SLM (SLM) 8-K Forward-Looking Statements; Non-GAAP Financial Measures

SLM CORPORATION

Q4 2013 Investor Presentation

FEBRUARY 20, 2014

Exhibit 99.1

2

Forward-Looking Statements; Non-GAAP Financial Measures

The

following

information

is

current

as

of

February

20,

2014

(unless

otherwise

noted)

and

should

be

read

in

connection

with

SLM

Corporation’s

Annual

Report

on

Form

10-K

for

the

year

ended

December

31,

2013

(the

“2013

Form

10-K”),

and

subsequent

reports

filed

with

the

Securities

and

Exchange

Commission

(the

“SEC”).

Definitions

for

capitalized

terms

in

this

presentation

not

defined

herein

can

be

found

in

the

2013

Form

10-K

(filed

with

the

SEC

on

February

19,

2014).

This

Presentation

contains

forward-looking

statements

and

information

based

on

management’s

current

expectations

as

of

the

date

of

this

presentation.

Statements

that

are

not

historical

facts,

including

statements

about

the

company’s

beliefs

or

expectations

and

statements

that

assume

or

are

dependent

upon

future

events,

are

forward-looking

statements.

Forward-looking

statements

are

subject

to

risks,

uncertainties,

assumptions

and

other

factors

that

may

cause

actual

results

to

be

materially

different

from

those

reflected

in

such

forward-looking

statements.

These

factors

include,

among

others,

the

risks

and

uncertainties

set

forth

in

Item

1A

“Risk

Factors”

and

elsewhere

in

the

company’s

Annual

Report

on

Form

10-K

for

the

year

ended

Dec.

31,

2013

and

subsequent

filings

with

the

Securities

and

Exchange

Commission;

increases

in

financing

costs;

limits

on

liquidity;

increases

in

costs

associated

with

compliance

with

laws

and

regulations;

changes

in

accounting

standards

and

the

impact

of

related

changes

in

significant

accounting

estimates;

any

adverse

outcomes

in

any

significant

litigation

to

which

the

company

is

a

party;

credit

risk

associated

with

the

company’s

exposure

to

third

parties,

including

counterparties

to

the

company’s

derivative

transactions;

and

changes

in

the

terms

of

student

loans

and

the

educational

credit

marketplace

(including

changes

resulting

from

new

laws

and

the

implementation

of

existing

laws).

The

company

could

also

be

affected

by,

among

other

things:

changes

in

its

funding

costs

and

availability;

reductions

to

its

credit

ratings

or

the

credit

ratings

of

the

United

States

of

America;

failures

of

its

operating

systems

or

infrastructure,

including

those

of

third-party

vendors;

damage

to

its

reputation;

failures

to

successfully

implement

cost-cutting

and

adverse

effects

of

such

initiatives

on

its

business;

risks

associated

with

restructuring

initiatives,

including

the

company’s

recently

announced

strategic

plan

to

separate

its

existing

operations

into

two

separate

publicly

traded

companies;

changes

in

the

demand

for

educational

financing

or

in

financing

preferences

of

lenders,

educational

institutions,

students

and

their

families;

changes

in

law

and

regulations

with

respect

to

the

student

lending

business

and

financial

institutions

generally;

increased

competition

from

banks

and

other

consumer

lenders;

the

creditworthiness

of

its

customers;

changes

in

the

general

interest

rate

environment,

including

the

rate

relationships

among

relevant

money-

market

instruments

and

those

of

its

earning

assets

vs.

its

funding

arrangements;

changes

in

general

economic

conditions;

and

changes

in

the

demand

for

debt

management

services.

The

preparation

of

the

company’s

consolidated

financial

statements

also

requires

management

to

make

certain

estimates

and

assumptions

including

estimates

and

assumptions

about

future

events.

These

estimates

or

assumptions

may

prove

to

be

incorrect.

All

forward-looking

statements

contained

in

this

release

are

qualified

by

these

cautionary

statements

and

are

made

only

as

of

the

date

of

this

release.

The

company

does

not

undertake

any

obligation

to

update

or

revise

these

forward-looking

statements

to

conform

the

statement

to

actual

results

or

changes

in

its

expectations

The

Company

reports

financial

results

on

a

GAAP

basis

and

also

provides

certain

core

earnings

performance

measures.

The

difference

between

the

Company’s

core

earnings

and

GAAP

results

for

the

periods

presented

were

the

unrealized,

mark-to-market

gains/losses

on

derivative

contracts

and

the

goodwill

and

acquired

intangible

asset

amortization

and

impairment.

These

items

are

recognized

in

GAAP

but

not

in

core

earnings

results.

The

Company

provides

core

earnings

measures

because

this

is

what

management

uses

when

making

management

decisions

regarding

the

Company’s

performance

and

the

allocation

of

corporate

resources.

The

Company’s

core

earnings

are

not

defined

terms

within

GAAP

and

may

not

be

comparable

to

similarly

titled

measures

reported

by

other

companies.

For

additional

information,

see

“Core

Earnings

—

Definition

and

Limitations”

in

the

Company’s

third

quarter

earnings

release

for

a

further

discussion

and

a

complete

reconciliation

between

GAAP

net

income

and

core

earnings.

For

additional

information

on

our

proposed

separation

described

herein,

please

see

our

Form

8-K

filed

with

the

SEC

on

December

20,

2013,

New

Corporation’s

Form

10,

as

amended,

filed

with

the

SEC

on

February

7,

2014

and

our

2013

Form

10-K

filed

with

the

SEC

on

February

19,

2014.

3

SLM Corporation

The U.S. Student Loan Market

Page 4

SLM Corporation Overview

Page 9

Credit Quality

Page 17

Funding Diversity and Liquidity

Page 30

Risk-Adjusted Capital

Page 40

FFELP ABS Appendix

Page 43

Private Education Loan ABS Appendix

Page 48

SLM Appendix

Page 69

4

The U.S. Student Loan Market

5

Favorable Student Loan Market Trends

Source:

Trends

in

College

Pricing.©

2013

The

College

Board,.

www.collegeboard.org,

Note:

Academic

years,

average

published

tuition,

fees,

room

and

board

charges

at

four-year

institutions;

enrollment-weighted

Enrollment at Four-Year Degree Granting Institutions  (in millions)

Source:U.S.

Department

ofEducation,

National

Center

for

Education

Statistics,Projections

of

Education

Statistics

to

2021

(NCES

2013

-008, January

2013),

tables

23

and25;2011

actualdata

from

Digest

of

EducationStatistics,

2012,

table226;

2012actual

data

from

Enrollment

in

Postsecondary

Institutions,

Fall

2012;

FinancialStatistics,

Fiscal

Year

2012;

Graduation Rates,Selected

Cohorts,

2004-09;

and

EmployeesinPostsecondary

Institutions,

Fall

2012.

Annual Cost of Education ($ thousands)

Source:

CBO

May

2013

Baseline

Projections

for

the

Student

Loan

Program

by

fiscal

year

Note:

Excludes

consolidation

volume

Federal Student Loan Origination Volume ($ billions)

Relationship Between Higher Education, Income and Employment

Source:

U.S.

Bureau

of

Labor

Statistics,

Current

Population

Survey,

2012

Annual

Social

and

Economic

Supplement.

Represents

median

earnings

for

a

full

time,

year-round

worker

over

age

25.

Unemployment

data

as

of

Annual

Average

2012.

Represents

unemployment

for

civilian

non-institutional

population

over

age

25.

6

College Grads Experience Lower Levels of Unemployment

Source:  U.S. Bureau of Labor Statistics as of 12/31/2013

7

Private Education loan volume has continued to grow as total enrollment and federal loan originations

have declined

Private Education Loans fill the gap between the total cost of education and other available sources

Role of Private Education Loans

Source: Trends in College Pricing

.©

2013 The College Board,. www.collegeboard.org,

U.S. Department of Education 2013

Cost of College (Based on a Four-Year Term)

Estimated Total Cost of Education (in billions)

2012/2013 Academic Year

Sources: Department of Education, College Board, McKinsey & Company, MeasureOne, National

Student Clearinghouse, Company Analysis

8

2012-13 academic year market share approximately 51%

Private Education Loan Industry Originations

Source: Trends in Student Aid.©

2012 The College Board,. www.collegeboard.org,

industry data is preliminary. Based on current dollars. Data reported by academic year, SLM quarterly data converted to academic year basis.

Private Education Loan originations declined from their peak as a result of an

increase in federal student loan limits, an overall increase in the use of federal

student loans, an increase in federal grants, and tighter underwriting standards.

9

SLM Corporation Overview

10

#1 saving, planning and paying for education

company with 40-years of leadership in the

education lending market

#1 servicer and collector of student loans in the

U.S. for FFELP

1

and Private Education Loans

Serving 25 million unique customers

$142

billion student loan portfolio, 74% of which

is insured or guaranteed

Fully independent private sector company with

scale and a broad franchise, traded on the

NASDAQ (ticker: SLM)

SLM Corporation

1

Federal Family Education Loan Program (“FFELP”).

A Brief Corporate History

11

12

2013 “Core Earnings”

Summary

*

*

For

a

GAAP

to

“Core

Earnings”

reconciliation,

see

slide

70

($ millions, except per share amounts)

Q4 13

Q4 12

2013

2012

EPS (Reported)

$0.61

$0.55

$2.83

$2.16

Net Income

$275

$257

$1,290

$1,062

Net Interest Income

$674

$713

$2,712

$2,818

Loan Loss Provision

$190

$314

$839

$1,080

Fee and Other Income

$182

$218

$1,098

$828

Operating Expenses

$305

$226

$1,042

$897

Average Student Loans

$144,026

$164,800

$150,444

$169,815

13

Consumer Lending Segment Earnings Detail –

“Core Earnings”

Basis

(1)

Includes

non-GAAP

adjustments

of

0.03%,

0.05%,

0.03%,

and

0.10%,

respectively,

related

to

the

accounting

for

derivative

instruments.

