Slm Corporation · NASDAQ:SLM
Slm — Sallie Mae — Investor Presentation (August 2008)
11 slides from Slm's investor presentation, Aug 20, 2008
Slide 1: How America Pays for College
How America Pays for College: Sallie Mae’s National Study of College Students and Parents August 20, 2008
Slide 2: How America Pays for College: Objective and Methodology
How America Pays for College Primary Objective: Determine how American families are paying for college and measure attitudes about paying for college Methodology: During May 2008, 1,404 telephone interviews conducted with students and parents of students 18-24 currently attending an institution of h
Slide 3: The Value of College Education
The Value of College Education • American college families see great value in college education – Three-quarters (74%) of parents and 87% of students are willing to stretch financially to obtain the best opportunity for the student – 77% of parents and 85% of students would rather borrow than not se
Slide 4: How America Pays for College
How America Pays for College • Average cost total attendance in 2007-2008 = $14,628 – Ranging from $27,679 for 4-year private to $5,263 for 2-year public • Funding comes from a variety of sources provided by both parents and students How America Pays for College Student Borrowing 23% Parent Income/
Slide 5: Eliminating Colleges Based on Cost
Eliminating Colleges Based on Cost • Four-in-ten families (42%) did not rule out colleges based on cost during any stage of the college search/application/decision process 100% Cumulative Elimination of Colleges Based on Cost 80% 58% 60% 54% 49% 43% 40% 20% 0% Before Considering Before Applying Afte
Slide 6: Non-Borrowed Funding
Non-Borrowed Funding • About three-fourths (72%) of families used non-borrowed funds for college in 2007-08 – 39% used only non-borrowed funds Used Non-Borrowed Funds • In these families, two-thirds of parents Don't and half of students contribute know 1% Who Contributes Non-Borrowed Funds 100% No 8
Slide 7: Sources of Non-Borrowed Funds
Sources of Non-Borrowed Funds • Current income is the most common sense of non-borrowed funds, especially for parents •College Savings Plans or other savings also comprise a major portion of non- borrowed funds Sources of Non-Borrowed Funds Source % of Total Families Average Amount* Current Income 3
Slide 8: Borrowed Funding
Borrowed Funding • Almost half (47%) the families borrowed for college in 2007-08 – 14% used only borrowed money • Students are sole borrowers in two- thirds of “borrowing” families Used Borrowed Funds Who Borrows Parents only 18% Yes 47% Students No only Both 52% 65% 17% Don't know • 70% of familie
Slide 9: Sources of Borrowed Funds
Sources of Borrowed Funds • Federal loans are the most common source of borrowed funds – Students use federal loans more often than parents, but parents borrow twice as much • Few families use home equity loans or lines of credit, but among those who do, there is heavy reliance on them – Average of
Slide 10: FAFSA Application
FAFSA Application • One-quarter (25%) college families don’t complete the FAFSA application • Not surprisingly, application rates decline with household income – One-in-four families with incomes between $35,000 and $100,000 do not fill out an application Completion of FAFSA by Annual Household Inco
Slide 11: Anxiety Over Paying for College
Anxiety Over Paying for College • Three in five (60%) college parents worry about rising tuition when considering college costs – Half (51%) worry about rising loan rates Parental Economic Concerns about Paying for College % Worried* Schools Will Raise Tuition 60% Loan Rates Will Increase 51% Studen