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 28, 1999
USA GROUP SECONDARY MARKET SERVICES, INC.
(Exact name of registrant as specified in its charter)
Delaware 333-23243 35-1872185
--------------------------- ---------------------- ------------
State or other jurisdiction Commission File Number IRS Employer
of incorporation Identification Number
30 South Meridian Street, Indianapolis, Indiana 46204-3503
-----------------------------------------------------------
Address of principal executive offices
Registrant's telephone number, including area code (317) 951-5526
--------------
<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 1999-B
hereby files its quarterly report of distributions for the period from
April 19, 1999 to September 30, 1999, which distribution was made on
October 28, 1999.
Item 6. Not Applicable
Item 7. Not Applicable
Item 8. Not Applicable
<PAGE>
SIGNATURES
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.
USA GROUP SECONDARY MARKET SERVICES, INC.
(Registrant)
By: Bank One, National Association, not in its individual capacity by solely
as Indenture Trustee of
SMS Student Loan Trust 1999-B
By:/S/ STEVE HUSBANDS
--------------------------
Steve Husbands
Assistant Vice President
Date: October 28, 1999
<PAGE>
Exhibit No.
- -----------
EX - 13.0 Quarterly Servicing Report.
SMS Student Loan Trust 1999-B
QUARTERLY SERVICING REPORT
Interest Period May 21, 1999 through October 27, 1999
Collection Period April 19, 1999 through September 30, 1999
I. DEAL PARAMETERS
<TABLE>
<S> <C> <C> <C>
A. Total Student Loan Portfolio Outstanding June 30, 1999 Activity September 30, 1999
i. Portfolio Balance $ 731,889,541.31 $ (5,340,771.77) $ 726,548,769.54
- ----------------------------------------------------------------------------------------------------------------
B. Other Portfolio Statistics June 30, 1999 Activity September 30, 1999
i. Weighted Average Collateral Interest Rate 7.99% (0.42%) 7.57%
ii. Weighted Average Collateral Remaining Term 157.61 (0.50) 157.11
iii. Number of Loans 76,434 (2,773) 173,661
iv. Number of Accounts 80,988 30,049 111,037
v. Average Account Size 4,148.23 2,395.07 6,543.30
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C> <C> <C> <C>
C. Notes and Certificates CUSIP Spread to Index June 30, 1999 September 30, 1999
i Class A-1 Notes 784582AS7 0.12% $ 150,000,000.00 $ 150,000,000.00
ii. Class A-2 Notes 784582AT5 0.24% $ 588,225,000.00 $ 588,225,000.00
iii. Subordinate Notes 784582AU4 0.48% $ 26,775,000.00 $ 26,775,000.00
iv. Total Note Balance $ 765,000,000.00 $ 765,000,000.00
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
D. Reserve Account June 30, 1999
i. Required Reserve Account Percentage 0.250%
ii. Reserve Account Initial Deposit ($) $ 1,912,500.00
iii. Specified Reserve Account Balance 0.125%
iv. Reserve Account Floor Amount ($) $ 956,250.00
v. Current Reserve Account Balance $ 1,912,500.00
- -------------------------------------------------------------------------------
E. Other Account Balances June 30, 1999
i. Collateral Reinvestment Account $ -
ii. Collections Account $ 13,251,936.27
- -------------------------------------------------------------------------------
<PAGE>
II. INPUTS FROM PREVIOUS QUARTERLY SERVICER REPORTS
<TABLE>
<S> <C>
(A) Total Outstanding Bond Balance $765,000,000.00
(B) Total Bond Factor 1.00000000
(C) Pool Balance $731,889,541.31
(D) Pool Factor 1.26319538
(E) Senior Notes
(i) Note Balance $738,225,000.00
(ii) Note Pool Factor 1.00000000
(iii) Principal Shortfall $0.00
(F) Subordinate Notes
(i) Note Balance $26,775,000.00
(ii) Note Pool Factor 1.00000000
(iii) Principal Shortfall $0.00
(G) Cumulative Defaults, This Year $0.00
(H) Cumulative Defaults to Date $0.00
(I) Senior Noteholders' Interest Carryover Shortfall $0.00
(J) Senior Noteholders' Interest T-Bill Carryove(This can only be paid quarterly, after parity has been reached.) $0.00
(K) Subordinate Noteholders' Interest Carryover Shortfall $0.00
(L) Subordinate Noteholders' Interest T-Bill Car(Thisrcan only be paid quarterly, after parity has been reached.) $0.00
(M) Draw from Current Period's Collection Account in Prior Periods $0.00
(N) Reserve Account Balance $1,912,500.00
(O) Collateral Reinvestment Account Balance $0.00
(P) Collections Account Balance $13,251,936.27
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
