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Allowance for Loan Losses (Tables)
 12 Months Ended
Dec. 31, 2018
Receivables [Abstract]  
Allowance for credit losses and recorded investments in loans
Allowance for Loan Losses Metrics
 
 
 
Allowance for Loan Losses
 
 
Year Ended December 31, 2018
 
 
FFELP 
Loans
 
Private Education
Loans
 
Personal
Loans
 
Total
Allowance for Loan Losses
 
 
 
 
 
 
 
 
Beginning balance
 
$
1,132

 
$
243,715

 
$
6,628

 
$
251,475

Total provision
 
980

 
169,287

 
74,317

 
244,584

Net charge-offs:
 
 
 
 
 
 
 
 
   Charge-offs
 
(1,135
)
 
(154,701
)
 
(19,690
)
 
(175,526
)
   Recoveries
 
—

 
20,858

 
946

 
21,804

Net charge-offs
 
(1,135
)
 
(133,843
)
 
(18,744
)
 
(153,722
)
Loan sales(1)
 
—

 
(1,216
)
 
—

 
(1,216
)
Ending Balance
 
$
977

 
$
277,943

 
$
62,201

 
$
341,121

Allowance:
 
 
 
 
 
 
 
 
Ending balance: individually evaluated for impairment
 
$
—

 
$
120,110

 
$
—

 
$
120,110

Ending balance: collectively evaluated for impairment
 
$
977

 
$
157,833

 
$
62,201

 
$
221,011

Loans:
 
 
 
 
 
 
 
 
Ending balance: individually evaluated for impairment
 
$
—

 
$
1,257,856

 
$
—

 
$
1,257,856

Ending balance: collectively evaluated for impairment
 
$
846,487

 
$
19,246,609

 
$
1,190,091

 
$
21,283,187

Net charge-offs as a percentage of average loans in repayment(2)
 
0.16
%
 
1.01
%
 
2.11
%
 
 
Allowance as a percentage of the ending total loan balance
 
0.12
%
 
1.36
%
 
5.23
%
 
 
Allowance as a percentage of the ending loans in repayment(2)
 
0.15
%
 
1.90
%
 
5.23
%
 
 
Allowance coverage of net charge-offs
 
0.86

 
2.08

 
3.32

 
 
Ending total loans, gross
 
$
846,487

 
$
20,504,465

 
$
1,190,091

 
 
Average loans in repayment(2)
 
$
691,406

 
$
13,303,801

 
$
889,348

 
 
Ending loans in repayment(2)
 
$
665,807

 
$
14,666,856

 
$
1,190,091

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

 
 
Allowance for Loan Losses
 
 
Year Ended December 31, 2017
 
 
FFELP
Loans
 
Private Education
Loans
 
Personal
Loans
 
Total
Allowance for Loan Losses
 
 
 
 
 
 
 
 
Beginning balance
 
$
2,171

 
$
182,472

 
$
58

 
$
184,701

Total provision
 
(85
)
 
178,542

 
7,138

 
185,595

Net charge-offs:
 
 
 
 
 
 
 
 
   Charge-offs
 
(954
)
 
(130,063
)
 
(579
)
 
(131,596
)
   Recoveries
 
—

 
17,635

 
11

 
17,646

Net charge-offs
 
(954
)
 
(112,428
)
 
(568
)
 
(113,950
)
Loan sales(1)
 
—

 
(4,871
)
 
—

 
(4,871
)
Ending Balance
 
$
1,132

 
$
243,715

 
$
6,628

 
$
251,475

Allowance:
 
 
 
 
 
 
 
 
Ending balance: individually evaluated for impairment
 
$
—

 
$
94,682

 
$
—

 
$
94,682

Ending balance: collectively evaluated for impairment
 
$
1,132

 
$
149,033

 
$
6,628

 
$
156,793

Loans:
 
 
 
 
 
 
 
 
Ending balance: individually evaluated for impairment
 
$
—

 
$
990,351

 
$
—

 
$
990,351

Ending balance: collectively evaluated for impairment
 
$
927,660

 
$
16,441,816

 
$
400,280

 
$
17,769,756

Net charge-offs as a percentage of average loans in repayment(2)
 
0.13
%
 
1.03
%
 
0.47
%
 
 
Allowance as a percentage of the ending total loan balance
 
0.12
%
 
1.40
%
 
1.66
%
 
 
Allowance as a percentage of the ending loans in repayment(2)
 
0.15
%
 
2.00
%
 
1.66
%
 
 
Allowance coverage of net charge-offs
 
1.19

 
2.17

 
11.67

 
 
