Borrowings (Tables)

12 Months Ended

Dec. 31, 2012

The following table summarizes our borrowings.


	December 31, 2012						December 31, 2011
(Dollars in millions)	Short Term		Long Term		Total		Short Term		Long Term		Total
Unsecured borrowings:
Senior unsecured debt	$	2,319	$	15,446	$	17,765	$	1,801	$	15,199	$	17,000
Brokered deposits		979		3,088		4,067		1,733		1,956		3,689
Retail and other deposits		3,247		—		3,247		2,123		—		2,123
Other⁽¹⁾		1,609		—		1,609		1,329		—		1,329

Total unsecured borrowings		8,154		18,534		26,688		6,986		17,155		24,141

Secured borrowings:
FFELP Loan securitizations		—		105,525		105,525		—		107,905		107,905
Private Education Loan securitizations		—		19,656		19,656		—		19,297		19,297
ED Conduit Program Facility		9,551		—		9,551		21,313		—		21,313
FFELP ABCP Facility		—		4,154		4,154		—		4,445		4,445
Private Education Loan ABCP Facility		—		1,070		1,070		—		1,992		1,992
Acquisition financing⁽²⁾		—		673		673		—		916		916
FHLB-DM Facility		2,100		—		2,100		1,210		—		1,210

Total secured borrowings		11,651		131,078		142,729		22,523		134,555		157,078

Total before hedge accounting adjustments		19,805		149,612		169,417		29,509		151,710		181,219
Hedge accounting adjustments		51		2,789		2,840		64		2,683		2,747

Total	$	19,856	$	152,401	$	172,257	$	29,573	$	154,393	$	183,966

⁽¹⁾	“Other” primarily consists of the obligation to return cash collateral held related to derivative exposures.

⁽²⁾	Relates to the acquisition of $25 billion of student loans at the end of 2010.

Outstanding Short-Term Borrowings

Short-term borrowings have a remaining term to maturity of one year or less. The following tables summarize outstanding short-term borrowings (secured and unsecured), the weighted average interest rates at the end of each period, and the related average balances and weighted average interest rates during the periods. Rates reflect stated interest of borrowings and related discounts and premiums.


	December 31, 2012					Year Ended December 31, 2012
(Dollars in millions)	Ending Balance		Weighted Average Interest Rate			Average Balance		Weighted Average Interest Rate
Brokered deposits	$	979		3.24	%	$	1,077		3.10	%
Retail and other deposits		3,247		.84			2,460		.85
FHLB-DM Facility		2,100		.33			1,481		.34
ED Conduit Program Facility		9,551		.81			16,118		.82
FFELP ABCP Facility		—		—			7		.95
Senior unsecured debt		2,369		4.24			2,214		4.49
Other interest bearing liabilities		1,610		.31			1,474		.21

Total short-term borrowings	$	19,856		1.25	%	$	24,831		1.19	%

Maximum outstanding at any month end	$	29,160


	December 31, 2011					Year Ended December 31, 2011
(Dollars in millions)	Ending Balance		Weighted Average Interest Rate			Average Balance		Weighted Average Interest Rate
Brokered deposits	$	1,733		2.80	%	$	1,489		3.17	%
Retail and other deposits		2,123		1.00			1,684		1.11
FHLB-DM Facility		1,210		.24			893		.25
ED Conduit Program Facility		21,313		.67			22,869		.75
FFELP ABCP Facility		—		—			221		1.01
Senior unsecured debt		1,865		4.37			3,070		2.97
Other interest bearing liabilities		1,329		.04			1,187		.10

Total short-term borrowings	$	29,573		1.01	%	$	31,413		1.06	%

Maximum outstanding at any month end	$	33,100

Long-Term Borrowings

The following tables summarize outstanding long-term borrowings (secured and unsecured), the weighted average interest rates at the end of the periods, and the related average balances during the periods. Rates reflect stated interest rate of borrowings and related discounts and premiums.