III. INPUTS FOR SERVICING, ADMININSTRATIVE AND CONSOLIDATION REBATE FEES
<TABLE>
<S> <C>
(A) Unpaid Servicing Fees (Monthly) $0.00
(B) Unpaid Administration Fees (Monthly) $0.00
(C) Unpaid Servicing Fee Shortfalls (Monthly) $0.00
(D) Servicing Fees Accrued During Prior months $1,303,790.77
(E) Administration Fees Accrued During Prior months $151,590.57
(F) Monthly Consolidation Loan Rebate Fee Accrued During Prior months $639,309.00
V. SERVICING FEE CALCULATION - Monthly, if Prior to July 2008 Quarterly Distribution
(A) Pool Balance as of the End of the Collection Period $726,548,769.54
(B) Maximum Servicing Fee Rate (annualized, as percentage of outstanding pool balance) 1.00%
(C) Maximum Servicing Fee Amount (IV(A)*IV(B)/12) $605,457.31
(D) Servicing Cost (uncapped servicing fee) $312,976.07
(E) Servicing Fee Due (MIN(IV(C),IV(D))) $312,976.07
(F) Servicing Fee Shortfall (IV(D)-IV(E)) $0.00
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
IV. INTEREST RATE CALCULATION
Determination of Net Expected Interest Collections
(A) Leap Year? No
(B) Days in Year 365
(C) Actual Days in Interest Period (May 21-July 27 - 68
Days, July 28-October 27 - 92 Days) 160
(D) Borrower Interest Accrued During Collection Period $20,280,912.48
(E) Interest Subsidy Payments Accrued During Collection Period $4,771,391.64
(F) SAP Accrued During Collection Period $460,933.89
(G) Reinvestment Earnings Accrued During Collection
Period (VIII(A+B+C+D)) $480,877.96
(H) Origination Fees Accrued During Collection
Period (VIII(E)) $35,643.78
(I) Servicing and Administration Fees Accrued During
Collection Period (III(D)+V(D)+VIII(D)) $1,798,630.28
(J) Monthly Consolidation
Loan Rebate Fee Accrued During Collection Period $787,731.00
(K) Net Trust Swap
Receipts -
(L) Net Trust Swap Payments 691,712.23
(M) Net Expected Interest Collections (IV(D+E+F+G-H-I-J+K-L) $22,680,398.69
(L) Adjusted Student Loan Rate ((IV(B)/IV(C))*IV(M)/(II(A)) 6.76335%
(M) Interest Period Index Value - 3 Month LIBOR
(Closing thru 7/27/1999) 5.05000%
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Class of Debt Index Value Spread Stated Coupon Adjusted Coupon $ Interest
Class A-1 5.05000% 0.12% 5.17000% 5.17000% $1,464,833.33
Class A-2 5.05000% 0.24% 5.29000% 5.29000% $5,877,674.92
Subordinate 5.05000% 0.48% 5.53000% 5.53000% $279,679.75
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
(M) Interest Period Index Value - 3 Month LIBOR (7/28/1999 thru 10/27/1999) 5.31125%
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Class of Debt Index Value Spread Stated Coupon Adjusted Coupon $ Interest
Class A-1 5.31125% 0.12% 5.43125% 5.43125% $2,081,979.17
Class A-2 5.31125% 0.24% 5.55125% 5.55125% $8,344,870.30
Subordinate 5.31125% 0.48% 5.79125% 5.79125% $396,266.28
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
VARIOUS INPUTS
VI. Cash Inputs
(A) Total Interest Collections (Including Liquidations,
Not Including Recoveries) $6,978,325.97
(B) Total Principal Collections (Including Liquidations
and Repurchased Contracts, Not Including Recoveries $31,768,531.23
(C) SAP $6,202.97
(D) Subsidy Payments $2,283,715.22
(E) Recoveries (Principal and Interest) and Other Charges $5,760.61
- -------------------------------------------------------------------------------
<PAGE>
<TABLE>
<S> <C>
VII. Other Servicer Inputs
(A) Accrued Interest to be Capitalized
(i) Beginning Accrued Interest $13,280,886.63
(ii) Beginning Accrued Interest for Purchased (New and Serial) Loans $ 354,091.15
(iii) Negative Amortization $ 9,005,239.88
(iv) Ending Accrued Interest $14,549,035.95
(v) Accrued Interest to be Capitalized (-i-ii+iii+iv) $ 9,919,298.05
(B) New Loans
(i) Outstanding Balance $0.00
(ii) Purchase Premium $0.00
(C) Serial Loans
(i) Outstanding Balance $ 9,865,528.82
(ii) Purchase Premium $ 148,181.80
(D) Consolidation Loans $ 7,128,755.21
VIII. Inputs from Other Sources
(A) Collection Account Investment Income $ 397,065.56
(B) Reserve Account Investment Income $ 33,602.49
(C) Collateral Reinvestment Account Investment Income $ 50,209.91
(D) Delayed Delivery Student Loan Account Investment Income $ 0.00
(E) Administration Fee $ 181,863.44
(F) Loan Origination Fees $ 35,643.78
(G) Draw from Collection Account of Subsequent Monthly Collections $ 0.00
(H) Transfer from Collection Account to the Collateral Reinvestment Account $31,768,531.23
