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Allowance for Loan Losses (Tables)
 12 Months Ended
Dec. 31, 2015
Receivables [Abstract]  
Allowance for Credit Losses and Recorded Investments in Loans
Allowance for Loan Losses Metrics
 
 
 
Allowance for Loan Losses
 
 
Year Ended December 31, 2015
 
 
FFELP Loans
 
Private Education
Loans
 
Total
Allowance for Loan Losses
 
 
 
 
 
 
Beginning balance
 
$
5,268

 
$
78,574

 
$
83,842

Total provision
 
1,005

 
87,344

 
88,349

Net charge-offs:
 
 
 
 
 
 
   Charge-offs
 
(2,582
)
 
(55,357
)
 
(57,939
)
   Recoveries
 
—

 
5,820

 
5,820

Net charge-offs
 
(2,582
)
 
(49,537
)
 
(52,119
)
Loan sales(1)
 
—

 
(7,565
)
 
(7,565
)
Ending Balance
 
$
3,691

 
$
108,816

 
$
112,507

Allowance:
 
 
 
 
 
 
Ending balance: individually evaluated for impairment
 
$
—

 
$
43,480

 
$
43,480

Ending balance: collectively evaluated for impairment
 
$
3,691

 
$
65,336

 
$
69,027

Loans:
 
 
 
 
 
 
Ending balance: individually evaluated for impairment
 
$
—

 
$
265,831

 
$
265,831

Ending balance: collectively evaluated for impairment
 
$
1,115,663

 
$
10,330,606

 
$
11,446,269

Net charge-offs as a percentage of average loans in repayment(2)
 
0.30
%
 
0.82
%
 
 
Allowance as a percentage of the ending total loan balance
 
0.33
%
 
1.03
%
 
 
Allowance as a percentage of the ending loans in repayment(2)
 
0.45
%
 
1.57
%
 
 
Allowance coverage of net charge-offs
 
1.43

 
2.20

 
 
Ending total loans, gross
 
$
1,115,663

 
$
10,596,437

 
 
Average loans in repayment(2)
 
$
857,359

 
$
6,031,741

 
 
Ending loans in repayment(2)
 
$
813,815

 
$
6,927,266

 
 
____________
(1) Represents fair value adjustments on loans sold.
(2) Loans in repayment include loans on which borrowers are making interest only and fixed payments as well as loans that have entered full principal and interest repayment status.

 
 
Allowance for Loan Losses
 
 
Year Ended December 31, 2014
 
 
FFELP Loans
 
Private Education
Loans
 
Total
Allowance for Loan Losses
 
 
 
 
 
 
Beginning balance
 
$
6,318

 
$
61,763

 
$
68,081

Total provision
 
1,946

 
83,583

 
85,529

Net charge-offs:
 
 
 
 
 
 
   Charge-offs(1)
 
(2,996
)
 
(14,442
)
 
(17,438
)
   Recoveries
 
—

 
1,155

 
1,155

Net charge-offs
 
(2,996
)
 
(13,287
)
 
(16,283
)
Loan sales(2)
 
—

 
(53,485
)
 
(53,485
)
Ending Balance
 
$
5,268

 
$
78,574

 
$
83,842

Allowance:
 
 
 
 
 
 
Ending balance: individually evaluated for impairment
 
$
—

 
$
9,815

 
$
9,815

Ending balance: collectively evaluated for impairment
 
$
5,268

 
$
68,759

 
$
74,027

Loans:
 
 
 
 
 
 
Ending balance: individually evaluated for impairment
 
$
—

 
$
59,402

 
$
59,402

Ending balance: collectively evaluated for impairment
 
$
1,264,807

 
$
8,251,974

 
$
9,516,781

Net charge-offs as a percentage of average loans in repayment(3)
 
0.31
%
 
0.30
%
 
 
Allowance as a percentage of the ending total loan balance
 
0.42
%
 
0.95
%
 
 
Allowance as a percentage of the ending loans in repayment(3)
 
0.57
%
 
1.53
%
 
 
Allowance coverage of net charge-offs
 
1.76

 
5.91

 
 
Ending total loans, gross
 
$
1,264,807

 
$
8,311,376

 
 
Average loans in repayment(3)
 
