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8-K - 8-K - SLM Student Loan Trust 2004-10form8k.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 SLM ECFC and VG Funding by employing several criteria, including requirements that each trust student loan as of the original cutoff date (and with respect to each additional trust student loan as of its related subsequent cutoff date):


was a consolidation loan 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 fully disbursed;

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 $2,748,900 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, 10 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 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
 
$
1,111,256,509
 
Aggregate Outstanding Principal Balance – Treasury Bill
 
$
55,131,473
 
Percentage of Aggregate Outstanding Principal Balance – Treasury Bill
   
4.96
%
Aggregate Outstanding Principal Balance – One-Month LIBOR
 
$
979,810,505
 
Percentage of Aggregate Outstanding Principal Balance – One-Month LIBOR
   
88.17
%
Aggregate Outstanding Principal Balance – Treasury Bill Other
 
$
76,314,531
 
Percentage of Aggregate Outstanding Principal Balance – Treasury Bill Other
   
6.87
%
Number of Borrowers
   
36,183
 
Average Outstanding Principal Balance Per Borrower
 
$
30,712
 
Number of Loans
   
65,623
 
Average Outstanding Principal Balance Per Loan – Treasury Bill
 
$
33,013
 
Average Outstanding Principal Balance Per Loan – One-Month LIBOR
 
$
15,733
 
Average Outstanding Principal Balance Per Loan – Treasury Bill Other
 
$
45,534
 
Weighted Average Remaining Term to Scheduled Maturity
 
175 months
 
Weighted Average Annual Interest Rate
   
4.53
%

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 3.11% 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.

A-2

The category “Other” in the table above represents the Health Education Assistance Loan Program (which we refer to as “HEAL” and the loans originated under such program as “HEAL Loans”) portion of any consolidation loans made under the FFELP which consolidated one or more Stafford Loans, SLS Loans and/or PLUS Loans with one or more student loans originated under the HEAL Program. These consolidation loans are guaranteed as to principal and interest by a guaranty agency and reinsured by the Department of Education. The HEAL portion of any consolidation loan is not eligible to receive special allowance payments or interest subsidy payments. The interest rate on the HEAL Loan segment of any such consolidation loan is variable and is reset each July 1, based upon the average bond-equivalent rate for 91-day Treasury bills auctioned during the three months ending June 30, plus 3.0%. In addition, the applicable interest rate on the HEAL Loan segment of any such consolidation loan is not subject to any cap on the interest rate that may apply to the principal of the HEAL Loan segment.

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%
   
13,653
   
$
181,418,758
     
16.3
%
3.01% to 3.50%
   
17,114
     
200,203,745
     
18.0
 
3.51% to 4.00%
   
11,980
     
184,471,091
     
16.6
 
4.01% to 4.50%
   
11,825
     
184,698,134
     
16.6
 
4.51% to 5.00%
   
2,580
     
55,953,510
     
5.0
 
5.01% to 5.50%
   
2,834
     
102,696,655
     
9.2
 
5.51% to 6.00%
   
746
     
18,574,521
     
1.7
 
6.01% to 6.50%
   
745
     
20,803,078
     
1.9
 
6.51% to 7.00%
   
1,132
     
30,883,013
     
2.8
 
7.01% to 7.50%
   
517
     
15,867,091
     
1.4
 
7.51% to 8.00%
   
961
     
32,805,199
     
3.0
 
8.01% to 8.50%
   
942
     
53,808,123
     
4.8
 
Equal to or greater than 8.51%
   
594
     
29,073,592
     
2.6
 
                         
Total
   
65,623
   
$
1,111,256,509
     
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 – SLM Corporation’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
     