(I) Draw from Collateral Reinvestment Account for Accrued Interest (VII(A)(v)) $ 9,919,298.05
(J) Unpaid Purchase Premium Amounts $ 0.00
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
FLOW OF PRINCIPAL AND LOSSES
<TABLE>
<S> <C>
IX. Quarterly Flow of Loan Principal
(A) Student Loan Principal Collections
(i) Regular Principal Collections $28,374,248.30
(ii) Principal Collections from Guarantors $3,386,726.55
(iv) Loan Principal Repurchased by SMS $7,556.38
(v) Loan Principal Repurchased by Servicer $0.00
(vi) Total Principal Collections (i+ii+iii+iv+v) $31,768,531.23
(B) Student Loan Principal Additions
(i) New Loan Additions $0.00
(ii) Serial Loan Additions $9,865,528.82
(iii) Consolidation Loan Additions $7,128,755.21
(iv) Total Principal Additions (i+ii+iii) $16,994,284.03
(C) Non-Cash Principal Adjustments
(i) Realized Losses ($1,085.46)
(ii) Waived Principal/Other Adjustments $486,908.08
(iii) Total Non-Cash Principal Adjustments (i+ii) $485,822.62
(D) Accrued Interest to be Capitalized (VII(A)(v)) $9,919,298.05
(E) Net Reduction/(Increase) in Student Loan Principal Balance (IX(A(vi)+C(iii)-D)) $5,340,771.77
X. Quarterly Uninsured Loss and Recoveries Reporting
(A) Realized Losses
(i) Principal Amount (IX(C(i))) ($1,085.46)
(ii) Interest Amount $ 46,350.23
(iii) Total Realized Losses (i+ii) $ 45,264.77
(B) Defaults This Quarter $3,540,262.80
(C) Current Year's Cumulative Defaults (II(G)+X(B)) $3,540,262.80
(D) Cumulative Defaults to Date (II(H)+X(B)) $3,540,262.80
</TABLE>
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<PAGE>
XI. PORTFOLIO CHARACTERISTICS
<TABLE>
<S> <C> <C> <C> <C> <C>
Weighted Avg. Coupon # of Loans % of Total Prin. Amount % of Total
September 30, 1999 September 30, 1999 September 30, 1999 September 30, 1999 September 30, 1999
In-School 6.744% 40,199 23.148% 135,963,196.69 18.714%
In-Grace 6.890% 16,186 9.320% 61,437,014.51 8.456%
- ---------------------------------------------------------------------------------------------------------------------------------
Total Interim 56,385 32.468% 197,400,211.20 27.170%
Current Repayment 7.915% 63,276 36.437% 300,955,172.11 41.423%
31-60 Days Delinquent 7.902% 6,432 3.704% 23,600,152.65 3.248%
61-90 Days Delinquent 7.834% 4,152 2.391% 13,185,004.97 1.815%
91-120 Days Delinquent 7.863% 1,901 1.095% 5,666,021.26 0.780%
120+ Days Delinquent 7.913% 5,525 3.181% 17,323,337.97 2.384%
Deferment 7.471% 14,031 8.080% 59,573,851.53 8.200%
Forbearance 7.896% 21,959 12.645% 108,845,017.85 14.981%
- ---------------------------------------------------------------------------------------------------------------------------------
Total Repayment 117,276 67.532% 529,148,558.34 72.830%
Claims in Process 0.000% 0.000% 0.000% 0.00 0.000%
Aged Claims Rejected 0.000% 0.000% 0.000% 0.00 0.000%
Grand Total 7.568% 173,661 100.000% 726,548,769.54 100.000%
</TABLE>
<PAGE>
XI. PORTFOLIO CHARACTERISTICS
------------------------------------------------------------------------------
Four-Year Schools Two Year Schools
GSL- GSL- PLUS SLS Consol GSL- GSL- PLUS SLS Consol
Sub Unsub Sub Unsub
------------------------------------------------------------------------------
In-School 9.81% 6.99% 0.00% 0.00% 0.00% 0.44% 0.31% 0.00% 0.00% 0.00%
In-Grace 4.03% 3.02% 0.00% 0.00% 0.00% 0.16% 0.12% 0.00% 0.00% 0.00%
- ------------------------------------------------------------------------------
Total Interim 13.83%10.01% 0.00% 0.00% 0.00% 0.60% 0.43% 0.00% 0.00% 0.00%
- ------------------------------------------------------------------------------
Current Repaymen6.43% 3.50% 1.74% 0.13% 19.75% 0.64% 0.34% 0.20% 0.01% 0.00%
31-60 Days Delin0.61% 0.35% 0.09% 0.02% 1.00% 0.11% 0.04% 0.01% 0.00% 0.00%
61-90 Days Delin0.42% 0.24% 0.03% 0.01% 0.41% 0.07% 0.04% 0.01% 0.00% 0.00%
91-120 Days Deli0.15%t0.07% 0.02% 0.00% 0.18% 0.03% 0.01% 0.00% 0.00% 0.00%
120+ Days Delinq0.44% 0.21% 0.03% 0.01% 0.65% 0.10% 0.04% 0.00% 0.00% 0.00%
Deferment 2.52% 1.85% 0.28% 0.03% 2.16% 0.22% 0.13% 0.01% 0.00% 0.00%
Forbearance 2.78% 1.84% 0.27% 0.04% 6.27% 0.29% 0.14% 0.03% 0.00% 0.00%
- ------------------------------------------------------------------------------
Total Repayment 13.34%8.05% 2.45% 0.24% 30.42% 1.46% 0.73% 0.27% 0.03% 0.00%
- ------------------------------------------------------------------------------
