Subject to Completion and Modification
SLM FUNDING LLC HAS FILED A REGISTRATION STATEMENT (INCLUDING A PROSPECTUS) WITH THE SEC FOR THE OFFERING TO WHICH THIS COMMUNICATION RELATES. BEFORE YOU INVEST, YOU SHOULD READ THE PROSPECTUS IN THAT REGISTRATION STATEMENT AND THE OTHER DOCUMENTS SLM FUNDING LLC HAS FILED WITH THE SEC FOR MORE COMPLETE INFORMATION ABOUT SLM FUNDING LLC AND THIS OFFERING. YOU MAY GET THESE DOCUMENTS FOR FREE BY VISITING EDGAR ON THE SEC WEB SITE ATWWW.SEC.GOV. ALTERNATIVELY, SLM FUNDING LLC, ANY UNDERWRITER OR ANY DEALER PARTICIPATING IN THE OFFERING WILL ARRANGE TO SEND YOU THE PROSPECTUS IF YOU REQUEST IT BY CALLING 1-800-321-7179.
Term Sheet
$2,591,250,000
SLM Student Loan Trust 2007-5
Issuing Entity
SLM Funding LLC
Depositor
Sallie Mae, Inc.
Sponsor, Servicer and Administrator
Student Loan-Backed Notes
On July 19, 2007, the trust will issue:
Class | Principal | Interest Rate | Maturity | ||||
Floating Rate Class A-1 Notes | $ | 222,000,000 | 3-month LIBOR minus % | July 25, 2013 | |||
Floating Rate Class A-2 Notes | $ | 201,000,000 | 3-month LIBOR plus % | October 26, 2015 | |||
Floating Rate Class A-3 Notes | $ | 313,000,000 | 3-month LIBOR plus % | October 25, 2018 | |||
Floating Rate Class A-4 Notes | $ | 286,000,000 | 3-month LIBOR plus % | April 26, 2021 | |||
Floating Rate Class A-5 Notes | $ | 342,000,000 | 3-month LIBOR plus % | January 25, 2024 | |||
Floating Rate Class A-6 Notes | $ | 1,149,512,000 | 3-month LIBOR plus % | January 26, 2043 | |||
Floating Rate Class B-1 Notes | $ | 37,500,000 | 3-month LIBOR plus % | January 26, 2043 | |||
Auction Rate Class B-2 Notes | $ | 40,238,000 | Auction | January 26, 2043 | |||
The trust will make payments primarily from collections on a pool of consolidation student loans. Interest and principal on the floating rate notes will be payable quarterly on the 25th day of each January, April, July and October, beginning in October 2007. Interest and principal on the auction rate notes will be payable on the business day following the end of each applicable auction period and, for auction periods greater than 90 days, on the quarterly distribution dates referred to above. In general, the trust will pay principal, sequentially, to the class A-1 through class A-6 notes, in that order, until each such class is paid in full. The class B notes will receive payments or allocations of principal beginning on the stepdown date, which is expected to be the October 2013 quarterly distribution date. These payments and allocations will be made first, to the class B-1 notes and then to the class B-2 notes, until each such class is paid in full. Interest on the class B notes will be subordinate to interest on the class A notes and principal on the class B notes will be subordinate to both principal and interest on the class A notes. Credit enhancement for the notes consists of excess interest on the trust student loans, subordination of the class B notes to the class A notes, and the reserve account. On the closing date, the trust will make a deposit into the capitalized interest account, which will be available for a limited period of time. The interest rates on the class A-1, class A-2, class A-3, class A-4, class A-5, class A-6 and class B-1 notes are determined by reference to LIBOR. A description of how LIBOR is determined appears under “Additional Information Regarding the Notes—Determination of Indices—LIBOR” in the base prospectus. The interest rate on the class B-2 notes is an auction rate. A description of how the auction rate is determined appears under “Additional Information Regarding the Notes—The Auction Rate Notes” in the base prospectus.
We are offering the notes through the underwriters when and if issued. Application will be made for the floating rate notes to be listed on the Official List of the Luxembourg Stock Exchange and to be traded on the Luxembourg Stock Exchange’s Euro MTF Market.
We are not offering the notes in any state or other jurisdiction where the offer is prohibited.
This document constitutes a “free-writing prospectus” within the meaning of Rule 405 under the Securities Act of 1933, as amended.
The notes are asset-backed securities issued by and are obligations of the issuing entity, which is a trust. They are not obligations of or interests in SLM Corporation, the sponsor, the administrator, the servicer, the depositor, any seller or any of their affiliates.
The notes are not guaranteed or insured by the United States or any governmental agency.
Joint Book-Runners
Banc of America Securities LLC | JPMorgan |
Co-Managers
| Credit Suisse | Deutsche Bank Securities | Merrill Lynch & Co. | RBS Greenwich Capital |
July 10, 2007
The Information in this Term Sheet
The information contained herein refers to and supplements certain of the information contained in the Free-Writing Prospectus, dated July 6, 2007 (the “initial free-writing prospectus”). Capitalized terms not defined herein shall have the meanings ascribed to such terms in the initial free-writing prospectus.
THE TRUST WILL NOT ISSUE THE CLASS B-2A NOTES REFERRED TO IN THE INITIAL FREE-WRITING PROSPECTUS. AS A RESULT, THE CLASS B-2 NOTES WILL CONSIST OF ONE CLASS OF AUCTION RATE NOTES. EACH REFERENCE TO THE FLOATING RATE CLASS B NOTES OR THE LIBOR-BASED CLASS B NOTES WILL BE A REFERENCE SOLELY TO THE CLASS B-1 NOTES.
The Notes
The trust is offering the following classes of notes, which are debt obligations of the trust:
Class A Notes:
| • | Floating Rate Class A-1 Student Loan-Backed Notes in the amount of $222,000,000; |
| • | Floating Rate Class A-2 Student Loan-Backed Notes in the amount of $201,000,000; |
| • | Floating Rate Class A-3 Student Loan-Backed Notes in the amount of $313,000,000; |
| • | Floating Rate Class A-4 Student Loan-Backed Notes in the amount of $286,000,000; |
| • | Floating Rate Class A-5 Student Loan-Backed Notes in the amount of $342,000,000; and |
| • | Floating Rate Class A-6 Student Loan-Backed Notes in the amount of $1,149,512,000. |
Class B Notes:
| • | Floating Rate Class B-1 Student Loan-Backed Notes in the amount of $37,500,000; and |
| • | Auction Rate Class B-2 Student Loan-Backed Notes in the amount of $40,238,000. |
Closing Date. The closing date for this offering will be July 19, 2007.
Interest Rates.The spread to LIBOR will be set at the time of pricing. The initial interest rate for the auction rate notes will be determined on the second business day before the closing date.
Pricing Date. On or after July 11, 2007.
Initial Accrual Period. The initial accrual period for the auction rate notes will begin on the closing date and end on the initial auction rate adjustment date as set forth below. The initial accrual period for the floating rate notes will begin on the closing date and end on October 24, 2007, the day before the
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first quarterly distribution date. LIBOR for the first accrual period will be determined by the following formula:
x + [ 6 / 31 * (y-x)]
where:
x = three-month LIBOR, and
y = four-month LIBOR.
Initial Auction Date. The initial auction date and the initial rate adjustment date occurring after the closing date for the class B-2 notes will beAugust 9, 2007, andAugust 10, 2007, respectively.
Stepdown Date.The stepdown date is the earlier to occur of (a) the October 2013 quarterly distribution date and (b) the first date on which no class A notes remain outstanding.
