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) January 27, 1997
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USA GROUP SECONDARY MARKET SERVICES, INC.
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(Exact name of registrant as specified in its charter)
Delaware 333-2440 35-1872185
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(State or other (Commission (IRS Employer
jurisdiction File Number) Identification No.
of incorporation)
8350 Craig Street, Indianapolis, Indiana 46250
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(Address of principal
executive offices) (Zip Code)
Registrant's telephone number, including area code (317) 594-1981
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(Former name or former address, if changed since last report)
<PAGE>
Item 1. Not Applicable
Item 2. Not Applicable
Item 3. Not Applicable
Item 4. Not Applicable
Item 5. The Registrant, through the Trustee for SMS Student Loan Trust
1996-A, hereby files its quarterly report of distributions for
the period from October 1, 1996 to December 31, 1996, which
distribution was made on January 27, 1997.
Item 6. Not Applicable
Item 7. Not Applicable
Item 8. Not Applicable
<PAGE>
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 thereunto duly authorized.
USA Group Secondary Market Services, Inc.
BY The First National Bank of Chicago
not in its individual capacity but
solely as Eligible Lender Trustee of
the SMS Student Loan Trust 1996-A
/s/ Jeffrey L. Kinney, Trust Officer
DATE January 27, 1997
<PAGE>
EXHIBIT INDEX
Exhibit No. Page
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4.1. Quarterly Servicing Report
USA GROUP SECONDARY MARKET SERVICES, INC. Page 1
QUARTERLY SERVICING REPORT -- SMS Student Loan Trust 1996-A
Interest Period December 27, 1996 through January 26, 1996
Collection Period October 1, 1996 through December 31, 1996
I. ORIGINAL DEAL PARAMETER INPUTS
(A) Original Bond Balance $283,600,000.00
(B) Original Pool Balance $271,730,159.84
(C) Class A-1 Senior Note Percent 68.61%
(D) Original Class A-1 Senior Note Balance $194,576,000.00
(E) Class A-1 Senior Note Interest Margin 0.70%
(F) Class A-2 Senior Note Percent 27.89%
(G) Original Class A-2 Senior Note Balance $79,098,000.00
(H) Class A-2 Senior Note Interest Margin 0.24%
(I) Subordinate Note Percent 3.50%
(J) Original Subordinate Note Balance $9,926,000.00
(K) Subordinate Note Interest Margin 0.60%
(L) Reserve Account
(i) Initial Deposit Percentage 1.50%
(ii) Initial Deposit Amount $4,254,000.00
(iii) Target Balance
(as percent of aggregate outstanding bond balance) 1.50%
(iv) Floor Amount $2,836,000.00
II. INPUTS FROM PREVIOUS QUARTERLY SERVICER REPORTS
(A) Total Outstanding Bond Balance $283,600,000.00
(B) Total Bond Factor 1.000000
(C) Pool Balance $269,863,086.45
(D) Pool Factor 0.99312894
(E) Class A-1 Notes
(i) Note Balance $194,576,000.00
(ii) Note Pool Factor 1.000000
(iii) Principal Shortfall $0.00
(F) Class A-2 Notes
(i) Note Balance $79,098,000.00
(ii) Note Pool Factor 1.000000
(iii) Principal Shortfall $0.00
(G) Subordinate Notes
(i) Note Balance $9,926,000.00
(ii) Note Pool Factor 1.000000
(iii) Principal Shortfall $0.00
(H) Cumulative Defaults, This Year $1,621,473.91
(I) Cumulative Defaults $1,621,473.91
III. INPUTS FROM PREVIOUS MONTHLY SERVICER REPORTS
(A) Class A-1 Noteholders' Interest Carryover Shortfall $0.00
(B) Class A-1 Noteholders' Interest T-Bill Carryover
(This can only be paid quarterly, after parity has
been reached) $0.00
(C) Class A-2 Noteholders' Interest Carryover Shortfall $0.00
(D) Class A-2 Noteholders' Interest LIBOR Carryover
(This can only be paid quarterly, after parity has
been reached) $0.00
(E) Subordinate Noteholders' Interest Carryover Shortfall $0.00
(F) Subordinate Noteholders' Interest LIBOR Carryover
(This can only be paid quarterly, after parity has
been reached) $0.00
(G) Unpaid Servicing Fees $0.00
(H) Unpaid Administration Fees $0.00
(I) Unpaid Servicing Fee Shortfalls $0.00
(J) Excess Monthly Available Funds from Prior Periods $1,072,851.45
(K) Draw from Current Period's Collection Account
in Prior Periods $0.00
(L) Reserve Account Balance $4,254,000.00
(M) Collateral Reinvestment Account Balance $3,068,029.29
(N) Class A-1 Interest Account Balance $1,847,993.53
(O) Cumulative New Loans This Quarter $2,326,321.61