	December 31, 2012					Year Ended December 31, 2012
	Ending Balance⁽¹⁾		Weighted Average Interest Rate⁽²⁾			Year Ended December 31, 2012
(Dollars in millions)	Ending Balance⁽¹⁾		Weighted Average Interest Rate⁽²⁾			Average Balance
Floating rate notes:
U.S. dollar-denominated:
Interest bearing, due 2014-2048	$	112,408		1.04	%	$	113,236
Non-U.S. dollar-denominated:
Interest bearing, due 2021-2041		10,819		.53			11,463

Total floating rate notes		123,227		1.00			124,699
Fixed rate notes:
U.S. dollar-denominated:
Interest bearing, due 2014-2046		16,096		5.57			14,203
Non-U.S.-dollar denominated:
Interest bearing, due 2014-2039		4,061		3.39			2,882

Total fixed rate notes		20,157		5.13			17,085
Brokered deposits — U.S. dollar-denominated, due 2014-2017		3,120		1.77			2,216
FFELP ABCP Facility		4,154		.74			4,726
Private Education Loan ABCP Facility		1,070		1.45			1,880
SLC acquisition financing		673		4.71			791

Total long-term borrowings	$	152,401		1.57	%	$	151,397


	December 31, 2011					Year Ended December 31, 2011
	Ending Balance⁽¹⁾		Weighted Average Interest Rate⁽²⁾			Year Ended December 31, 2011
(Dollars in millions)	Ending Balance⁽¹⁾		Weighted Average Interest Rate⁽²⁾			Average Balance
Floating rate notes:
U.S. dollar-denominated:
Interest bearing, due 2013-2047	$	114,861		1.21	%	$	120,045
Non-U.S. dollar-denominated:
Interest bearing, due 2013-2041		11,838		1.77			11,872

Total floating rate notes		126,699		1.26			131,917
Fixed rate notes:
U.S. dollar-denominated:
Interest bearing, due 2013-2044		14,406		5.63			12,363
Non-U.S.-dollar denominated:
Interest bearing, due 2013-2039		3,934		3.58			3,662

Total fixed rate notes		18,340		5.18			16,025
Brokered deposits — U.S. dollar-denominated, due 2013-2014		2,001		3.15			2,171
FFELP ABCP Facility		4,445		.81			4,768
Private Education Loan ABCP Facility		1,992		1.40			272
SLC acquisition financing		916		4.79			998

Total long-term borrowings	$	154,393		1.75	%	$	156,151

⁽¹⁾	Ending balance is expressed in U.S. dollars using the spot currency exchange rate. Includes fair value adjustments under ASC 815 for notes designated as the hedged item in a fair value hedge.

⁽²⁾	Weighted average interest rate is stated rate relative to currency denomination of debt.

Stated Maturities and Maturity to Call Date

As of December 31, 2012, the stated maturities and maturities if accelerated to the call dates are shown in the following table.


	December 31, 2012
	Stated Maturity⁽¹⁾								Maturity to Call Date⁽¹⁾
(Dollars in millions)	Senior Unsecured Debt		Brokered Deposits		Secured Borrowings		Total⁽²⁾		Senior Unsecured Debt		Brokered Deposits		Secured Borrowings		Total
Year of Maturity
2013	$	—	$	—	$	13,655	$	13,655	$	1,563	$	—	$	18,881	$	20,444
2014		3,021		1,738		14,893		19,652		3,158		1,738		10,515		15,411
2015		997		708		10,163		11,868		1,086		708		9,939		11,733
2016		2,277		235		9,781		12,293		2,276		235		9,781		12,292
2017		1,823		407		10,169		12,399		1,801		407		10,169		12,377
2018-2047		7,328		—		72,417		79,745		5,562		—		71,793		77,355

		15,446		3,088		131,078		149,612		15,446		3,088		131,078		149,612
Hedge accounting adjustments		1,644		32		1,113		2,789		1,644		32		1,113		2,789

Total	$	17,090	$	3,120	$	132,191	$	152,401	$	17,090	$	3,120	$	132,191	$	152,401

⁽¹⁾

We view our securitization trust debt as long-term based on the contractual maturity dates and projecting the expected principal paydowns based on our current estimates regarding loan prepayment speeds. The projected principal paydowns in year 2013 include $13.7 billion related to the securitization trust debt.

⁽²⁾	The aggregate principal amount of debt that matures in each period is $13.7 billion in 2013, $19.7 billion in 2014, $11.9 billion in 2015, $12.4 billion in 2016, $12.5 billion in 2017, and $80.3 billion in 2018-2047.

