<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) October 27, 1997
-------------------------------
FIRST UNION STUDENT LOAN TRUST 1997-1
(Exact name of registrant as specified in its charter)
Delaware 333-26405 56-0900030
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
c/o First Union National Bank, Administrator
301 South College Street, Charlotte, North Carolina 28288-1075
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (704) 383-6955
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c/o The First National Bank of Chicago, as Eligible Lender Trustee
One First National Plaza, Suite 0126, Chicago, IL 60607
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(Former name or former address, if changed since last report.)
<PAGE>
Item 5. Other Events.
On October 27, 1997 (the "Distribution Date"), the First Union Student Loan
Trust 1997-1 (the "Trust") made its regular quarterly distribution of funds to
holders of the Trust's Floating Rate Class A-1 Asset Backed Notes, Floating Rate
Class A-2 Asset Backed Notes and Floating Rate Asset Backed Certificates. The
Noteholders'/Certificateholders' Statement was distributed to the
Certificateholders and Noteholders, as of the business day prior to the
Distribution Date (the "Record Date"), and is filed herewith as an exhibit to
this Form 8-K.
In reliance upon certain no-action letters, including a letter dated November 2,
1993, issued by the Chief Counsel, Division of Corporate Finance of the
Securities and Exchange Commission relating to the Society Student Loan Trust
1993-A, the Trust is hereby filing the Certificateholders'/Noteholders'
Statement reflecting the Trust's activities for the period ending September 30,
1997, including a statistical summary of the delinquency and default
characteristics of the Trust's student loan portfolio as of such date.
Item 7. Financial Statements and Exhibits.
(c) Exhibits
99. First Union Student Loan Trust 1997-1,
Noteholders'/Certificateholders' Statement for
October 27, 1997 Distribution Date (Filed herewith).
<PAGE>
SIG6NATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this Report to be signed on its behalf by the
undersigned hereunto duly authorized.
FIRST UNION STUDENT LOAN TRUST 1997-1
By: First Union National Bank, as Administrator
By: /s/ Mary Therese Whittaker
-------------------------------------
Name: Mary Therese Whittaker
Title: Vice President
Dated: December 22, 1997
<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
EXHIBITS
FORM 8-K
CURRENT REPORT
Date of Report Commission File Number
October 27, 1997 333-26405
FIRST UNION STUDENT LOAN TRUST 1997-1
EXHIBIT INDEX
Exhibit No. Exhibit Description
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99. First Union Student Loan Trust 1997-1,
Noteholders'/Certificateholders' Statement
for October 27, 1997 Distribution Date
(Filed herewith).
<PAGE>
<TABLE>
<CAPTION>
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I. Deal Parameters
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A Student Loan Portfolio Characteristics 9/30/97 Activity 7/1/97
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<S> <C> . <C> <C> <C> <C> <C>
I Portfolio Principal Balance $372,911,047.08 ($13,730,035.04) $386,641,082.12
II Interest to be Capitalized $3,811,375.54 $3,355,624.14
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III Total Pool $376,722,422.62 $389,996,706.26
IV Reserve Account Balance $1,754,985.00 $1,754,985.00
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V Total Adjusted Pool $378,477,407.62 $391,751,691.26
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B I Weighted Average Coupon (WAC) 8.26% 8.25%
II Weighted Average Remaining Term 106.81 107.74
III Number of Loans 237,183 241,185
IV Number of Borrowers 52,586 53,592
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C Notes and Certificates Spread Balance 7/1/97 % of Pool Balance 10/27/97 % of Pool
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I A-1 Notes 0.58% $263,637,773.00 65.00% $249,520,250.51 63.74%
II A-2 Notes 0.64% $127,762,921.00 31.50% $127,762,921.00 32.64%
III Certificates 0.82% $14,195,880.00 3.50% $14,195,880.00 3.63%
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IV Total Notes and Certificates $405,596,574.00 100.00% $391,479,051.51 100.00%
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D Reserve Account 7/1/97 Balance 10/27/97
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I Required Reserve Acct Deposit (%) 0.45% 0.45%
II Specified Reserve Acct Balance ($) $1,754,985.00 $1,754,985.00
III Current Reserve Acct Balance ($) $1,754,985.00
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</TABLE>