(P) Cumulative Serial Loans This Quarter $2,900,026.62
(Q) Cumulative Consolidation Loans This Quarter,
From Within the Trust $0.00
(R) Cumulative Consolidation Loans This Quarter,
From Outside the Trust $1,120,291.43
(S) Cumulative Accrued Interest to be Capitalized
This Quarter, From Collateral Investment Account $1,153,808.51
(T) Cumulative Accrued Interest to be Capitalized
This Quarter, From Collections $0.00
(U) Borrower Interest Accrued During Prior Two
Monthly Collection Periods $3,502,287.94
(V) Interest Subsidy Payments Accrued During Prior
Two Monthly Collection $273,584.78
(W) SAP Accrued During Prior Two Monthly
Collection Periods $45,682.06
(X) Reinvestment Earnings Accrued During Prior
Two Monthly Collection Periods $89,875.87
(Y) Origination Fees Accrued During Prior Two Monthly
Collection Periods $5,601.46
(Z) Servicing Fees Accrued During Prior Two Monthly
Collection Periods $262,958.68
(AA) Administration Fees Accrued During Prior Two
Monthly Collection Periods $17,920.77
(AB) Monthly Consolidation Loan Rebate Fees Accrued
During Prior Two Monthly collections Periods $183,974.00
<PAGE>
USA GROUP SECONDARY MARKET SERVICES, INC. Page 2
QUARTERLY SERVICING REPORT -- SMS Student Loan Trust 1996-A
Interest Period December 27, 1996 through January 26, 1996
Collection Period October 1, 1996 through December 31, 1996
IV. INTEREST RATE CALCULATION - Quarterly and Monthly
(A) 91-Day T-Bill From To Days Rate
(i) First Accrual Period 10/28/96 10/28/96 1 5.1400%
(ii) Second Accrual Period 10/29/96 11/04/96 7 5.1800%
(iii)Third Accrual Period 11/05/96 11/12/96 8 5.1800%
(iv) Fourth Accrual Period 11/13/96 11/18/96 6 5.1800%
(v) Fifth Accrual Period 11/19/96 11/25/96 7 5.1600%
(vi) Sixth Accrual Period 11/26/96 12/02/96 7 5.1600%
(vii) Seventh Accrual Period 12/03/96 12/09/96 7 5.1100%
(viii) Eighth Accrual Period 12/10/96 12/16/96 7 4.9600%
(ix) Ninth Accrual Period 12/17/96 12/23/96 7 4.8800%
(x) Tenth Accrual Period 12/24/96 12/30/96 7 5.0500%
(xi) Eleventh Accrual Period 12/31/96 01/06/97 7 5.2200%
(xii) Twelfth Accrual Period 01/07/97 01/13/97 7 5.1600%
(xiii) Thirteenth Accrual Period 01/14/97 01/26/97 13 5.1800%
(xiv) Fourteenth Accrual Period 0 0.0000%
(xv) Fifteenth Accrual Period 0 0.0000%
Quarterly Monthly
(B) Days in Year 365 360
(C) One Month LIBOR 5.66797%
(D) Actual Days in Interest Period 91 31
(E) Borrower Interest Accrued During
Collection Period $5,297,569.25 $1,795,281.31
(F) Interest Subsidy Payments Accrued During
Collection Period $400,140.86 $126,556.08
(G) SAP Accrued During Collection Period $ 60,248.61 $14,566.55
(H) Reinvestment Earnings Accrued During
Collection Period (VIII(A+B+C+D)) $136,641.44 $46,765.57
(I) Origination Fees Accrued During
Collection Period (VIII(F)) $8,554.83 $2,953.37
(J) Servicing and Administration Fees Accrued
During Collection Period (V(E)+VII(E)) $416,330.35 $135,450.90
(K) Monthly Consolidation Loan Rebate Fee
Accrued During Collection Period(VII(A)) $275,735.00 $91,761.00
(L) Net Expected Interest Collections
(IV(E+F+G+H-I-J-K)) $5,193,979.98 $1,753,004.24
(M) Student Loan Rate with Respect to T-Bill
Notes ((IV(B)/IV(D))*IV(L)/(II(A))-Quarterly 7.34591%
(N) Student Loan Rate with Respect to LIBOR Notes
((360/IV(D))*IV(L)/(II(A)) 7.17823%
(O) Class A-1 T-Bill Calculation Rate - Quarterly 5.82264%
(P) Class A-1 Interest Rate (MIN(IV(M),IV(O))) - Quarterly 5.82264%
(Q) Class A-2 LIBOR Calculation Rate (IV(C)+I(H)) 5.90797%
(R) Class A-2 Interest Rate (MIN(IV(N),IV(Q))) 5.90797%
(S) Subordinate Note LIBOR Calculation Rate (IV(C)+I(K)) 6.26797%
(T) Subordinate Note Interest Rate (MIN(IV(N),IV(S))) 6.26797%
V. SERVICING FEE CALCULATION - Monthly
(A) Pool Balance as of the End of the Collection Period $269,783,651.37
(B) Maximum Servicing Fee Rate (annualized, as percentage
of outstanding pool balance) 1.00%
(C) Maximum Servicing Fee Amount (V(A)*V(B)/12) $224,819.71
(D) Servicing Cost (uncapped servicing fee) $126,458.11
(E) Servicing Fee Due (MIN(V(C),V(D))) $126,458.11
(F) Servicing Fee Shortfall (V(D)-V(E)) $0.00
VI. CASH INPUTS - Monthly
(A) Total Interest Collections
(Including Liquidations, Not Including Recoveries) $1,282,616.34
(B) Total Principal Collections (Including Liquidations
and Repurchased Contracts, Not Including Recoveries) $3,691,249.54
(C) SAP $0.00
(D) Subsidy Payments $0.00