(2)

Calculated

as

Direct

Operating

Expenses

divided

by

Net

Interest

Income

after

Provision

plus

Total

Other

Income

14

Business Services Segment –

“Core Earnings”

Basis

(in millions)

Q4 13

Q4 12

2013

2012

Net Income

$184

$135

$599

$541

Intercompany Loan Servicing Revenue

$121

$158

$530

$670

Third-Party Loan Servicing Revenue

$41

$24

$142

$98

Guarantor Servicing Revenue

$10

$10

$39

$44

Contingency Revenue

$108

$95

$420

$356

Department of Education Accounts Serviced

5.7

4.3

Contingency Collections Inventory

$16,174

$15,328

2013

net

income

includes

$112

million

of

after

tax

income

from

discontinued

operations,

primarily

as

a

result

of

the

sale

of

our

Campus

Solutions

business

and

our

529

college

savings

plan

administration

business.

15

FFELP Loan Segment Earnings Detail –

“Core Earnings”

Basis

($ millions)

Q4 13

Q4 12

2013

2012

Average FFELP Loans

$105,518

$126,874

$112,152

$132,124

Net Interest Income after Provision - FFELP

$242

$279

$982

$1,092

Net Interest Margin - FFELP 

(1)

0.91%

0.89%

0.88%

0.84%

Operating Expenses

$127

$165

$557

$702

OpEx Annualized as a % of Average FFELP Loans

0.48%

0.52%

0.50%

0.53%

Net Income

$82

$89

$515

$307

(1)

Includes

non-GAAP

adjustments

of

(0.43%),

(0.37%),

(0.41%)

and

(0.31%)

respectively,

related

to

the

accounting

for

derivative

instruments.

$312 million gain from residual interest sales in first half of 2013

16

Operations Locations

Corporate Headquarters

Fishers, IN

•

Collections

•

Information Technology

•

Servicing

•

Fulfillment

•

Call Center

•

Sales

Reston, VA

•

Finance/Accounting

•

Legal

•

Information Technology

New York State

(Arcade, Perry,

Horseheads)

•

Collections

Cincinnati, OH

•

Collections

Salt Lake City, UT

•

Sallie Mae Bank

Wilkes-Barre, PA

•

Servicing

•

Call Center

Newark, DE  Headquarters

•

Executive Offices

•

Credit &Collections

•

Customer Resolution

•

Servicing

•

Fraud

•

Business Development

Washington, DC

•

Government  Relations

Moorestown, NJ

•

Collections

Newton, MA

•

Upromise

Rewards

•

Business  Dev.

Muncie, IN

•

Collections

17

Credit Quality

18

Private Education Loan Portfolio Characteristics

–

$38 billion portfolio

–

26% of SLM’s total student loan portfolio

–

Approximately 68% of portfolio has a cosigner, typically a parent

–

Loans originated since 2009 are approximately 90% cosigned with average FICO

scores above 740

–

Higher education loans typically non-dischargeable in bankruptcy

–

Integrated underwriting, servicing and collections

SLM’s Private Education Loan Portfolio

As of December 31, 2013

19

Smart

Option

Student

Loan

product

offers

three

repayment

choices

designed

to

help

borrowers

balance their goals and budget while in school

–

Interest Only -

Requires interest only payment during in-school period

–

Fixed Repayment -

Requires $25 monthly payments during in-school period

–

Deferred Repayment –

Allows the customer to defer payments while in-school

Variable and Fixed Interest Rate Options

Repayment

term

is

driven

by

cumulative

amount

borrowed

and

grade

level

Full communication with customers during in-school period

Full

collection

activities

are

employed

at

both

the

customer

and

cosigner

level

All loans are certified by the school’s financial aid office to ensure that proceeds are used for

education expenses

SLM’s Private Education Smart Option Student Loan Products

20

Private Education Loans –

High Quality Originations

Originations of $2.7 bn in 2011 had an average winning FICO of 748 and 91% were cosigned.

Originations of $3.3 bn in 2012 had an average winning FICO of 748 and 90% were cosigned

Originations of $3.8 bn in 2013 had an average winning FICO of 745 and 90% were cosigned

Low Risk = Smart Option, Legacy Traditional Cosigned, and Law/MBA/MED/CT/Other

Moderate Risk = Legacy Traditional Non-Cosigned

Elevated Risk = Non-Traditional

Consumer Lending Segment –

High Quality Portfolio

2 1

22

+

=

Private Education

Loans

(2)

25%

U.S. Government

Guaranteed Loans

(2)

75%

Charge-Offs

(1)

= 0.07%

Charge-Offs

(1)

= 2.29%

Total Charge-Offs

(1)

= 0.64%

(1)

All data as of Year Ended December 31, 2013. Annualized FFELP charge-offs as a percentage of average FFELP Loans. Annualized Private Education Loan charge-offs as a

percentage of average Private Education Loans. Annualized total charge-offs as a percentage of average FFELP Loans and Private Education Loans.

(2)

Percentages of total student loan portfolio based upon average portfolio balances.

Student Loan Portfolio

(2)

SLM Loan Losses

Private Credit Default Performance

The probability of default substantially diminishes as the number of payments and years of seasoning

increases

23

24

Private Education Loan Portfolio Performance

(1) Charge-offs as a percentage of average loans in repayment annualized for the quarters presented

Q413

Q313

Q213

Q113

Q412

Charge-offs - Traditional Portfolio

(1)

2.4%

2.1%

2.1%

2.5%

3.4%

Charge-offs - Non-Traditional Portfolio

(1)

9.9%

8.8%

9.1%

8.7%

13.2%

Charge-offs - Total Portfolio

(1)

2.9%

2.6%

2.7%

3.0%

4.2%

90+ Day Delinq as a % of Repay - Traditional Portfolio

3.5%

3.2%

3.1%

3.3%

3.9%

90+ Day Delinq as a % of Repay - Non-Traditional Portfolio

12.0%

11.1%

10.2%

11.2%

12.6%

90+ Day Delinq as a % of Repay - Total Portfolio

4.1%

3.8%

3.6%

3.9%

4.6%

Forb as a % of Forb & Repay - Traditional Portfolio

3.2%

3.2%

3.4%

3.2%

3.3%

Forb as a % of Forb & Repay - Non-Traditional Portfolio

5.5%

5.4%

5.5%

5.1%

5.1%

Forb as a % of Forb & Repay - Total Portfolio

3.4%

3.4%

3.5%

3.4%

3.5%

Allowance as a % of Loans in Repay - Traditional Portfolio

5.5%

5.5%

5.6%

5.7%

5.7%

Allowance as a % of Loans in Repay - Non-Traditional Portfolio

22.1%

22.4%

21.0%

21.0%

20.7%

Allowance as a % of Loans in Repay - Total Portfolio

6.7%

6.8%

6.8%

6.9%

6.9%

25

Private Education Loan Portfolio Performance

(1) Charge-offs as a percentage of average loans in repayment annualized for the quarters presented

26

Private Education Loan Portfolio Performance –

Smart Option Only

(1) Ending total loans represents the gross principal balance, plus the receivable for partially charged-off loans

For the years ended December 31,

(Dollars in millions)

2013

2012

2011

Ending loans

(1)

...........................................................................

$

10,514

$

7,501

$

4,769 

Ending loans in repayment ........................................................

7,728

5,774

4,195 

Charge-offs as a percentage of average loans in repayment ....

           0.6%

0.5%

0.3%

Delinquencies as a percentage of loans in repayment ..............

  3.0%

2.9%

2.8%

Delinquencies greater than 90 days as a percentage of loans

in repayment ........................................................................

1.1%

           1.0%

0.8% 

Loans in forbearance as a percentage of loans in repayment

and forbearance ...................................................................

           2.5%

2.1%

0.3% 

Percentage of Private Education Loans with a cosigner ............

  92%

93%

94% 

Average FICO at origination.......................................................

746

           746

746

27

(Dollars in millions)