<PAGE>
<TABLE>
<CAPTION>
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II. 1997-1 Transaction from 7/1/97 through 9/30/97
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Activity
<S> <C> <C> <C>
A Student Loan Principal Activity
I Regular Principal Collections $14,899,826.37
II Principal Collections from Guarantor $147,581.93
III Principal Reimbursements ($487,184.76)
IV Other System Adjustments $0.00
V Net Principal Activity $14,560,223.54
B Student Loan Non-Cash Principal Activity
I Other Adjustments ($56,625.44)
II Capitalized Interest ($773,563.06)
III Net Non-Cash Principal Activity ($830,188.50)
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C Total Student Loan Principal Activity $13,730,035.04
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D Student Loan Interest Activity
I Regular Interest Collections $5,205,234.91
II Interest Claims Received from Guarantors $4,554.26
III Interest Reimbursements ($69,936.74)
IV Other System Adjustments $0.00
V Special Allowance Payments $189,352.01
VI Subsidy Payments $1,220,496.30
VII Net Interest Activity $6,549,700.74
E Student Loan Non-Cash Interest Activity
I Interest Accrual Adjustment $0.00
II Capitalized Interest $773,563.06
III Other Adjustments $74,582.26
IV Net Non-Cash Interest Activity $848,145.32
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F Total Student Loan Interest Activity $7,397,846.06
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</TABLE>
<PAGE>
<TABLE>
<CAPTION>
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III. 1997-1 Collection Account Activity 07/1/97 through 09/30/97
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<S> <C> <C>
A Principal Collections
I Principal Payments Received -- Cash $14,560,223.54
II Cash Forwarded by Administrator on behalf of Seller $0.00
III Cash Forwarded by Administrator on behalf of Servicer $0.00
IV Total Principal Collections $14,560,223.54
B Interest Collections
I Special Allowance and ISP $1,409,848.31
II Interest Payments Received -- Cash $5,139,852.43
III Cash Forwarded by Administrator on behalf of Seller $0.00
IV Cash Forwarded by Administrator on behalf of Servicer ($793,093.58)
V Total Interest Collections $5,756,607.16
C Other Reimbursements $0.00
D Administrator Account Investment Income $16,789.01
E Total Funds Received $20,333,619.71
(Less: Servicing Fees previously Remitted AND
Less: Administrator Investment Income)
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Total Funds Transferred to Collection Account $20,316,830.70
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G Servicing Fees Due for Current Month $392,419.19
H Servicing Fees from 2nd month in qtr $395,252.33
Servicing Fee from 1st month in qtr $397,841.25
I Administration Fees Due $37,672.24
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J Total Fees Due for Period $1,223,185.01
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</TABLE>
<PAGE>
<TABLE>
<CAPTION>
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IV. 1997-1 Portfolio Characteristics
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Weighted Avg. Coupon # of Loans % Principal Amount %
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Status NA 9/30/97 NA 9/30/97 NA 9/30/97 NA 9/30/97 NA 9/30/97
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<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Interim
In School
Current 7.9312% 5,784 2.44% $9,317,211.72 2.50%
Grace
Current 7.8919% 21,015 8.86% $38,003,253.04 10.19%
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Total Interim 7.8998% 26,799 11.30% $47,320,464.76 12.69%
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Repayment
Active
Current 8.3333% 151,736 63.97% $223,141,513.20 59.84%
31-60 Days Delinquent 8.3313% 11,049 4.66% $17,220,156.70 4.62%
61-90 Days Delinquent 8.2916% 7,005 2.95% $12,061,536.27 3.23%
91-120 Days Delinquent 8.2964% 3,875 1.63% $6,088,803.13 1.63%
> 120 Days Delinquent 8.2804% 4,875 2.06% $7,293,560.67 1.96%
Deferment 8.2117% 17,572 7.41% $33,405,541.65 8.96%
Forbearance 8.3609% 11,879 5.01% $26,118,676.67 7.00%
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Total Repayment 8.3195% 207,991 87.69% $325,329,788.29 87.24%
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Overpaids 8.3610% 2,234 0.94% ($49,848.64) -0.01%
Claims in Process (1) 8.3343% 158 0.07% $306,789.92 0.08%
Aged Claims Rejected (2) 8.9800% 1 0.00% $3,852.75 0.00%
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Grand Total 8.2663% 237,183 100.00% 372,911,047.08 100.00%
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</TABLE>
(1) Claims filed and unpaid.
(2) Claims rejected (subject to cure).
