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These excerpts taken from the SLM 10-K filed Mar 2, 2009. Competition
The FDLP’s market share peaked at 34 percent in FFY
1997. The FDLP’s market share had steadily declined since
then to 20 percent in FFY 2007. However, as discussed
above, schools began to return to the FDLP in FFY 2008, driven
by the concern that FFELP lenders were exiting the business, and
FDLP’s market share rose to 24 percent.
Historically, we have faced competition for both federally
guaranteed and non-guaranteed student loans from a variety of
financial institutions including banks, thrifts and
state-supported secondary markets. However, as a result of the
CCRAA and the dislocation in the capital markets, the student
loan industry is undergoing a significant transition. A number
of student lenders have ceased operations altogether or
curtailed activity. The environment of aggressive price
competition between FFELP lenders has also lessened
dramatically. Many of the FFELP lenders that remain in the
business have been adjusting their pricing by reducing
Table of Contents
borrower benefits and other costs. As a result of these factors,
we believe that as the largest student lender, we are well
positioned to increase market share in the coming years. Our FFY
2008 FFELP originations totaled $17.1 billion, representing
a 23 percent market share.
Competition
The private sector collections industry is highly fragmented
with few large companies and a large number of small scale
companies. The APG businesses that provide third-party
collections services for ED, FFELP guarantors and other federal
holders of defaulted debt are highly competitive. In addition to
competing with other collection enterprises, we also compete
with credit grantors who each have unique mixes of internal
collections, outsourced collections and debt sales. The scale,
diversification and performance of our APG business segment has
been a competitive advantage for the Company.
These excerpts taken from the SLM 10-K filed Feb 29, 2008. Competition
The private sector collections industry is highly fragmented
with few large companies and a large number of small scale
companies. The APG businesses that provide third-party
collections services for ED, FFELP guarantors and other federal
holders of defaulted debt are highly competitive. In addition to
competing with other collection enterprises, we also compete
with credit grantors who each have unique mixes of internal
collections, outsourced collections, and debt sales. Although
the scale, diversification, and performance of our APG business
has been a competitive advantage, the trend in the collections
industry is for credit grantors to sell portfolios rather than
to manage contingency collections.
In the purchased paper business, the marketplace is trending
more toward open market competitive bidding rather than
solicitation by sellers to a select group of potential buyers.
Price inflation and the availability of capital in the sector
contribute to this trend. Unlike many of our competitors, our
APG business does not rely solely on purchased portfolio
revenue. This enables us to maintain pricing discipline and
purchase only those portfolios that are expected to meet our
profitability and strategic goals. Portfolios are purchased
individually on a spot basis or through contractual
relationships with sellers to periodically purchase portfolios
at set prices. We compete primarily on price, and additionally
on the basis of our reputation and industry experience.
Competition The private sector collections industry is highly fragmented with few large companies and a large number of small scale companies. The APG businesses that provide third-party collections services for ED, FFELP guarantors and other federal holders of defaulted debt are highly competitive. In addition to competing with other collection enterprises, we also compete with credit grantors who each have unique mixes of internal collections, outsourced collections, and debt sales. Although the scale, diversification, and performance of our APG business has been a competitive advantage, the trend in the collections industry is for credit grantors to sell portfolios rather than to manage contingency collections. In the purchased paper business, the marketplace is trending more toward open market competitive bidding rather than solicitation by sellers to a select group of potential buyers. Price inflation and the availability of capital in the sector contribute to this trend. Unlike many of our competitors, our APG business does not rely solely on purchased portfolio revenue. This enables us to maintain pricing discipline and purchase only those portfolios that are expected to meet our profitability and strategic goals. Portfolios are purchased individually on a spot basis or through contractual relationships with sellers to periodically purchase portfolios at set prices. We compete primarily on price, and additionally on the basis of our reputation and industry experience. This excerpt taken from the SLM 10-K filed Mar 1, 2007. Competition
The private sector collections industry is highly fragmented
with few large companies and a large number of small scale
companies. The DMO businesses that provide third party
collections services for ED, FFELP guarantors and other federal
holders of defaulted debt are highly competitive. In addition to
competing with other collection enterprises, we also compete
with credit grantors who each have unique mixes of internal
collections, outsourced collections, and debt sales. Although
the scale, diversification, and performance of our DMO business
has been a competitive advantage, the trend in the collections
industry is for credit grantors to sell portfolios rather than
to manage contingency collections.
In the purchased paper business, the marketplace is trending
more toward open market competitive bidding rather than
solicitation by sellers to a select group of potential buyers.
Price inflation and the availability of capital in the sector
contribute to this trend. Unlike many of our competitors, our
DMO business does not rely solely on purchased portfolio
revenue. This enables us to maintain pricing discipline and
purchase only those portfolios that are expected to meet our
profitability and strategic goals. Portfolios are purchased
individually on a spot basis or through contractual
relationships with sellers to periodically purchase portfolios
at set prices. We compete primarily on price, but also on the
basis of our reputation, industry experience and relationships.
This excerpt taken from the SLM 10-K filed Mar 9, 2006. Competition
The private sector collections industry is highly fragmented with few large companies and a large number of small scale companies. The DMO businesses that provide third party collections services for ED, FFELP guarantors and other federal holders of defaulted debt are highly competitive. In addition to competing with other collection enterprises, we also compete with credit grantors who each have unique mixes of internal collections, outsourced collections, and debt sales. Although the scale, diversification, and performance of our DMO business has been a competitive advantage, increasing acquisition trends in the receivables management industry could bring about greater competition. In the purchased paper business, the marketplace is trending more toward open market competitive bidding rather than solicitation by sellers to a select group of potential buyers. Price inflation and the availability of capital in the sector contribute to this trend. Unlike many of our competitors, our DMO business does not rely solely on purchased portfolio revenue. This enables us to maintain pricing discipline and purchase only those portfolios that are expected to meet our profitability and strategic goals. Portfolios are purchased individually on a spot basis or through contractual relationships with sellers to periodically purchase portfolios at set prices. We compete primarily on price, but also on the basis of our reputation, industry experience and relationships. 18 | EXCERPTS ON THIS PAGE:
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