Loan Seasoning

December 31, 2013

Traditional Portfolio

Monthly Scheduled Payments Due

Not Yet in Repayment

6,088

Loans in Forbearance

432

9.2%

168

3.3%

151

2.9%

95

2.0%

123

1.2%

969

3.2%

Loans in Repayment-

Current

3,813

80.8%

4,451

87.5%

4,580

89.2%

4,370

91.6%

9,763

94.4%

26,977

89.8%

Loans in Repayment-

Delinq 31-60 days

133

2.8%

139

2.7%

132

2.6%

105

2.2%

165

1.6%

674

2.2%

Loans in Repayment-

Delinq 61-90 days

92

1.9%

94

1.8%

79

1.5%

60

1.3%

95

0.9%

420

1.4%

Loans in Repayment-

Delinq 90 + days

250

5.3%

237

4.7%

193

3.8%

140

2.9%

192

1.9%

1,012

3.4%

4,720

$      

100%

5,089

$      

100%

5,135

$      

100%

4,770

$      

100%

10,338

$      

100%

30,052

$    

100%

Charge-offs as a % of loans in repayment

5.0%

3.2%

2.2%

1.7%

1.1%

2.4%

Non-Traditional Portfolio

Monthly Scheduled Payments Due

Not Yet in Repayment

440

Loans in Forbearance

70

15.5%

21

4.9%

15

4.0%

11

3.4%

16

1.9%

133

5.5%

Loans in Repayment-

Current

243

53.9%

284

67.3%

276

74.3%

263

79.1%

725

86.0%

1,791

74.0%

Loans in Repayment-

Delinq 31-60 days

33

7.3%

28

6.7%

20

5.4%

16

4.7%

31

3.7%

128

5.3%

Loans in Repayment-

Delinq 61-90 days

25

5.6%

21

5.0%

15

4.1%

12

3.6%

20

2.3%

93

3.8%

Loans in Repayment-

Delinq 90 + days

80

17.7%

68

16.1%

45

12.2%

31

9.2%

51

6.1%

275

11.4%

451

$         

100%

422

$         

100%

371

$         

100%

333

$         

100%

843

$            

100%

2,420

$      

100%

Charge-offs as a % of loans in repayment

22.4%

12.9%

8.1%

7.0%

3.6%

9.9%

Total

Monthly Scheduled Payments Due

Not Yet in Repayment

6,528

Loans in Forbearance

502

9.7%

189

3.4%

166

3.0%

106

2.1%

139

1.2%

1,102

3.4%

Loans in Repayment-

Current

4,056

78.4%

4,735

85.9%

4,856

88.2%

4,633

90.8%

10,488

93.8%

28,768

88.6%

Loans in Repayment-

Delinq 31-60 days

166

3.2%

167

3.0%

152

2.8%

121

2.4%

196

1.8%

802

2.5%

Loans in Repayment-

Delinq 61-90 days

117

2.3%

115

2.1%

94

1.7%

72

1.4%

115

1.0%

513

1.6%

Loans in Repayment-

Delinq 90 + days

330

6.4%

305

5.6%

238

4.3%

171

3.3%

243

2.2%

1,287

3.9%

5,171

$      

100%

5,511

$      

100%

5,506

$      

100%

5,103

$      

100%

11,181

$      

100%

32,472

$    

100%

Charge-offs as a % of loans in repayment

6.5%

3.9%

2.5%

2.0%

1.3%

2.9%

More than 48 payments

Total

Total Loans in Repayment or Forbearance

Total Loans in Repayment or Forbearance

Loan Status

0-12 payments

13-24 payments

25-36 payments

37-48 payments

Total

Total Loans in Repayment or Forbearance

Loan Status

0-12 payments

13-24 payments

25-36 payments

37-48 payments

More than 48 payments

Total

Loan Status

0-12 payments

13-24 payments

25-36 payments

37-48 payments

More than 48 payments

28

September 30, 2013

Traditional Portfolio

Monthly Scheduled Payments Due

Not Yet in Repayment

6,112

Loans in Forbearance

451

8.5%

167

3.2%

142

2.4%

88

1.9%

123

1.3%

971

3.2%

Loans in Repayment-

Current

4,186

79.0%

4,688

87.9%

5,281

90.4%

4,153

91.7%

8,707

94.2%

27,015

89.3%

Loans in Repayment-

Delinq 31-60 days

204

3.9%

162

3.0%

155

2.6%

114

2.5%

177

1.9%

812

2.7%

Loans in Repayment-

Delinq 61-90 days

169

3.2%

106

2.0%

91

1.6%

65

1.4%

88

1.0%

519

1.7%

Loans in Repayment-

Delinq 90 + days

285

5.4%

209

3.9%

173

3.0%

112

2.5%

145

1.6%

924

3.1%

5,295

$       

100%

5,332

$       

100%

5,842

$       

100%

4,532

$       

100%

9,240

$         

100%

30,241

$    

100%

Charge-offs as a % of loans in repayment

4.6%

2.7%

1.7%

1.3%

0.9%

2.1%

Monthly Scheduled Payments Due

Not Yet in Repayment

429

Loans in Forbearance

78

13.9%

20

4.7%

15

3.8%

9

2.8%

15

1.9%

137

5.5%

Loans in Repayment-

Current

296

52.8%

299

68.9%

287

74.7%

271

79.8%

688

85.9%

1,841

73.1%

Loans in Repayment-

Delinq 31-60 days

43

7.7%

31

7.2%

25

6.6%

20

5.9%

35

4.4%

154

6.1%

Loans in Repayment-

Delinq 61-90 days

45

8.1%

25

5.8%

18

4.6%

12

3.5%

22

2.7%

122

4.8%

Loans in Repayment-

Delinq 90 + days

98

17.5%

58

13.4%

40

10.3%

27

8.0%

41

5.1%

264

10.5%

560

$          

100%

433

$          

100%

385

$          

100%

339

$          

100%

801

$            

100%

2,518

$       

100%

Charge-offs as a % of loans in repayment

16.2%

12.5%

7.3%

5.3%

3.6%

8.8%

Total

Monthly Scheduled Payments Due

Not Yet in Repayment

6,541

Loans in Forbearance

529

9.1%

187

3.3%

157

2.5%

97

2.0%

138

1.4%

1,108

3.4%

Loans in Repayment-

Current

4,482

76.6%

4,987

86.5%

5,568

89.4%

4,424

90.8%

9,395

93.6%

28,856

88.1%

Loans in Repayment-

Delinq 31-60 days

247

4.2%

193

3.3%

180

2.9%

134

2.7%

212

2.1%

966

2.9%

Loans in Repayment-

Delinq 61-90 days

214

3.6%

131

2.3%

109

1.8%

77

1.6%

110

1.1%

641

2.0%

Loans in Repayment-

Delinq 90 + days

383

6.5%

267

4.6%

213

3.4%

139

2.9%

186

1.8%

1,188

3.6%

5,855

$       

100%

5,765

$       

100%

6,227

$       

100%

4,871

$       

100%

10,041

$       

100%

32,759

$    

100%

Charge-offs as a % of loans in repayment

5.6%

3.4%

2.0%

1.6%

1.1%

2.6%

Total

Total Loans in Repayment or Forbearance

Loan Status

0-12 payments

13-24 payments

25-36 payments

37-48 payments

More than 48 payments

Total

Loan Status

0-12 payments

13-24 payments

25-36 payments

37-48 payments

More than 48 payments

More than 48 payments

Total

Total Loans in Repayment or Forbearance

Total Loans in Repayment or Forbearance

Loan Status

0-12 payments

13-24 payments

25-36 payments

37-48 payments

(Dollars in millions)

Loan Seasoning

Non-Traditional Portfolio

29

(Dollars in millions)

Loan Seasoning

December 31, 2012

Traditional

Portfolio

Monthly Scheduled Payments Due

Not Yet in Repayment

5,421

Loans in Forbearance

517

7.9%

173

3.1%

137

2.4%

74

1.7%

95

1.2%

996

3.3%

Loans in Repayment-

Current

5,109

78.3%

5,042

88.8%

5,090

90.4%

4,114

92.9%

7,242

94.5%

26,597

88.9%

Loans in Repayment-

Delinq 31-60 days

281

4.3%

160

2.8%

151

2.7%

98

2.2%

147

1.9%

837

2.8%

Loans in Repayment-

Delinq 61-90 days

137

2.1%

75

1.3%

67

1.2%

40

0.9%

56

0.7%

375

1.3%

Loans in Repayment-

Delinq 90 + days

484

7.4%

228

4.0%

184

3.3%

104

2.4%

121

1.6%

1,121

3.7%

6,528

$      

100%

5,678

$      

100%

5,629

$      

100%

4,430

$      

100%

7,661

$        

100%

29,926

$    

100%

Charge-offs as a % of loans in repayment

8.6%

3.1%

2.1%

1.5%

1.1%

3.4%

Non-Traditional Portfolio

Monthly Scheduled Payments Due

Not Yet in Repayment

483

Loans in Forbearance

85

10.1%

21

4.7%

12

2.9%

9

2.5%

13

2.0%

140

5.1%

Loans in Repayment-

Current

482

57.2%

324

70.6%

315

77.3%

289

82.7%

568

85.6%

1,978

72.6%

Loans in Repayment-

Delinq 31-60 days

72

8.5%

29

6.4%

24

5.9%

18

5.1%

32

4.8%

175

6.4%

Loans in Repayment-

Delinq 61-90 days

48

5.7%

20

4.3%

14

3.3%

9

2.6%

15

2.2%

106

3.9%

Loans in Repayment-

Delinq 90 + days

156

18.5%

65

14.1%

43

10.6%

25

7.1%

36

5.4%

325

11.9%

843

$         

100%

459

$         

100%

408

$         

100%

350

$         

100%

664

$            

100%

2,724

$      

100%

Charge-offs as a % of loans in repayment

26.6%

13.8%

8.1%

5.0%

3.7%

13.2%

Total Managed

Monthly Scheduled Payments Due

Not Yet in Repayment

5,904

Loans in Forbearance

602

8.2%

195

3.2%

149

2.5%

83

1.7%

107

1.3%

1,136

3.5%

Loans in Repayment-

Current

5,591

75.9%

5,366

87.4%

5,405

89.5%

4,403

92.1%

7,810

93.8%

28,575

87.5%

Loans in Repayment-

Delinq 31-60 days

353

4.8%

189

3.1%

175

2.9%

116

2.4%

179

2.1%

1,012

3.1%

Loans in Repayment-

Delinq 61-90 days

185

2.5%

95

1.6%

81

1.3%

49

1.0%

71

0.9%

481

1.5%

Loans in Repayment-

Delinq 90 + days

640

8.7%

292

4.8%

227

3.8%

129

2.7%

158

1.9%

1,446

4.4%

7,371

$      

100%

6,137

$      

100%

6,037

$      

100%

4,780

$      

100%

8,325

$        

100%

32,650

$    

100%

Charge-offs as a % of loans in repayment

10.6%

3.8%

2.5%

1.8%

1.3%

4.2%

Total

Total Loans in Repayment or Forbearance

Loan Status

0-12 payments

13-24 payments

25-36 payments

37-48 payments

More than 48 payments

Total

Loan Status

0-12 payments

13-24 payments

25-36 payments

37-48 payments

More than 48 payments

More than 48 payments

Total

Total Loans in Repayment or Forbearance

Total Loans in Repayment or Forbearance

Loan Status

0-12 payments

13-24 payments

25-36 payments

37-48 payments

30

Funding Diversity and Liquidity

31

Issued $3.1 billion of Private ABS

Issued $6.5 billion of FFELP ABS

Sold $629 million of legacy FFELP Class B notes held by the issuer or an affiliate