Maturity Dates. Each class of notes will mature no later than the date set forth for that class in the table below:
Class | Maturity Date | |
Class A-1 | July 25, 2013 | |
Class A-2 | October 26, 2015 | |
Class A-3 | October 25, 2018 | |
Class A-4 | April 26, 2021 | |
Class A-5 | January 25, 2024 | |
Class A-6 | January 26, 2043 | |
Class B-1 | January 26, 2043 | |
Class B-2 | January 26, 2043 |
Identification Numbers
The notes will have the following CUSIP Numbers and ISIN:
CUSIP Numbers
| • | Class A-1 Notes: 78443F AA5 |
| • | Class A-2 Notes: 78443F AB3 |
| • | Class A-3 Notes: 78443F AC1 |
| • | Class A-4 Notes: 78443F AD9 |
| • | Class A-5 Notes: 78443F AE7 |
| • | Class A-6 Notes: 78443F AF4 |
| • | Class B-1 Notes: 78443F AG2 |
| • | Class B-2 Notes: 78443F AJ6 |
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International Securities Identification Numbers (ISIN)
| • | Class A-1 Notes: US78443FAA57 |
| • | Class A-2 Notes: US78443FAB31 |
| • | Class A-3 Notes: US78443FAC14 |
| • | Class A-4 Notes: US78443FAD96 |
| • | Class A-5 Notes: US78443FAE79 |
| • | Class A-6 Notes: US78443FAF45 |
| • | Class B-1 Notes: US78443FAG28 |
| • | Class B-2 Notes: US78443FAJ66 |
European Common Codes
| • | Class A-1 Notes: 031127378 |
| • | Class A-2 Notes: 031127467 |
| • | Class A-3 Notes: 031127637 |
| • | Class A-4 Notes: 031127670 |
| • | Class A-5 Notes: 031127696 |
| • | Class A-6 Notes: 031127742 |
| • | Class B-1 Notes: 031127769 |
| • | Class B-2 Notes: 031127831 |
Information About the Student Loans
Supplemental Purchase Period.The supplemental purchase period will end on August 2, 2007.
Consolidation Loan Add-On Period.The consolidation loan add-on period will end on March 31, 2008.
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Capitalization of the Trust
Floating Rate Class A-1 Student Loan-Backed Notes | $ | 222,000,000 | |
Floating Rate Class A-2 Student Loan-Backed Notes | 201,000,000 | ||
Floating Rate Class A-3 Student Loan-Backed Notes | 313,000,000 | ||
Floating Rate Class A-4 Student Loan-Backed Notes | 286,000,000 | ||
Floating Rate Class A-5 Student Loan-Backed Notes | 342,000,000 | ||
Floating Rate Class A-6 Student Loan-Backed Notes | 1,149,512,000 | ||
Floating Rate Class B-1 Student Loan-Backed Notes | 37,500,000 | ||
Auction Rate Class B-2 Student Loan-Backed Notes | 40,238,000 | ||
Equity | 100 | ||
Total | $ | 2,591,250,100 | |
Information About the Trust
Collection Account Initial Deposit. On the closing date, the trust will make an initial deposit from the net proceeds of the sale of the notes into the collection account in cash or eligible investments equal to $1,110,000 plus the excess, if any, of the pool balance as of the statistical cutoff date over the pool balance as of the closing date to the extent such excess amount is not deposited into the supplemental purchase account.
Add-on Consolidation Loan Account. On the closing date, the trust will make an initial deposit from the net proceeds of the sale of the notes into the add-on consolidation loan account in cash or eligible investments equal to $7,000,000. Funds in the add-on consolidation loan account will be used to fund add-on consolidation loans from time to time during the consolidation loan add-on period and will not be replenished.
Reserve Account Initial Deposit. On the closing date, the trust will make an initial deposit from the net proceeds of the sale of the notes into the reserve account in cash or eligible investments equal to $6,250,000.
Specified Reserve Account Balance.The Specified Reserve Account Balance for any quarterly distribution date will be the greater of:
| (a) | 0.25% of the sum of (i) the Pool Balance, (ii) the amounts, if any, on deposit in the add-on consolidation loan account and the pre-funding account (excluding any amounts in such accounts that will become part of Available Funds on the related quarterly distribution date), as of the close of business on the last day of the related collection period; and |
| (b) | $3,750,000; |
provided that in no event will that balance exceed the sum of the aggregate outstanding principal balance of the notes.
Capitalized Interest Account.On the closing date, the trust will make an initial deposit from the net proceeds of the sale of the notes into the capitalized interest account. This deposit will be in cash or
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eligible investments equal to $85,000,000. On and prior to the April 2009 quarterly distribution date, funds in the capitalized interest account will be available to cover shortfalls in payments of primary servicing, administration, auction agent and broker-dealer fees, interest due to the class A noteholders and, after that, shortfalls in payments of interest to class B noteholders after application of funds available in the collection account at the end of the related collection period but before application of the reserve account.
Funds on deposit in the capitalized interest account on the October 2008 quarterly distribution date in excess of $3,000,000 will be transferred to the collection account and included as Available Funds on that quarterly distribution date. All funds remaining on deposit in the capitalized interest account on the April 2009 quarterly distribution date will be transferred to the collection account and included as Available Funds on that quarterly distribution date. The capitalized interest account further enhances the likelihood of timely interest payments to noteholders through the April 2009 quarterly distribution date.
Pre-Funding Account. On the closing date, the administrator will establish and maintain the pre-funding account as an asset of the trust in the name of the indenture trustee. The trust will make a deposit from the net proceeds of the sale of the notes into the pre-funding account on the closing date. The deposit will be in cash or eligible investments equal to $772,044,233. Any amounts remaining on deposit in the pre-funding account on September 30, 2007, the end of the funding period, will be transferred to the collection account on the business day immediately following the end of that period and will be included as a part of Available Funds on the October 2007 quarterly distribution date.
Initial Over-issuance
The pool balance as of the statistical cutoff date plus the aggregate initial balances of the add-on consolidation loan account and the pre-funding account is approximately 99.75% of the aggregate principal balance of the notes minus the initial balance of the capitalized interest account.