Ending total loans, gross
 
$
927,660

 
$
17,432,167

 
$
400,280

 
 
Average loans in repayment(2)
 
$
745,039

 
$
10,881,058

 
$
119,606

 
 
Ending loans in repayment(2)
 
$
746,456

 
$
12,206,033

 
$
400,280

 
 

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


 
 
 
Allowance for Loan Losses
 
 
Year Ended December 31, 2016
 
 
FFELP
Loans
 
Private Education
Loans
 
Personal
Loans
 
Total
Allowance for Loan Losses
 
 
 
 
 
 
 
 
Beginning balance
 
$
3,691

 
$
108,816

 
$
—

 
$
112,507

Total provision
 
(172
)
 
159,511

 
58

 
159,397

Net charge-offs:
 
 
 
 
 
 
 
 
   Charge-offs
 
(1,348
)
 
(90,203
)
 
—

 
(91,551
)
   Recoveries
 
—

 
10,382

 
—

 
10,382

Net charge-offs
 
(1,348
)
 
(79,821
)
 
—

 
(81,169
)
Loan sales(1)
 
—

 
(6,034
)
 
—

 
(6,034
)
Ending Balance
 
$
2,171

 
$
182,472

 
$
58

 
$
184,701

Allowance:
 
 
 
 
 
 
 
 
Ending balance: individually evaluated for impairment
 
$
—

 
$
86,930

 
$
—

 
$
86,930

Ending balance: collectively evaluated for impairment
 
$
2,171

 
$
95,542

 
$
58

 
$
97,771

Loans:
 
 
 
 
 
 
 
 
Ending balance: individually evaluated for impairment
 
$
—

 
$
612,606

 
$
—

 
$
612,606

Ending balance: collectively evaluated for impairment
 
$
1,010,908

 
$
13,639,069

 
$
12,894

 
$
14,662,871

Net charge-offs as a percentage of average loans in repayment(2)
 
0.17
%
 
0.96
%
 
—
%
 
 
Allowance as a percentage of the ending total loan balance
 
0.21
%
 
1.28
%
 
—
%
 
 
Allowance as a percentage of the ending loans in repayment(2)
 
0.28
%
 
1.88
%
 
—
%
 
 
Allowance coverage of net charge-offs
 
1.61

 
2.29

 
—

 
 
Ending total loans, gross
 
$
1,010,908

 
$
14,251,675

 
$
—

 
 
Average loans in repayment(2)
 
$
793,203

 
$
8,283,036

 
$
—

 
 
Ending loans in repayment(2)
 
$
786,332

 
$
9,709,758

 
$
—

 
 
____________
(1) 
Represents fair value adjustments on loans sold.
(2) 
Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period.
Unpaid principal balance and related allowance for TDR loans
At December 31, 2018 and 2017, 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, 2018
 
 
 
 
 
 
TDR Loans
 
$
1,280,713

 
$
1,257,856

 
$
120,110

 
 
 
 
 
 
 
December 31, 2017
 
 
 
 
 
 
TDR Loans
 
$
1,007,141

 
$
990,351

 
$
94,682
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,
 
 
2018
 
2017
 
2016
 
 
Average Recorded Investment
 
Interest Income Recognized
 
Average Recorded Investment
 
Interest Income Recognized
 
Average Recorded Investment
 
Interest Income Recognized
 
 
 
 
 
 
 
 
 
 
 
 
 
TDR Loans
 
$
1,141,993

 
$
77,670

 
$
822,145

 
$
61,119

 
$
422,527

 
$
30,700
Age analysis of past due loans delinquencies
The following table provides information regarding the loan status and aging of TDR loans.

 
 
December 31,
 
December 31,
 
 
2018
 
2017
 
 
Balance
 
%
 
Balance
 
%
TDR loans in in-school/grace/deferment(1)
 
$
69,212

 
 
 
$
51,745

 
 
TDR loans in forbearance(2)
 
69,796

 
 
 
69,652

 
 
TDR loans in repayment(3) and percentage of each status:
 
 
 
 
 
 
 
 
Loans current
 
994,411

 
88.9
%
 
774,222

 
89.1
%
Loans delinquent 31-60 days(4)
 
63,074

 
5.6

 
48,377

 
5.6

Loans delinquent 61-90 days(4)
 
36,804

 
3.3

 
28,778

 
3.3

Loans delinquent greater than 90 days(4)
 
24,559

 
2.2

 
17,577

 
2.0

Total TDR loans in repayment
 
1,118,848

 
100.0
%
 
868,954

 
100.0
%
Total TDR loans, gross
 
$
1,257,856

 
 
 
$
990,351

 
 
_____
(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 or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period.
(4) 
The period of delinquency is based on the number of days scheduled payments are contractually past due.
The following table provides information regarding the loan status of our Personal Loans.