Refinanced $1.3 billion of FFELP reset rate notes to term

Issued $3.8 billion of long-term unsecured debt

Closed on a $6.8 billion FFELP ABCP facility and a $1.1 billion Private ABCP facility

On January 10, 2014, closed on an $8 billion FFELP ABCP facility

Sold residual interests in five FFELP securitization trusts totaling $12.5 billion of assets

Returned $864 million to shareholders through share repurchases and dividends

2013 Capital Markets Summary

32

Non-Consolidation FFELP

Non-Consolidation FFELP

Non-Consolidation FFELP

Issue

$994M SLM Trust 2014-1

$996M SLM Trust 2013-6

$996M SLM Trust 2013-5

Pricing Date

January 15, 2014

November 6, 2013

September 11, 2013

Collateral

US Govt. Guaranteed or Insured

FFELP Stafford and Plus Loans

US Govt. Guaranteed or Insured

FFELP Stafford and Plus Loans

US Govt. Guaranteed or Insured

FFELP Stafford and Plus Loans

Prepayment

Speed

(1)

6% Constant Prepayment Rate

6% Constant Prepayment Rate

6% Constant Prepayment Rate

Tranching

Moody’s

Amt

WAL

(1)

Pricing

(2)

A-1   Aaa       $272    1.3      L+28

A-2   Aaa       $184    3.3      L+38

A-3   Aaa       $511    6.8      L+60

B       Aa1        $27    9.2      L+210

Moody’s

Amt

WAL

(1)

Pricing

(2)

A-1   Aaa       $266    1.3      L+28

A-2   Aaa       $192    3.3      L+50

A-3   Aaa       $511    6.8      L+65

B       Aa1        $27    9.2      L+220

Moody’s

Amt

WAL

(1)

Pricing

(2)

A-1   Aaa       $203    1.0      L+26

A-2   Aaa       $256    3.0      L+45

A-3   Aaa       $509    6.8      L+70

B       Aa1        $27    9.1      L+220

Recent SLM FFELP ABS Transactions

(1)

Estimated based on a variety of assumptions concerning loan repayment behavior, as more fully described in the related prospectus, which may be obtained at 

http://www2.salliemae.com/investors/debtasset/slmsltrusts/. Actual average life may vary significantly from estimates.

(2)

Pricing represents the yield to expected call.

33

Recent SLM Private Education Loan ABS Transactions

(1)

Estimated based on a variety of assumptions concerning loan repayment behavior, as more fully described in the related prospectus, which may be obtained at 

http://www2.salliemae.com/investors/debtasset/slmsltrusts/. Actual average life may vary significantly from estimates.

(2)

Yield on fixed rate A-2 tranches were 2.96%, 1.86% and 1.78%, for 2013-C, 2013-B, and 2012-A, respectively. Yield on fixed rate B tranches were 4.86%, 3.69% and

3.48%, for 2013-C, 2013-B and 2013-A, respectively.

Private Education Loans

Private Education Loans

Private Education Loans

Issue

$624M SLM Trust 2013-C

$1,135M SLM Trust 2013-B

$1,108M SLM Trust 2013-A

Pricing Date

September 18, 2013

April 25, 2013

February 27, 2013

Collateral

Private Education Loans

Private Education Loans

Private Education Loans

Prepayment Speed

(1)

4%

4%

4%

Tranching

Moody’s

Amt

WAL

(1)

Pricing

(2)

A-1     Aaa      $300     1.8      L+85

A-2A   Aaa      $131     4.5     s+135

A-2B   Aaa      $131     4.5     L+140

B         A            $62

5.9

s+275

Total                 $624     3.3     L+147

Moody’s

Amt

WAL

(1)

Pricing

(2)

A-1     Aaa      $680     1.7      L+65

A-2A   Aaa      $245     4.8     s+105

A-2B   Aaa      $100     4.8     L+110

B         A          $110

6.0

s+260

Total             $1,135     3.1     L+120

Moody’s

Amt

WAL

(1)

Pricing

(2)

A-1      Aaa      $690    1.8     L+60

A-2A   Aaa      $143     4.6     s+95

A-2B   Aaa      $143     4.6     L+105

B         A          $132

5.7

s+238

Total             $1,108     2.9     L+115

High Percentage of Student Loans Funded to Term

*

Gross loans, Numbers may not add due to rounding.

Funded to Term,  $107 Bn

FFELP Consolidation Term ABS, $58 Bn

FFELP Non-Consolidation Term ABS, $30 Bn

Private Term ABS, $19 Bn

34

35

Note:  Does not include Sallie Mae Bank or Subsidiary funding

Total unsecured debt outstanding of $18.4 billion

Unsecured Debt Maturities

36

Secured Cash Flow

Note: Totals may not add due to rounding

*

Net residual represents excess distribution, net of payments on floor contracts and receipts from basis swaps

37

Projected Cash Flows From FFELP Portfolio

*

Assumptions

No Floor Income,  CPR/CDR = Stafford & Plus (4.0%), Consolidation (3.0%)

* These projections are based on internal estimates and assumptions and are subject to ongoing review and modification.  These projections may prove to be incorrect.

($ in Millions)

Total Cash Flows from Projected Excess Spread = $7.1 Billion

Total Cash Flows from Projected Servicing Revenues = $4.2 Billion

as of  12/31/13

2014

2015

2016

2017

2018

2019

2020

2021

Projected FFELP Average Balance

$96,853

$88,030

$79,262

$71,184

$63,557

$56,085

$49,072

$42,464

Projected Excess Spread

$746

$747

$707

$701

$647

$567

$496

$442

Projected Servicing Revenue

$541

$501

$457

$417

$376

$331

$288

$246

Projected Total Revenue

$1,287

$1,248

$1,164

$1,118

$1,023

$898

$784

$689

2022

2023

2024

2025

2026

2027

2028

2029 -

2033

Projected FFELP Average Balance

$36,318

$30,699

$25,860

$21,938

$18,260

$14,780

$11,475

$4,822

Projected Excess Spread

$386

$333

$262

$223

$196

$168

$135

$351

Projected Servicing Revenue

$207

$172

$143

$121

$102

$83

$65

$154

Projected Total Revenue

$593

$505

$404

$344

$298

$251

$201

$505

38

Bank charter

–

Utah based ILC regulated by FDIC and Utah Department of Financial Institutions (UDFI)

–

Charter granted October 2005

Current bank activity

–

Total assets of $10.7 billion at December 31, 2013

–

Originates Sallie Mae’s Private Education Loans

–

Funded through affiliate, brokered and direct retail deposits

–

17.3% Total Risk-based Capital at December 31, 2013

–

Dividends of $120 million paid in 2013

Deposit taking activities

–

Deposits totaled $9.3 billion at December 31, 2013

•

$5.9 billion Brokered Deposits

•

$3.4 billion Direct Retail and other affiliate and non-affiliate Deposits

–

Brokered

Deposit

term

portfolio

has

a

weighted

average

maturity

of

23.6

months

–

Total deposits increased 19% over 4Q12 and 15% versus 3Q13

Sallie Mae Bank

39

Sallie Mae Bank –

Capital & Deposits

*Primarily affiliate deposit accounts with no stated maturities

40

Risk-Adjusted Capital

41

Strong Capital Position

*

“Tangible

Economic

Capital”

and

“Available

Risk

Capital”

are

non-GAAP

financial

measures.

The

reconciliation

to

GAAP

capital

is

shown

on

this

slide.

($ in Billions)

Q4 13

Q3 13

Q4 12

Q1 13

Q4 12

Q3 12

GAAP Capital

$5.6

$5.6

$5.1

Goodwill & Intangibles

(0.4)

(0.4)

(0.4)

Derivative Mark-to-Market

0.9

0.9

1.1

Unamortized Premiums from Floors

0.4

0.4

0.6

Tangible Economic Capital

$6.5

$6.5

$6.2

Private Loan Reserve

2.1

2.1

2.2

Available Risk Capital

$8.6

$8.7

$8.4

Risk Assets (Before Loan Loss Reserves)

Private Credit

$39.6

$39.9

$39.1

Other Risk Assets

1.1

1.1

1.0

Total Risk Assets

$40.7

$41.0

$40.1

Capital to Risk Assets:

21.1%

21.2%

21.0%

42

Capital Allocation

SLM

allocates

capital

internally

based

on

the

risk

of

the

assets

it

supports

Assets

0.50%

12%

Capital

Allocation

0% -

15%*

Cash,

Investments,

Other Assets

11% of

Assets

Private

Education

Loans

24% of

Assets

FFELP

Loans

66% of

Assets

Based on Risk

*Other Assets includes $424 million of goodwill & intangible assets for which capital is allocated at 100%

43

FFELP ABS Appendix

44

Federal Student Loan Market

Outstanding Government Student Loan Market Distribution

FFYE 9/30/2013 ($ in billions)

Source:  Department of Education, U.S. Department of Education FY 2013 Agency Financial Report

45

Issue size of $0.5B to $1.5B

Tranches or pass-through denominated in

US$

AAA rated senior tranches make up to 97%

of issue structure

Floating rate tied to 1 mo. LIBOR

Amortizing tranches with 1 to 15(+) year

average lives

Master servicer is Sallie Mae, Inc.

Insurance or guarantee of underlying collateral

insulates bondholders from virtually any loss

of principal

(1)

Formerly a 20% risk-weighted asset, now a

<10% risk-weighted under Basel II’s IRB

methodology

Offer significantly higher yields than

government agency securities with

comparable risk profiles

Short (1-3 yrs), intermediate (3-7 yrs), long (7-

10 yrs) and very long (10-15+ yrs) term

tranches available at new issue and in

secondary

SLM FFELP ABS Issue Characteristics

(1) Principal and accrued interest on underlying FFELP loan collateral carry insurance or guarantee of 97%-100% dependent on origination year and on meeting

the servicing requirements of the U.S. Department of Education.

