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8-K - CURRENT REPORT - SLM STudent Loan Trust 2003-12sl35290365-8k_200312.htm
Exhibit 99.1
 
 

ANNEX A
The Trust Student Loan Pool as of April 30, 2016
 
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 April 30, 2016, 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 $2,319,228 to be capitalized as of the statistical disclosure date.  Percentages and dollar amounts in any table may not total 100% or whole dollars due to rounding.  The following tables also contain information concerning the total number of loans and total number of borrowers in the portfolio of trust student loans.  For ease of administration, the servicer separates a consolidation loan on its system into two separate loan segments representing subsidized and unsubsidized segments of the same loan.  The following tables reflect those loan segments within the number of loans.  In addition, 19 borrowers have more than one trust student loan.

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

The following tables also contain information concerning the total number of loans and the total number of borrowers in the portfolio of trust student loans.
2003-12
A-1


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 
 
$
861,865,150
 
Aggregate Outstanding Principal Balance – Treasury Bill 
 
$
111,429,518
 
Percentage of Aggregate Outstanding Principal Balance – Treasury Bill
   
12.93
%
Aggregate Outstanding Principal Balance – One-Month LIBOR 
 
$
750,435,631
 
Percentage of Aggregate Outstanding Principal Balance – One-Month LIBOR
   
87.07
%
Number of Borrowers 
   
34,094
 
Average Outstanding Principal Balance Per Borrower 
 
$
25,279
 
Number of Loans 
   
57,554
 
Average Outstanding Principal Balance Per Loan – Treasury Bill 
 
$
26,182
 
Average Outstanding Principal Balance Per Loan – One-Month LIBOR
 
$
14,080
 
Weighted Average Remaining Term to Scheduled Maturity 
 
185 months
 
Weighted Average Annual Interest Rate 
   
4.89
%

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.
 
 
 
2003-12
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% 
   
4,426
   
$
49,388,400
     
5.7
%
3.01% to 3.50% 
   
8,089
     
95,118,972
     
11.0
 
3.51% to 4.00% 
   
10,257
     
141,765,459
     
16.4
 
4.01% to 4.50% 
   
18,485
     
238,167,995
     
27.6
 
4.51% to 5.00% 
   
8,033
     
120,737,341
     
14.0
 
5.01% to 5.50% 
   
1,299
     
27,639,056
     
3.2
 
5.51% to 6.00% 
   
640
     
15,388,755
     
1.8
 
6.01% to 6.50% 
   
630
     
18,787,579
     
2.2
 
6.51% to 7.00% 
   
659
     
15,877,332
     
1.8
 
7.01% to 7.50% 
   
586
     
14,407,179
     
1.7
 
7.51% to 8.00% 
   
1,952
     
48,034,137
     
5.6
 
8.01% to 8.50% 
   
1,122
     
30,797,102
     
3.6
 
Equal to or greater than 8.51% 
   
1,376
     
45,755,843
     
5.3
 
                         
            Total 
   
57,554
   
$
861,865,150
     
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.
 
