Solutions, Inc. Navient Solutions, Inc. and its subsidiaries are not sponsored by nor are they agencies of the United States of America.

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

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

 

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

 

or after Oct. 1, 1998, to a range from 95 percent to 75 percent based upon the annual default claims rate of the guaranty agency. Reinsurance on non-default claims remains at 100 percent.

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

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

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

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

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

 

 

USA Funds’ “loss rate” represents the percentage of claims purchased from lenders but not covered by reinsurance. For the last five fiscal years, the “loss rate” was as follows:

 

 

 

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

 

 

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

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):

 

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:

 

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:

 

 

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:

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