 
 
Personal Loans
 
 
December 31,
 
 
2018
 
2017
 
 
Balance
 
%
 
Balance
 
%
Loans in repayment and percentage of each status:
 
 
 
 
 
 
 
 
Loans current
 
$
1,172,776

 
98.5
%
 
$
398,988

 
99.7
%
Loans delinquent 31-60 days(1)
 
6,722

 
0.6

 
761

 
0.2

Loans delinquent 61-90 days(1)
 
5,416

 
0.5

 
340

 
0.1

Loans delinquent greater than 90 days(1)
 
5,177

 
0.4

 
191

 
—

Total Personal Loans in repayment
 
1,190,091

 
100.0
%
 
400,280

 
100.0
%
Total Personal Loans, gross
 
1,190,091

 
 
 
400,280

 
 
Personal Loans deferred origination costs and unamortized premium/(discount)
 
297

 
 
 
—

 
 
Total Personal Loans
 
1,190,388

 
 
 
400,280

 
 
Personal Loans allowance for losses
 
(62,201
)
 
 
 
(6,628
)
 
 
Personal Loans, net
 
$
1,128,187

 
 
 
$
393,652

 
 
Delinquencies as a percentage of Personal Loans in repayment
 
 
 
1.5
%
 
 
 
0.3
%
_______
(1) 
The period of delinquency is based on the number of days scheduled payments are contractually past due.
  ___________ 
(1) 
Balance represents gross Personal Loans.
(2) 
Number of months in active repayment for which a scheduled payment was due.



Private Education Loan Delinquencies


The following table provides information regarding the loan status of our Private Education Loans. Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period.

 
 
Private Education Loans
 
 
December 31,
 
 
2018
 
2017
 
2016
 
 
Balance
 
%
 
Balance
 
%
 
Balance
 
%
Loans in-school/grace/deferment(1)
 
$
5,260,445

 
 
 
$
4,757,732

 
 
 
$
4,189,955

 
 
Loans in forbearance(2)
 
577,164

 
 
 
468,402

 
 
 
351,962

 
 
Loans in repayment and percentage of each status:
 
 
 
 
 
 
 
 
 
 
 
 
Loans current
 
14,289,705

 
97.4
%
 
11,911,128

 
97.6
%
 
9,509,394

 
97.9
%
Loans delinquent 31-60 days(3)
 
231,216

 
1.6

 
179,002

 
1.5

 
124,773

 
1.3

Loans delinquent 61-90 days(3)
 
95,105

 
0.7

 
78,292

 
0.6

 
51,423

 
0.5

Loans delinquent greater than 90 days(3)
 
50,830

 
0.3

 
37,611

 
0.3

 
24,168

 
0.3

Total Private Education Loans in repayment
 
14,666,856

 
100.0
%
 
12,206,033

 
100.0
%
 
9,709,758

 
100.0
%
Total Private Education Loans, gross
 
20,504,465

 
 
 
17,432,167

 
 
 
14,251,675

 
 
Private Education Loans deferred origination costs and unamortized premium/(discount)
 
68,321

 
 
 
56,378

 
 
 
44,206

 
 
Total Private Education Loans
 
20,572,786

 
 
 
17,488,545

 
 
 
14,295,881

 
 
Private Education Loans allowance for losses
 
(277,943
)
 
 
 
(243,715
)
 
 
 
(182,472
)
 
 
Private Education Loans, net
 
$
20,294,843

 
 
 
$
17,244,830

 
 
 
$
14,113,409

 
 
Percentage of Private Education Loans in repayment
 
 
 
71.5
%
 
 
 
70.0
%
 
 
 
68.1
%
Delinquencies as a percentage of Private Education Loans in repayment
 
 
 
2.6
%
 
 
 
2.4
%
 
 
 
2.1
%
Loans in forbearance as a percentage of Private Education Loans in repayment and forbearance
 
 
 
3.8
%
 
 
 
3.7
%
 
 
 
3.5
%

(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.
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,
 
 
2018
 
2017
 
2016
 
 
Modified Loans(1)
 
Charge-offs
 
Payment-Default
 
Modified Loans(1)
 
Charge-offs
 
Payment-Default
 
Modified Loans(1)
 
Charge-offs
 
Payment-Default
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TDR Loans
 
$
394,639

 
$
52,823

 
$
90,231

 
$
498,812

 
$
48,469

 
$
92,532

 
$
398,324

 
$
24,628

 
$
64,811


_______
(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 Personal Loan portfolio stratified by key credit quality indicators.