6,448
   
$
16,968,615
     
1.5
%
$ 5,000.00-$ 9,999.99
     
7,314
     
53,624,795
     
4.8
 
$ 10,000.00-$14,999.99
     
4,300
     
52,894,005
     
4.8
 
$ 15,000.00-$19,999.99
     
3,238
     
56,443,322
     
5.1
 
$ 20,000.00-$24,999.99
     
2,477
     
55,433,263
     
5.0
 
$ 25,000.00-$29,999.99
     
1,925
     
52,716,058
     
4.7
 
$ 30,000.00-$34,999.99
     
1,424
     
46,164,822
     
4.2
 
$ 35,000.00-$39,999.99
     
1,175
     
43,899,435
     
4.0
 
$ 40,000.00-$44,999.99
     
936
     
39,749,290
     
3.6
 
$ 45,000.00-$49,999.99
     
869
     
41,273,598
     
3.7
 
$ 50,000.00-$54,999.99
     
675
     
35,323,110
     
3.2
 
$ 55,000.00-$59,999.99
     
630
     
36,155,924
     
3.3
 
$ 60,000.00-$64,999.99
     
536
     
33,457,955
     
3.0
 
$ 65,000.00-$69,999.99
     
440
     
29,698,451
     
2.7
 
$ 70,000.00-$74,999.99
     
386
     
27,958,971
     
2.5
 
$ 75,000.00-$79,999.99
     
295
     
22,817,089
     
2.1
 
$ 80,000.00-$84,999.99
     
303
     
24,959,861
     
2.2
 
$ 85,000.00-$89,999.99
     
238
     
20,822,983
     
1.9
 
$ 90,000.00-$94,999.99
     
218
     
20,120,002
     
1.8
 
$ 95,000.00-$99,999.99
     
192
     
18,725,878
     
1.7
 
$ 100,000.00 and above
     
2,164
     
382,049,085
     
34.4
 
                           
Total
     
36,183
   
$
1,111,256,509
     
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
   
62,555
   
$
1,037,853,473
     
93.4
%
31-60 days
   
1,127
     
26,782,407
     
2.4
 
61-90 days
   
594
     
12,423,673
     
1.1
 
91-120 days
   
286
     
7,218,660
     
0.6
 
121-150 days
   
214
     
5,723,429
     
0.5
 
151-180 days
   
160
     
3,967,071
     
0.4
 
181-210 days
   
155
     
4,377,746
     
0.4
 
Greater than 210 days
   
532
     
12,910,050
     
1.2
 
                         
Total
   
65,623
   
$
1,111,256,509
     
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          
   
419
   
$
91,642
     
*
 
4 to12          
   
1,370
     
1,611,085
     
0.1
%
13 to 24
   
1,920
     
9,922,046
     
0.9
 
25 to 36
   
2,122
     
14,782,808
     
1.3
 
37 to 48
   
1,842
     
14,627,233
     
1.3
 
49 to 60
   
8,426
     
37,569,579
     
3.4
 
61 to 72
   
5,225
     
31,167,558
     
2.8
 
73 to 84
   
3,332
     
24,611,806
     
2.2
 
85 to 96
   
2,743
     
22,398,349
     
2.0
 
97 to 108
   
2,211
     
20,489,886
     
1.8
 
109 to 120
   
4,961
     
52,700,290
     
4.7
 
121 to 132
   
5,564
     
92,259,916
     
8.3
 
133 to 144
   
3,820
     
72,162,046
     
6.5
 
145 to 156
   
3,069
     
65,135,216
     
5.9
 
157 to 168
   
2,684
     
62,011,389
     
5.6
 
169 to 180
   
4,849
     
116,853,023
     
10.5
 
181 to 192
   
2,533
     
73,180,111
     
6.6
 
193 to 204
   
1,786
     
56,404,310
     
5.1
 
205 to 216
   
1,485
     
56,657,554
     
5.1
 
217 to 228
   
1,185
     
48,259,808
     
4.3
 
229 to 240
   
1,128
     
49,268,314
     
4.4
 
241 to 252
   
854
     
41,068,735
     
3.7
 
253 to 264
   
489
     
25,102,742
     
2.3
 
265 to 276
   
340
     
18,375,135
     
1.7
 
277 to 288
   
249
     
14,921,881
     
1.3
 
289 to 300
   
317
     
20,925,666
     
1.9
 
301 to 312
   
260
     
24,565,123
     
2.2
 
313 to 324
   
82
     
6,083,266
     
0.5
 
325 to 336
   
70
     
5,737,570
     
0.5
 
337 to 348
   
64
     
7,018,645
     
0.6
 
349 to 360
   
152
     
17,669,970
     
1.6
 
361 and above
   
72
     
7,623,808
     
0.7
 
                         
Total
   
65,623
   
$
1,111,256,509
     
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 – SLM Corporation’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
   
2,072
   
$
38,847,937
     
3.5
%
Forbearance
   
3,152
     
80,137,089
     
7.2
 
Repayment
                       
First year in repayment
   
793
     
33,214,746
     
3.0
 
Second year in repayment
   
646
     
26,359,953
     
2.4
 
Third year in repayment
   
862
     
32,358,072
     
2.9
 
More than 3 years in repayment
   
58,098
     
900,338,713
     
81.0
 
                         
Total
   
65,623
   
$
1,111,256,509
     
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 – SLM Corporation’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 123.8 calculated as the term to maturity at the commencement of repayment less the number of months remaining to scheduled maturity as of the statistical disclosure date.