$
972,390

 
$
4,495,709

 
 
Ending loans in repayment(3)
 
$
926,891

 
$
5,149,215

 
 

    ____________
(1) 
Prior to the Spin-Off, we sold all loans greater than 90 days delinquent to an entity that is now a subsidiary of Navient Corporation, prior to being charged-off. Consequently, many of the pre-Spin-Off, historical credit indicators and period-over-period trends are not comparable and may not be indicative of future performance.
(2) 
Represents fair value adjustments on loans sold.
(3) 
Loans in repayment include loans on which borrowers are making interest only and fixed payments as well as loans that have entered full principal and interest repayment status.


 
 
 
Allowance for Loan Losses
 
 
Year Ended December 31, 2013
 
 
FFELP Loans
 
Private Education
Loans
 
Total
Allowance for Loan Losses
 
 
 
 
 
 
Beginning balance
 
$
3,971

 
$
65,218

 
$
69,189

Total provision
 
4,384

 
64,955

 
69,339

Net charge-offs:
 
 
 
 
 
 
   Charge-offs(1)
 
(2,037
)
 
—

 
(2,037
)
   Recoveries
 
—

 
—

 
—

Net charge-offs
 
(2,037
)
 
—

 
(2,037
)
Loan sales(2)
 
—

 
(68,410
)
 
(68,410
)
Ending Balance
 
$
6,318

 
$
61,763

 
$
68,081

Allowance:
 
 
 
 
 
 
Ending balance: individually evaluated for impairment
 
$
—

 
$
—

 
$
—

Ending balance: collectively evaluated for impairment
 
$
6,318

 
$
61,763

 
$
68,081

Loans:
 
 
 
 
 
 
Ending balance: individually evaluated for impairment
 
$
—

 
$
—

 
$
—

Ending balance: collectively evaluated for impairment
 
$
1,426,972

 
$
6,563,342

 
$
7,990,314

Net charge-offs as a percentage of average loans in repayment(3)
 
0.23
%
 
—
%
 
 
Allowance as a percentage of the ending total loan balance
 
0.44
%
 
0.94
%
 
 
Allowance as a percentage of the ending loans in repayment(3)
 
0.62
%
 
1.55
%
 
 
Allowance coverage of net charge-offs
 
3.10

 
—

 
 
Ending total loans, gross
 
$
1,426,972

 
$
6,563,342

 
 
Average loans in repayment(3)
 
$
870,460

 
$
3,509,502

 
 
Ending loans in repayment(3)
 
$
1,023,471

 
$
3,972,317

 
 
____________
(1) 
Prior to the Spin-Off, we sold all loans greater than 90 days delinquent to an entity that is now a subsidiary of Navient Corporation, prior to being charged-off. Consequently, many of the pre-Spin-Off, historical credit indicators and period-over-period trends are not comparable and may not be indicative of future performance.
(2) 
Represents fair value adjustments on loans sold.
(3) 
Loans in repayment include loans on which borrowers are making interest only and fixed payments as well as loans that have entered full principal and interest repayment status.
Recorded Investment, Unpaid Principal Balance and Related Allowance for TDR Loans
At December 31, 2015 and 2014, all of our TDR loans had a related allowance recorded. The following table provides the recorded investment, unpaid principal balance and related allowance for our TDR loans.
 
Recorded Investment
 
Unpaid Principal Balance
 
Allowance
 
 
 
 
 
 
December 31, 2015
 
 
 
 
 
TDR Loans
$
269,628

 
$
265,831

 
$
43,480

 
 
 
 
 
 
December 31, 2014
 
 
 
 
 
TDR Loans
$
60,278

 
$
59,402

 
$
9,815
Average recorded investment and interest income recognized
The following table provides the average recorded investment and interest income recognized for our TDR loans.
 
Years Ended December 31,
 
2015
 
2014
 
Average Recorded Investment
 
Interest Income Recognized
 
Average Recorded Investment
 
Interest Income Recognized
 
 
 
 
 
 
 
 
TDR Loans
$
174,087

 
$
14,081

 
$
23,290

 
$
1,105
Modified Loans Accounts For Troubled Debt Restructuring
The following table provides the amount of modified loans (which includes forbearance and reductions in interest rates) that became TDRs in the periods presented. Additionally, for the periods presented, the table summarizes charge-offs occurring in the TDR portfolio, as well as TDRs for which a payment default occurred in the relevant period presented and within 12 months of the loan first being designated as a TDR. We define payment default as 60 days past due for this disclosure.

