Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2011

Segment Reporting (Tables) [Abstract]

Asset information for the Company's FFELP Loans business segment

	June 30,		December 31,
	2011		2010
FFELP Loans, net	$	142,635	$	148,649
Cash and investments(1)		6,041		5,963
Other		4,418		3,911
Total assets	$	153,094	$	158,523

⁽¹⁾ Includes restricted cash and investments.

Asset information for the Company's Consumer Lending business segment

	June 30,		December 31,
	2011		2010
Private Education Loans, net	$	35,753	$	35,656
Cash and investments(1)		2,794		3,372
Other		4,506		4,004
Total assets	$	43,053	$	43,032

⁽¹⁾ Includes restricted cash and investments.

Segment Results and Reconciliations to GAAP

	Three Months Ended June 30, 2011
	FFELP		Consumer		Business								Total “Core					Total
(Dollars in millions)	Loans		Lending		Services		Other			Eliminations(1)			Earnings”		Adjustments(2)			GAAP
Interest income:
Student loans	$	721	$	600	$	—	$	—		$	—		$	1,321	$	129		$	1,450
Other loans		—		—		—		5			—			5		—			5
Cash and investments		1		2		2		2			(2	)		5		—			5
Total interest income		722		602		2		7			(2	)		1,331		129			1,460
Total interest expense		357		201		—		14			(2	)		570		22			592
Net interest income (loss)		365		401		2		(7	)		—			761		107			868
Less: provisions for loan losses		23		265		—		3			—			291		—			291
Net interest income (loss) after provisions for loan losses		342		136		2		(10	)		—			470		107			577
Servicing revenue		21		15		244		—			(187	)		93		—			93
Contingency revenue		—		—		86		—			—			86		—			86
Gains on debt repurchases		—		—		—		—			—			—		—			—
Other income (loss)		—		—		11		3			—			14		(521	)		(507	)
Total other income (loss)		21		15		341		3			(187	)		193		(521	)		(328	)
Expenses:
Direct operating expenses		192		73		121		—			(187	)		199		—			199
Overhead expenses		—		—		—		69			—			69		—			69
Operating expenses		192		73		121		69			(187	)		268		—			268
Goodwill and acquired intangible assets impairment and amortization		—		—		—		—			—			—		6			6
Restructuring expenses		—		1		—		1			—			2		—			2
Total expenses		192		74		121		70			(187	)		270		6			276
Income (loss) from continuing operations, before income tax expense (benefit)		171		77		222		(77	)		—			393		(420	)		(27	)
Income tax expense (benefit)(3)		63		28		82		(29	)		—			144		(154	)		(10	)
Net income (loss) from continuing operations		108		49		140		(48	)		—			249		(266	)		(17	)
Income from discontinued operations, net of taxes		—		—		—		11			—			11		—			11
Net income (loss)	$	108	$	49	$	140	$	(37	)	$	—		$	260	$	(266	)	$	(6	)

(1)	The eliminations in servicing revenue and direct operating expense represent the elimination of intercompany servicing revenue where the Business Services segment performs the loan servicing function for the FFELP Loans segment.
(2)	“Core Earnings” adjustments to GAAP:

	Three Months Ended June 30, 2011
				Net Impact of
	Net Impact of			Goodwill and
	Derivative			Acquired
(Dollars in millions)	Accounting			Intangibles			Total
Net interest income after provisions for loan losses	$	107		$	—		$	107
Total other income (loss)		(521	)		—			(521	)
Goodwill and acquired intangible assets impairment and amortization		—			6			6
Total “Core Earnings” adjustments to GAAP	$	(414	)	$	(6	)		(420	)
Income tax benefit								(154	)
Net loss							$	(266	)

⁽³⁾ Income taxes are based on a percentage of net income before tax for the individual reportable segment.