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 $38,847,937 aggregate outstanding principal balance of the trust student loans in deferment as of the statistical disclosure date, $27,371,841 or approximately 70.5% of such loans are to borrowers who had not graduated as of that date.  We expect that a significant portion of these loans could qualify for additional deferments or forbearances at the end of their current deferment periods as the related borrowers continue their education beyond their current degree programs.  As a result, the overall duration of any applicable deferment and forbearance periods as well as the likelihood of future deferment and forbearance periods within this pool of trust student loans is likely to be higher than in other pools of student loans without similar numbers of in-school consolidation loans.  See Appendix A to the preliminary remarketing memorandum and “The Student Loan Pools – SLM Corporation’s Student Loan Financing Business” in the prospectus.

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          
   
524
   
$
9,145,178
     
0.8
%
Alaska          
   
81
     
1,318,123
     
0.1
 
Arizona          
   
1,369
     
26,016,286
     
2.3
 
Arkansas
   
386
     
7,821,259
     
0.7
 
California
   
7,114
     
136,272,333
     
12.3
 
Colorado
   
1,100
     
17,093,041
     
1.5
 
Connecticut
   
978
     
12,924,879
     
1.2
 
Delaware
   
172
     
3,782,653
     
0.3
 
District of Columbia
   
259
     
5,468,092
     
0.5
 
Florida          
   
4,695
     
86,124,251
     
7.8
 
Georgia          
   
1,815
     
39,931,610
     
3.6
 
Hawaii          
   
294
     
4,601,655
     
0.4
 
Idaho          
   
235
     
5,363,188
     
0.5
 
Illinois          
   
2,743
     
43,303,355
     
3.9
 
Indiana          
   
1,849
     
25,057,336
     
2.3
 
Iowa          
   
271
     
5,164,409
     
0.5
 
Kansas          
   
1,190
     
14,330,797
     
1.3
 
Kentucky
   
549
     
8,269,178
     
0.7
 
Louisiana
   
2,006
     
32,841,453
     
3.0
 
Maine          
   
187
     
2,432,572
     
0.2
 
Maryland
   
1,593
     
30,724,627
     
2.8
 
Massachusetts
   
2,039
     
29,610,139
     
2.7
 
Michigan
   
1,265
     
23,527,946
     
2.1
 
Minnesota
   
767
     
12,742,657
     
1.1
 
Mississippi
   
527
     
9,223,409
     
0.8
 
Missouri          
   
1,350
     
20,995,961
     
1.9
 
Montana          
   
143
     
2,469,171
     
0.2
 
Nebraska
   
121
     
1,867,541
     
0.2
 
Nevada          
   
415
     
6,245,765
     
0.6
 
New Hampshire
   
297
     
3,811,342
     
0.3
 
New Jersey
   
1,764
     
29,244,048
     
2.6
 
New Mexico
   
190
     
2,808,558
     
0.3
 
New York
   
4,610
     
75,519,369
     
6.8
 
North Carolina
   
1,394
     
25,127,434
     
2.3
 
North Dakota
   
51
     
1,160,801
     
0.1
 
Ohio          
   
3,533
     
58,883,062
     
5.3
 
Oklahoma
   
1,182
     
17,501,849
     
1.6
 
Oregon          
   
1,025
     
16,008,892
     
1.4
 
Pennsylvania
   
2,413
     
38,707,127
     
3.5
 
Rhode Island
   
164
     
2,321,104
     
0.2
 
South Carolina
   
664
     
14,404,363
     
1.3
 
South Dakota
   
64
     
683,823
     
0.1
 
Tennessee
   
1,283
     
23,497,612
     
2.1
 
Texas          
   
5,306
     
86,294,554
     
7.8
 
Utah          
   
220
     
4,297,321
     
0.4
 
Vermont          
   
104
     
1,923,945
     
0.2
 
Virginia          
   
1,858
     
28,461,423
     
2.6
 
Washington
   
1,943
     
28,542,829
     
2.6
 
West Virginia
   
281
     
4,135,057
     
0.4
 
Wisconsin
   
587
     
9,901,737
     
0.9
 
Wyoming
   
63
     
900,004
     
0.1
 
Other          
   
590
     
12,451,388
     
1.1
 
                         
Total
   
65,623
   
$
1,111,256,509
     
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.