Claims in Proces0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Aged Claims Reje0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Grand Total 27.18%18.06% 2.45% 0.24% 30.42% 2.05% 1.16% 0.27% 0.03% 0.00%
- --------------------------------------------------------------------------------
Technical Schools Other
GSL- GSL- PLUS SLS Consol GSL- GSL- PLUS SLS Consol
Sub Unsub Sub Unsub
-------------------------------------------------------------------------------
In-School 0.62% 0.54% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
In-Grace 0.62% 0.52% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
- --------------------------------------------------------------------------
Total Interim 1.24% 1.06% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
- --------------------------------------------------------------------------
Current Repay 4.08% 2.74% 1.76% 0.09% 0.00% 0.00% 0.00% 0.00% 0.00% 0.01%
31-60 DaysDel 0.50% 0.38% 0.12% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
61-90 DaysDel 0.31% 0.25% 0.04% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
91-120 DaysDel 0.16% 0.13% 0.02% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
120+ DaysDel 0.48% 0.35% 0.06% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Deferment 0.51% 0.41% 0.07% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Forbearance 1.63% 1.34% 0.29% 0.05% 0.00% 0.00% 0.00% 0.00% 0.00% 0.02%
-------------------------------------------------------------------------
Total Repay 7.67% 5.60% 2.35% 0.18% 0.00% 0.01% 0.00% 0.00% 0.00% 0.03%
-------------------------------------------------------------------------
Clms in Proc 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Aged Clms Reje 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Grand Total 8.91% 6.66% 2.35% 0.18% 0.00% 0.01% 0.00% 0.00% 0.00% 0.03%
<PAGE>
- --------------------------------------------------------
Four Two
Year Year Technical
Schools Schools Schools Other Total
- ---------------------------------------------------------
In-School 16.80% 0.75% 1.16% 0.00% 18.71%
In-Grace 7.04% 0.28% 1.14% 0.00% 8.46%
- --------------------------------------------------------
Total Interim 23.84% 1.02% 2.30% 0.00% 27.17%
- --------------------------------------------------------
Current 31.55% 1.19% 8.67% 0.01% 41.42%
Repayment
31-60 Days 2.07% 0.17% 1.01% 0.00% 3.25%
Delinquent
61-90 Days 1.10% 0.11% 0.60% 0.00% 1.81%
Delinquent
91-120 Days 0.42% 0.04% 0.32% 0.00% 0.78%
Delinquent
120+ Days 1.34% 0.14% 0.90% 0.01% 2.39%
Delinquent
Deferment 6.83% 0.37% 1.00% 0.00% 8.20%
Forbearance 11.20% 0.47% 3.30% 0.02% 14.98%
- --------------------------------------------------------
Total Repayment 54.51% 2.48% 15.80% 0.05% 72.83%
- --------------------------------------------------------
Claims in 0.00% 0.00% 0.00% 0.00% 0.00%
Process
Aged Claims 0.00% 0.00% 0.00% 0.00% 0.00%
Rejected
Grand Total 78.35% 3.51% 18.10% 0.05% 100.00%
- --------------------------------------------------------
<PAGE>
- -------------------------------------------------------------------------------
QUARTERLY CASH AVAILABLE AND PRINCIPAL DISTRIBUTION TRIGGERS
- -------------------------------------------------------------------------------
Summary of Quarterly Cash Generation and Usage
(A-Balance) Existing Cash in Collections Account $13,251,936.27
(A) Total Interest Collections (Including Liquidations, Not Including
Recoveries) (VI(A)) $6,978,325.97
(B) Total Principal Collections (Including Liquidations and
Repurchased Contracts, Not Including Recoveries) $31,768,531.23
(C) SAP (VI(C))
$6,202.97
(D) Subsidy Payments (VI(D)) $2,283,715.22
(E) Proceeds of Recoveries
(VI(E)) $5,760.61
(F) Draw from the Collateral Reinvestment Account for Accrued
Interest (VIII(H)) $9,919,298.05
(G) Investment Earnings (VIII(A+B+C))
$480,877.96
(H) Draw from Current Period's Collection Account in Prior Periods
(II(M)) $0.00
(I) Monthly Consolidation Loan Rebate Fee for Quarter (IV(J))
$787,731.00
(J) Transfer from Collection Account to the Collateral Reinvestment
Account (VIII(G)) $31,768,531.23
(K) Required Distributions
(i) Servicing Fee Due $1,616,766.84
(ii)Administrative Fee Due $181,863.44
(iii) Class A-1 Noteholders' Interest
Distribution Amount [Pro-Rata with (iv) and (v) $3,546,812.50
(iv) Class A-2 Noteholders' Interest Distribution Amount
[Pro-Rata with(iii)and (iv) $14,222,545.22