	Three Months Ended June 30, 2010
	FFELP		Consumer			Business								Total “Core						Total
(Dollars in millions)	Loans		Lending			Services		Other			Eliminations(1)			Earnings”			Adjustments(2)			GAAP
Interest income:
Student loans	$	744	$	575		$	—	$	—		$	—		$	1,319		$	132		$	1,451
Other loans		—		—			—		7			—			7			—			7
Cash and investments		2		4			4		1			(4	)		7			—			7
Total interest income (loss)		746		579			4		8			(4	)		1,333			132			1,465
Total interest expense		382		183			—		11			(4	)		572			(3	)		569
Net interest income (loss)		364		396			4		(3	)		—			761			135			896
Less: provisions for loan losses		29		349			—		4			—			382			—			382
Net interest income (loss) after provisions for loan losses		335		47			4		(7	)		—			379			135			514
Servicing revenue		15		21			228		—			(165	)		99			—			99
Contingency revenue		—		—			88		—			—			88			—			88
Gains on debt repurchases		—		—			—		91			—			91			—			91
Other income		—		—			13		—			—			13			76			89
Total other income (loss)		15		21			329		91			(165	)		291			76			367
Expenses:
Direct operating expenses		187		86			133		2			(165	)		243			—			243
Overhead expenses		—		—			—		66			—			66			—			66
Operating expenses		187		86			133		68			(165	)		309			—			309
Goodwill and acquired intangible assets impairment and amortization		—		—			—		—			—			—			10			10
Restructuring expenses		15		1			2		—			—			18			—			18
Total expenses		202		87			135		68			(165	)		327			10			337
Income (loss) from continuing operations, before income tax expense (benefit)		148		(19	)		198		16			—			343			201			544
Income tax expense (benefit)(3)		53		(7	)		71		8			—			125			74			199
Net income (loss) from continuing operations		95		(12	)		127		8			—			218			127			345
Loss from discontinued operations, net of taxes		—		—			—		(7	)		—			(7	)		—			(7	)
Net income (loss)	$	95	$	(12	)	$	127	$	1		$	—		$	211		$	127		$	338

(1)	The eliminations in servicing revenue and direct operating expense represent the elimination of intercompany servicing revenue where the Business Services segment performs the loan servicing function for the FFELP Loans segment.
(2)	“Core Earnings” adjustments to GAAP:

	Three Months Ended June 30, 2010
			Net Impact of
	Net Impact of		Goodwill and
	Derivative		Acquired
(Dollars in millions)	Accounting		Intangibles			Total
Net interest income after provisions for loan losses	$	135	$	—		$	135
Total other income		76		—			76
Goodwill and acquired intangible assets impairment and amortization		—		10			10
Total “Core Earnings” adjustments to GAAP	$	211	$	(10	)		201
Income tax expense							74
Net income						$	127

⁽³⁾ Income taxes are based on a percentage of net income before tax for the individual reportable segment.

	Six Months Ended June 30, 2011
	FFELP		Consumer		Business								Total “Core					Total
(Dollars in millions)	Loans		Lending		Services		Other			Eliminations(1)			Earnings”		Adjustments(2)			GAAP
Interest income:
Student loans	$	1,457	$	1,204	$	—	$	—		$	—		$	2,661	$	270		$	2,931
Other loans		—		—		—		11			—			11		—			11
Cash and investments		2		5		5		3			(5	)		10		—			10
Total interest income (loss)		1,459		1,209		5		14			(5	)		2,682		270			2,952
Total interest expense		726		399		—		29			(5	)		1,149		37			1,186
Net interest income (loss)		733		810		5		(15	)		—			1,533		233			1,766
Less: provisions for loan losses		46		540		—		8			—			594		—			594
Net interest income (loss) after provisions for loan losses		687		270		5		(23	)		—			939		233			1,172
Servicing revenue		46		32		489		—			(376	)		191		—			191
Contingency revenue		—		—		164		—			—			164		—			164
Gains on debt repurchases		—		—		—		64			—			64		(26	)		38
Other income		—		—		21		6			—			27		(754	)		(727	)
Total other income (loss)		46		32		674		70			(376	)		446		(780	)		(334	)
Expenses:
Direct operating expenses		387		155		249		9			(376	)		424		—			424
Overhead expenses		—		—		—		148			—			148		—			148
Operating expenses		387		155		249		157			(376	)		572		—			572
Goodwill and acquired intangible assets impairment and amortization		—		—		—		—			—			—		12			12
Restructuring expenses		1		2		1		1			—			5		—			5
Total expenses		388		157		250		158			(376	)		577		12			589
Income (loss) from continuing operations, before income tax expense (benefit)		345		145		429		(111	)		—			808		(559	)		249
Income tax expense (benefit)(3)		127		54		158		(41	)		—			298		(208	)		90
Net income (loss) from continuing operations		218		91		271		(70	)		—			510		(351	)		159
Income from discontinued operations, net of taxes		—		—		—		10			—			10		—			10
Net income (loss)	$	218	$	91	$	271	$	(60	)	$	—		$	520	$	(351	)	$	169

(1)	The eliminations in servicing revenue and direct operating expense represent the elimination of intercompany servicing revenue where the Business Services segment performs the loan servicing function for the FFELP Loans segment.
(2)	“Core Earnings” adjustments to GAAP:

	Six Months Ended June 30, 2011
				Net Impact of
	Net Impact of			Goodwill and
	Derivative			Acquired
(Dollars in millions)	Accounting			Intangibles			Total
Net interest income after provisions for loan losses	$	233		$	—		$	233
Total other income (loss)		(780	)		—			(780	)
Goodwill and acquired intangible assets impairment and amortization		—			12			12
Total “Core Earnings” adjustments to GAAP	$	(547	)	$	(12	)		(559	)
Income tax benefit								(208	)
Net loss							$	(351	)

⁽³⁾ Income taxes are based on a percentage of net income before tax for the individual reportable segment.