 
Years Ended December 31,
 
2015
 
2014
 
Modified Loans(1)
 
Charge-offs
 
Payment-Default
 
Modified Loans(1)
 
Charge-offs
 
Payment-Default
 
 
 
 
 
 
 
 
 
 
 
 
TDR Loans
$
244,890

 
$
10,877

 
$
51,602

 
$
59,402

 
$
948

 
$
325


_______
(1) Represents the principal balance of loans that have been modified during the period and resulted in a TDR.
Private Education Loan Portfolio Stratified by Key Credit Quality Indicators
The following table highlights the gross principal balance of our Private Education Loan portfolio stratified by key credit quality indicators.

 
 
December 31, 2015
 
December 31, 2014
Credit Quality Indicators:
 
Balance(1)
 
% of Balance
 
Balance(1)
 
% of Balance
 
 
 
 
 
 
 
 
 
Cosigners:
 
 
 
 
 
 
 
 
With cosigner
 
$
9,515,136

 
90
%
 
$
7,465,339

 
90
%
Without cosigner
 
1,081,301

 
10

 
846,037

 
10

Total
 
$
10,596,437

 
100
%
 
$
8,311,376

 
100
%
 
 
 
 
 
 
 
 
 
FICO at Origination:
 
 
 
 
 
 
 
 
Less than 670
 
$
700,779

 
7
%
 
$
558,801

 
7
%
670-699
 
1,554,959

 
15

 
1,227,860

 
15

700-749
 
3,403,823

 
32

 
2,626,238

 
32

Greater than or equal to 750
 
4,936,876

 
46

 
3,898,477

 
46

Total
 
$
10,596,437

 
100
%
 
$
8,311,376

 
100
%
 
 
 
 
 
 
 
 
 
Seasoning(2):
 
 
 
 
 
 
 
 
1-12 payments
 
$
3,059,901

 
29
%
 
$
2,373,117

 
29
%
13-24 payments
 
2,096,412

 
20

 
1,532,042

 
18

25-36 payments
 
1,084,818

 
10

 
755,143

 
9

37-48 payments
 
513,125

 
5

 
411,493

 
5

More than 48 payments
 
414,217

 
4

 
212,438

 
3

Not yet in repayment
 
3,427,964

 
32

 
3,027,143

 
36

Total
 
$
10,596,437

 
100
%
 
$
8,311,376

 
100
%

___________     
(1) 
Balance represents gross Private Education Loans.
(2) 
Number of months in active repayment (whether interest only payment, fixed payment, or full principal and interest payment status) for which a scheduled payment was due
Age Analysis of Past Due Loans Delinquencies
 The following table provides information regarding the loan status of our Private Education Loans and the aging of our past due Private Education Loans. Loans in repayment include loans on which borrowers are making interest only and fixed payments as well as loans that have entered full principal and interest repayment status.

 
 
Private Education Loan Delinquencies
 
 
December 31,
 
 
2015
 
2014
 
2013
 
 
Balance
 
%
 
Balance
 
%
 
Balance
 
%
Loans in-school/grace/deferment(1)
 
$
3,427,964

 
 
 
$
3,027,143

 
 
 
$
2,574,711

 
 
Loans in forbearance(2)
 
241,207

 
 
 
135,018

 
 
 
16,314

 
 
Loans in repayment and percentage of each status:
 
 
 
 
 
 
 
 
 
 
 
 
Loans current
 
6,773,095

 
97.8
%
 
5,045,600

 
98.0
%
 
3,933,143

 
99.0
%
Loans delinquent 31-60 days(3)
 
91,129

 
1.3

 
63,873

 
1.2

 
28,854

 
0.7

Loans delinquent 61-90 days(3)
 
42,048

 
0.6

 
29,041

 
0.6

 
10,280

 
0.3

Loans delinquent greater than 90 days(3)
 