(E) Recoveries (Principal and Interest) and Other Charges $0.00
VII. OTHER INPUTS (FROM SERVICER) - Monthly
(A) Monthly Consolidation Loan Rebate Fee $91,761.00
(B) Accrued Interest to be Capitalized
(i) Beginning Accrued Interest $3,282,955.17
(ii) Beginning Accrued Interest
for Purchased (New and Serial) Loans $50,253.71
(iii) Negative Amortization $646,126.65
(iv) Ending Accrued Interest $3,103,054.08
(v) Accrued Interest to be Capitalized
(-i-ii+iii+iv) $415,971.85
<PAGE>
USA GROUP SECONDARY MARKET SERVICES, INC. Page 3
QUARTERLY SERVICING REPORT -- SMS Student Loan Trust 1996-A
Interest Period December 27, 1996 through January 26, 1996
Collection Period October 1, 1996 through December 31, 1996
(C) New Loans
(i) Outstanding Balance $2,640,643.90
(ii) Purchase Premium $ 66,016.10
(D) Serial Loans
(i) Outstanding Balance $340,218.27
(ii) Purchase Premium $ 8,505.46
(E) Consolidation Loans
(i) Consolidation Amount from within the Trust $0.00
(ii) Consolidation Amount from outside the Trust $590,673.33
VIII. INPUTS FROM OTHER SOURCES - Monthly
(A) Collection Account Investment Income $11,158.75
(B) Reserve Account Investment Income $18,637.00
(C) Collateral Reinvestment Account Investment Income $12,874.69
(D) Class A-1 Interest Account Investment Income $4,095.13
(E) Administration Fee for the Current Period $8,992.79
(F) Loan Origination Fees $2,953.37
(G) Draw from Collection Account of Subsequent
Monthly Collections $0.00
(H) Transfer from Collection Account to the Collateral
Reinvestment Account $3,691,249.54
(I) Draw from Collateral Reinvestment Account for
Accrued Interest $415,971.85
(J) Class A-1 Planned Balance $194,576,000.00
(K) Unpaid Purchase Premium Amounts $0.00
IX. PRINCIPAL INPUTS - Quarterly Reconciliation
(A) Student Loan Principal Collections
(i) Regular Principal Collections $6,401,226.68
(ii) Principal Collections from Guarantors $5,045,656.03
(iii) Principal Collections for Consolidations $0.00
(iv) Loan Principal Repurchased by SMS $0.00
(v) Loan Principal Repurchased by Servicer $0.00
(vi) Total Principal Collections (i+ii+iii+iv+v) $11,446,882.71
(B) Student Loan Principal Additions
(i) New Loan Additions $4,966,965.51
(ii) Serial Loan Additions $3,240,244.89
(iii) Consolidation Loan Additions
(a) Consolidation Amount from Within the Trust
$0.00
(b) Consolidation Amount from Outside the Trust
$1,710,964.76
(iv) Total Principal Additions (i+ii+iii) $9,918,175.16
(C) Non-Cash Principal Adjustments
(i) Realized Losses $0.00
(ii) Waived Principal/Other Adjustments $120,507.89
(iii) Total Non-Cash Principal Adjustments (i+ii) $120,507.89
(D) Accrued Interest to be Capitalized $1,569,780.36
(E) Net Reduction/(Increase) in Student Loan
Principal Balance (IX(A(vi)-B(iv)+C(iv)-D)) $ 79,435.08
X. UNINSURED LOSS AND RECOVERIES REPORTING FOR THE PERIOD - Quarterly
(A) Realized Losses
(i) Principal Amount (IX(C(i))) $0.00
(ii) Interest Amount $0.00
(iii) Total Realized Losses (i+ii) $0.00
(B) Defaults This Quarter $5,306,410.69
(C) Current Year's Cumulative Defaults (II(H)+X(B)) $6,927,884.60
(D) Cumulative Defaults to Date (II(I)+X(B)) $6,927,884.60
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USA GROUP SECONDARY MARKET SERVICES, INC. Page 4
QUARTERLY SERVICING REPORT -- SMS Student Loan Trust 1996-A
Interest Period December 27, 1996 through January 26, 1996
Collection Period October 1, 1996 through December 31, 1996
XI. PORTFOLIO CHARACTERISTICS
(A) Characteristics of Portfolio at Beginning of Period
WAC # Loans % $ Amount %
- Stafford Loans: 8.13% 50,311 68.07% $113,744,466.37 42.15%
- SLS Loans 8.76% 6,921 9.36% $20,231,168.02 7.50%
- PLUS Loans 8.74% 9,139 12.37% $31,085,144.81 11.52%
- Consolidation Loans 8.76% 7,538 10.20% $104,802,307.25 38.84%
8.49% 73,909 100.00% $269,863,086.45 100.00%
WAC # Loans % $ Amount %
- In School 8.06% 3,163 4.28% $8,909,171.58 3.30%
- Grace 8.13% 1,512 2.05% $4,164,227.58 1.54%
- Repayment 8.51% 46,240 62.56% $162,463,293.02 60.20%
- Forbearance 8.54% 8,604 11.64% $39,579,377.88 14.67%
- Deferment 8.40% 4,917 6.65% $17,845,846.78 6.61%
- Delinquencies 8.54% 8,709 11.78% $34,238,972.24 12.69%
- Claims Filed
Awaiting Payment 8.46% 764 1.03% $2,662,197.37 0.99%
8.49% 73,909 100.00% $269,863,086.45 100.00%
(B) Characteristics of Remaining Portfolio
WAC # Loans % $ Amount %
