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January 19, 2010

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Bill Weyandt

A question for Sallie Mae:

While the amount of loans in Forbearance for the SLM 2007-A pool has been slowly trending down over recent quarters ($72MM as of 11/30/2009), loans in Deferment status continue to rise sharply ($191MM as of 11/30/2009 from a baseline of $49MM at pool inception). In-school Deferments should slowly trend down after pool inception.

The Sallie Mae website notes that Deferment can be authorized for economic hardship or unemployment, among other reasons. How is this sharp increase in the use of Deferments different than Forbearance?

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