20,994

 
0.3

 
10,701

 
0.2

 
40

 
—

Total Private Education Loans in repayment
 
6,927,266

 
100.0
%
 
5,149,215

 
100.0
%
 
3,972,317

 
100.0
%
Total Private Education Loans, gross
 
10,596,437

 
 
 
8,311,376

 
 
 
6,563,342

 
 
Private Education Loans deferred origination costs
 
27,884

 
 
 
13,845

 
 
 
5,063

 
 
Total Private Education Loans
 
10,624,321

 
 
 
8,325,221

 
 
 
6,568,405

 
 
Private Education Loans allowance for losses
 
(108,816
)
 
 
 
(78,574
)
 
 
 
(61,763
)
 
 
Private Education Loans, net
 
$
10,515,505

 
 
 
$
8,246,647

 
 
 
$
6,506,642

 
 
Percentage of Private Education Loans in repayment(4)
 
 
 
65.4
%
 
 
 
62.0
%
 
 
 
60.5
%
Delinquencies as a percentage of Private Education Loans in repayment(4)
 
 
 
2.2
%
 
 
 
2.0
%
 
 
 
1.0
%
Loans in forbearance as a percentage of loans in repayment and forbearance(4)
 
 
 
3.4
%
 
 
 
2.6
%
 
 
 
0.4
%

(1) 
Deferment includes customers who have returned to school or are engaged in other permitted educational activities and are not yet required to make payments on the loans (e.g., residency periods for medical students or a grace period for bar exam preparation).
(2) 
Loans for customers who have requested extension of grace period generally during employment transition or who have temporarily ceased making full payments due to hardship or other factors, consistent with established loan program servicing policies and procedures.
(3) 
The period of delinquency is based on the number of days scheduled payments are contractually past due.
(4) 
Loans in repayment include loans on which borrowers are making interest only and fixed payments as well as loans that have entered full principal and interest repayment status.
 

The following table provides information regarding the loan status and aging of TDR loans.

 
 
December 31,
 
December 31,
 
 
2015
 
2014
 
 
Balance
 
%
 
Balance
 
%
TDR loans in in-school/grace/deferment(1)
 
$
6,869

 
 
 
$
2,915

 
 
TDR loans in forbearance(2)
 
43,756

 
 
 
18,620

 
 
TDR loans in repayment(3) and percentage of each status:
 
 
 
 
 
 
 
 
Loans current
 
185,936

 
86.4
%
 
34,554

 
91.2
%
Loans delinquent 31-60 days(4)
 
14,948

 
6.9

 
1,953

 
5.2

Loans delinquent 61-90 days(4)
 
9,239

 
4.3

 
983

 
2.6

Loans delinquent greater than 90 days(4)
 
5,083

 
2.4

 
377

 
1.0

Total TDR loans in repayment
 
215,206

 
100.0
%
 
37,867

 
100.0
%
Total TDR loans, gross
 
$
265,831

 
 
 
$
59,402

 
 
_____
(1) 
Deferment includes customers who have returned to school or are engaged in other permitted educational activities and are not yet required to make payments on the loans (e.g., residency periods for medical students or a grace period for bar exam preparation).
(2) 
Loans for customers who have requested extension of grace period generally during employment transition or who have temporarily ceased making full payments due to hardship or other factors, consistent with established loan program servicing policies and procedures.
(3) 
Loans in repayment include loans on which borrowers are making interest only and fixed payments as well as loans that have entered full principal and interest repayment status.
(4) 
The period of delinquency is based on the number of days scheduled payments are contractually past due.
Accrued Interest Receivable
The following table provides information regarding accrued interest receivable on our Private Education Loans. The table also discloses the amount of accrued interest on loans greater than 90 days past due as compared to our allowance for uncollectible interest. The allowance for uncollectible interest exceeds the amount of accrued interest on our 90 days past due portfolio for all periods presented.
 
 
Private Education Loan
 
 
Accrued Interest Receivable
 
 
Total Interest
Receivable
 
Greater Than
90 Days
Past Due
 
Allowance for Uncollectible Interest
 
 
 
 
 
 
 
December 31, 2015
 
$
542,919

 
$
791

 
$
3,332

December 31, 2014
 
$
445,710

 
$
443

 
$
3,517