- Stafford Loans: 8.14% 52,368 68.21% $113,821,341.64 42.19%
- SLS Loans 8.76% 6,972 9.08% $19,221,452.66 7.12%
- PLUS Loans 8.74% 9,808 12.77% $32,307,881.97 11.98%
- Consolidation Loans 8.75% 7,629 9.94% $104,432,975.10 38.71%
8.50% 76,777 100.00% $269,783,651.37 100.00%
WAC # Loans % $ Amount %
- In School 8.07% 3,051 3.97% $8,700,939.87 3.23%
- Grace 8.06% 841 1.10% $2,366,075.89 0.88%
- Repayment 8.51% 49,289 64.20% $160,485,296.00 59.49%
- Forbearance 8.55% 9,266 12.07% $43,510,084.46 16.13%
- Deferment 8.39% 5,107 6.65% $18,640,346.20 6.91%
- Delinquencies 8.54% 8,810 11.47% $34,539,243.69 12.80%
- Claims Filed
Awaiting Pmt 8.63% 413 0.54% $1,541,665.26 0.57%
8.50% 76,777 100.00% $269,783,651.37 100.00%
WAC # Loans % $ Amount %
- 30-60 Days Dlnq 8.58% 3,650 4.75% $15,048,248.60 5.58%
- 61-90 Days Dlnq 8.54% 2,150 2.80% $8,351,805.45 3.10%
- 91-120 Days Dlnq 8.51% 1,308 1.70% $4,901,488.62 1.82%
- 120 Days Delinquent 8.48% 1,702 2.22% $6,237,701.02 2.31%
- Claims Filed
Awaiting Pmt 8.63% 413 0.54% $1,541,665.26 0.57%
8.54% 9,223 12.01% $36,080,908.95 13.37%
WAC # Loans % $ Amount %
- Traditional 8.51% 51,707 67.35% $216,471,762.09 80.24%
- Vocational/
Proprietary 8.43% 25,070 32.65% $53,311,889.28 19.76%
8.50% 76,777 100.00% $269,783,651.37 100.00%
<PAGE>
USA GROUP SECONDARY MARKET SERVICES, INC. Page 5
QUARTERLY SERVICING REPORT -- SMS Student Loan Trust 1996-A
Interest Period December 27, 1996 through January 26, 1996
Collection Period October 1, 1996 through December 31, 1996
A. MONTHLY CASH
(A) Total Interest Collections (Including Liquidations,
Not Including Recoveries)(VI(A)) $1,282,616.34
(B) Total Principal Collections (Including Liquidations and
Repurchased Contracts, Not Including Recoveries)(VI(B)) $3,691,249.54
(C) SAP (VI(C)) $0.00
(D) Subsidy Payments (VI(D)) $0.00
(E) Proceeds of Recoveries (VI(E)) $0.00
(F) Draw from the Collateral Reinvestment Account for
Accrued Interest (VIII(I)) $415,971.85
(G) Investment Earnings (VIII(A+B+C+D)) $46,765.57
(H) Excess Cash From Previous Months (III(J)) $1,072,851.45
(I) Draw from Current Period's Collection Account in
Prior Periods (III(K)) $0.00
(J) Monthly Consolidation Loan Rebate Fee (VII(A)) $91,761.00
(K) Transfer from Collection Account to the Collateral
Reinvestment Account(VII(H)) $3,691,249.54
(L) Required Distributions
(i) Servicing Fee Due $126,458.11
(ii) Administrative Fee Due $8,992.79
(iii) Class A-1 Noteholders'
Interest Distribution Amount $976,610.29
(iv) Class A-2 Noteholders'
Interest Distribution Amount $402,404.64
(v) Subordinate Noteholders'
Interest Distribution Amount $53,574.78
(vi) Principal Distribution Amount $0.00
(vii) Total Required Distributions
(i+ii+iii+iv+v+vi) $1,568,040.60
(M) Draw From Reserve Fund Due to Insufficient Cash Available $0.00
MIN(III(L),(MIN(0,(A(A+B+C+D+E+F+G+H-I-J-K-L)))*-1))
(N) Draw from Collection Account of Subsequent
Monthly Collections (VIII(G $0.00
(O) Total Amount Available for Distributions
(A(A+B+C+D+E+F+G+H-I-J-K+M+N) $2,726,444.21
B. EARLY AMORTIZATION EVENT TRIGGERS (Yes = 1, No = 0)
(A) Has an Event of Default occurred under the Indenture? 0
(B) Has a Servicer Default occurred under the Servicing Agreement? 0
(C) Has an Administrator Default occurred under the
Administration Agreement? 0
(D) Has an event of insolvency occurred with respect to the Seller? 0
(E) Has the Trust become subject to registration as an investment
company under the Investment Company Act of 1940? 0
(F) Has the percentage by principal balance of proprietary or
vocational school loans exceeded 30% of the Pool Balance? 0
(i) Principal balance of proprietary or
vocational school loans $53,311,889.28
(ii) Percentage of proprietary or
vocational school loans 19.76%
(G) Has the percentage by principal balance of student loans which are not
in repayment and are not eligible for subsidy exceeded 40%
of the Pool Balance? 0
(i) Principal balance of student loans which are
not in repayment and are not eligible for subsidy $8,521,161.00
(ii) Percentage of student loans which are not in
repayment and are not eligible for subsidy 3.16%
(H) Has the Excess Spread for this Quarterly Payment Date
and for the preceding Quarterly Payment Date fallen below 1%?
(Not applicable for the first Quarterly Payment Date) 0
(I) Has an Early Amortization Event occured? 0 No.
The Revolving Period continues.