Typical SLM FFELP ABS Transaction Features

Unique Characteristics of FFELP Loan ABS

46

SLM Stafford/PLUS ABS Trusts

Annualized CPRs for SLM Stafford/PLUS ABS Trusts have decreased significantly as incentives for borrowers to consolidate have declined

After a temporary increase in mid 2012 due to the Special Direct

Consolidation Loan program, CPRs decreased in the fourth quarter

Historical SLM Stafford/PLUS ABS CPRs

* Average CPR is the simple (non-weighted) average of four Quarterly CPR calculations for each calendar year. Quarterly CPR assumes School and Grace loans are not

scheduled

to

make

payments.

Deferment,

Forbearance

and

Repayment

loans

are

scheduled

to

make

payments.

Prepayment Analysis

47

CPRs for SLM Consolidation ABS Trusts have declined significantly following legislation that prevented in-school and re-consolidation of borrowers’

loans

After a temporary increase in mid 2012 due to the Special Direct

Consolidation Loan program, CPRs decreased in the fourth quarter

SLM Consolidation ABS Trusts

Historical Consolidation ABS CPRs

* Average CPR is the simple (non-weighted) average of four Quarterly CPR calculations for each calendar year. Quarterly CPR assumes School and Grace loans are

not scheduled to make payments. Deferment, Forbearance and Repayment loans are scheduled to make payments.

Prepayment Analysis

48

Private Education Loan ABS Appendix

49

SLM Private Education Loan ABS Issuance Profile

Sallie Mae is among largest issuers of ABS globally, having issued over $250 billion

in Private and FFELP ABS transactions to date

Sallie Mae has been the market leader in Private Education Loans

since the late ’80s,

with expected originations of $4.0 billion in 2014

Prior to the financial crisis, Sallie Mae was a programmatic issuer of Private

Education Loan ABS

In 2011, Sallie Mae reestablished programmatic issuance of Private Education Loan

ABS

Executed 3 transactions in 2011 totaling $2.1 billion

Executed 5 transactions in 2012 totaling $4.2 billion

Executed 4 transactions in 2013 totaling $3.1 billion

50

Issue size of $500M to $1.5B

Triple-A rated senior notes, Single-A rated

subordinated notes

20-30% Triple-A overcollateralization

Multiple tranches with 2, 5, and/or 7 yr average

lives

Fixed rate or floating rate tied to 1 month LIBOR

Full-turbo structure

Collateralized by loans made to students and

parents to fund college tuition, room and board

Underwritten using FICO, Custom Scorecard &

judgmental criteria w/ risk based pricing

~80% with cosigners, typically a parent

Typically non-dischargeable in bankruptcy

Serviced exclusively by Sallie Mae

Recent SLM Private Education Loan ABS Characteristics

Recent SLM Private Loan ABS Structures

Collateral Characteristics

51

(1) Smart Option loans subject to interim interest only and $25 fixed monthly payments are classified as in Repayment.

(2) Assumes Prime/LIBOR spread of 3.05% for 2013-C, 2013-B and 2013-A and 2.75% for all previous transactions.

SLM Private Education Loan ABS Summary

52

Constraining rating agency triple-A gross default stress levels at issuance

Source: Sallie Mae, Moody’s, Standard & Poor’s, Fitch.

53

Private Education ABS Trusts: Forbearance

Forbearance usage is typically highest when loans enter repayment, and declines as loans season

Use of forbearance as a collection tool peaked in early 2008; forbearance has since declined as a result of

changes in SLM’s forbearance strategy

54

SLM Private Education ABS Trusts: 90+ Day Delinquencies

As expected, later stage delinquency has remained elevated in recent periods due to tightening of forbearance

policy and the current economic environment

Increased emphasis on cash payment during delinquency means more

borrowers remain in delinquency instead

of receiving forbearance

Because they are paying, fewer delinquent borrowers are expected

to default

55

SLM Private Education ABS Trusts: Annualized Gross Charge-offs

Charge-offs have declined steadily since late 2009, after an increase resulting from changes to forbearance policy

and a weak economic environment

(1) For SLM Private Education Student Loan Trusts issued prior to 2005-B, the servicer has the option, but not the obligation, to repurchase loans that (i) become 180+ days

delinquent and/or (ii) have a borrower who filed for bankruptcy or died. Prior to November 1, 2008, the servicer exercised this repurchase option and actual charge-offs in these

trusts equalled zero.  Beginning November 1, 2008, the servicer ceased purchasing from the trust loans that are more than 180 days delinquent. For the purposes of comparison

across all deals, this chart reflects trust charge-offs for SLM Private Education Student Loan Trusts issued prior to 2005-B as if the servicer had never exercised its repurchase

option.

56

SLM Private Education Loan Gross Defaults

As of November 30, 2013

For SLM Private Education Loan Trusts issued prior to 2005-B, the servicer has the option, but not the obligation, to repurchase loans that (i) become 180+ days delinquent and/or (ii)

have

a

borrower

who

filed

for

bankruptcy

or

died.

Prior

to

November

1,

2008,

the

servicer

exercised

this

repurchase

option

and

actual

charge-offs

in

these

trusts

equaled

zero.  Beginning

November 1, 2008, the servicer ceased purchasing from the trust loans that are more than 180 days delinquent.  For the purposes of comparison across all deals, this chart reflects trust charge-

offs for SLM Private Education Loan Trusts issued prior to 2005-B as if the servicer had never exercised its repurchase option.

(1)

Charge-offs

per

the

servicer’s

portfolio

definition

which

is

generally

212+

days

delinquent.

Includes

loans

for

which

a

borrower

has

filed

bankruptcy

which

have

subsequently

become 212+ days

delinquent.

(2)

Charge-offs due to a borrower’s bankruptcy filing for which the loan is now current or paid off.

(3)

Charge-offs

due

to

a

borrower’s

bankruptcy

filing

or

death

for

which

the

loan

is

not

current

or

paid

off

but

has

not

become

212+

days

delinquent.

These

loans

are

in

various

statuses including: 

bankruptcy stay, deferment, forbearance or delinquency.

57

Recoveries

Recoveries are typically realized over many years as a result of

the prevalent use of long-

term payment plans

While student loans are generally non-dischargeable in bankruptcy, the proceedings can 

postpone recoveries until after borrowers emerge from bankruptcy

In 2005, Sallie Mae changed its recovery practices

–

The 2005 cohort had a recovery rate of 27% eight years after default

Recovery experience for more recent cohorts has varied based on economic conditions

and the characteristics of defaulted loans

In Q3 2011, Sallie Mae provided additional provision for loan loss to provide for potential

uncertainty regarding future recoveries due to continued high unemployment rates; the

27% life-of loan recovery expectation remains in place

58

SLM Private Education Loan ABS Trusts –

Prepayment Analysis

Historical SLM Private Education Loan ABS CPRs

Constant prepayment rates increased in 2007 due to the introduction of Private Education Consolidation loans,

then declined following SLM’s decision to suspend its consolidation loan program in 2008

59

The following cohort default triangles provide loan performance information for certain Private Education Loans of

SLM Corporation and its consolidated subsidiaries that meet such

subsidiaries’

current securitization criteria

(including those criteria listed below):

–

Program types include Undergraduate/Graduate

(1)

, Direct-to-Consumer (“DTC”)

(2)

, Career Training

(3)

, Private

Consolidation

Loans

and

Smart

Option

(interest

only)

loans

–

FICO scores are based on the greater of the borrower and cosigner scores as of a date near the loan

application and must be at least:

•

Undergraduate/Graduate at not-for-profit schools:

640

•

Undergraduate/Graduate at for-profit schools:     670

•

DTC loans:    670

•

Career Training loans:    670

•

Private Consolidation loans:    640

–

Excludes loans made at selected schools that have historically experienced higher rates of default

The cohort default triangles are not representative of the characteristics of the portfolio of Private Education Loans

of SLM Corporation and its consolidated subsidiaries as a whole or any particular securitization trust

Cohort Default Triangles

(1)

Undergraduate/Graduate loans marketed under the Signature Student Loan brand.

(2)

Direct-to-Consumer Loans marketed under the Tuition Answer brand.

(3)

Career Training loans provide eligible borrowers financing at technical, trade, K-12 or tutoring schools.

60

The cohort default triangles featured on subsequent slides are segmented by loan program type,

FICO score, cosigner status, and school type

Terms and calculations used in the cohort default triangles are defined below:

–

Repayment Year

–

The calendar year loans entered repayment

–

Disbursed

Principal

Entering

Repayment

–

The

amount

of

principal

entering

repayment

in

a

given year, based on disbursed principal prior to any interest capitalization

–

Years

in

Repayment

–

Measured

in

years

between

repayment

start

date

and

default

date. 

Zero represents defaults that occurred prior to the start of repayment.

–

Periodic

Defaults

–

Defaulted

principal

in

each

Year

in

Repayment

as

a

percentage

of

the

disbursed principal entering repayment in each Repayment Year

•

Defaulted principal includes any interest capitalization that occurred prior to default

•

Defaulted principal is not reduced by any amounts recovered after the loan defaulted

•

Because the numerator includes capitalized interest while the denominator does not, default rates are

higher than if the numerator and denominator both included capitalized interest

–

Total

–

The sum of Periodic Defaults across Years in Repayment for each

Repayment Year

Cohort Default Triangles

61

Cohort Default Triangles

Note: Data as of 12/31/13.

(1)

Undergraduate/Graduate loans marketed under the Signature Student Loan brand.