2003-12
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
   
7,909
   
$
19,648,347
     
2.3
%
$5,000.00- $ 9,999.99
   
5,127
     
39,460,491
     
4.6
 
$10,000.00-$14,999.99
   
4,993
     
61,369,597
     
7.1
 
$15,000.00-$19,999.99
   
2,968
     
51,371,522
     
6.0
 
$20,000.00-$24,999.99
   
2,388
     
53,729,922
     
6.2
 
$25,000.00-$29,999.99
   
1,987
     
54,299,478
     
6.3
 
$30,000.00-$34,999.99
   
1,359
     
44,028,931
     
5.1
 
$35,000.00-$39,999.99
   
998
     
37,338,191
     
4.3
 
$40,000.00-$44,999.99
   
896
     
38,048,904
     
4.4
 
$45,000.00-$49,999.99
   
793
     
37,589,412
     
4.4
 
$50,000.00-$54,999.99
   
583
     
30,581,376
     
3.5
 
$55,000.00-$59,999.99
   
564
     
32,362,466
     
3.8
 
$60,000.00-$64,999.99
   
449
     
27,985,244
     
3.2
 
$65,000.00-$69,999.99
   
382
     
25,741,005
     
3.0
 
$70,000.00-$74,999.99
   
365
     
26,445,654
     
3.1
 
$75,000.00-$79,999.99
   
290
     
22,470,034
     
2.6
 
$80,000.00-$84,999.99
   
230
     
18,957,506
     
2.2
 
$85,000.00-$89,999.99
   
226
     
19,758,285
     
2.3
 
$90,000.00-$94,999.99
   
177
     
16,383,056
     
1.9
 
$95,000.00-$99,999.99
   
160
     
15,634,179
     
1.8
 
$100,000.00 and above
   
1,250
     
188,661,548
     
21.9
 
Total
   
34,094
   
$
861,865,150
     
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
   
55,036
   
$
802,277,942
     
93.1
%
31-60 days
   
926
     
18,997,201
     
2.2
 
61-90 days
   
428
     
11,218,729
     
1.3
 
91-120 days
   
296
     
6,962,475
     
0.8
 
121-150 days
   
194
     
5,930,618
     
0.7
 
151-180 days
   
129
     
3,437,485
     
0.4
 
181-210 days
   
89
     
2,354,035
     
0.3
 
Greater than 210 days
   
456
     
10,686,665
     
1.2
 
Total
   
57,554
   
$
861,865,150
     
100.0
%
 
 

2003-12
A-4

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
   
88
   
$
37,009
     
*
 
4 to 12
   
378
     
358,414
     
*
 
13 to 24
   
1,051
     
2,087,740
     
0.2
%
25 to 36
   
7,325
     
12,630,294
     
1.5
 
37 to 48
   
2,508
     
8,606,848
     
1.0
 
49 to 60
   
2,028
     
9,625,507
     
1.1
 
61 to 72
   
1,521
     
9,341,767
     
1.1
 
73 to 84
   
1,818
     
13,775,681
     
1.6
 
85 to 96
   
8,728
     
57,468,477
     
6.7
 
97 to 108
   
2,958
     
26,040,504
     
3.0
 
109 to 120
   
2,430
     
25,887,014
     
3.0
 
121 to 132
   
3,016
     
56,223,443
     
6.5
 
133 to 144
   
2,577
     
52,175,398
     
6.1
 
145 to 156
   
5,235
     
80,823,871
     
9.4
 
157 to 168
   
2,044
     
37,002,620
     
4.3
 
169 to 180
   
1,617
     
33,245,450
     
3.9
 
181 to 192
   
1,012
     
22,269,081
     
2.6
 
193 to 204
   
1,007
     
26,093,630
     
3.0
 
205 to 216
   
3,691
     
103,302,752
     
12.0
 
217 to 228
   
1,463
     
46,748,192
     
5.4
 
229 to 240
   
1,191
     
40,542,053
     
4.7
 
241 to 252
   
928
     
36,401,335
     
4.2
 
253 to 264
   
593
     
24,685,038
     
2.9
 
265 to 276
   
638
     
30,272,108
     
3.5
 
277 to 288
   
430
     
21,132,611
     
2.5
 
289 to 300
   
388
     
20,867,744
     
2.4
 
301 to 312
   
269
     
16,890,478
     
2.0
 
313 to 324
   
104
     
6,317,355
     
0.7
 
325 to 336
   
125
     
8,376,157
     
1.0
 
337 to 348
   
74
     
5,411,149
     
0.6
 
349 to 360
   
202
     
17,297,871
     
2.0
 
361 and above
   
117
     
9,927,559
     
1.2
 
Total
   
57,554
   
$
861,865,150
     
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.
 