<PAGE>
<TABLE>
<CAPTION>
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V. Interest Calculation
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<S> <C> <C> <C> <C>
A Borrower Interest Accrued During Collection Period $6,729,323.38
B Interest Subsidy Payments Accrued $1,253,706.86
C SAP Payments Accrued for Collection Period $177,166.96
D Investment Earnings (Trust Accts) $0.00
E Net Expected Interest Collections $8,160,197.20
F Student Loan Rate
I Days in Collection Period 92
II Days in Year 365
III Net Expected Interest Collections $8,160,197.20
IV Primary Servicing Fee $392,419.19
V Administration Fee $37,672.24
VI Total Pool Balance at Beginning of Collection Period $389,996,706.26
VII Student Loan Rate 7.06%
Accrued
Int Factor Accrual Period Accrued Interest
G Accrued Interest
H Class A-1 Interest Rate 0.014156712 7/29/97 - 10/26/97 $3,732,244.11
I Class A-2 Interest Rate 0.014304658 7/29/97 - 10/26/97 $1,827,604.83
J Certificate Rate of Return 0.014748493 7/29/97 - 10/26/97 $209,367.84
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</TABLE>
<PAGE>
<TABLE>
<CAPTION>
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VI. Waterfall for Distributions
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Remaining
Funds Balance
<S> <C> <C> <C>
A Total Available Funds (Sections III-E + V-D) $20,316,830.70 $20,316,830.70
B Servicing Fees $392,419.19 $19,924,411.51
C Administration Fee $37,672.24 $19,886,739.27
D Noteholder's Interest Distribution Amount
I Class A-1 $3,732,244.11 $16,154,495.16
II Class A-2 $1,827,604.83 $14,326,890.33
III Total Noteholder's Interest Distribution $5,559,848.94
E Certificateholder's Interest Distribution Amount $209,367.84 $14,117,522.49
F Noteholder's Principal Distribution Amount
I Class A-1 $14,117,522.49 $0.00
II Class A-2 $0.00 $0.00
III Total Noteholder's Principal Distribution $14,117,522.49
G Certificateholder's Principal Distribution Amount $0.00 $0.00
H Increase to the Specified Reserve Account Balance $0.00 $0.00
I Noteholder's Interest Index Carryover
I Class A-1 $0.00 $0.00
II Class A-2 $0.00 $0.00
III Total Noteholder's Interest Index Carryover $0.00
J Certificateholder's Interest Index Carryover $0.00 $0.00
K Excess to Reserve Account $0.00
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</TABLE>
<PAGE>
<TABLE>
<CAPTION>
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VII. Distributions
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A Distribution Amounts Class A-1 Class A-2 Certificates
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<S> <C> <C> <C>
I Quarterly Interest Due $3,732,244.11 $1,827,604.83 $209,367.84
II Quarterly Interest Paid $3,732,244.11 $1,827,604.83 $209,367.84
III Interest Shortfall $0.00 $0.00 $0.00
IV Interest Carryover Due $0.00 $0.00 $0.00
V Interest Carryover Paid $0.00 $0.00 $0.00
VI Interest Carryover $0.00 $0.00 $0.00
VII Quarterly Principal Due $14,117,522.49 $0.00 $0.00
VIII Quarterly Principal Paid $14,117,522.49 $0.00 $0.00
IX Quarterly Principal Shortfall $0.00 $0.00 $0.00
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X Total Distribution Amount $17,849,766.60 $1,827,604.83 $209,367.84
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B Principal Distribution Reconciliation
I Notes and Certificates Principal Balance $405,596,574.00
II Adjusted Pool Balance $378,477,407.62
III Pool Exceeding Notes and Certificate Balance (I-II) $27,119,166.38
IV Principal Distribution Amount $14,117,522.49
C Total Principal Distribution $14,117,522.49
D Total Interest Distribution $5,769,216.78
E Total Cash Distributions -- Note and Certificates $19,886,739.27
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F Notes & Certificate Balances 7/29/97 10/27/97
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I A-1 Note Balance $263,637,773.00 $249,520,250.51
A-1 Note Pool Factor 1.0000000 0.9464511
II A-2 Note Balance $127,762,921.00 $127,762,921.00
A-2 Note Pool Factor 1.0000000 1.0000000
III Certificate Balance $14,195,880.00 $14,195,880.00
Certificate Pool Factor 1.0000000 1.0000000
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G Reserve Account Reconciliation
I Beginning of Period Balance $1,754,985.00
II Deposits to Correct Shortfall $0.00
III Total Reserve Account Balance Available $1,754,985.00
IV Required Reserve Account Balance $1,754,985.00
V Shortfall Carried to Next Period $0.00
VI Excess Reserve -- Release to FUCM $0.00
VII Ending Reserve Account Balance $1,754,985.00
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</TABLE>
<PAGE>
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VIII. Payment History and CPRs
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Distribution Actual Since Issued
Date Pool Balances CPR*
Jun-97 $389,996,706
Sep-97 $376,722,423 7.07%
* "Since Issued CPR" is based on the current period's ending pool balance
calculated against the original pool balance and assuming cutoff date pool data.
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