0
C. PRINCIPAL DISTRIBUTION AMOUNT
(A) Revolving Period? (Yes = 1,No = 0) 1
(B) Required Principal Distribution Amount $0.00
D. DISTRIBUTIONS
(A) Servicing Fee
(i) Servicing Fee Due (V(E)+III(G)) $126,458.11
(ii) Servicing Fee Paid $126,458.11
(iii) Unpaid Servicing Fee (i-ii) $0.00
(B) Administration Fee
(i) Administration Fee Due (VIII(E)+III(H)) $8,992.79
(ii) Administration Fee Paid $8,992.79
(iii) Unpaid Administration Fee (i-ii) $0.00
<PAGE>
USA GROUP SECONDARY MARKET SERVICES, INC. Page 6
QUARTERLY SERVICING REPORT -- SMS Student Loan Trust 1996-A
Interest Period December 27, 1996 through January 26, 1996
Collection Period October 1, 1996 through December 31, 1996
(C) Senior Note Interest
(i) Class A-1 Noteholders' Interest Distribution
Amount ((II(E)(i)+III(A)*IV(P)*IV(D)/IV(B)))-II(N) $976,610.29
(ii) Class A-2 Noteholders' Interest Distribution
Amount ((II(F)(i)+ III(C)*IV(R)*IV(D)/360) $402,404.64
(iii) Total Senior Interest Due (i+ii) $1,379,014.93
(iv) Total Senior Interest Paid $1,379,014.93
(v) Class A-1 Interest Paid (from Collection Account)
((i/iii)*iv) $976,610.29
(vi) Class A-1 Interest Paid
(from Class A-1 Interest Account) (III(N) $1,847,993.53
(vii) Total Class A-1 Interest Paid (v+vi) $2,824,603.82
(viii) Class A-2 Interest Paid ((ii/iii)*iv) $402,404.64
(ix) Class A-1 Interest Carryover Shortfall (i-v) ($0.00)
(x) Class A-2 Interest Carryover Shortfall (ii-viii) $0.00
(xi) Class A-1 Interest T-Bill Carryover Shortfall $0.00
(xii) Class A-2 Interest LIBOR Carryover Shortfall $0.00
(D) Subordinate Note Interest
(i) Subordinate Note Interest Due
((II(G)(i)+III(E))*IV(T)*IV(D)/360) $53,574.78
(ii) Subordiate Note Interest Paid $53,574.78
(iii) Subordiate Note Interest Carryover Shortfall (i-ii) $0.00
(iv) Subordinate Note Interest LIBOR Carryover Shortfall $0.00
(E) Class A-1 Principal
(i) Class A-1 Planned Balance (VIII(J)) $194,576,000.00
(ii) Class A-1 Principal Due
(MIN(II(E(i)),MAX(0,II(E(i))-D(E(i))))) $0.00
(iii) Class A-1 Principal Paid $0.00
(iv) Class A-1 Principal Shortfall (ii-iii) $0.00
(F) Class A-2 Principal
(i) Class A-2 Principal Due $0.00
(ii) Class A-2 Principal Paid $0.00
(iii) Class A-2 Principal Shortfall (i-ii) $0.00
(G) Subordinate Note Principal
(i) Subordinate Notes Principal Due $0.00
(ii) Subordinate Notes Principal Paid $0.00
(iii) Subordinate Notes Principal Shortfall (i-ii) $0.00
(H) Purchase Premium
(i) Purchase Premium Amounts Due $0.00
(ii) Purchase Premium Amounts Paid $0.00
(This can only be paid after Revolving Period terminates)
(iii) Unpaid Purchase Premium Amounts $0.00
(I) "Turbo" Principal
(i) Class A-1 Principal
(ii) Class A-2 Principal
(iii) Subordinate Note Principal
(iv) Total "Turbo" Principal
(This can only be paid prior to Parity,
after Revolving Period Terminates) $0.00
(J) Senior Note Interest T-Bill/LIBOR Carryover
(i) Class A-1 Interest T-Bill Carryover Due
(ii) Class A-2 Interest LIBOR Carryover Due
(iii) Total Senior Interest T-Bill/LIBOR Carryover $0.00
(iv) Total Senior Interest T-Bill/LIBOR Carryover Paid $0.00
(v) Class A-1 Interest T-Bill Carryover Paid ((i/iii)*iv) $0.00
(vi) Class A-2 Interest LIBOR Carryover Paid ((ii/iii)*iv) $0.00
(vii) Class A-1 Interest T-Bill Carryover Shortfall (i-v) $0.00
(viii) Class A-2 Interest LIBOR Carryover Shortfall (ii-vi) $0.00
(K) Subordinate Note Interest LIBOR Carryover
(i) Subordinate Note Interest LIBOR Carryover Due $0.00
(ii) Subordiate Note Interest LIBOR Carryover Paid $0.00
(iii) Subordiate Note Interest LIBOR Carryover
Shortfall (i-ii) $0.00
(L) Servicing Fee Shortfalls
(i) Servicing Fee Shortfall Due (V(F)+III(I)) $0.00
(ii) Servicing Fee Shortfall Paid $0.00
(iii) Unpaid Servicing Fee Shortfall (i-ii) $0.00
E. RECONCILIATION OF RESERVE ACCOUNT
(A) Beginning Account Balance (III(L)) $4,254,000.00
(B) Draw Due to Insufficient Funds (A(M)) $0.00
(C) Required Account Balance $4,254,000.00
(D) Account Deposit/(Release) $0.00
(E) Ending Account Balance (E(A-B+D)) $4,254,000.00
<PAGE>
USA GROUP SECONDARY MARKET SERVICES, INC. Page 7
QUARTERLY SERVICING REPORT -- SMS Student Loan Trust 1996-A
Interest Period December 27, 1996 through January 26, 1996
Collection Period October 1, 1996 through December 31, 1996
F. RECONCILIATION OF COLLATERAL REINVESTMENT ACCOUNT
(A) Beginning Account Balance (III(M)) $3,068,029.29