Quarterly Distributions from the Collection Account
On or before each quarterly distribution date, the administrator will instruct the indenture trustee to make the following deposits, allocations and distributions in the amounts and in the order of priority shown below, except as otherwise provided under “—The Notes—The Class B Notes—Subordination of the Class B Notes” and “—The Notes—The Class A Notes—Distributions of Principal” in the initial free-writing prospectus, to the extent of Available Funds for that quarterly distribution date (including amounts previously deposited in the future distribution account for such purpose), together with amounts transferred from the capitalized interest account through the April 2009 quarterly distribution date (with respect to clauses (a), (b), (c), (d) and (e) below for that quarterly distribution date), and amounts transferred from the reserve account with respect to that quarterly distribution date:
| (a) | to the servicer, the primary servicing fee due on that quarterly distribution date; |
| (b) | to the administrator, the administration fee due on that quarterly distribution date and all prior unpaid administration fees; |
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| (c) | pro rata, to the auction agent and to the broker-dealers for their respective fees that are due and payable on such quarterly distribution date to the extent that such quarterly distribution date is also an auction rate distribution date; |
| (d) | to the class A noteholders, the Class A Noteholders’ Interest Distribution Amount, pro rata, based on the amounts payable as Class A Noteholders’ Interest Distribution Amount; |
| (e) | to the class B noteholders, the Class B Noteholders’ Interest Distribution Amount, pro rata, based on the amounts payable as Class B Noteholders’ Interest Distribution Amount; provided that if such quarterly distribution date is not also an auction rate distribution date, no amounts will be paid or allocated at this clause (e) to the auction rate class B notes; |
| (f) | sequentially, to the class A-1, class A-2, class A-3, class A-4, class A-5 and class A-6 noteholders, in that order, until the principal balance of each such class is paid in full, the Class A Noteholders’ Principal Distribution Amount; |
| (g) | on each quarterly distribution date on and after the Stepdown Date, and provided that no Trigger Event is in effect on such quarterly distribution date, to the class B-1 noteholders until the principal balance of such class is paid in full, the Class B Noteholders’ Principal Distribution Amount; |
| (h) | any remaining Class B Noteholders’ Principal Distribution Amount, to the class B-2 notes (in even lots of $50,000), until the principal balance of such class is paid in full; provided that if such quarterly distribution date is not also an auction rate distribution date, all amounts allocated with respect to the class B-2 notes will be deposited into the future distribution account for payment on the next auction rate distribution date; |
| (i) | to the reserve account, the amount, if any, necessary to reinstate the balance of the reserve account to the Specified Reserve Account Balance; |
| (j) | to the servicer, the aggregate unpaid amount of the carryover servicing fee, if any; |
| (k) | with respect to the auction rate class B notes, to the auction rate class B noteholders, any carryover amounts; provided that if such quarterly distribution date is not also an auction rate distribution date, all amounts allocated with respect to the auction rate class B notes will be deposited into the future distribution account for payment on the next auction rate distribution date; and |
| (l) | to the excess distribution certificateholder (initially, SLM ECFC), any remaining amounts after application of the preceding clauses. |
The chart on the following page illustrates the application of funds on each quarterly distribution date as described in this term sheet and the initial free-writing prospectus.
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Use of Proceeds
The trust will use the net proceeds from the sale of the notes to make the initial deposits to the collection account, the add-on consolidation loan account, the capitalized interest account, the supplemental purchase account, the pre-funding account and the reserve account and to purchase the initial trust student loans from the depositor on the closing date under the initial sale agreement.
The depositor will then use the proceeds paid to the depositor by the trust to pay to the sellers the respective purchase prices due to those sellers for the initial trust student loans purchased by the depositor.
Expenses incurred to establish the trust and issue the notes (other than fees that are due to the underwriters) are payable by the depositor. Expenses to be paid by the depositor are estimated to be $2,310,183.
Prepayments, Extensions, Weighted Average Lives and Expected Maturities of the Notes
Exhibit I attached hereto, “Prepayments, Extensions, Weighted Average Lives and Expected Maturities of the Notes,” shows, for each class of notes, the weighted average lives, expected maturities and percentages of the original principal amount remaining at certain quarterly distribution dates based on various assumptions.
Underwriting
The notes listed below are offered severally by the underwriters, subject to receipt and acceptance by them and subject to their right to reject any order in whole or in part. It is expected that the notes will be ready for delivery in book-entry form only through the facilities of DTC, Clearstream, Luxembourg and Euroclear, as applicable, on or about July 19, 2007 against payment in immediately available funds.
Subject to the terms and conditions in the underwriting agreement to be dated on or about the pricing date, the depositor has agreed to cause the trust to sell to each of the underwriters named below, and
each of the underwriters has severally agreed to purchase, the principal amounts of notes shown opposite its name:
Underwriter | Class A-1 Notes | Class A-2 Notes | Class A-3 Notes | Class A-4 Notes | ||||||||
Banc of America Securities LLC | $ | 37,000,000 | $ | 33,500,000 | $ | 52,168,000 | $ | 47,668,000 | ||||
J.P. Morgan Securities Inc. | 37,000,000 | 33,500,000 | 52,168,000 | 47,668,000 | ||||||||
Credit Suisse Securities (USA) LLC | 37,000,000 | 33,500,000 | 52,166,000 | 47,666,000 | ||||||||
Deutsche Bank Securities Inc. | 37,000,000 | 33,500,000 | 52,166,000 | 47,666,000 | ||||||||
Greenwich Capital Markets, Inc. | 37,000,000 | 33,500,000 | 52,166,000 | 47,666,000 | ||||||||
Merrill Lynch, Pierce, Fenner & Smith Incorporated | 37,000,000 | 33,500,000 | 52,166,000 | 47,666,000 | ||||||||
Total | $ | 222,000,000 | $ | 201,000,000 | $ | 313,000,000 | $ | 286,000,000 | ||||
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Underwriter | Class A-5 Notes | Class A-6 Notes | Class B-2 Notes | Class B-2A Notes | ||||||||
Banc of America Securities LLC | $ | 57,000,000 | $ | 191,586,000 | $ | 6,250,000 | $ | 8,049,000 | ||||
J.P. Morgan Securities Inc. | 57,000,000 | 191,586,000 | 6,250,000 | 8,048,000 | ||||||||
Credit Suisse Securities (USA) LLC | 57,000,000 | 191,585,000 | 6,250,000 | 8,047,000 | ||||||||
Deutsche Bank Securities Inc. | 57,000,000 | 191,585,000 | 6,250,000 | 8,047,000 | ||||||||
Greenwich Capital Markets, Inc. | 57,000,000 | 191,585,000 | 6,250,000 | 0 | ||||||||
Merrill Lynch, Pierce, Fenner & Smith Incorporated | 57,000,000 | 191,585,000 | 6,250,000 | 8,047,000 | ||||||||
Total | $ | 342,000,000 | $ | 1,149,512,000 | $ | 37,500,000 | $ | 40,238,000 | ||||
The underwriters have agreed, subject to the terms and conditions of the underwriting agreement, to purchase all of the notes listed above if any of the notes are purchased. The offering prices, underwriter discounts and dealer concessions and reallowances will be set forth in the prospectus supplement.
The depositor and SLM ECFC have agreed to indemnify the underwriters against certain liabilities, including liabilities under the Securities Act of 1933, as amended.
The notes are new issues of securities with no established trading market. The seller has been advised by the underwriters that the underwriters intend to make a market in the notes but are not obligated to do so and may discontinue market making at any time without notice. No assurance can be given as to the liquidity of the trading market for the notes.
In the ordinary course of their business, the underwriters and certain of their affiliates have in the past, and may in the future, engage in commercial and investment banking activities with the sellers, the depositor and their respective affiliates. Affiliates of each of Banc of America Securities LLC and J.P. Morgan Securities Inc. are parties to the merger agreement described in the initial free-writing prospectus. See our description of the merger agreement under“Recent Developments—Merger” in the initial free-writing prospectus.
The trust may, from time to time, invest the funds in the trust accounts in eligible investments acquired from the underwriters.
During and after the offering, the underwriters may engage in transactions, including open market purchases and sales, to stabilize the prices of the notes.
The underwriters, for example, may over-allot the notes for the account of the underwriting syndicate to create a syndicate short position by accepting orders for more notes than are to be sold.
In addition, the underwriters may impose a penalty bid on the broker-dealers who sell the notes. This means that if an underwriter purchases notes in the open market to reduce a broker-dealer’s short position or to stabilize the prices of the notes, it may reclaim the selling concession from the broker-dealers who sold those notes as part of the offering.
In general, over-allotment transactions and open market purchases of the notes for the purpose of stabilization or to reduce a short position could cause the price of a note to be higher than it might be in the absence of those transactions.
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One or more of the underwriters or its affiliates may retain a material percentage of any class of notes for its own account. The retained notes may be resold by such underwriter or such affiliate at any time in one or more negotiated transactions at varying prices to be determined at the time of sale.