2003-12
A-5

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
   
2,262
   
$
43,040,399
     
5.0
%
Forbearance
   
3,033
     
73,816,976
     
8.6
 
Repayment
                       
First year in repayment
   
804
     
31,170,827
     
3.6
 
Second year in repayment
   
622
     
21,183,272
     
2.5
 
Third year in repayment
   
770
     
24,890,940
     
2.9
 
More than 3 years in repayment
   
50,063
     
667,762,736
     
77.5
 
Total
   
57,554
   
$
861,865,150
     
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 108.3 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.
2003-12
A-6


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                                                                        
   
16.1
     
-
     
219.4
 
Forbearance                                                                        
   
-
     
4.2
     
215.8
 
Repayment                                                                        
   
-
     
-
     
179.5
 

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 $43,040,399 aggregate outstanding principal balance of the trust student loans in deferment as of the statistical disclosure date, $25,909,012 or approximately 60.2% 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.
2003-12
A-7

 
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
   
433
   
$
7,463,030
     
0.9
%
Alaska
   
120
     
1,609,372
     
0.2
 
Arizon
   
1,288
     
21,848,862
     
2.5
 
Arkansas
   
321
     
4,844,926
     
0.6
 
California
   
5,495
     
95,409,761
     
11.1
 
Colorado
   
969
     
11,657,489
     
1.4
 
Connecticut
   
1,102
     
14,734,068
     
1.7
 
Delaware
   
160
     
2,385,641
     
0.3
 
District of Columbia
   
234
     
4,127,621
     
0.5
 
Florida
   
3,269
     
63,156,131
     
7.3
 
Georgia
   
1,676
     
28,501,073
     
3.3
 
Hawaii
   
197
     
2,491,868
     
0.3
 
Idaho
   
183
     
2,396,810
     
0.3
 
Illinois
   
2,859
     
39,835,307
     
4.6
 
Indiana
   
1,818
     
23,319,854
     
2.7
 
Iowa
   
293
     
3,903,666
     
0.5
 
Kansas
   
989
     
11,739,502
     
1.4
 
Kentucky
   
408
     
6,047,357
     
0.7
 
Louisiana
   
1,786
     
28,893,270
     
3.4
 
Maine
   
234
     
3,041,788
     
0.4
 
Maryland
   
1,561
     
25,280,642
     
2.9
 
Massachusetts
   
2,137
     
25,210,879
     
2.9
 
Michigan
   
1,248
     
21,624,989
     
2.5
 
Minnesota
   
835
     
12,451,480
     
1.4
 
Mississippi
   
489
     
8,016,659
     
0.9
 
Missouri
   
1,245
     
16,545,579
     
1.9
 
Montana
   
124
     
1,454,313
     
0.2
 
Nebraska
   
110
     
1,324,191
     
0.2
 
Nevada
   
347
     
5,050,493
     
0.6
 
New Hampshire
   
420
     
5,618,886
     
0.7
 
New Jersey
   
1,792
     
26,258,867
     
3.0
 
New Mexico
   
187
     
3,234,939
     
0.4
 
New York
   
4,912
     
66,660,153
     
7.7
 
North Carolina
   
1,238
     
18,654,739
     
2.2
 
North Dakota
   
40
     
690,207
     
0.1
 
Ohio
   
364
     
6,500,412
     
0.8
 
Oklahoma
   
1,229
     
16,807,470
     
2.0
 
Oregon
   
910
     
13,338,608
     
1.5
 
Pennsylvania
   
2,425
     
35,103,398
     
4.1
 
Rhode Island
   
196
     
3,054,439
     
0.4
 
South Carolina
   
525
     
8,492,808
     
1.0
 
South Dakota
   
47
     
503,185
     
0.1
 
Tennessee
   
1,005
     
15,607,625
     
1.8
 
Texas
   
4,825
     
73,207,832
     
8.5
 
Utah
   
159
     
2,340,386
     
0.3
 
Vermont
   
108
     
1,225,096
     
0.1
 
Virginia
   
1,798
     
23,146,741
     
2.7
 
Washington
   
1,842
     
24,004,847
     
2.8
 
West Virginia
   
274
     
3,778,840
     
0.4
 
Wisconsin
   
770
     
9,810,940
     
1.1
 
Wyoming
   
58
     
521,510
     
0.1
 
Other
   
500
     
8,936,600
     
1.0
 
Total
   
57,554
   
$
861,865,150
     
100.0
%
 
2003-12
A-8

 
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.
2003-12
A-9

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 OF THE STATISTICAL DISCLOSURE DATE
 