(B) Deposit from Collection Account (VIII(H)) $3,691,249.54
(C) Deposit from Reserve Fund Release $1,158,403.61
(Deposit can be made only prior to Parity, during
Revolving Period)
(C) Draw for Accrued Interest (VIII(I)) ($415,971.85)
(D) Draw for New Loans (VII(C)(i+ii)) ($2,706,660.00)
(E) Draw for Serial Loans (VII(D)(i+ii)) ($348,723.73)
(F) Draw for Consolidation Loans (VII(E)(ii)) ($590,673.33)
(G) Ending Account Balance (F(A+B+C+D+E+F+G)) $3,855,653.53
G. RECONCILIATION OF CLASS A-1 INTEREST ACCOUNT
(A) Beginning Account Balance (III(N)) $1,847,993.53
(B) Deposit from Distributions (Monthly Only) $0.00
(C) Interest Payment to Class A-1 Senior Notes
(Quarterly Only) ($1,847,993.53)
(D) Ending Account Balance (G(A+B+C)) $0.00
H. ADDITIONAL REPORTING REQUIREMENTS
(A) Class A-1 Notes Interest Rate (based on 91-Day T-Bill) 5.82264%
(B) Class A-2 Notes Interest Rate (based on LIBOR) 5.90797%
(C) Subordinate Notes Interest Rate (based on LIBOR) 6.26797%
(D) Cumulative New Loans This Quarter $4,966,965.51
(E) Cumulative Serial Loans This Quarter $3,240,244.89
(F) Cumulative Consolidation Loans This Quarter,
From Within the Trust $0.00
(G) Cumulative Consolidation Loans This Quarter,
From Outside the Trust $1,710,964.76
(H) Cumulative Accrued Interest to be Capitalized
This Quarter, From Collateral Reinvestment Account $1,569,780.36
(I) Cumulative Accrued Interest to be Capitalized
This Quarter, From Collections $0.00
(J) Draw From Subsequent Collection Period (VIII(G)) $0.00
(K) Excess Monthly Available Funds Released to SMS $0.00
I. BOND AND POOL BALANCES AND FACTORS Begin of Period End of Period
(A) Total Bond Balance $283,600,000.00 $283,600,000.00
(B) Total Bond Factor 1.00000000 1.0000000
(C) Pool Balance $269,863,086.45 $269,783,651.37
(D) Pool Factor 0.99312894 0.99283661
(E) Class A-1 Note Balance $194,576,000.00 $194,576,000.00
(F) Class A-1 Note Factor 1.00000000 1.00000000
(G) Class A-1 Principal Shortfall $0.00 $0.00
(H) Class A-2 Note Balance $79,098,000.00 $79,098,000.00
(I) Class A-2 Note Factor 1.00000000 1.00000000
(J) Class A-2 Principal Shortfall 0.00 0.00
(K) Subordinate Note Balance $9,926,000.00 $9,926,000.00
(L) Subordinate Note Factor 1.00000000 1.00000000
(M) Subordinate Note Principal Shortfall $0.00 $0.00
<PAGE>
USA GROUP SECONDARY MARKET SERVICES, INC. Page 8
QUARTERLY SERVICING REPORT -- SMS Student Loan Trust 1996-A
Interest Period December 27, 1996 through January 26, 1996
Collection Period October 1, 1996 through December 31, 1996
(i) The amount of the distribution allocable to principal for the:
(a) Class A-1 Notes (1a) $0.00
(b) Class A-2 Notes (1b) $0.00
(c) Subordinate Notes (1c) $0.00
(ii) The amount of the distribution allocable to interest for the:
(a) Class A-1 Notes (For Quarter) (2a) $2,824,603.82
Class A-2 Notes (Month 1) $370,112.73
Class A-2 Notes (Month 2) $370,112.73
Class A-2 Notes (Month 3) $402,404.64
(b) Class A-2 Notes (For Quarter) (2b) $1,142,630.10
Subordinate Notes (Month 1) $49,423.21
Subordinate Notes (Month 2) $49,423.21
Subordinate Notes (Month 3) $53,574.78
(c) Subordinate Notes (For Quarter) (2c) $152,421.20
(iii) The interest rates for the:
Class A-1 Notes (Month 1) 5.87867%
Class A-1 Notes (Month 2) 5.70833%
Class A-1 Notes (Month 3) 5.82264%
Class A-2 Notes (Month 1) 5.61500%
Class A-2 Notes (Month 2) 5.61500%
Class A-2 Notes (Month 3) 5.90797%
Subordinate Notes (Month 1) 5.97500%
Subordinate Notes (Month 2) 5.97500%
Subordinate Notes (Month 3) 6.26797%
(iv) The Pool Balance as of the close of business on
the last day of the Collection Period (4)$269,783,651.37
(v) The ending aggregate outstanding principal balance for the:
(a) Class A-1 Notes (5a)$194,576,000.00
(b) Class A-2 Notes (5b) $79,098,000.00
(c) Subordinate Notes (5c) $9,926,000.00
(vi) The ending outstanding bond factors for the:
(a) Class A-1 Notes (6a) 1.00000000
(b) Class A-2 Notes (6b) 1.00000000
(c) Subordinate Notes (6c) 1.00000000
(vii) The amount of the Servicing Fee
Paid for Month 1 $134,302.82
Paid for Month 2 $128,655.86
Paid for Month 3 $126,458.11
(a) Paid for the Quarter (7a) $389,416.79
(b) Unpaid for the Quarter (7b) $0.00
(viii) The amount of the Administration Fee
Paid for Month 1 $8,938.60
Paid for Month 2 $8,982.17
Paid for Month 3 $8,992.79
(a) Paid for the Quarter (8a) $26,913.56
(b) Unpaid for the Quarter (8b) $0.00