(2)

Periodic

Defaults

for

the

most

recent

calendar

Year

in

Repayment

are

for

a

partial

year.

(3)

Numerator is the amount of principal in each cohort that defaulted in each Year in Repayment.  Denominator is the amount of disbursed principal for that Repayment Year.

Undergraduate/Graduate

(1)

62

Undergraduate/Graduate

(1)

Without Co-signer

Undergraduate/Graduate

(1)

With Co-signer

Note: Data as of 12/31/13.

(1)

Undergraduate/Graduate loans marketed under the Signature Student Loan brand.

(2)

Periodic

Defaults

for

the

most

recent

calendar

Year

in

Repayment

are

for

a

partial

year.

(3)

Numerator is the amount of principal in each cohort that defaulted in each Year in Repayment.  Denominator is the amount of disbursed principal for that Repayment Year.

Cohort Default Triangles

Disbursed Principal

Entering

Repayment Year

Repayment ($m)

0

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

Total

1998

$6

0.0%

0.0%

0.0%

0.0%

0.0%

0.1%

0.6%

1.0%

0.4%

0.0%

0.2%

1.1%

0.1%

0.0%

0.0%

0.1%

3.6%

1999

$14

0.0%

0.0%

0.0%

0.0%

0.4%

0.1%

0.9%

0.4%

0.2%

0.1%

0.4%

0.0%

0.1%

0.1%

0.1%

0.1%

2.9%

2000

$37

0.0%

0.0%

0.0%

0.5%

0.5%

0.7%

0.7%

0.4%

0.7%

1.2%

0.8%

0.9%

0.2%

0.5%

0.1%

7.2%

2001

$90

0.0%

0.0%

0.1%

0.7%

0.9%

0.6%

1.2%

1.0%

1.7%

1.4%

1.1%

0.8%

0.4%

0.1%

10.0%

2002

$196

0.0%

0.2%

0.1%

0.8%

0.6%

1.4%

0.8%

1.9%

1.5%

1.1%

0.7%

0.6%

0.1%

10.0%

2003

$367

0.0%

0.1%

0.3%

0.6%

0.9%

1.1%

2.2%

1.9%

1.4%

0.9%

0.7%

0.2%

10.2%

2004

$632

0.0%

0.2%

0.2%

1.0%

1.0%

2.2%

2.1%

1.4%

1.1%

0.9%

0.2%

10.3%

2005

$844

0.0%

0.0%

0.2%

1.4%

2.5%

2.3%

1.6%

1.2%

0.9%

0.2%

10.2%

2006

$1,121

0.0%

0.0%

0.7%

2.4%

2.4%

1.8%

1.3%

1.1%

0.3%

10.0%

2007

$1,409

0.0%

0.2%

2.0%

2.9%

2.0%

1.5%

1.2%

0.4%

10.2%

2008

$1,759

0.0%

1.2%

2.6%

2.7%

1.7%

1.6%

0.4%

10.2%

2009

$2,098

0.0%

1.9%

2.4%

2.3%

1.8%

0.5%

8.9%

2010

$1,887

0.0%

2.0%

2.3%

2.2%

0.5%

7.0%

2011

$1,366

0.0%

1.6%

2.7%

0.6%

4.9%

2012

$856

0.0%

1.7%

1.0%

2.7%

2013

$412

0.0%

0.4%

0.4%

Periodic Defaults by Years in Repayment

(2),(3)

Disbursed Principal

Entering

Repayment Year

Repayment ($m)

0

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

Total

1998

$5

0.0%

0.0%

0.0%

0.0%

0.0%

0.2%

0.2%

0.6%

0.4%

0.4%

3.1%

0.2%

0.8%

0.8%

0.0%

0.2%

6.8%

1999

$14

0.0%

0.0%

0.0%

0.3%

1.3%

1.1%

1.9%

0.4%

0.3%

1.8%

0.6%

0.5%

1.4%

0.6%

0.1%

0.4%

10.7%

2000

$33

0.0%

0.0%

0.0%

0.8%

1.7%

2.1%

0.6%

1.5%

2.3%

2.0%

1.1%

0.7%

0.7%

0.4%

0.0%

13.9%

2001

$97

0.0%

0.0%

0.1%

1.5%

1.9%

1.2%

2.3%

1.5%

2.9%

2.3%

1.8%

0.9%

0.7%

0.1%

17.1%

2002

$190

0.0%

0.2%

0.2%

1.6%

1.7%

2.3%

2.4%

2.8%

2.4%

1.5%

1.1%

0.6%

0.2%

17.0%

2003

$315

0.0%

0.2%

0.9%

1.4%

2.9%

2.3%

3.3%

3.0%

2.3%

1.5%

0.8%

0.2%

18.8%

2004

$499

0.0%

0.3%

0.4%

3.1%

2.8%

4.1%

3.8%

2.3%

1.7%

1.3%

0.3%

20.2%

2005

$694

0.0%

0.1%

0.7%

3.9%

5.3%

4.7%

2.7%

2.1%

1.6%

0.3%

21.2%

2006

$892

0.0%

0.2%

2.7%

5.3%

5.4%

3.4%

2.3%

1.9%

0.4%

21.7%

2007

$1,044

0.0%

0.8%

5.5%

6.9%

4.3%

2.8%

2.4%

0.6%

23.2%

2008

$1,176

0.1%

4.0%

6.5%

5.8%

3.7%

3.0%

0.8%

24.0%

2009

$1,173

0.0%

6.0%

6.0%

5.6%

3.8%

1.0%

22.4%

2010

$926

0.0%

6.6%

6.7%

5.9%

1.1%

20.3%

2011

$522

0.0%

6.6%

8.9%

1.8%

17.3%

2012

$254

0.1%

7.0%

3.8%

10.9%

2013

$125

0.1%

1.3%

1.5%

Periodic Defaults by Years in Repayment

(2),(3)

63

Note: Data as of 12/31/13.

(1)

Undergraduate/Graduate loans marketed under the Signature Student Loan brand.

(2)

Periodic

Defaults

for

the

most

recent

calendar

Year

in

Repayment

are

for

a

partial

year.

(3)

Numerator is the amount of principal in each cohort that defaulted in each Year in Repayment.  Denominator is the amount of disbursed principal for that Repayment Year.

Undergraduate/Graduate

(1)

Non-Profit

Undergraduate/Graduate

(1)

For-Profit

Cohort Default Triangles

Disbursed Principal

Entering

Repayment Year

Repayment ($m)

0

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

Total

1998

$11

0.0%

0.0%

0.0%

0.0%

0.0%

0.2%

0.4%

0.4%

0.4%

0.2%

1.1%

0.7%

0.3%

0.4%

0.0%

0.1%

4.2%

1999

$26

0.0%

0.0%

0.0%

0.0%

0.8%

0.5%

1.2%

0.4%

0.3%

1.0%

0.5%

0.2%

0.5%

0.4%

0.1%

0.1%

6.1%

2000

$68

0.0%

0.0%

0.0%

0.6%

1.0%

1.4%

0.5%

0.9%

1.4%

1.3%

1.0%

0.8%

0.5%

0.5%

0.0%

10.0%

2001

$180

0.0%

0.0%

0.1%

1.0%

1.4%

0.9%

1.7%

1.2%

2.4%

1.8%

1.5%

0.8%

0.6%

0.1%

13.3%

2002

$360

0.0%

0.2%

0.2%

1.2%

1.0%

1.8%

1.6%

2.3%

2.0%

1.3%

0.9%

0.6%

0.1%

13.2%

2003

$630

0.0%

0.2%

0.6%

0.8%

1.8%

1.6%

2.6%

2.4%

1.7%

1.1%

0.7%

0.2%

13.7%

2004

$1,006

0.0%

0.2%

0.2%

1.8%

1.6%

2.9%

2.6%

1.7%

1.3%

1.1%

0.2%

13.8%

2005

$1,362

0.0%

0.0%

0.4%

2.4%

3.5%

3.2%

2.0%

1.5%

1.2%

0.2%

14.4%

2006

$1,767

0.0%

0.1%

1.5%

3.5%

3.6%

2.4%

1.7%

1.4%

0.3%

14.5%

2007

$2,105

0.0%

0.4%

3.4%

4.3%

2.8%

1.9%

1.7%

0.4%

15.0%

2008

$2,460

0.0%

2.2%

3.9%

3.6%

2.4%

2.1%

0.5%

14.8%

2009

$2,705

0.0%

3.2%

3.4%

3.4%

2.4%

0.6%

13.0%

2010

$2,404

0.0%

3.4%

3.6%

3.2%

0.6%

10.9%

2011

$1,678

0.0%

2.8%

4.2%

0.8%

7.8%

2012

$1,010

0.0%

2.8%

1.5%

4.3%

2013

$485

0.0%

0.5%

0.6%

Periodic Defaults by Years in Repayment

(2),(3)

Disbursed Principal

Entering

Repayment Year

Repayment ($m)