Loan Repayment Terms 
 
Number
of Loans
   
Aggregate
Outstanding
Principal Balance
   
Percent of Pool
by Outstanding
Principal Balance
 
Level Repayment  
   
34,422
   
$
384,255,987
     
44.6
%
Other Repayment Options(1)  
   
24,132
     
477,609,163
     
55.4
 
                         
Total
   
57,554
   
$
861,865,150
     
100.0
%
(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 768 loans with an aggregate outstanding principal balance of $27,010,453 currently in an interest-only period.  These interest-only loans represent approximately 3.1% 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
   
28,092
   
$
362,963,445
     
42.1
%
Unsubsidized
   
29,462
     
498,901,704
     
57.9
 
Total
   
57,554
   
$
861,865,150
     
100.0
%
                         
 
 
2003-12
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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  
   
116
   
$
3,167,940
     
0.4
%
October 1, 1993 through June 30, 2006
   
57,438
     
884,096,695
     
99.6
 
July 1, 2006 and later        0       0       0.0  
                         
Total
   
57,554
   
$
861,865,150
     
100.0
%


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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 
   
2,380
   
$
27,089,252
     
3.1
%
College Assist 
   
30
     
741,446
     
0.1
 
Educational Credit Management Corporation
   
927
     
16,419,453
     
1.9
 
Great Lakes Higher Education Corporation 
   
590
     
11,884,202
     
1.4
 
Illinois Student Assistance Commission 
   
2,399
     
29,541,910
     
3.4
 
Kentucky Higher Education Assistance Authority
   
259
     
3,238,799
     
0.4
 
Louisiana Office Of Student Financial Assistance
   
287
     
3,987,583
     
0.5
 
Michigan Guaranty Agency 
   
824
     
11,039,263
     
1.3
 
Montana Guaranteed Student Loan Program
   
5
     
42,559
     
*
 
New Jersey Higher Education Student Assistance Authority
   
2,160
     
22,653,635
     
2.6
 
New York State Higher Education Services Corporation
   
7,082
     
87,531,229
     
10.2
 
Northwest Education Loan Association 
   
4,472
     
56,618,157
     
6.6
 
Oklahoma Guaranteed Student Loan Program
   
1,281
     
16,162,213
     
1.9
 
Pennsylvania Higher Education Assistance Agency
   
5,142
     
66,328,499
     
7.7
 
Tennessee Student Assistance Corporation 
   
608
     
8,068,714
     
0.9
 
Texas Guaranteed Student Loan Corporation
   
3,570
     
55,280,401
     
6.4
 
United Student Aid Funds, Inc. 
   
25,538
     
445,237,836
     
51.7
 
                         
Total 
   
57,554
   
$
861,865,150
     
100.0
%
*     Represents a percentage greater than 0% but less than 0.05%.
                       
 
2003-12
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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.

USA Funds is the sole member of the Northwest Education Loan Association, a guarantor serving the states of Washington, Idaho and the Northwest and Education@Work, Inc., an Ohio non-profit corporation.

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
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December 2015 and beyond.  Prior to that, the Higher Education Amendments of 1998 (the “1998 Reauthorization Law”) reduced the reinsurance coverage for loans in default made on or after Oct. 1, 1998, to a range from 95 percent to 75 percent based upon the annual default claims rate of the guaranty agency. Reinsurance on non-default claims remains at 100 percent.