(v) Net Trust Swap Payment [Pro-Rata with (iii)and (iv)]
[Receipt expressed as a Negative $691,712.23
(vi) Subordinate Noteholders' Interest Distribution Amount $675,946.03
(vii) Principal Distribution Amount (to Senior
Noteholders until paid-off, then to Sub. Noteholders) $0.00
(viii) Total Required Distributions (i+ii+iii+iv+v+vi+vii) $20,935,646.26
(L) Use of Existing Collections Account
Transfer from Collateral Reinvestment Account for
Increase in Available Fund MIN
(MIN(II(N),(MIN(0,(A(ABalance+A+B+C+D+E+F+G-H-I-J-K)))*-1))),
F(A+B+C+D+E+F+G),0) $0.00
(M) Draw From Reserve Fund due to Insufficient Cash Available
MIN(MIN(II(N),(MIN(0,(A(ABalance+A+B+C+D+E+
F+G-H-I-J-K)))*-1)))-A(L),0) $0.00
(N) Draw from Collection Account of Subsequent Monthly
Collections (VIII(F)) $0.00
(O) Total Amount Available for Distributions (A(ABalance
+A+B+C+D+E+F+G-H-I-J+M+N)) $32,138,386.05
<TABLE>
<S> <C>
Early Amortization Event Triggers
(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 $157,308,878.98
(ii) Percentage of proprietary or vocational school loans 21.65%
(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 $99,167,148.00
(ii) Percentage of student loans which are not in repayment and are not eligible for subsidy 13.65%
(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) Arithmetic average of the Delinquency Percentage as of the end of two successive collection
periods exceeds 20% 0
(J) Has an Early Amortization Event occured? 0 No. The Revolving
Period continues.
Determination of Principal Distribution Amount
(A) Revolving Period? (Yes = 1,No = 0) 1
(B) Required Principal Distribution Amount $0.00
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
DISTRIBUTIONS
- -------------------------------------------------------------------------------
<TABLE>
<S> <C>
Distributions of Cash
(A) Servicing Fee
(i) Servicing Fee Due $1,616,766.84
(ii) Servicing Fee Paid $1,616,766.84
(iii) Unpaid Servicing Fee (i-ii) $0.00
(B) Administration Fee
(i) Administration Fee Due (VIII(D)+III(B) $181,863.44
(ii) Administration Fee Paid $181,863.44
(iii) Unpaid Administration Fee (i-ii) $0.00
(C) Senior Note Interest and Net Trust Swap Payments
(i) Class A-1 Noteholders' Interest Distribution Amount [Pro-Rata] $3,546,812.50
(ii) Class A-2 Noteholders' Interest Distribution Amount [Pro-Rata] $14,222,545.22
(ii) Net Trust Swap Payment [Pro-Rata] $691,712.23
(ii) Senior Note Interest and Net Trust Swap Payments Paid $18,461,069.95
(iii) Senior Note Interest Carryover Shortfall (i-ii) $0.00
(iv) Senior Note Interest T-Bill Carryover Shortfall $0.00
(D) Subordinate Note Interest
(i) Subordinate Noteholders' Interest Distribution Amount ((II(F)(i)+II(K))*IV(P)*IV(C)/IV(B)) $675,946.03
(ii) Subordinate Note Interest Paid $675,946.03
(iii) Subordinate Note Interest Carryover Shortfall (i-ii) $0.00
(iv) Subordinate Note Interest T-Bill Carryover Shortfall $0.00
(E) Senior Note Principal
(i) Class A-1 Note Principal Due $0.00
(ii) Class A-1 Note Principal Paid $0.00
(iii) Class A-1 Note Principal Shortfall $0.00
(iv) Class A-2 Note Principal Due $0.00
(v) Class A-2 Note Principal Paid $0.00
(vi) Class A-2 Note Principal Shortfall $0.00
(F) 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
(G) Purchase Premium
(i) Purchase Premium Amounts Due $0.00
(ii) Purchase Premium Amounts Paid $0.00
(iii) Unpaid Purchase Premium Amounts $0.00
(H) "Turbo" Principal
(i) Class A-1 Note Principal $0.00
(ii) Class A-2 Note Principal $0.00
(iii) Subordinate Note Principal $0.00
(iv) Total "Turbo" Principal $0.00
(I) Senior Note Interest T-Bill Carryover
(i) Senior Note Interest T-Bill Carryover Due $0.00
(ii) Senior Interest T-Bill Carryover Paid $0.00
(iii) Senior Note Interest T-Bill Carryover Shortfall (i-ii) $0.00
(J) Subordinate Note Interest T-Bill Carryover
(i) Subordinate Note Interest T-Bill Carryover Due $0.00
(ii) Subordinate Note Interest T-Bill Carryover Paid $0.00
(iii) Subordinate Note Interest T-Bill Carryover Shortfall (i-ii) $0.00
(K) Servicing Fee Shortfalls
(i) Servicing Fee Shortfall Due (V(F)+III(E)) $0.00
(ii) Servicing Fee Shortfall Paid $0.00
(iii) Unpaid Servicing Fee Shortfall (i-ii) $0.00
</TABLE>
<PAGE>
RECONCILIATION OF BALANCES AND ADDITIONAL REPORTING REQUIREMENTS
Rconciliation of Reserve Account
(A) Beginning Account Balance (II(N)) $1,912,500.00
(B) Draw Due to Insufficient Funds (A(M) $0.00