0

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

Total

1998

$0.36

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

13.6%

0.0%

0.0%

12.6%

0.0%

5.1%

0.0%

0.4%

0.0%

31.7%

1999

$2

0.0%

0.0%

0.0%

2.3%

1.4%

2.1%

4.8%

0.0%

0.0%

0.0%

0.0%

0.9%

5.3%

0.0%

0.0%

2.5%

19.3%

2000

$2

0.0%

0.0%

0.0%

0.0%

2.8%

0.7%

3.2%

3.2%

3.7%

8.9%

0.0%

1.6%

0.0%

0.0%

0.0%

24.3%

2001

$7

0.0%

0.1%

0.1%

4.7%

2.2%

1.1%

4.3%

2.2%

0.8%

3.5%

1.5%

1.8%

0.4%

0.0%

22.8%

2002

$27

0.0%

0.0%

0.3%

1.9%

2.2%

2.1%

2.0%

2.8%

1.8%

1.3%

0.8%

0.7%

0.4%

16.4%

2003

$52

0.0%

0.2%

0.7%

2.4%

2.7%

2.2%

3.8%

3.0%

2.4%

1.5%

0.9%

0.3%

20.2%

2004

$126

0.0%

0.3%

0.6%

3.2%

3.0%

3.9%

4.6%

2.3%

1.8%

1.3%

0.4%

21.6%

2005

$175

0.0%

0.0%

0.7%

3.7%

5.3%

4.9%

2.7%

1.9%

1.3%

0.5%

21.1%

2006

$246

0.0%

0.2%

2.1%

4.9%

5.0%

3.2%

2.1%

1.8%

0.6%

19.9%

2007

$348

0.0%

0.5%

4.3%

6.5%

4.0%

2.5%

2.1%

0.7%

20.5%

2008

$475

0.0%

3.0%

5.9%

5.5%

3.1%

2.5%

0.8%

20.8%

2009

$567

0.0%

4.2%

5.0%

4.2%

3.1%

0.9%

17.5%

2010

$410

0.1%

4.5%

4.5%

4.5%

1.2%

14.7%

2011

$211

0.1%

4.4%

6.2%

1.6%

12.2%

2012

$101

0.1%

4.1%

3.1%

7.2%

2013

$51

0.2%

1.4%

1.6%

Periodic Defaults by Years in Repayment

(2),(3)

64

Undergraduate/Graduate

(1)

Loans, FICO 740-850

(2)

Undergraduate/Graduate

(1)

Loans, FICO 700-739

(2)

Note: Data as of 12/31/13.

(1)

Undergraduate/Graduate loans marketed under the Signature Student Loan brand.

(2)

FICO scores are based on the greater of the borrower and co-borrower scores as of a date near the loan application.

(3)

Periodic

Defaults

for

the

most

recent

calendar

Year

in

Repayment

are

for

a

partial

year.

(4)

Numerator is the amount of principal in each cohort that defaulted in each Year in Repayment.  Denominator is the amount of disbursed principal for that Repayment Year.

Cohort Default Triangles

Disbursed Principal

Entering

Repayment Year

Repayment ($m)

0

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

Total

1998

$3

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.2%

0.0%

0.4%

0.4%

0.9%

0.9%

0.0%

0.0%

0.0%

0.0%

2.8%

1999

$6

0.0%

0.0%

0.0%

0.0%

0.5%

0.3%

1.7%

0.5%

0.2%

0.2%

0.0%

0.2%

0.0%

0.4%

0.0%

0.8%

4.8%

2000

$22

0.0%

0.0%

0.0%

0.3%

0.4%

0.4%

0.2%

0.3%

1.0%

1.0%

0.4%

0.5%

0.0%

0.2%

0.1%

4.8%

2001

$64

0.0%

0.0%

0.0%

0.5%

0.4%

0.4%

1.1%

0.8%

1.0%

0.7%

0.6%

0.7%

0.4%

0.1%

6.7%

2002

$137

0.0%

0.2%

0.1%

0.5%

0.4%

0.8%

0.6%

1.1%

0.9%

0.6%

0.5%

0.4%

0.1%

6.3%

2003

$249

0.0%

0.1%

0.2%

0.4%

0.6%

0.7%

1.2%

1.4%

0.9%

0.7%

0.6%

0.1%

6.9%

2004

$424

0.0%

0.1%

0.1%

0.7%

0.7%

1.4%

1.3%

0.9%

0.8%

0.7%

0.2%

6.9%

2005

$574

0.0%

0.0%

0.2%

1.0%

1.5%

1.5%

1.1%

0.9%

0.6%

0.2%

6.9%

2006

$762

0.0%

0.0%

0.5%

1.4%

1.5%

1.1%

0.8%

0.7%

0.2%

6.2%

2007

$938

0.0%

0.1%

1.2%

1.6%

1.1%

1.0%

0.8%

0.3%

6.1%

2008

$1,131

0.0%

0.7%

1.5%

1.4%

1.0%

1.0%

0.2%

5.9%

2009

$1,346

0.0%

1.1%

1.4%

1.4%

1.2%

0.3%

5.5%

2010

$1,217

0.0%

1.4%

1.5%

1.5%

0.4%

4.8%

2011

$844

0.0%

1.1%

1.7%

0.4%

3.3%

2012

$513

0.0%

1.3%

0.6%

1.9%

2013

$251

0.0%

0.3%

0.4%

Periodic Defaults by Years in Repayment

(3),(4)

Disbursed Principal

Entering

Repayment Year

Repayment ($m)

0

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

Total

1998

$3

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.5%

2.2%

0.0%

0.0%

0.0%

0.0%

0.1%

0.8%

0.0%

0.0%

3.6%

1999

$8

0.0%

0.0%

0.0%

0.0%

0.5%

0.4%

0.7%

0.0%

0.3%

1.5%

0.7%

0.1%

0.8%

0.1%

0.0%

0.0%

5.1%

2000

$20

0.0%

0.0%

0.0%

0.4%

0.7%

1.3%

0.8%

1.1%

0.8%

1.3%

0.7%

0.6%

0.4%

0.8%

0.0%

8.8%

2001

$54

0.0%

0.0%

0.1%

0.9%

1.2%

0.5%

1.4%

0.9%

1.9%

1.4%

1.2%

0.9%

0.5%

0.0%

11.0%

2002

$111

0.0%

0.1%

0.1%

1.1%

1.0%

1.7%

1.4%

2.2%

1.4%

1.3%

0.8%

0.5%

0.1%

11.7%

2003

$194

0.0%

0.2%

0.5%

0.8%

1.5%

1.5%

2.4%

1.9%

1.8%

1.2%

0.7%

0.2%

12.7%

2004

$321

0.0%

0.2%

0.2%

1.7%

1.5%

2.5%

2.8%

1.8%

1.4%

1.0%

0.2%

13.4%

2005

$439

0.0%

0.0%

0.4%

2.2%

3.3%

2.9%

2.1%

1.4%

1.1%

0.2%

13.8%

2006

$553

0.0%

0.1%

1.3%

3.1%

3.4%

2.3%

1.6%

1.2%

0.4%

13.5%

2007

$659

0.0%

0.3%

2.8%

4.1%

2.7%

1.7%

1.6%

0.4%

13.7%

2008

$782

0.0%

2.0%

3.8%

3.5%

2.4%

2.0%

0.5%

14.2%

2009

$883

0.0%

3.0%

3.5%

3.4%

2.5%

0.7%

13.0%

2010

$740

0.0%

3.4%

3.7%

3.3%

0.6%

11.0%

2011

$486

0.0%

2.9%

4.2%

0.9%

8.0%

2012

$284

0.1%

2.6%

1.6%

4.3%

2013

$136

0.0%

0.5%

0.6%

Periodic Defaults by Years in Repayment

(3),(4)

65

Note: Data as of 12/31/13.

(1)

Undergraduate/Graduate loans marketed under the Signature Student Loan brand.

(2)

FICO scores are based on the greater of the borrower and co-borrower scores as of a date near the loan application.

(3)

Periodic

Defaults

for

the

most

recent

calendar

Year

in

Repayment

are

for

a

partial

year.

(4)

Numerator is the amount of principal in each cohort that defaulted in each Year in Repayment.  Denominator is the amount of disbursed principal for that Repayment Year.

Undergraduate/Graduate

(1)

Loans, FICO 670-699

(2)

Undergraduate/Graduate

(1)

Loans, FICO 640-669

(2)

Cohort Default Triangles

Disbursed Principal

Entering

Repayment Year

Repayment ($m)

0

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

Total

1998

$3

0.0%

0.0%

0.0%

0.0%

0.0%

0.6%

0.6%

0.3%

0.5%

0.3%

2.8%

0.0%

0.5%

0.3%

0.1%

0.3%

6.2%

1999

$7

0.0%

0.0%

0.0%

0.5%

1.4%

0.5%

1.3%

0.3%

0.3%

0.1%

0.7%

0.5%

1.3%

0.4%

0.0%

0.0%

7.3%

2000

$14

0.0%

0.0%

0.0%

0.9%

1.4%

1.9%

0.2%

1.0%

0.9%

1.4%

1.4%

1.0%

0.9%

0.4%

0.0%

11.4%

2001

$37

0.0%

0.0%

0.1%

1.3%

2.1%

1.5%

1.9%

1.6%

2.7%

2.9%

2.0%

0.8%

0.6%

0.2%

17.6%

2002

$77

0.0%

0.2%

0.3%

1.6%

1.8%

2.4%

2.4%

2.9%

2.7%

1.5%

1.1%

0.7%

0.2%

17.9%

2003

$134

0.0%

0.1%

0.8%

1.3%

2.8%

2.2%

3.7%

3.3%

2.2%

1.3%

0.7%

0.2%

18.6%

2004

$222

0.0%

0.3%

0.5%

2.9%

2.6%

4.2%

3.8%

2.3%

1.7%

1.3%

0.3%

19.8%

2005

$298

0.0%

0.1%

0.7%

3.8%

5.2%

4.9%

2.8%

1.9%

1.5%

0.3%

21.2%

2006

$402

0.0%

0.2%

2.6%

5.5%

5.5%

3.6%

2.4%

1.9%

0.4%

22.2%

2007

$505

0.0%

0.7%

5.6%

7.4%

4.7%

3.0%

2.4%

0.6%

24.4%

2008

$623

0.0%

3.8%

6.9%

6.3%

3.7%

3.1%

0.9%

24.9%

2009

$664

0.1%

5.7%

6.1%

5.9%

3.8%

1.0%

22.6%

2010

$546

0.0%

6.1%

6.2%

5.6%

1.1%

19.0%

2011

$357

0.0%

5.0%

7.7%

1.6%

14.2%

2012

$200

0.1%

4.8%

2.8%

7.7%

2013

$95

0.0%

1.1%

1.2%

Periodic Defaults by Years in Repayment

(3),(4)