 
 
Personal Loans
 
 
Credit Quality Indicators
 
 
December 31, 2018
 
December 31, 2017
Credit Quality Indicators:
 
Balance(1)
 
% of Balance
 
Balance(1)
 
% of Balance
 
 
 
 
 
 
 
 
 
FICO at Original Approval:
 
 
 
 
 
 
 
 
Less than 670
 
$
77,702

 
7
%
 
$
32,156

 
8
%
670-699
 
339,053

 
28

 
114,731

 
29

700-749
 
554,700

 
47

 
182,025

 
45

Greater than or equal to 750
 
218,636

 
18

 
71,368

 
18

Total
 
$
1,190,091

 
100
%
 
$
400,280

 
100
%
 
 
 
 
 
 
 
 
 
Seasoning(2):
 
 
 
 
 
 
 
 
0-12 payments
 
$
1,008,758

 
85
%
 
$
400,280

 
100
%
13-24 payments
 
181,333

 
15

 
—

 
—

25-36 payments
 
—

 
—

 
—

 
—

37-48 payments
 
—

 
—

 
—

 
—

More than 48 payments
 
—

 
—

 
—

 
—

Total
 
$
1,190,091

 
100
%
 
$
400,280

 
100
%
  ___________ 
(1) 
Balance represents gross Personal Loans.
(2) 
Number of months in active repayment for which a scheduled payment was due.


The following table highlights the gross principal balance of our Private Education Loan portfolio stratified by key credit quality indicators.
 
 
December 31, 2018
 
December 31, 2017
Credit Quality Indicators:
 
Balance(1)
 
% of Balance
 
Balance(1)
 
% of Balance
 
 
 
 
 
 
 
 
 
Cosigners:
 
 
 
 
 
 
 
 
With cosigner
 
$
18,378,398

 
90
%
 
$
15,658,539

 
90
%
Without cosigner
 
2,126,067

 
10

 
1,773,628

 
10

Total
 
$
20,504,465

 
100
%
 
$
17,432,167

 
100
%
 
 
 
 
 
 
 
 
 
FICO at Original Approval(2):
 
 
 
 
 
 
 
 
Less than 670
 
$
1,409,789

 
7
%
 
$
1,153,591

 
6
%
670-699
 
3,106,983

 
15

 
2,596,959

 
15

700-749
 
6,759,721

 
33

 
5,714,554

 
33

Greater than or equal to 750
 
9,227,972

 
45

 
7,967,063

 
46

Total
 
$
20,504,465

 
100
%
 
$
17,432,167

 
100
%
 
 
 
 
 
 
 
 
 
FICO-Refreshed(2)(3):
 
 
 
 
 
 
 
 
Less than 670
 
$
2,416,979

 
12
%
 
$
1,964,962

 
11
%
670-699
 
2,504,467

 
12

 
2,138,379

 
12

700-749
 
6,144,489

 
30

 
5,220,245

 
30

Greater than or equal to 750
 
9,438,530

 
46

 
8,108,581

 
47

Total
 
$
20,504,465

 
100
%
 
$
17,432,167

 
100
%
 
 
 
 
 
 
 
 
 
Seasoning(4):
 
 
 
 
 
 
 
 
1-12 payments
 
$
4,969,334

 
24
%
 
$
4,256,592

 
24
%
13-24 payments
 
3,481,235

 
17

 
3,229,465

 
19

25-36 payments
 
2,741,954

 
13

 
2,429,238

 
14

37-48 payments
 
1,990,049

 
10

 
1,502,327

 
9

More than 48 payments
 
2,061,448

 
10

 
1,256,813

 
7

Not yet in repayment
 
5,260,445

 
26

 
4,757,732

 
27

Total
 
$
20,504,465

 
100
%
 
$
17,432,167

 
100
%

     
(1) 
Balance represents gross Private Education Loans.
(2) 
Represents the higher credit score of the cosigner or the borrower.
(3) 
Represents the FICO score updated as of the fourth-quarter 2018.
(4) 
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.
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 Loans
 
 
Accrued Interest Receivable
 
 
Total Interest
Receivable
 
Greater Than
90 Days
Past Due
 
Allowance for
Uncollectible
Interest
 
 
 
 
 
 
 
December 31, 2018
 
$
1,168,823

 
$
1,920

 
$
6,322

December 31, 2017
 
$
951,138

 
$
1,372

 
$
4,664