(C) Required Account Balance $1,912,500.00
(D) Account Deposit/(Release) $0.00
(E) Ending Account Balance (E(A-B+D)) $1,912,500.00
- ----------------------------------------------------------------------------
Reconciliation of Collteral Reinvestment Account
(A) Beginning Account Balance (II(O)) $0.00
(B) Deposit from Collection Account (VIII(G)) $31,768,531.23
(C) Deposit from Reserve Fund Release
(Deposit can be made only prior to Parity,
during Revolving Period) $11,202,739.79
(D) Draw for Accrued Interest (VIII(H)) $ 9,919,298.05
(E) Draw for New Loans (VII(B)(i+ii)) $0.00
(F) Draw for Serial Loans (VII(C)(i+ii)) $10,013,710.62
(G) Draw for Consolidation Loans (VII(D)(ii)) $ 7,128,755.21
(H) Transfer to Collection Account for Increase in
Available Funds (A(L)) $0.00
(I) Ending Account Balance (F(A+B+C-D-E-F-G-H)) $15,909,507.14
Reconciliation of Collections account
(A) Beginning Account Balance $13,251,936.27
(B) Ending Account Balance $0.00
<TABLE>
<S> <C> <C> <C>
Additional Reporting Requirements
5/21-7/27 Rates 7/28-10/27 Rates
(A)(i) Class A-1Notes Interest Rate (3 Month LIBOR) 5.17000% 5.43125%
(A)(ii) Class A-2Notes Interest Rate (3 Month LIBOR) 5.29000% 5.55125%
(B) Subordinate Notes Interest Rate (3 Month LIBOR) 5.53000% 5.79125%
(C) Cumulative New Loans This Quarter $0.00
(D) Cumulative Serial Loans This Quarter $9,865,528.82
(E) Cumulative Consolidation Loans This Quarter $7,128,755.21
(G) Cumulative Accrued Interest to be Capitalized This Quarter, From Collateral Reinvestment Account $9,919,298.05
(H) Cumulative Accrued Interest to be Capitalized This Quarter, From Collections $0.00
(I) Draw From Subsequent Collection Period (VIII(F)) $0.00
(J) Excess Available Funds Released to SMS $0.00
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
PAGE>
BOND AND POOL BALANCES AND FACTORS
- -------------------------------------------------------------------------------
Beginning of Period Activity End of Period
Total Bond Balance $765,000,000.00 $0.00 $765,000,000.00
Total Bond Factor 1.00000000 - 1.00000000
Pool Balance $731,889,541.31 ($5,340,771.77) $726,548,769.54
Pool Factor 1.26319538 (0.0092178367) 1.25397755
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Beginning of Period End of Period Beginning of Period End of Period Beginning of Period End of Period
Note Balance $150,000,000.00 $150,000,000.00 $588,225,000.00 $588,225,000.00 $26,775,000.00 $26,775,000.00
Note Factor 1.00000000000 1.00000000000 1.00000000000 1.00000000000 1.00000000000 1.00000000000
Note Shortfall $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
REMITTANCE REPORT SUMMARY
<TABLE>
<S> <C> <C> <C>
(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) $3,546,812.50
(b) Class A-2 Notes (For Quarter) (2b) $14,222,545.22
(c) Subordinate Notes (For Quarter) (2c) $675,946.03
(iii) The interest rates for the: 5/21 - 7/27 7/28 - 10/27
(a) Class A-1 Notes (Quarterly) (3a) 5.17000% 5.43125%
(b) Class A-2 Notes (Quarterly) (3b) 5.29000% 5.55125%
(c) Subordinate Notes (Quarterly) (3c) 5.53000% 5.79125%
(iv) The Pool Balance as of the close of business on the last day of the Collection Period $ 726,548,769.54
(v) The ending aggregate outstanding principal balance for the:
(a) Class A-1 Notes (5a) $150,000,000.00
(b) Class A-2 Notes (5b) $588,225,000.00
(c) Subordinate Notes (5c) $26,775,000.00
(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 $998,850.84
Paid for Month 2 $304,939.93
Paid for Month 3 $312,976.07
(a) Paid for the Quarter (7a) $1,616,766.84
(b) Unpaid for the Quarter (7b) $0.00
(viii) The amount of the Administration Fee
Paid for Month 1 $121,212.33
Paid for Month 2 $ 30,378.24
Paid for Month 3 $ 30,272.87
(a) Paid for the Quarter (8a) $181,863.44
(b) Unpaid for the Quarter (8b) $0.00
(ix) The amount of Monthly Consolidation Loan Rebate Fee
Paid for Month 1 491,980.00
Paid for Month 2 147,329.00
Paid for Month 3 148,422.00
(a) Paid for the Quarter (9a) $787,731.00
(x) The amount of aggreate Realized Losses for the Collection Period (10) $45,264.77
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
PREPAYMENT HISTORY AND CPRs
Distribution Date Actual Pool Balance Since Issued CPR
Oct-99 726,548,770 n/a
n/a
n/a
n/a
** rate not reported during initial reporting period since moving
average cannot be established
USA GROUP SECONDARY MARKET SERVICES, INC.