(ix) The amount of Monthly Consolidation Loan Rebate Fee
Paid for Month 1 $92,026.00
Paid for Month 2 $91,948.00
Paid for Month 3 $91,761.00
(a) Paid for the Quarter (9a) $275,735.00
(x) The amount of aggreate Realized Losses for the Collection Period
(10) $0.00
<PAGE>
USA GROUP SECONDARY MARKET SERVICES, INC. Page 9
QUARTERLY SERVICING REPORT -- SMS Student Loan Trust 1996-A
Interest Period December 27, 1996 through January 26, 1996
Collection Period October 1, 1996 through December 31, 1996
(xi) Interest Carryover Shortfall Amounts
(a) Class A-1 Notes Previous Interest Carryover Shortfall
(11a) $0.00
(b) Class A-1 Notes Current Interest Carryover Shortfall
(11b) ($0.00)
(c) Class A-2 Notes Previous Interest Carryover Shortfall
(11c) $0.00
(d) Class A-2 Notes Current Interest Carryover Shortfall
(11d) $0.00
(e) Subordinate Notes Previous Interest Carryover Shortfall
(11e) $0.00
(f) Subordinate Notes Current Interest Carryover Shortfall
(11f) $0.00
(xii) Interest T-Bill/LIBOR Carryover Shortfall Amounts
(a) Class A-1 Notes Previous Interest T-Bill Carryover Shortfall
(12a) $0.00
(b) Class A-1 Notes Current Interest T-Bill Carryover Shortfall
(12b) $0.00
(c) Class A-2 Notes Previous Interest LIBOR Carryover Shortfall
(12c) $0.00
(d) Class A-2 Notes Current Interest LIBOR Carryover Shortfall
(12d) $0.00
(e) Subordinate Notes Previous Interest LIBOR Carryover Shortfall
(12e) $0.00
(f) Subordinate Notes Current Interest LIBOR Carryover Shortfall
(12f) $0.00
(xiii) Principal Shortfall Amounts
(a) Class A-1 Notes Previous Principal Shortfall
(13a) $0.00
(b) Class A-1 Notes Current Principal Shortfall(13b) $0.00
(c) Class A-2 Notes Previous Principal Shortfall
(13c) $0.00
(d) Class A-2 Notes Current Principal Shortfall(13d) $0.00
(e) Subordinate Notes Previous Principal Shortfall
(13e) $0.00
(f) Subordinate Notes Current Principal Shortfall
(13f) $0.00
(xiv) Loans Repurchased this Period (14) $ 0.00
(xv) Reserve Account Balance (15) $4,254,000.00
(xvi) Collateral Reinvestment Account Balance (16) $3,855,653.53
(xvii) Loans Conveyed/Originated (from outside the trust) this Period
(17) $9,918,175.16
USA GROUP SECONDARY MARKET SERVICES, INC.
Administrator
/s/ Cheryl E. Watson
Cheryl E. Watson
Vice President
<PAGE>
SMS STUDENT LOAN TRUST 1996-A
ADDENDUM
Notice of LIBOR Interest Rate Reset
LIBOR Determination Date: 01/23/97
Interest Period Beginning: 01/27/97
LIBOR Rate: 5.43750%
SMS Student Loan Trust 1996-A:
Class A-2 Notes 5.67750%
Subordinate Notes 6.03750%
Should you have any questions regarding the above information, please contact
Heidi Lange at 317 598-4656.
10
<PAGE>
SMS STUDENT LOAN TRUST 1996-A
ADMINISTRATOR ORDER
In accordance with the following Sections of the Administration
Agreement dated as of April 1, 1996, among SMS STUDENT LOAN TRUST
1996-A, a Delaware trust (the "Issuer"), USA GROUP SECONDARY MARKET
SERVICES, INC., a Delaware corporation, as administrator (the
"Administrator"), and BANKERS TRUST COMPANY, a New York banking
corporation, not in its individual capacity but solely as Indenture
Trustee (the "Indenture Trustee"), the undersigned, duly authorized
officers of the Administrator, do hereby direct the Indenture Trustee to
make the following distributions, ensuring that all wire transfers are
distributed by 11:00 a.m. (New York Time):
Section 2(d)(v)(B) - Administration Fee
Wire Date: 01/27/97 Amount: $8,992.79 From Fund: Collection Account
Wire transfer instructions are USA Group Secondary Market Services,
as follows: Inc.
NBD Bank, N.A.
ABA 074 000 052
Acct. # 7000-07-638-841
Attn: Leonard Gurin
Ref: Admin Fees/1996-A
Section 2(d)(v)(A) - Servicing Fee
Wire Date: 01/27/97 Amount: $126,458.11 From Fund: Collection Account
Wire transfer instructions are as follows:
USA Group Loan Services, Lender Servicing
ABA 074 000 052
Acct. # 7000-02-754-614
Ref: Lender 824690-00001
Section 2(d)(ii) - Consolidation Loan Rebate Fee
End-of-Month Principal Balance: $102,963,183.62
$1,906,222.55
Annualized Rebate Rate: 1.05%
Check Date: 01/27/97 Amount: $91,761.00 From Fund: Collection Account
Check instructions are as follows:
US Department of Education
Interest Payment Processing
P.O. Box 4138
Greenville, TX 75403-4138
In witness whereof, the undersigned have signed their names on behalf of
the Corporation on this 21st day of January, 1997.
USA GROUP SECONDARY MARKET SERVICES, INC.
