Sallie Mae has upsized its latest offerings of student loan backed securities, by $248.7million to $992.3 million, according to a regulatory filing.
The deal, SLM Student Loan Trust 2014.2, is Sallie Mae’s second securitization of Federal Family Education Loan Program (FFELP) loans of the year. It will now issue five classes of notes with totaling $965.1 million with preliminary Aaa’/’AAA’ ratings from Moody’s Investors Service and Fitch Ratings: $268 million of class A-1 notes maturing in July 2019; $191 million of class A-2 notes maturing in October 2021; and $506.1 million of class A-3 notes maturing in March 2029.
The trust will also issue $27.2 million of class B notes maturing in January 2045; this tranche has preliminary Aa1’ ratings.
Barclays, Goldman Sachs and RBS are the lead underwriters.
According to Moody’s presale report, students in repayment status make up 59.5% of the loan pool. The loans have 25.5 weighted average months in repayment. By comparison, Sallie’s previous transaction, the SLM 2014-1, student in repayment made up 62.4% of the loan pool and the loans had 25.1 weighted average months in repayment.
“Borrowers first entering repayment status have the highest probability of defaulting or entering forbearance or deferment periods,” Moody’s noted in the report.