Administrator
/S/ CHERYL E. WATSON
- ----------------------------
Cheryl E. Watson
Senior Vice President & Chief Financial Officer
<PAGE>
SMS STUDENT LOAN TRUST 1999 B
OFFICERS' CERTIFICATE
In accordance with Section 11.02 of the Indenture dated as of May 21, 1999,
between SMS Student Loan Trust 1998 B, a Delaware trust (the "Issuer") and Bank
One, National Association, as trustee and not in its individual capacity (the
"Indenture Trustee") (such Indenture herinafter 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, herby certify that (i) all
dispositions of Collateral described in clauses (A) and (B) of Section
11.01(b)(v) of the Indenture that occurred during the immediately preceding
three calendar months were in the ordinary course of the Issuer's business and
(ii) the proceeds therof were applied in accordance with the Basic Documents.
Terms used herin and not specifically herin defined shall have the meaning
ascribed to them in the Indenture.
In witness whereof, the undersigned has signed their names on behalf of the
Corporation on October 25, 1999.
USA GROUP SECONDARY MARKET SERVICES, INC.
Administrator
/s/ Cheryl E. Watson /s/ Stephen W. Clinton
- ---------------------------- -----------------------------
Cheryl E. Watson Stephen W. Clinton
Senior Vice President & Chairman of the Board,
Chief Financial officer President and CEO
<PAGE>
SMS STUDENT LOAN TRUST 1999-B
ADMINISTRATOR'S CERTIFICATE
In accordance with Section 2(g) of the Administration Agreement dated as of May
21, 1999, among SMS STUDENT LOAN TRUST 1999-B, a Delaware trust (the "Issuer"),
USA GROUP SECONDARY MARKET SERVICES, INC., a Delaware corporation, as
administrator (the "Administrator"), and HSBC Bank USA, a New York banking
corporation, not in its individual capacity but solely as Indenture Trustee (the
"Indenture Trustee"), the undersigned, in their official capacities as
Authorized Officers, on behalf of the Administrator, hereby certify the
following statement to Noteholders:
Quarterly Payment Date: October 28, 1999
(i)Amount of principal being paid or distributed:
(a) Class A1 $0.00 * $0.00 * per $1,000 original principal
amount of Notes
(b) Class A2 $0.00 * $0.00 * per $1,000 original principal
amount of Notes
(c) Subordinate $0.00 * $0.00 * per $1,000 original principal
amount of Notes
* Portion of each sum amount attributable to Reserve Account Excess: $0.00
(ii) Amount of interest being paid or distributed:
(a) Class A1 $3,546,812.50 $0.02 per $1,000 original principal
amount of Notes
(b) Class A2 $14,222,545.22 $0.02 per $1,000 original principal
amount of Notes
(c) Subordinate $675,946.03 $0.02 per $1,000 original principal
amount of Notes
(iii) Amount of Senior Noteholders' Interest Basis Carryover being paid or
distributed (if any) and amount remaining (if any):
(a) Distributed: $0.00 $0.00 per $1,000 original principal
amount of Notes
(b) Balance: $0.00 $0.00 per $1,000 original principal
amount of Notes
(iv) Amount of Subordinate Noteholders' Interest Basis Carryover being paid or
distributed (if any) and amount remaining (if any):
(a) Distributed: $0.00 $0.00 per $1,000 original principal
amount of Notes
(b) Balance: $0.00 $0.00 per $1,000 original principal
amount of Notes
(v) Pool Balance at end of related Collection Period: $726,548,769.54
<PAGE>
(vi) After giving effect to distributions on this Quarterly Payment Date:
(a)(1) outstanding principal amount of Class A1 Notes: $150,000,000.00
(2) Class A1 Note Pool Factor: 1.00000
(b)(1) outstanding principal amount of Class A2 Notes: $588,225,000.00
(2) Class A2 Note Pool Factor: 1.00000
(c)(1) outstanding principal amount of Subordinate Notes: $26,775,000.00
(2) Subordinate Note Pool Factor: 1.00000
(vii) Applicable Note Rate:
In general:
(1) Three-month LIBOR for the LIBOR Reset Period since the previous Quarterly
Payment Date was
5.05000% 5.31125%
(2) the Adjusted Student Loan Rate for such Quarterly Interest Period was
6.76335%
Class A1 Note Rate 5.17000% 5.43125% (based on LIBOR rate)
Class A2 Note Rate 5.29000% 5.25000% (based on LIBOR rate)
Subordinate Note Rate: 5.55000% 5.79125% (based on LIBOR rate)
(viii) Amount of Servicing Fee for related Collection Period including a
breakdown of the components of the Servicing Fee attributable to each of the
items specified in clauses II(I) through (ix) of Section 3.06 of the Servicing
Agreement and the amount of any Servicing Fee Shortfall for such quarterly