Administrator
/s/ Cheryl E. Watson
Cheryl E. Watson
Vice President
<PAGE>
SMS STUDENT LOAN TRUST 1996-A
ADMINISTRATOR ORDER
In accordance with the following Sections of the Administration Agreement
dated as of April 1, 1996, among SMS STUDENT LOAN TRUST 1996-A, a Delaware
trust (the "Issuer"), USA GROUP SECONDARY MARKET SERVICES, INC., a Delaware
corporation, as administrator (the "Administrator"), and BANKERS TRUST
COMPANY, a New York banking corporation, not in its individual capacity but
solely as Indenture Trustee (the "Indenture Trustee"), the undersigned,
duly authorized officers of the Administrator, do hereby direct the
Indenture Trustee to distribute interest payments to the Noteholders as
follows, ensuring that all wire transfers are distributed by 11:00 a.m.
(New York Time):
Section 2(d)(v)(C) - Noteholders' Distribution Amount
Wire Date: 01/27/97 Class A-1 Noteholders: $976,610.29
From Fund: Collection Account
Wire Date: 01/27/97 Class A-2 Noteholders: $402,404.64
From Fund: Collection Account
Wire Date: 01/27/97 Subordinate Noteholders: $53,574.78
From Fund: Collection Account
Section 2(g)(i) - Withdrawal from the Class A-1 Interest Account
Wire Date: 01/27/97 Class A-1 Noteholders: $1,847,993.53
From Fund: Class A-1 Interest Account
In witness whereof, the undersigned have signed their names on behalf of
the Corporation on this 21st day of January, 1997.
USA GROUP SECONDARY MARKET SERVICES, INC.
Administrator
/s/ Cheryl E. Watson
Cheryl E. Watson
Vice President
<PAGE>
SMS STUDENT LOAN TRUST 1996-A
ADMINISTRATOR ORDER
In accordance with the following Sections of the Administration Agreement
dated as of April 1, 1996, among SMS STUDENT LOAN TRUST 1996-A, a
Delaware trust (the "Issuer"), USA GROUP SECONDARY MARKET SERVICES, INC.,
a Delaware corporation, as administrator (the "Administrator"), and
BANKERS TRUST COMPANY, a New York banking corporation, not in its
individual capacity but solely as Indenture Trustee (the "Indenture
Trustee"), the undersigned, a duly authorized officer of the Administrator,
does hereby direct the Indenture Trustee to make the following transfers:
Section 2(c)(v) - Investment Income
Transfer Amount: $18,637.00 Date:01/24/97 From Fund: Reserve Account
To Fund: Collection Account
Transfer Amount: $12,874.69 Date:01/24/97
From Fund: Collateral Reinvestment Account
To Fund: Collection Account
Transfer Amount: $4,095.13 Date:01/24/97
From Fund: Class A-1 Interest Account
To Fund: Collection Account
Section 2(f)(i)(D) - Capitalized Interest Amount
Transfer Amount:$415,971.85 Date:01/24/97
From Fund: Collateral Reinvestment Account
To Fund: Collection Account
In witness whereof, the undersigned has signed her name on behalf of the
Corporation on this 21st day of January, 1997.
USA GROUP SECONDARY MARKET SERVICES, INC.
Administrator
/s/ Cheryl E. Watson
Cheryl E. Watson
Vice President
<PAGE>
SMS STUDENT LOAN TRUST 1996-A
ADMINISTRATOR ORDER
In accordance with the following Sections of the Administration Agreement
dated as of April 1, 1996, among SMS STUDENT LOAN TRUST 1996-A, a
Delaware trust (the "Issuer"), USA GROUP SECONDARY MARKET SERVICES, INC.,
a Delaware corporation, as administrator (the "Administrator"), and
BANKERS TRUST COMPANY, a New York banking corporation, not in its
individual capacity but solely as Indenture Trustee (the "Indenture
Trustee"), the undersigned, duly authorized officers of the Administrator,
do hereby direct the Indenture Trustee to make the following transfers:
Section 2(d)(v)(D) - Available Funds to the Reserve Account
Transfer Amount: $1,158,403.61 Date: 01/27/97
From Fund: Collection Account
To Fund: Reserve Account
Section 2(e)(ii)(a) - Reserve Account Excess to Collateral Reinvestment
Account
Transfer Amount: $1,158,403.61 Date: 01/27/97
From Fund: Reserve Account
To Fund: Collateral Reinvestment Account
In witness whereof, the undersigned have signed their names on behalf of
the Corporation on this 21st day of January, 1997.
USA GROUP SECONDARY MARKET SERVICES, INC.
Administrator
/s/ Cheryl E. Watson
Cheryl E. Watson
Vice President
<PAGE>
SMS STUDENT LOAN TRUST 1996-A
OFFICERS' CERTIFICATE
In accordance with Section 11.02 of the Indenture dated as of April 1,
1996, between SMS Student Loan Trust 1996-A, a Delaware trust (the
"Issuer") and BANKERS TRUST COMPANY, a New York banking corporation, as
trustee and not in its individual capacity (the " Indenture
Trustee") (such Indenture hereinafter referred to as the "Indenture"),
the undersigned, in their official capacities as Authorized Officers,
on behalf of the Administrator and for purposes of the certificate
required of the Issuer under Section 11.01 (b)(v)
of the Indenture, hereby certify that (i) all dispositions of
Collateral described in clauses (A) and (B) of Section 11.01 (b)(v) of
the Indenture that occurred from the Closing Date were in the ordinary
course of the Issuer's business and (ii) the proceeds thereof were
applied in accordance with the Basic Documents.
Terms used herein and not specifically herein defined shall have the
meaning ascribed to them in the Indenture.
In witness whereof, the undersigned have signed their names on behalf
of the Administrator on this 21st day of January, 1997.
USA GROUP SECONDARY MARKET SERVICES, INC.
Administrator
/s/ Cheryl E. Watson /s/ Stephen W. Clinton
Cheryl E. Watson Stephen W. Clinton
Vice President President