	Six Months Ended June 30, 2010
	FFELP		Consumer			Business								Total “Core						Total
(Dollars in millions)	Loans		Lending			Services		Other			Eliminations(1)			Earnings”			Adjustments(2)			GAAP
Interest income:
Student loans	$	1,386	$	1,141		$	—	$	—		$	—		$	2,527		$	296		$	2,823
Other loans		—		—			—		16			—			16			—			16
Cash and investments		4		6			8		1			(8	)		11			—			11
Total interest income (loss)		1,390		1,147			8		17			(8	)		2,554			296			2,850
Total interest expense		718		356			—		21			(8	)		1,087			13			1,100
Net interest income (loss)		672		791			8		(4	)		—			1,467			283			1,750
Less: provisions for loan losses		52		674			—		15			—			741			—			741
Net interest income (loss) after provisions for loan losses		620		117			8		(19	)		—			726			283			1,009
Servicing revenue		36		41			473		—			(329	)		221			—			221
Contingency revenue		—		—			168		—			—			168			—			168
Gains on debt repurchases		—		—			—		181			—			181			—			181
Other income		—		—			24		11			—			35			(5	)		30
Total other income (loss)		36		41			665		192			(329	)		605			(5	)		600
Expenses:
Direct operating expenses		375		166			252		4			(329	)		468			—			468
Overhead expenses		—		—			—		129			—			129			—			129
Operating expenses		375		166			252		133			(329	)		597			—			597
Goodwill and acquired intangible assets impairment and amortization		—		—			—		—			—			—			19			19
Restructuring expenses		33		3			5		2			—			43			—			43
Total expenses		408		169			257		135			(329	)		640			19			659
Income (loss) from continuing operations, before income tax expense (benefit)		248		(11	)		416		38			—			691			259			950
Income tax expense (benefit)(3)		89		(4	)		149		18			—			252			106			358
Net income (loss) from continuing operations		159		(7	)		267		20			—			439			153			592
Loss from discontinued operations, net of taxes		—		—			—		(14	)		—			(14	)		—			(14	)
Net income (loss)	$	159	$	(7	)	$	267	$	6		$	—		$	425		$	153		$	578

(1)	The eliminations in servicing revenue and direct operating expense represent the elimination of intercompany servicing revenue where the Business Services segment performs the loan servicing function for the FFELP Loans segment.
(2)	“Core Earnings” adjustments to GAAP:

	Six Months Ended June 30, 2010
				Net Impact of
	Net Impact of			Goodwill and
	Derivative			Acquired
(Dollars in millions)	Accounting			Intangibles			Total
Net interest income after provisions for loan losses	$	283		$	—		$	283
Total other income (loss)		(5	)		—			(5	)
Goodwill and acquired intangible assets impairment and amortization		—			19			19
Total “Core Earnings” adjustments to GAAP	$	278		$	(19	)		259
Income tax benefit								106
Net loss							$	153

⁽³⁾ Income taxes are based on a percentage of net income before tax for the individual reportable segment.

"Core Earnings" adjustments to GAAP

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(Dollars in millions)	2011			2010			2011			2010
“Core Earnings” adjustments to GAAP:
Net impact of derivative accounting(1)	$	(414	)	$	211		$	(547	)	$	278
Net impact of acquired intangibles(2)		(6	)		(10	)		(12	)		(19	)
Net tax effect(3)		154			(74	)		208			(106	)
Total “Core Earnings” adjustments to GAAP	$	(266	)	$	127		$	(351	)	$	153

(1)	Derivative accounting: “Core Earnings” exclude periodic unrealized gains and losses that are caused by the mark-to-market derivative valuations on derivatives that do not qualify for hedge accounting treatment under GAAP and periodic unrealized gains and losses that are a result of ineffectiveness recognized related to effective hedges. These unrealized gains and losses occur in our FFELP Loans, Consumer Lending and Other business segments. Under GAAP, for derivatives that are held to maturity, the cumulative net unrealized gain or loss at the time of maturity will equal $0 except for Floor Income Contracts where the cumulative unrealized gain will equal the amount for which we sold the contract. In our “Core Earnings” presentation, we recognized the economic effect of these hedges, which generally results in any net settlement cash paid or received being recognized ratably as an interest expense or revenue over the hedged item’s life.
(2)	Goodwill and Acquired Intangibles: We exclude goodwill and intangible impairment and amortization of acquired intangibles.
(3)	Net Tax Effect: Such tax effect is based upon our “Core Earnings” effective tax rate for the year.