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

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

As of September 30, 2015, USA Funds held net assets on behalf of the federal reserve fund of approximately $130 million. Through September 30, 2015, 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 $51.8 billion.  Also, as of September 30, 2015, USA Funds had operating fund assets totaling almost $1.3 billion, which includes the $130 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:
 
   
Reserve Ratio
   
Federal Fiscal Year
Guarantor
 
2011
 
2012
 
2013
 
2014
 
2015
United Student Aid Funds, Inc. 
 
0.394%
 
0.354%
 
0.313%
 
0.277%
 
0.251%

USA Funds’ “recovery rate,” which provides a measure of the effectiveness of the collection efforts against defaulted borrowers after the guarantee claim has been satisfied, is determined by dividing the amount recovered from borrowers by USA Funds during the fiscal year by the aggregate amount of default claims paid by USA Funds outstanding at the end of the prior fiscal year. For the last five fiscal years, the “recovery rate” was as follows:
   
Recovery Rate
   
Federal Fiscal Year
Guarantor
 
2011
 
2012
 
2013
 
2014
 
2015
United Student Aid Funds, Inc. 
 
32.17%
 
31.82%
 
30.55%
 
32.01%
 
 %
 
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:
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Loss Rate
   
Federal Fiscal Year
Guarantor
 
2011
 
2012
 
2013
 
2014
 
2015
United Student Aid Funds, Inc. 
 
4.71%
 
4.73%
 
4.74%
 
4.73%
 
4.71%
 
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:
 
   
Claims Rate
   
Federal Fiscal Year
Guarantor
 
2011
 
2012
 
2013
 
2014
 
2015
United Student Aid Funds, Inc. 
 
1.69%
 
1.58%
 
1.41%
 
32.01%
 
0.60%
 
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.
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HESC has a Federal Student Loan Reserve Fund (the “Federal Fund”) and an Agency Operating Fund to account for FFELP activity.  The Federal Fund assets, and earnings on those assets, are restricted in use and are considered property of the Department of Education.  The Agency Operating Fund is considered property of HESC, and its assets and earnings may be used generally for guarantee agency and other student financial aid related activities.
As of September 30, 2014, HESC had total FFELP assets of approximately $149 million (including balances for both the Federal Fund and the Agency Operating Fund) and had a total of approximately $16.5 billion in original principal amount of loans outstanding.
Guarantee Volume.  HESC guaranteed the following amounts for the last five federal fiscal years ended September 30 (excluding consolidation loans):
   
Loans Guaranteed ($ Millions)
   
Federal Fiscal Year
Guarantor
 
2010
 
2011
 
2012
   2013  
2014
New York State Higher Education Services Corporation
 
$799
 
$0
 
$0
   $0  
$0
 
Reserve Ratio.  A guarantee agency’s reserve ratio is determined by dividing its Federal Fund Balance by the original principal amount of loans outstanding.  HESC’s reserve ratio for the last five federal fiscal years ending September 30 is as follows:
 
   
Reserve Ratio as of Close of
Federal Fiscal Year
Guarantor
 
2010
 
2011
 
2012
 
2013
   2014
New York State Higher Education Services Corporation
 
0.33%
 
0.28%
 
0.28%
 
0.25%
   0.29%
 
Recovery Rates.  The Department of Education calculates a guaranty agency’s recovery rate by dividing the amount recovered from borrowers during a federal fiscal year by the guaranty agency’s outstanding default loan portfolio (beginning inventory) at the end of the prior federal fiscal year.  HESC’s recovery rate for each of the past five federal fiscal years ending September 30 provided below uses the Department of Education’s calculation method:
 
 
   
Recovery Rate
Federal Fiscal Year
Guarantor
 
2010
 
2011
 
2012
 
2013
   2014
New York State Higher Education Services Corporation
 
23.46%
 
26.68%
 
0.28%
 
0.25%
 
25.56%
 
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. 
 
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HESC’s claims rate for each of the past five federal fiscal years ending September 30 is as follows:
 
   
Claims Rate
Federal Fiscal Year
Guarantor
 
2010
 
2011
 
2012
 
2013
   2014
New York State Higher Education Services Corporation
 
1.86%
 
2.17%
 
1.59%
 
0.25%
 
25.56%
 
HESC is headquartered at 99 Washington Avenue, Albany, New York 12255.  Its most recent annual report is available on its web site.
 
 
 
 
2003-12
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