Exceptional Performance Designation
For the period from October 19, 2005 through October 18, 2006, the servicer was awarded the “exceptional performance” designation by the United States Department of Education. As of the date hereof, the Department of Education has not renewed the servicer’s “exceptional performance” designation, pending resolution of outstanding issues with the Department of Education concerning certain fees the servicer charges some delinquent borrowers. The servicer believes that the Department of Education will conclude that the servicer incorrectly charged borrowers certain late fees. The servicer has changed its late fee policies in accordance with the Department of Education’s position. The servicer’s previous designation, however, remains in effect. So long as the servicer’s exceptional performance designation remains in effect (or is not revoked), all federally reinsured student loans serviced by the servicer for at least 270 days before the date of default, including the trust student loans to be acquired with the proceeds of the notes, will be eligible to receive at least 99% reimbursement on any default claim properly submitted for payment.
The Secretary of Education may revoke (including potentially on a retroactive basis) the servicer’s exceptional performance designation if, among other things, subsequent audits of the servicer’s servicing operations reflect a failure to meet certain due diligence standards, the required audits are not provided to the Secretary or the Secretary determines that an overall level of regulatory compliance has not been maintained. There can be no assurance that the servicer will maintain its exceptional performance designation in the future. Failure by the servicer to maintain its exceptional performance designation in the future is not a default under the servicing agreement between the trust and the servicer. If the servicer fails to maintain its exceptional performance designation, reimbursement on default claims will revert to the guaranteed percentage applicable to such student loan at the time of its origination (generally either 98% or 97%), which will be effective from either the annual renewal date, the date the Secretary determines the non-compliance occurred, or another date determined by the Secretary. In this event, any recoupment by the Secretary or any guarantor from the trust of amounts previously reimbursed by a guarantor, which is not reimbursed by the servicer or any affiliate, will reduce Available Funds for any applicable distribution date. For a discussion of legislative initiatives that may affect your notes and the exceptional performance designation, see“Recent Developments—Proposed Regulations and Legislation” in the initial free-writing prospectus.
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EXHIBIT I
PREPAYMENTS, EXTENSIONS, WEIGHTED AVERAGE LIVES AND EXPECTED
MATURITIES OF THE NOTES
Prepayments on pools of student loans can be measured or calculated based on a variety of prepayment models. The models used to calculate these prepayments are the constant prepayment rate (or “CPR”) model and the consolidation loan ramp (or “CLR”) model.
The CPR Model
The CPR model is based on prepayments assumed to occur at a constant percentage rate. CPR is stated as an annualized rate and is calculated as the percentage of the loan amount outstanding at the beginning of a period (including accrued interest to be capitalized), after applying scheduled payments, that are paid during that period. The CPR model assumes that student loans will prepay in each month according to the following formula:
Monthly Prepayments = Balance After Scheduled Payments x (1-(1-CPR)^1/12)
Accordingly, monthly prepayments assuming a $1,000 balance after scheduled payments would be as follows for the percentages of CPR listed below:
CPR | 0% | 4% | 8% | 12% | 16% | ||||||||||
Monthly Prepayment | $ | 0.00 | $ | 3.40 | $ | 6.92 | $ | 10.60 | $ | 14.42 | |||||
The CLR Model
The CLR model assumes that:
• | student loans will prepay at a CPR of 1/15 of 1.0% one month after origination; |
• | the CPR will increase by a rate of 1/15 of 1.0% per month through the 119th month after origination; and |
• | the CPR will be constant at 8% per annum in the 120th month after origination and in all subsequent months. |
This assumption is called “100% CLR.” For example, at 100% CLR, student loans with a loan age of 72 months are assumed to prepay at 4.80% CPR; at 50% CLR, student loans with a loan age of 48 months are assumed to prepay at 1.60% CPR; at 200% CLR, student loans with a loan age of 96 months are assumed to prepay at 12.80% CPR; and so forth. The following table illustrates the CPR in effect for the indicated months of seasoning at various percentages of CLR.
I-1
Constant Prepayment Rate
| Number of Months Seasoning | |||||||||||||||
Percentage of CLR | 24 | 48 | 72 | 96 | 120 | ||||||||||
50% | 0.80 | % | 1.60 | % | 2.40 | % | 3.20 | % | 4.00 | % | |||||
100% | 1.60 | % | 3.20 | % | 4.80 | % | 6.40 | % | 8.00 | % | |||||
150% | 2.40 | % | 4.80 | % | 7.20 | % | 9.60 | % | 12.00 | % | |||||
200% | 3.20 | % | 6.40 | % | 9.60 | % | 12.80 | % | 16.00 | % | |||||
Neither the CPR model nor the CLR model purports to describe historical prepayment experience or to predict the prepayment rate of any actual student loan pool. The student loans will not prepay at any constant CPR or any constant percentage of CLR, nor will all of the student loans prepay at the same rate. You must make an independent decision regarding the appropriate principal prepayment scenarios to use in making any investment decision.
Additional Assumptions
For purposes of the CLR model and the CPR model, it is assumed, among other things, that:
| • | the statistical cutoff date for the trust student loans is June 25, 2007; |
| • | the closing date will be July 19, 2007; |
| • | all trust student loans (as grouped within the “rep lines” described below) are in repayment status (with accrued interest having been capitalized upon entering repayment), and no trust student loan moves from repayment to any other status; |
| • | no delinquencies or defaults occur on any of the trust student loans, no repurchases for breaches of representations, warranties or covenants occur and all borrower payments are collected in full; |
| • | consolidation rebate fees are paid based on the principal balance of the student loans at the beginning of the related monthly collection period and reduce the amount in the collection account that would otherwise earn investment income; |
| • | there are government payment delays of 60 days for interest subsidy and special allowance payments; |
| • | index levels for calculation of borrower and government payments are: |
| • | a 91-day Treasury bill rate of 4.78%; and |
| • | a three-month commercial paper rate of 5.30%; |
| • | all funds deposited into the supplemental purchase account will be transferred to the collection account on the day after the end of the supplemental purchase period; |
I-2
| • | distributions begin on October 25, 2007, and payments are made quarterly on the 25th day of every January, April, July and October thereafter, whether or not the 25th is a business day; |
| • | the interest rate for each class of outstanding notes at all times will be equal to: |
| • | class A-1 notes: 5.35%; |
| • | class A-2 notes: 5.37%; |
| • | class A-3 notes: 5.39%; |
| • | class A-4 notes: 5.41%; |
| • | class A-5 notes: 5.43%; |
| • | class A-6 notes: 5.48%; |
| • | class B-1 notes: 5.58%; and |
| • | class B-2 notes: 5.46% plus applicable auction agent and broker-dealer fees of 0.16% per annum; |
| • | an administration fee equal to $20,000 is paid quarterly by the trust to the administrator, beginning in October 2007; |
• | a servicing fee equal to 1/12 of the then outstanding principal amount of the trust student loans times 0.50% is paid monthly by the trust to the servicer; |
| • | the reserve account has an initial balance equal to $6,250,000 and at all times a balance equal to the greater of (1) 0.25% of the applicable pool balance and (2) $3,750,000; |
| • | the collection account has an initial balance equal to $0; |
| • | the add-on consolidation loan account has an initial balance equal to $7,000,000 and the full amount is used to purchase add-on consolidation loans on September 30, 2007; |
| • | the capitalized interest account has an initial balance equal to $85,000,000, on the October 2008 quarterly distribution date, funds on deposit in the capitalized interest account in excess of $3,000,000 will be transferred to the collection account and included in Available Funds on that quarterly distribution date, and on the April 2009 quarterly distribution date, all funds remaining on deposit in the capitalized interest account will be included in Available Funds; |
| • | all payments are assumed to be made at the end of the month and amounts on deposit in the collection account, reserve account and capitalized interest account, including reinvestment income earned in the previous month, net of servicing fees and consolidation rebate fees, are reinvested in eligible investments at the assumed reinvestment rate of 5.26% per annum through the end of the collection period, and |
I-3
reinvestment earnings are available for distribution from the prior collection period; |
| • | the average loan age is 1 month; |
| • | prepayments on the trust student loans are applied monthly in accordance with CLR or CPR, as the case may be, as described above; |
| • | an optional redemption by the servicer occurs on the quarterly distribution date immediately following the collection period during which the pool balance falls below 10% of the sum of (i) the initial pool balance and (ii) the aggregate initial principal balance of all additional trust student loans acquired using funds on deposit in the pre-funding account, including accrued interest to be capitalized, as of their respective subsequent cutoff dates; |
| • | the pool of trust student loans consists of 2,481 representative loans plus two additional representative loans for the trust student loans purchased with funds on deposit in the pre-funding account and the add-on consolidation loan account (“rep lines”), which have been created for modeling purposes from individual trust student loans based on combinations of similar individual student loan characteristics, which include, but are not limited to, loan status, interest rate, loan type, index, margin, rate cap and remaining term; and |
| • | additional trust student loans in the amount of $772,044,233 are purchased at a price of 100% and added to the trust on September 30, 2007, using funds on deposit in the pre-funding account. |
The following tables have been prepared based on the assumptions described above (including the assumptions regarding the characteristics and performance of the rep lines, which will differ from the characteristics and performance of the actual pool of trust student loans) and should be read in conjunction therewith. In addition, the diverse characteristics, remaining terms and loan ages of the trust student loans could produce slower or faster principal payments than indicated in the following tables, even if the dispersions of weighted average characteristics, remaining terms and loan ages are the same as the assumed characteristics, remaining terms and loan ages.