Payment Date and for each Monthly Payment Date following the immediately
preceding Quarterly Payment Date: $1,616,766.84
<PAGE>
(ix) Amount of Administration Fee for related Collection Period: $181,863.44
$ 0.00 per $1,000 original principal amount of Notes
(x) the Trust Swap Payment Amount paid to the Swap Counterparty on such
Quarterly Payment Date: $691,712.23
the amount of any Net Trust Swap Payment Carryover Shortfall for such
Quarterly Payment Date: $0.00
the Trust Swap Receipt Amount paid ot the Trust on such Quarterly
Payment Date: $0.00
the Net Trust Swap Receipt Carryover Shortfall for such Quarterly
Payment Date: $0.00
(xi) Aggregate amount of Realized Lossess (if any) for the related Collection
Period: $45,264.77
(xii) Finance Student Loans delinquent at end of related Collection period
$18,010 number of delinquent loans
$59,774,516.85 aggregate unpaid principal balance of delinquent loans
(xiii) Withdrawal from Reserve Account on related Quarterly Payment Date (other
than Reserve Account Excess) and on any Monthly Payment Date since the preceding
Quarterly Payment Date (list each withdrawal separately): $0.00
Purpose: n/a
Reserve Account Excess on related Quarterly Payment Date $11,202,739.79
Principal balance of Notes to be paid to reach Parity Date $38,451,230.46
(xix) Deposits to Collateral Reinvestment Account during related Collection
Period: $31,768,531.23
Amount to be depositied on related Quarterly Payment Date: $11,202,739.79
Withdrawal from Collateral Reinvestment Account during related Collection
Period: $27,061,763.88
Amount in the Reserve Account (after giving effect to (xiii)): $1,912,500.00
(x) Amount in the Collateral Reinvestment Account
(after giving effect to (xx)): $15,909,507.14
(xi) Consolidation Loans:
327 loans with aggregate principal balance of
$7,128,755.21 were origianated during related Collection Period
$7,128,755.21 withdrawal from Collateral ReinvestmentAccount to
fund the origination of Consolidation Loans
during related Collection Period.
(xvii) Add-on Consolidation Loans:
0 loans with aggregate principal balance of
$0.00 were added to the principal balance
of a Consolidation Loan
$0.00 withdrawal from Collateral Reinvestment Account to fund
the addition of the principal balancers of Addon
Consolidation Loans during the related Collection Period
(xiii) Serial Loans
2,613 loans
$9,865,528.82 aggregate principal balance
148,181.80 (portion represented by Purchase Premium Amounts)
were purchased during the related Collection Period.
(xiv) New Loans:
0.00 loans
$0.00 aggregate principal balance
$0.00 (portion represented by Purchase Premium Amounts)
were purchased during the related Collection Period.
(xv) Withdrawl from the Delayed Delivery Loan Funding Account during the
related Collection Period: $0.00
(xvi) Amount in the Delayed Delivery Loan Funding Account
(after giving effect to (xv): $0.00
<PAGE>
(xvii) Financed Student Loans in the followign categories as of the end of the
related Collection Period:
Weighted Average Number of Principal
Interest Rate Loans Balance
Status Type:
In-School 6.74% 40,199 $135,963,196.69
Grace 6.89% 16,186 $61,437,014.51
Repayment 7.91% 63,276 $300,955,172.11
Forbearance 7.90% 21,959 $108,845,017.85
Deferment 7.47% 14,031 $59,573,851.53
Delinquencies 7.88% 18,010 $59,774,516.85
Claims Filed Awaiting Pyament 0.00% 0.00 $0.00
------- -------- ----------------
7.57% 173,661 $726,548,769.54
Delinquencies:
30-60 Days 7.90% 6,432 $23,600,152.65
61-90 Days 7.83% 4,152 $13,185,004.97
91-120 Days 7.86% 1,901 $5,666,021.26
More than 120 Days Delinquent 7.91% 5,525 $17,323,337.97
Claims Filed Awaiting Payment 0.00% $0.00 $0.00
------- ------- ---------------
8.06% 18,010 $59,774,516.85
Loan Type:
Stafford Loans 7.27% 150,451 $465,262,702.06
SLS Loans 8.20% 1,061 $3,177,969.13
PLUS Loans 7.88% 7,970 $36,826,021.95
Consolidation Loans 8.13% 14,179 $221,282,076.40
------ -------- ----------------
7.57% 173,661 $726,548,769.54
School Type:
Traditional 7.56% 112,174 $569,239,890.56
Vocational/Proprietary 7.59% 61,487 $157,308,878.98
------ -------- -----------------
7.57% 173,661 $726,548,769.54
In witness wehreof, the undersigned have signed their names on behalf of the
Corporation on October 25, 1999.
USA GROUP SECONDARY MARKET SERVICES, INC.
Administrator
/S/ CHERYL E. WATSON
Cheryl E. Watson
Senior Vice President and Chief Financial Officer
/S/ STEPHEN W. CLINTON
Stephen W. Clinton
Chairman of the Board, President and CEO