Financing VIEs

We consolidate the following financing VIEs as of December 31, 2012 and 2011:


	December 31, 2012
	Debt Outstanding						Carrying Amount of Assets Securing Debt Outstanding
(Dollars in millions)	Short Term		Long Term		Total		Loans		Cash		Other Assets		Total
Secured Borrowings — VIEs:
ED Conduit Program Facility	$	9,551	$	—	$	9,551	$	9,645	$	410	$	134	$	10,189
FFELP ABCP Facility		—		4,154		4,154		4,405		77		63		4,545
Private Education Loan ABCP Facility		—		1,070		1,070		1,454		302		33		1,789
Securitizations — FFELP Loans		—		105,525		105,525		107,009		3,652		608		111,269
Securitizations — Private Education Loans		—		19,656		19,656		24,618		385		545		25,548

Total before hedge accounting adjustments		9,551		130,405		139,956		147,131		4,826		1,383		153,340
Hedge accounting adjustments		—		1,113		1,113		—		—		929		929

Total	$	9,551	$	131,518	$	141,069	$	147,131	$	4,826	$	2,312	$	154,269


	December 31, 2011
	Debt Outstanding						Carrying Amount of Assets Securing Debt Outstanding
(Dollars in millions)	Short Term		Long Term		Total		Loans		Cash		Other Assets		Total
Secured Borrowings — VIEs:
ED Conduit Program Facility	$	21,313	$	—	$	21,313	$	21,445	$	621	$	442	$	22,508
FFELP ABCP Facility		—		4,445		4,445		4,834		86		54		4,974
Private Education Loan ABCP Facility		—		1,992		1,992		2,595		401		76		3,072
Securitizations — FFELP Loans		—		107,905		107,905		109,257		3,783		529		113,569
Securitizations — Private Education Loans		—		19,297		19,297		22,367		718		582		23,667

Total before hedge accounting adjustments		21,313		133,639		154,952		160,498		5,609		1,683		167,790
Hedge accounting adjustments		—		894		894		—		—		955		955

Total	$	21,313	$	134,533	$	155,846	$	160,498	$	5,609	$	2,638	$	168,745

Summary of Securitization Transactions

The following table summarizes the securitization transactions issued in 2011 and 2012.


(Dollars in millions)					AAA-rated bonds
Issue	Date Issued	Total Issued			Weighted Average Interest Rate	Weighted Average Life
FFELP:
2011-1	March 2011	$	812		1 month LIBOR plus 0.85%	5.5 years
2011-2	May 2011		821		1 month LIBOR plus 0.90%	5.5 years
2011-3	November 2011		812	⁽¹⁾	1 month LIBOR plus 1.25%	7.8 years

Total bonds issued in 2011		$	2,445

Total loan amount securitized in 2011		$	2,344


2012-1	January 2012	$	765		1 month LIBOR plus 0.91%	4.6 years
2012-2	March 2012		824		1 month LIBOR plus 0.70%	4.7 years
2012-3	May 2012		1,252		1 month LIBOR plus 0.65%	4.6 years
2012-4	June 2012		1,491	⁽²⁾	1 month LIBOR plus 1.10%	8.2 years
2011-3	July 2012		24		N/A (Retained B Notes sold)
2012-4	July 2012		45		N/A (Retained B Notes sold)
2012-5	July 2012		1,252		1 month LIBOR plus 0.67%	4.5 years
2012-6	September 2012		1,249		1 month LIBOR plus 0.62%	4.6 years
2012-7	November 2012		1,251		1 month LIBOR plus 0.55%	4.5 years
2012-8	December 2012		1,527		1 month LIBOR plus 0.90%	7.8 years

Total bonds issued in 2012		$	9,680

Total loan amount securitized in 2012		$	9,565


Private Education:
2011-A	April 2011	$	562		1 month LIBOR plus 1.89%	3.8 years
2011-B	June 2011		825		1 month LIBOR plus 1.80%	4.0 years
2011-C	November 2011		721		1 month LIBOR plus 2.87%	3.4 years

Total bonds issued in 2011		$	2,108

Total loan amount securitized in 2011		$	2,674


2012-A	February 2012	$	547		1 month LIBOR plus 2.17%	3.0 years
2012-B	April 2012		891		1 month LIBOR plus 2.12%	2.9 years
2012-C	May 2012		1,135		1 month LIBOR plus 1.77%	2.6 years
2012-D	July 2012		640		1 month LIBOR plus 1.69%	2.5 years
2012-E	October 2012		976		1 month LIBOR plus 1.22%	2.6 years

Total bonds issued in 2012		$	4,189

Total loan amount securitized in 2012		$	5,557

⁽¹⁾	Total size excludes subordinated tranche that was retained at issuance totaling $24 million.

⁽²⁾	Total size excludes subordinated tranche that was retained at issuance totaling $45 million.

Gains on Debt Repurchase

The following table summarizes activity related to our senior unsecured debt and ABS repurchases. “Gains on debt repurchases” is shown net of hedging-related gains and losses.


	Years Ended December 31,
(Dollars in millions)	2012		2011		2010
Debt principal repurchased	$	711	$	894	$	4,868
Gains on debt repurchases		145		38		317

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

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+ Details

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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