I-4
CLR Tables
The following tables show the weighted average remaining lives, expected maturity dates and percentages of original principal remaining of each class of the notes at various percentages of CLR from the closing date until the optional redemption date.
Weighted Average Lives and Expected Maturities of the Notes
at Various CLR Percentages
Weighted Average Life (years)(1) | 0% | 50% | 100% | 150% | 200% | |||||
Class A-1 Notes | 1.42 | 1.32 | 1.25 | 1.19 | 1.16 | |||||
Class A-2 Notes | 4.32 | 3.46 | 3.00 | 2.70 | 2.47 | |||||
Class A-3 Notes | 7.87 | 5.94 | 5.00 | 4.42 | 4.01 | |||||
Class A-4 Notes | 11.28 | 8.44 | 7.00 | 6.11 | 5.50 | |||||
Class A-5 Notes | 14.20 | 10.87 | 9.00 | 7.83 | 7.01 | |||||
Class A-6 Notes | 19.47 | 17.03 | 14.73 | 12.88 | 11.47 | |||||
Class B-1 Notes | 11.71 | 9.86 | 8.91 | 8.37 | 8.02 | |||||
Class B-2 Notes | 19.85 | 17.85 | 15.88 | 14.23 | 12.91 | |||||
Expected Maturity Date | ||||||||||
Class A-1 Notes | April 25, 2010 | October 25, 2009 | July 25, 2009 | April 25, 2009 | April 25, 2009 | |||||
Class A-2 Notes | April 25, 2013 | January 25, 2012 | April 25, 2011 | January 25, 2011 | July 25, 2010 | |||||
Class A-3 Notes | April 25, 2017 | October 25, 2014 | July 25, 2013 | October 25, 2012 | April 25, 2012 | |||||
Class A-4 Notes | April 25, 2020 | January 25, 2017 | July 25, 2015 | July 25, 2014 | October 25, 2013 | |||||
Class A-5 Notes | January 25, 2023 | October 25, 2019 | July 25, 2017 | April 25, 2016 | April 25, 2015 | |||||
Class A-6 Notes | July 25, 2029 | January 25, 2028 | January 25, 2026 | January 25, 2024 | April 25, 2022 | |||||
Class B-1 Notes | October 25, 2023 | January 25, 2021 | July 25, 2019 | April 25, 2018 | July 25, 2017 | |||||
Class B-2 Notes | July 25, 2029 | January 25, 2028 | January 25, 2026 | January 25, 2024 | April 25, 2022 | |||||
(1) | The weighted average life of the notes (assuming a 360-day year consisting of twelve 30-day months) is determined by: (1) multiplying the amount of each principal payment on the applicable class of notes by the number of years from the closing date to the related quarterly distribution date, (2) adding the results, and (3) dividing that sum by the aggregate principal amount of the applicable class of notes as of the closing date. |
I-5
Class A-1 Notes
Percentages Of Original Principal Of The Notes Remaining At Certain Quarterly
Distribution Dates At Various CLR Percentages
Quarterly Distribution Date | 0% | 50% | 100% | 150% | 200% | ||||||||||
Closing Date | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||
October 2007 | 98 | 98 | 97 | 97 | 97 | ||||||||||
October 2008 | 35 | 31 | 27 | 23 | 19 | ||||||||||
October 2009 | 9 | 0 | 0 | 0 | 0 | ||||||||||
October 2010 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2011 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2012 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2013 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2014 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2015 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2016 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2017 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2018 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2019 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2020 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2021 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2022 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2023 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2024 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2025 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2026 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2027 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2028 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2029 | 0 | 0 | 0 | 0 | 0 |
I-6
Class A-2 Notes
Percentages Of Original Principal Of The Notes Remaining At Certain Quarterly
Distribution Dates At Various CLR Percentages
Quarterly Distribution Date | 0% | 50% | 100% | 150% | 200% | ||||||||||
Closing Date | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||
October 2007 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2008 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2009 | 100 | 97 | 83 | 70 | 58 | ||||||||||
October 2010 | 80 | 54 | 29 | 4 | 0 | ||||||||||
October 2011 | 49 | 6 | 0 | 0 | 0 | ||||||||||
October 2012 | 15 | 0 | 0 | 0 | 0 | ||||||||||
October 2013 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2014 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2015 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2016 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2017 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2018 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2019 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2020 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2021 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2022 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2023 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2024 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2025 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2026 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2027 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2028 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2029 | 0 | 0 | 0 | 0 | 0 |
I-7
Class A-3 Notes
Percentages Of Original Principal Of The Notes Remaining At Certain Quarterly
Distribution Dates At Various CLR Percentages
Quarterly Distribution Date | 0% | 50% | 100% | 150% | 200% | ||||||||||
Closing Date | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||
October 2007 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2008 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2009 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2010 | 100 | 100 | 100 | 100 | 86 | ||||||||||
October 2011 | 100 | 100 | 78 | 52 | 27 | ||||||||||
October 2012 | 100 | 70 | 33 | 0 | 0 | ||||||||||
October 2013 | 87 | 34 | 0 | 0 | 0 | ||||||||||
October 2014 | 63 | 0 | 0 | 0 | 0 | ||||||||||
October 2015 | 38 | 0 | 0 | 0 | 0 | ||||||||||
October 2016 | 11 | 0 | 0 | 0 | 0 | ||||||||||
October 2017 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2018 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2019 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2020 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2021 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2022 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2023 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2024 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2025 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2026 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2027 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2028 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2029 | 0 | 0 | 0 | 0 | 0 |
I-8
Class A-4 Notes
Percentages Of Original Principal Of The Notes Remaining At Certain Quarterly
Distribution Dates At Various CLR Percentages
Quarterly Distribution Date | 0% | 50% | 100% | 150% | 200% | ||||||||||
Closing Date | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||