Disbursed Principal

Entering

Repayment Year

Repayment ($m)

0

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

Total

1998

$2

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.3%

0.5%

0.9%

0.0%

2.9%

2.3%

1.3%

0.2%

0.0%

0.3%

8.6%

1999

$6

0.0%

0.0%

0.0%

0.0%

1.1%

1.3%

2.3%

0.9%

0.3%

2.1%

0.5%

0.1%

0.7%

0.5%

0.4%

0.3%

10.6%

2000

$14

0.0%

0.0%

0.0%

1.3%

2.5%

2.3%

1.4%

1.6%

3.8%

3.0%

1.9%

1.5%

0.7%

0.5%

0.1%

20.6%

2001

$32

0.0%

0.0%

0.1%

2.3%

2.9%

2.0%

3.4%

2.6%

5.2%

3.8%

2.8%

1.1%

1.0%

0.2%

27.4%

2002

$61

0.0%

0.2%

0.4%

2.7%

2.3%

3.9%

3.1%

4.6%

4.2%

2.4%

1.8%

1.2%

0.3%

27.0%

2003

$107

0.0%

0.3%

1.3%

2.1%

4.1%

3.3%

5.4%

4.5%

3.5%

2.1%

1.4%

0.3%

28.4%

2004

$165

0.0%

0.5%

0.5%

4.4%

3.9%

6.4%

5.7%

3.5%

2.4%

2.1%

0.4%

29.8%

2005

$226

0.0%

0.1%

0.9%

5.4%

8.2%

7.0%

3.8%

3.3%

2.2%

0.4%

31.2%

2006

$296

0.0%

0.2%

3.7%

8.1%

7.8%

4.8%

3.5%

2.9%

0.8%

31.8%

2007

$351

0.0%

1.1%

8.0%

9.8%

6.0%

3.9%

3.3%

0.8%

33.0%

2008

$398

0.0%

5.4%

8.5%

8.1%

5.2%

4.2%

1.1%

32.6%

2009

$379

0.0%

8.2%

7.9%

7.3%

4.8%

1.2%

29.4%

2010

$311

0.0%

8.0%

8.3%

7.6%

1.2%

25.1%

2011

$202

0.0%

7.7%

10.2%

1.9%

19.8%

2012

$114

0.0%

7.4%

3.9%

11.3%

2013

$55

0.0%

1.3%

1.3%

Periodic Defaults by Years in Repayment

(3),(4)

66

Private Consolidation Loans Without Co-signer

Private Consolidation Loans With Co-signer

Note: Data as of 12/31/13.

(1)

Periodic

Defaults

for

the

most

recent

calendar

Year

in

Repayment

are

for

a

partial

year.

(2)

Numerator is the amount of principal in each cohort that defaulted in each Year in Repayment.  Denominator is the amount of disbursed principal for that Repayment Year.

Cohort Default Triangles

Disbursed Principal

Entering

Repayment Year

Repayment ($m)

0

1

2

3

4

5

6

7

8

Total

2006

$249

0.0%

0.1%

0.1%

0.5%

0.6%

0.6%

0.4%

0.3%

0.1%

2.7%

2007

$675

0.0%

0.0%

0.2%

0.4%

0.6%

0.4%

0.4%

0.2%

2.3%

2008

$376

0.0%

0.1%

0.4%

0.6%

0.6%

0.6%

0.4%

2.6%

Periodic Defaults by Years in Repayment

(1),(2)

Disbursed Principal

Entering

Repayment Year

Repayment ($m)

0

1

2

3

4

5

6

7

8

Total

2006

$125

0.0%

0.4%

0.9%

1.5%

1.6%

1.5%

1.0%

1.1%

0.2%

8.3%

2007

$295

0.0%

0.0%

0.9%

1.0%

1.3%

1.0%

1.0%

0.4%

5.6%

2008

$133

0.0%

0.2%

1.7%

2.1%

1.7%

1.7%

1.3%

8.6%

Periodic Defaults by Years in Repayment

(1),(2)

67

Note: Data as of 12/31/13.

(1)

FICO scores are based on the greater of the borrower and co-borrower scores as of a date near the loan application.

(2)

Periodic

Defaults

for

the

most

recent

calendar

Year

in

Repayment

are

for

a

partial

year.

(3)

Numerator is the amount of principal in each cohort that defaulted in each Year in Repayment.  Denominator is the amount of disbursed principal for that Repayment Year.

DTC With Co-signer, FICO     670

(1)

DTC Without Co-signer, FICO     670

(1)

Cohort Default Triangles

Disbursed Principal

Entering

Repayment Year

Repayment ($m)

0

1

2

3

4

5

6

7

8

9

10

Total

2004

$8

0.0%

0.0%

0.0%

0.0%

0.0%

0.5%

0.1%

0.4%

0.0%

0.2%

0.0%

1.3%

2005

$65

0.0%

0.1%

0.8%

0.8%

1.4%

2.1%

1.2%

0.9%

0.8%

0.5%

8.6%

2006

$139

0.0%

0.7%

1.8%

4.4%

4.8%

2.4%

2.0%

2.1%

0.6%

18.7%

2007

$245

0.0%

0.6%

4.7%

6.2%

4.2%

2.7%

2.6%

0.8%

21.7%

2008

$369

0.0%

2.9%

5.9%

4.9%

3.6%

2.8%

1.0%

21.0%

2009

$398

0.0%

3.7%

4.1%

4.0%

3.1%

1.0%

15.8%

2010

$316

0.0%

3.5%

4.0%

4.6%

1.4%

13.6%

2011

$193

0.1%

3.7%

5.2%

1.9%

10.9%

2012

$105

0.0%

3.2%

3.3%

6.5%

2013

$24

0.0%

0.7%

0.7%

Periodic Defaults by Years in Repayment

(2),(3)

Disbursed Principal

Entering

Repayment Year

Repayment ($m)

0

1

2

3

4

5

6

7

8

9

10

Total

2004

$2

0.0%

0.0%

1.6%

1.2%

0.6%

4.7%

2.2%

3.0%

1.2%

4.2%

0.0%

18.8%

2005

$19

0.0%

1.0%

2.1%

2.4%

4.1%

6.5%

2.8%

1.6%

1.0%

0.1%

21.5%

2006

$66

0.0%

1.4%

2.5%

6.6%

6.4%

4.0%

2.7%

2.6%

0.5%

26.7%

2007

$158

0.0%

1.0%

5.8%

8.1%

4.6%

3.8%

3.2%

0.8%

27.4%

2008

$256

0.0%

3.7%

7.9%

7.3%

4.1%

3.9%

1.2%

28.2%

2009

$235

0.0%

6.7%

6.2%

6.8%

5.0%

1.4%

26.2%

2010

$152

0.1%

8.3%

6.9%

8.7%

1.6%

25.6%

2011

$89

0.1%

7.8%

10.0%

3.0%

21.0%

2012

$47

0.0%

6.1%

5.9%

12.1%

2013

$5

0.0%

1.8%

1.8%

Periodic Defaults by Years in Repayment

(2),(3)

68

68

Note: Data as of 12/31/13.

(1)

FICO scores are based on the greater of the borrower and co-borrower scores as of a date near the loan application.

(2)

Periodic

Defaults

for

the

most

recent

calendar

Year

in

Repayment

are

for

a

partial

year.

(3)

Numerator is the amount of principal in each cohort that defaulted in each Year in Repayment.  Denominator is the amount of disbursed principal for that Repayment Year.

Career Training Loans, 670+ FICO

(1)

Cohort Default Triangles

Disbursed Principal

Entering

Repayment Year

Repayment ($m)

0

1

2

3

4

5

6

7

8

9

10

11

Total

2003

$291

0.0%

0.4%

1.4%

1.6%

1.8%

1.4%

1.3%

1.0%

0.8%

0.5%

0.4%

0.1%

10.8%

2004

$383

0.0%

0.4%

1.5%

2.3%

1.7%

1.8%

1.7%

1.1%

0.8%

0.5%

0.2%

12.1%

2005

$513

0.0%

0.3%

2.2%

2.2%

2.5%

2.2%

1.5%

1.0%

0.7%

0.3%

12.8%

2006

$633

0.0%

0.4%

2.5%

3.5%

3.2%

2.2%

1.5%

1.0%

0.3%

14.7%

2007

$675

0.0%

0.5%

3.5%

3.9%

2.9%

1.8%

1.2%

0.5%

14.4%

2008

$594

0.0%

0.6%

4.2%

3.5%

2.2%

1.4%

0.6%

12.6%

2009

$186

0.0%

0.2%

1.9%

1.9%

1.3%

0.6%

5.9%

2010

$24

0.0%

0.5%

0.9%

0.8%

0.3%

2.5%

Periodic Defaults by Years in Repayment

(2),(3)

69

SLM Appendix

70

Differences between “Core Earnings”

and GAAP

71

SLM student loan trust data (Debt/asset backed securities –

SLM Student Loan

Trusts)

–

Static pool information –

Detailed portfolio stratifications by trust as of the cutoff date

–

Accrued interest factors

–

Quarterly distribution factors

–

Historical trust performance  -

monthly charge-off, delinquency, loan status, CPR, etc. by trust 

–

Since issued CPR –

monthly CPR data by trust since issuance

SLM student loan performance by trust –

Issue details

–

Current and historical monthly distribution reports

–

Distribution factors

–

Current rates

–

Prospectus for public transactions and Rule 144A transactions are available through underwriters

Additional information (Webcasts and presentations)

–

Archived and historical webcasts, transcripts and investor presentations

Sallie Mae Investor Relations Website

www.salliemae.com/investors