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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
   
36,242
   
$
495,923,385
     
44.6
%
Other Repayment Options(1)
   
23,267
     
417,764,243
     
37.6
 
Income-driven Repayment(2)
   
6,114
     
197,568,881
     
17.8
 
                         
Total
   
65,623
   
$
1,111,256,509
     
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 375 loans with an aggregate outstanding principal balance of $13,804,852 currently in an interest-only period.  These interest-only loans represent approximately 1.2% of the aggregate outstanding principal balance of the trust student loans.  Interest-only periods range up to 48 months in overall length.

The servicer may in the future offer repayment terms similar to those described above to borrowers of trust student loans who are not entitled to these repayment terms as of the statistical disclosure date.  If repayment terms are offered to and accepted by those borrowers, the weighted average life of the securities could be lengthened.

DISTRIBUTION OF THE TRUST STUDENT LOANS BY LOAN
TYPE AS OF THE STATISTICAL DISCLOSURE DATE

 
 
Loan Type
 
Number
of Loans
   
Aggregate
Outstanding Principal
Balance
   
Percent of Pool
by Outstanding
Principal Balance
 
Subsidized
   
31,574
   
$
428,084,767
     
38.5
%
Unsubsidized
   
34,049
     
683,171,742
     
61.5
 
                         
Total
   
65,623
   
$
1,111,256,509
     
100.0
%

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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
   
184
   
$
6,931,692
     
0.6
%
October 1, 1993 through June 30, 2006
   
65,439
     
1,104,324,817
     
99.4
 
July 1, 2006 and later
   
0
     
0
     
0.0
 
                         
Total
   
65,623
   
$
1,111,256,509
     
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
   
2,750
   
$
33,833,092
     
3.0
%
College Assist
   
21
     
557,796
     
0.1
 
Educational Credit Management Corporation
   
2,586
     
36,812,503
     
3.3
 
Florida Off Of Student Fin’l Assistance
   
1,749
     
20,359,294
     
1.8
 
Great Lakes Higher Education Corporation
   
31,342
     
644,164,542
     
58.0
 
Illinois Student Assistance Comm
   
2,211
     
29,068,938
     
2.6
 
Kentucky Higher Educ. Asst. Auth.
   
247
     
3,270,910
     
0.3
 
Louisiana Office Of Student Financial Asst
   
1,012
     
12,248,521
     
1.1
 
Michigan Guaranty Agency
   
665
     
8,850,836
     
0.8
 
Nebraska National Student Loan Program
   
1
     
16,878
     
*
 
New Jersey Higher Ed Student Assistance Authority
   
1,333
     
17,815,587
     
1.6
 
New York State Higher Ed Services Corp
   
8,134
     
121,509,082
     
10.9
 
Oklahoma Guaranteed Stud Loan Prog
   
1,131
     
15,740,135
     
1.4
 
Pennsylvania Higher Education Assistance Agency
   
5,987
     
72,440,399
     
6.5
 
Texas Guaranteed Student Loan Corp
   
6,454
     
94,567,996
     
8.5
 
Total
   
65,623
   
$
1,111,256,509
     
100.0
%

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

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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.

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.

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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%

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.


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%.)

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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:

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%

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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%

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.

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, 2017, HESC had total FFELP assets of approximately $160           million (including balances for both the Federal Fund and the Agency Operating Fund) and had a total of approximately $12.1 billion in original principal amount of loans outstanding.

Guarantee Volume.   As a result of HCERA, HESC has not guaranteed any loans in the last five federal fiscal years ended September 30.

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
 
2013
   
2014
   
2015
   
2016
   
2017
 
New York State Higher Education Services Corporation
   
0.31
%
   
0.29
%
   
0.32
%
   
0.45
%
   
0.60
%

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
 
2013
   
2014
   
2015
   
2016
   
2017
 
New York State Higher Education Services Corporation
   
25.56
%
   
22.74
%
   
21.86
%
   
24.86
%
   
25.42
%

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

   
Claims Rate
Federal Fiscal Year
 
Guarantor
 
2013
   
2014
   
2015
   
2016
   
2017
 
New York State Higher Education Services Corporation
   
1.51
%
   
1.52
%
   
0.93
%
   
0.62
%
   
0.78
%

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


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