October 2007 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2008 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2009 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2010 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2011 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2012 | 100 | 100 | 100 | 96 | 58 | ||||||||||
October 2013 | 100 | 100 | 83 | 32 | 0 | ||||||||||
October 2014 | 100 | 96 | 29 | 0 | 0 | ||||||||||
October 2015 | 100 | 52 | 0 | 0 | 0 | ||||||||||
October 2016 | 100 | 7 | 0 | 0 | 0 | ||||||||||
October 2017 | 80 | 0 | 0 | 0 | 0 | ||||||||||
October 2018 | 47 | 0 | 0 | 0 | 0 | ||||||||||
October 2019 | 11 | 0 | 0 | 0 | 0 | ||||||||||
October 2020 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2021 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2022 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2023 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2024 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2025 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2026 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2027 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2028 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2029 | 0 | 0 | 0 | 0 | 0 |
I-9
Class A-5 Notes
Percentages Of Original Principal Of The Notes Remaining At Certain Quarterly
Distribution Dates At Various CLR Percentages
Quarterly Distribution Date | 0% | 50% | 100% | 150% | 200% | ||||||||||
Closing Date | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||
October 2007 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2008 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2009 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2010 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2011 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2012 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2013 | 100 | 100 | 100 | 100 | 87 | ||||||||||
October 2014 | 100 | 100 | 100 | 73 | 27 | ||||||||||
October 2015 | 100 | 100 | 78 | 20 | 0 | ||||||||||
October 2016 | 100 | 100 | 32 | 0 | 0 | ||||||||||
October 2017 | 100 | 68 | 0 | 0 | 0 | ||||||||||
October 2018 | 100 | 30 | 0 | 0 | 0 | ||||||||||
October 2019 | 100 | 0 | 0 | 0 | 0 | ||||||||||
October 2020 | 78 | 0 | 0 | 0 | 0 | ||||||||||
October 2021 | 44 | 0 | 0 | 0 | 0 | ||||||||||
October 2022 | 8 | 0 | 0 | 0 | 0 | ||||||||||
October 2023 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2024 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2025 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2026 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2027 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2028 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2029 | 0 | 0 | 0 | 0 | 0 |
I-10
Class A-6 Notes
Percentages Of Original Principal Of The Notes Remaining At Certain Quarterly
Distribution Dates At Various CLR Percentages
Quarterly Distribution Date | 0% | 50% | 100% | 150% | 200% | ||||||||||
Closing Date | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||
October 2007 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2008 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2009 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2010 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2011 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2012 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2013 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2014 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2015 | 100 | 100 | 100 | 100 | 91 | ||||||||||
October 2016 | 100 | 100 | 100 | 91 | 74 | ||||||||||
October 2017 | 100 | 100 | 96 | 76 | 59 | ||||||||||
October 2018 | 100 | 100 | 83 | 63 | 47 | ||||||||||
October 2019 | 100 | 98 | 72 | 52 | 37 | ||||||||||
October 2020 | 100 | 88 | 61 | 42 | 29 | ||||||||||
October 2021 | 100 | 77 | 52 | 34 | 22 | ||||||||||
October 2022 | 100 | 67 | 43 | 27 | 0 | ||||||||||
October 2023 | 91 | 57 | 35 | 21 | 0 | ||||||||||
October 2024 | 78 | 47 | 28 | 0 | 0 | ||||||||||
October 2025 | 65 | 38 | 21 | 0 | 0 | ||||||||||
October 2026 | 52 | 29 | 0 | 0 | 0 | ||||||||||
October 2027 | 40 | 21 | 0 | 0 | 0 | ||||||||||
October 2028 | 29 | 0 | 0 | 0 | 0 | ||||||||||
October 2029 | 0 | 0 | 0 | 0 | 0 |
I-11
Class B-1 Notes
Percentages Of Original Principal Of The Notes Remaining At Certain Quarterly
Distribution Dates At Various CLR Percentages
Quarterly Distribution Date | 0% | 50% | 100% | 150% | 200% | ||||||||||
Closing Date | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||
October 2007 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2008 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2009 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2010 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2011 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2012 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2013 | 98 | 97 | 96 | 94 | 93 | ||||||||||
October 2014 | 91 | 84 | 78 | 71 | 65 | ||||||||||
October 2015 | 83 | 71 | 59 | 48 | 37 | ||||||||||
October 2016 | 74 | 57 | 40 | 25 | 17 | ||||||||||
October 2017 | 65 | 43 | 22 | 9 | 0 | ||||||||||
October 2018 | 56 | 29 | 9 | 0 | 0 | ||||||||||
October 2019 | 46 | 15 | 0 | 0 | 0 | ||||||||||
October 2020 | 35 | 2 | 0 | 0 | 0 | ||||||||||
October 2021 | 23 | 0 | 0 | 0 | 0 | ||||||||||
October 2022 | 11 | 0 | 0 | 0 | 0 | ||||||||||
October 2023 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2024 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2025 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2026 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2027 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2028 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2029 | 0 | 0 | 0 | 0 | 0 |
I-12
Class B-2 Notes
Percentages Of Original Principal Of The Notes Remaining At Certain Quarterly
Distribution Dates At Various CLR Percentages
Quarterly Distribution Date | 0% | 50% | 100% | 150% | 200% | ||||||||||
Closing Date | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||
October 2007 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2008 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2009 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2010 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2011 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2012 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2013 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2014 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2015 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2016 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2017 | 100 | 100 | 100 | 100 | 93 | ||||||||||
October 2018 | 100 | 100 | 100 | 90 | 74 | ||||||||||
October 2019 | 100 | 100 | 94 | 74 | 58 | ||||||||||
October 2020 | 100 | 100 | 80 | 61 | 45 | ||||||||||
October 2021 | 100 | 93 | 68 | 49 | 35 | ||||||||||
October 2022 | 100 | 80 | 56 | 39 | 0 | ||||||||||
October 2023 | 98 | 68 | 46 | 31 | 0 | ||||||||||
October 2024 | 88 | 57 | 37 | 0 | 0 | ||||||||||
October 2025 | 73 | 46 | 28 | 0 | 0 | ||||||||||
October 2026 | 58 | 35 | 0 | 0 | 0 | ||||||||||
October 2027 | 45 | 26 | 0 | 0 | 0 | ||||||||||
October 2028 | 32 | 0 | 0 | 0 | 0 | ||||||||||
October 2029 | 0 | 0 | 0 | 0 | 0 |
I-13
CPR Tables
The following tables show the weighted average remaining lives, expected maturity dates and percentages of original principal of each class of the notes at various percentages of CPR from the closing date until the optional redemption date.
Weighted Average Lives and Expected Maturities of the Notes
at Various CPR Percentages
Weighted Average Life (years)(1) | 0% | 4% | 8% | 12% | 16% | |||||
Class A-1 Notes | 1.42 | 0.90 | 0.65 | 0.52 | 0.45 | |||||
Class A-2 Notes | 4.32 | 1.82 | 1.32 | 1.11 | 0.91 | |||||
Class A-3 Notes | 7.87 | 3.64 | 2.31 | 1.70 | 1.41 | |||||
Class A-4 Notes | 11.28 | 5.93 | 3.78 | 2.75 | 2.15 | |||||
Class A-5 Notes | 14.20 | 8.61 | 5.59 | 4.07 | 3.18 | |||||
Class A-6 Notes | 19.47 | 15.79 | 12.24 | 9.43 | 7.48 | |||||
Class B-1 Notes | 11.71 | 9.63 | 8.64 | 8.14 | 7.53 | |||||
Class B-2 Notes | 19.85 | 17.50 | 15.14 | 12.82 | 10.86 | |||||
Expected Maturity Date | ||||||||||
Class A-1 Notes | April 25, 2010 | October 25, 2008 | July 25, 2008 | April 25, 2008 | April 25, 2008 | |||||
Class A-2 Notes | April 25, 2013 | January 25, 2010 | January 25, 2009 | October 25, 2008 | October 25, 2008 | |||||
Class A-3 Notes | April 25, 2017 | April 25, 2012 | July 25, 2010 | October 25, 2009 | April 25, 2009 | |||||
Class A-4 Notes | April 25, 2020 | July 25, 2014 | January 25, 2012 | October 25, 2010 | January 25, 2010 | |||||
Class A-5 Notes | January 25, 2023 | October 25, 2017 | April 25, 2014 | July 25, 2012 | April 25, 2011 | |||||
Class A-6 Notes | July 25, 2029 | April 25, 2027 | July 25, 2024 | April 25, 2021 | October 25, 2018 | |||||
Class B-1 Notes | October 25, 2023 | January 25, 2021 | January 25, 2019 | October 25, 2017 | October 25, 2016 | |||||
Class B-2 Notes | July 25, 2029 | April 25, 2027 | July 25, 2024 | April 25, 2021 | October 25, 2018 | |||||
(1) | The weighted average life of the notes (assuming a 360-day year consisting of twelve 30-day months) is determined by: (1) multiplying the amount of each principal payment on the applicable class of notes by the number of years from the closing date to the related quarterly distribution date, (2) adding the results, and (3) dividing that sum by the aggregate principal amount of the applicable class of notes as of the closing date. |
I-14
Class A-1 Notes
Percentages Of Original Principal Of The Notes Remaining At Certain Quarterly
Distribution Dates At Various CPR Percentages
Quarterly Distribution Date | 0% | 4% | 8% | 12% | 16% | ||||||||||
Closing Date | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||
October 2007 | 98 | 90 | 81 | 72 | 63 | ||||||||||
October 2008 | 35 | 0 | 0 | 0 | 0 | ||||||||||
October 2009 | 9 | 0 | 0 | 0 | 0 | ||||||||||
October 2010 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2011 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2012 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2013 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2014 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2015 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2016 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2017 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2018 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2019 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2020 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2021 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2022 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2023 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2024 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2025 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2026 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2027 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2028 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2029 | 0 | 0 | 0 | 0 | 0 |
I-15
Class A-2 Notes
Percentages Of Original Principal Of The Notes Remaining At Certain Quarterly
Distribution Dates At Various CPR Percentages
Quarterly Distribution Date | 0% | 4% | 8% | 12% | 16% | ||||||||||
Closing Date | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||
October 2007 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2008 | 100 | 82 | 25 | 0 | 0 | ||||||||||
October 2009 | 100 | 8 | 0 | 0 | 0 | ||||||||||
October 2010 | 80 | 0 | 0 | 0 | 0 | ||||||||||
October 2011 | 49 | 0 | 0 | 0 | 0 | ||||||||||
October 2012 | 15 | 0 | 0 | 0 | 0 | ||||||||||
October 2013 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2014 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2015 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2016 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2017 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2018 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2019 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2020 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2021 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2022 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2023 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2024 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2025 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2026 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2027 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2028 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2029 | 0 | 0 | 0 | 0 | 0 |
I-16
Class A-3 Notes
Percentages Of Original Principal Of The Notes Remaining At Certain Quarterly
Distribution Dates At Various CPR Percentages
Quarterly Distribution Date | 0% | 4% | 8% | 12% | 16% | ||||||||||
Closing Date | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||
October 2007 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2008 | 100 | 100 | 100 | 80 | 44 | ||||||||||
October 2009 | 100 | 100 | 43 | 0 | 0 | ||||||||||
October 2010 | 100 | 61 | 0 | 0 | 0 | ||||||||||
October 2011 | 100 | 18 | 0 | 0 | 0 | ||||||||||
October 2012 | 100 | 0 | 0 | 0 | 0 | ||||||||||
October 2013 | 87 | 0 | 0 | 0 | 0 | ||||||||||
October 2014 | 63 | 0 | 0 | 0 | 0 | ||||||||||
October 2015 | 38 | 0 | 0 | 0 | 0 | ||||||||||
October 2016 | 11 | 0 | 0 | 0 | 0 | ||||||||||
October 2017 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2018 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2019 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2020 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2021 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2022 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2023 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2024 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2025 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2026 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2027 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2028 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2029 | 0 | 0 | 0 | 0 | 0 |
I-17
Class A-4 Notes
Percentages Of Original Principal Of The Notes Remaining At Certain Quarterly
Distribution Dates At Various CPR Percentages
Quarterly Distribution Date | 0% | 4% | 8% | 12% | 16% | ||||||||||
Closing Date | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||
October 2007 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2008 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2009 | 100 | 100 | 100 | 83 | 22 | ||||||||||
October 2010 | 100 | 100 | 76 | 0 | 0 | ||||||||||
October 2011 | 100 | 100 | 10 | 0 | 0 | ||||||||||
October 2012 | 100 | 73 | 0 | 0 | 0 | ||||||||||
October 2013 | 100 | 29 | 0 | 0 | 0 | ||||||||||
October 2014 | 100 | 0 | 0 | 0 | 0 | ||||||||||
October 2015 | 100 | 0 | 0 | 0 | 0 | ||||||||||
October 2016 | 100 | 0 | 0 | 0 | 0 | ||||||||||
October 2017 | 80 | 0 | 0 | 0 | 0 | ||||||||||
October 2018 | 47 | 0 | 0 | 0 | 0 | ||||||||||
October 2019 | 11 | 0 | 0 | 0 | 0 | ||||||||||
October 2020 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2021 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2022 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2023 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2024 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2025 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2026 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2027 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2028 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2029 | 0 | 0 | 0 | 0 | 0 |
I-18
Class A-5 Notes
Percentages Of Original Principal Of The Notes Remaining At Certain Quarterly
Distribution Dates At Various CPR Percentages
Quarterly Distribution Date | 0% | 4% | 8% | 12% | 16% | ||||||||||
Closing Date | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||
October 2007 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2008 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2009 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2010 | 100 | 100 | 100 | 95 | 32 | ||||||||||
October 2011 | 100 | 100 | 100 | 29 | 0 | ||||||||||
October 2012 | 100 | 100 | 58 | 0 | 0 | ||||||||||
October 2013 | 100 | 100 | 13 | 0 | 0 | ||||||||||
October 2014 | 100 | 90 | 0 | 0 | 0 | ||||||||||
October 2015 | 100 | 57 | 0 | 0 | 0 | ||||||||||
October 2016 | 100 | 24 | 0 | 0 | 0 | ||||||||||
October 2017 | 100 | 0 | 0 | 0 | 0 | ||||||||||
October 2018 | 100 | 0 | 0 | 0 | 0 | ||||||||||
October 2019 | 100 | 0 | 0 | 0 | 0 | ||||||||||
October 2020 | 78 | 0 | 0 | 0 | 0 | ||||||||||
October 2021 | 44 | 0 | 0 | 0 | 0 | ||||||||||
October 2022 | 8 | 0 | 0 | 0 | 0 | ||||||||||
October 2023 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2024 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2025 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2026 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2027 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2028 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2029 | 0 | 0 | 0 | 0 | 0 |
I-19
Class A-6 Notes
Percentages Of Original Principal Of The Notes Remaining At Certain Quarterly
Distribution Dates At Various CPR Percentages
Quarterly Distribution Date | 0% | 4% | 8% | 12% | 16% | ||||||||||
Closing Date | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||
October 2007 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2008 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2009 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2010 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2011 | 100 | 100 | 100 | 100 | 88 | ||||||||||
October 2012 | 100 | 100 | 100 | 92 | 71 | ||||||||||
October 2013 | 100 | 100 | 100 | 77 | 56 | ||||||||||
October 2014 | 100 | 100 | 92 | 65 | 46 | ||||||||||
October 2015 | 100 | 100 | 81 | 55 | 37 | ||||||||||
October 2016 | 100 | 100 | 71 | 46 | 30 | ||||||||||
October 2017 | 100 | 98 | 62 | 39 | 24 | ||||||||||
October 2018 | 100 | 89 | 54 | 32 | 0 | ||||||||||
October 2019 | 100 | 80 | 47 | 27 | 0 | ||||||||||
October 2020 | 100 | 71 | 40 | 22 | 0 | ||||||||||
October 2021 | 100 | 62 | 34 | 0 | 0 | ||||||||||
October 2022 | 100 | 54 | 28 | 0 | 0 | ||||||||||
October 2023 | 91 | 46 | 23 | 0 | 0 | ||||||||||
October 2024 | 78 | 38 | 0 | 0 | 0 | ||||||||||
October 2025 | 65 | 31 | 0 | 0 | 0 | ||||||||||
October 2026 | 52 | 24 | 0 | 0 | 0 | ||||||||||
October 2027 | 40 | 0 | 0 | 0 | 0 | ||||||||||
October 2028 | 29 | 0 | 0 | 0 | 0 | ||||||||||
October 2029 | 0 | 0 | 0 | 0 | 0 |
I-20
Class B-1 Notes
Percentages Of Original Principal Of The Notes Remaining At Certain Quarterly
Distribution Dates At Various CPR Percentages
Quarterly Distribution Date | 0% | 4% | 8% | 12% | 16% | ||||||||||
Closing Date | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||
October 2007 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2008 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2009 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2010 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2011 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2012 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2013 | 98 | 96 | 94 | 100 | 89 | ||||||||||
October 2014 | 91 | 81 | 71 | 69 | 52 | ||||||||||
October 2015 | 83 | 66 | 55 | 41 | 21 | ||||||||||
October 2016 | 74 | 52 | 36 | 18 | 0 | ||||||||||
October 2017 | 65 | 38 | 18 | 0 | 0 | ||||||||||
October 2018 | 56 | 25 | 1 | 0 | 0 | ||||||||||
October 2019 | 46 | 15 | 0 | 0 | 0 | ||||||||||
October 2020 | 35 | 1 | 0 | 0 | 0 | ||||||||||
October 2021 | 23 | 0 | 0 | 0 | 0 | ||||||||||
October 2022 | 11 | 0 | 0 | 0 | 0 | ||||||||||
October 2023 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2024 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2025 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2026 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2027 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2028 | 0 | 0 | 0 | 0 | 0 | ||||||||||
October 2029 | 0 | 0 | 0 | 0 | 0 |
I-21
Class B-2 Notes
Percentages Of Original Principal Of The Notes Remaining At Certain Quarterly
Distribution Dates At Various CPR Percentages
Quarterly Distribution Date | 0% | 4% | 8% | 12% | 16% | ||||||||||
Closing Date | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||
October 2007 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2008 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2009 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2010 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2011 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2012 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2013 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2014 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2015 | 100 | 100 | 100 | 100 | 100 | ||||||||||
October 2016 | 100 | 100 | 100 | 100 | 96 | ||||||||||
October 2017 | 100 | 100 | 100 | 97 | 77 | ||||||||||
October 2018 | 100 | 100 | 100 | 81 | 0 | ||||||||||
October 2019 | 100 | 100 | 87 | 67 | 0 | ||||||||||
October 2020 | 100 | 100 | 75 | 55 | 0 | ||||||||||
October 2021 | 100 | 89 | 63 | 0 | 0 | ||||||||||
October 2022 | 100 | 78 | 53 | 0 | 0 | ||||||||||
October 2023 | 98 | 66 | 43 | 0 | 0 | ||||||||||
October 2024 | 88 | 55 | 0 | 0 | 0 | ||||||||||
October 2025 | 73 | 44 | 0 | 0 | 0 | ||||||||||
October 2026 | 58 | 34 | 0 | 0 | 0 | ||||||||||
October 2027 | 45 | 0 | 0 | 0 | 0 | ||||||||||
October 2028 | 32 | 0 | 0 | 0 | 0 | ||||||||||
October 2029 | 0 | 0 | 0 | 0 | 0 |
I-22
CLR/CPR Equivalence Table
Listed below is a table of equivalent CPR percentages. “Equivalent CPR Percentages” are the CPRs, on the closing date, that will result in the same weighted average life of a class of notes as the corresponding percentage of CLR. For example, in the case of a note with a weighted average life of 1.25 years in the 100% CLR scenario, the single CPR that will result in the same weighted average life is approximately 0.6% CPR.
Equivalent CPR Percentages at Various CLR Assumptions(1)
CLR Percentage | 0% | 50% | 100% | 150% | 200% | ||||||||||
Class A-1 Notes | 0.0 | % | 0.4 | % | 0.6 | % | 0.9 | % | 1.1 | % | |||||
Class A-2 Notes | 0.0 | 0.7 | 1.3 | 1.8 | 2.2 | ||||||||||
Class A-3 Notes | 0.0 | 1.2 | 2.1 | 2.8 | 3.4 | ||||||||||
Class A-4 Notes | 0.0 | 1.7 | 2.9 | 3.8 | 4.6 | ||||||||||
Class A-5 Notes | 0.0 | 2.2 | 3.6 | 4.8 | 5.8 | ||||||||||
Class A-6 Notes | 0.0 | 2.8 | 5.1 | 7.2 | 9.0 | ||||||||||
Class B-1 Notes | 0.0 | 3.4 | 6.6 | 9.8 | 12.0 | ||||||||||
Class B-2 Notes | 0.0 | 3.5 | 6.7 | 9.5 | 11.9 |
(1) | These CLR/CPR equivalents are calculated as of the closing date. These relationships will vary from the table values for any date after the closing date. |
I-23
$2,591,250,000
SLM Student Loan Trust 2007-5
Issuing Entity
| $ 222,000,000 | Floating Rate Class A-1 Student Loan-Backed Notes | |
| $ 201,000,000 | Floating Rate Class A-2 Student Loan-Backed Notes | |
| $ 313,000,000 | Floating Rate Class A-3 Student Loan-Backed Notes | |
| $ 286,000,000 | Floating Rate Class A-4 Student Loan-Backed Notes | |
| $ 342,000,000 | Floating Rate Class A-5 Student Loan-Backed Notes | |
| $1,149,512,000 | Floating Rate Class A-6 Student Loan-Backed Notes | |
| $ 37,500,000 | Floating Rate Class B-1 Student Loan-Backed Notes | |
| $ 40,238,000 | Auction Rate Class B-2 Student Loan-Backed Notes | |
SLM Funding LLC
Depositor
Sallie Mae, Inc.
Sponsor, Servicer and Administrator
Joint Book-Runners
Banc of America Securities LLC
JPMorgan
Co-Managers
Credit Suisse
Deutsche Bank Securities
Merrill Lynch & Co.
RBS Greenwich Capital
July 10, 2007