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Borrowings (Tables)

12 Months Ended

Dec. 31, 2019

The following table summarizes our secured borrowings at December 31, 2019 and 2018.



	December 31, 2019						December 31, 2018
	Short-Term		Long-Term		Total		Short-Term		Long-Term		Total
Unsecured borrowings:
Unsecured debt (fixed-rate)	$	—	$	198,159	$	198,159	$	—	$	197,348	$	197,348
Total unsecured borrowings	—		198,159		198,159		—		197,348		197,348

Secured borrowings:
Private Education Loan term securitizations:
Fixed-rate	—		2,629,902		2,629,902		—		2,284,347		2,284,347
Variable-rate	—		1,525,976		1,525,976		—		1,802,609		1,802,609
Total Private Education Loan term securitizations	—		4,155,878		4,155,878		—		4,086,956		4,086,956
Secured Borrowing Facility	289,230		—		289,230		—		—		—
Total secured borrowings	289,230		4,155,878		4,445,108		—		4,086,956		4,086,956

Total	$	289,230	$	4,354,037	$	4,643,267	$	—	$	4,284,304	$	4,284,304

Short-term borrowings

The following table summarizes the outstanding short-term borrowings, the weighted average interest rates at the end of the period and the related average balance and weighted average interest rates during the period. The Secured Borrowing Facility’s contractual maturity is two years from the date of inception or renewal (one-year revolving period plus a one-year amortization period); however, we classify advances under our Secured Borrowing Facility as short-term borrowings because it is our intention to repay those advances within one year.



	December 31, 2019				Year Ended December 31, 2019
	Ending Balance		Weighted Average Interest Rate		Average Balance		Weighted Average Interest Rate
Short-term borrowings:
Secured Borrowing Facility	$	289,230	1.74	%	$	102,639	4.91	%
Maximum outstanding at any month end	$	297,800



	December 31, 2018				Year Ended December 31, 2018
	Ending Balance		Weighted Average Interest Rate		Average Balance		Weighted Average Interest Rate
Short-term borrowings:
Secured Borrowing Facility	$	—	—	%	$	52,603	8.91	%
Maximum outstanding at any month end	$	300,000

Long-term borrowings

The following table summarizes the outstanding long-term borrowings, the weighted average interest rates at the end of the period and the related average balance during the period. Rates reflect stated interest of borrowings and related discounts and premiums. The long-term borrowings amortize over time and mature serially from 2023 to 2040.



	December 31, 2019				Year Ended December 31, 2019		December 31, 2018				Year Ended December 31, 2018
	Ending Balance		Weighted Average Interest Rate		Average Balance		Ending Balance		Weighted Average Interest Rate		Average Balance
Floating-rate borrowings	$	1,525,976	2.61	%	$	1,731,675	$	1,802,609	3.26	%	$	1,720,540
Fixed-rate borrowings	2,828,061		3.31		2,752,183		2,481,695		3.28		2,172,993
Total long-term borrowings	$	4,354,037	3.07	%	$	4,483,858	$	4,284,304	3.27	%	$	3,893,533

Schedule of Maturities of Long-term Debt

As of December 31, 2019, the stated maturity and maturity to call date of our brokered deposits and borrowings are summarized below.



	December 31, 2019
	Stated Maturity⁽¹⁾								Maturity to Call Date⁽²⁾
	Brokered Deposits		Unsecured Debt		Secured Borrowings		Total		Brokered Deposits		Unsecured Debt		Secured Borrowings		Total
Year of Maturity
2020	$	2,650,654	$	—	$	565,805	$	3,216,459	$	2,650,654	$	—	$	565,805	$	3,216,459
2021	3,691,692		—		507,319		4,199,011		3,691,692		—		507,319		4,199,011
2022	2,690,974		200,000		512,718		3,403,692		2,690,974		200,000		512,718		3,403,692
2023	1,270,385		—		534,692		1,805,077		1,270,385		—		534,692		1,805,077
2024	499,112		—		529,471		1,028,583		499,112		—		529,471		1,028,583
2025 and after	92,822		—		1,688,473		1,781,295		92,822		—		1,688,473		1,781,295
	10,895,639		200,000		4,338,478		15,434,117		10,895,639		200,000		4,338,478		15,434,117
Hedge accounting adjustments	45,887		—		—		45,887		45,887		—		—		45,887
Total	$	10,941,526	$	200,000	$	4,338,478	$	15,480,004	$	10,941,526	$	200,000	$	4,338,478	$	15,480,004

____________

⁽¹⁾We view our securitization trust debt as long-term based on the contractual maturity dates and projected principal paydowns based on our current estimates regarding loan prepayment speeds. The projected principal paydowns in year 2020 include $566 million related to the securitization trust debt.

⁽²⁾The aggregate principal amount of debt that matures in each period is $3.2 billion in 2020, $4.2 billion in 2021, $3.4 billion in 2022, $1.8 billion in 2023, $1.0 billion in 2024, and $1.8 billion in 2025 and after.

Secured financing

Secured Financings

The following summarizes our secured financings issued in 2018 and 2019:



Issue	Date Issued	Total Issued		Weighted Average Cost of Funds⁽¹⁾	Weighted Average Life (in years)

Private Education:

2018-A	March 2018	$	670,000	1-month LIBOR plus 0.78%	4.43
2018-B	June 2018	686,500		1-month LIBOR plus 0.76%	4.40
2018-C	September 2018	544,000		1-month LIBOR plus 0.77%	4.32
Total notes issued in 2018		$	1,900,500

Total loan and accrued interest amount securitized at inception in 2018		$	2,101,644

2019-A	March 2019	$	453,000	1-month LIBOR plus 0.92%	4.26
2019-B	June 2019	657,000		1-month LIBOR plus 1.01%	4.41
Total notes issued in 2019		$	1,110,000

Total loan and accrued interest amount securitized at inception in 2019		$	1,208,963

____________

⁽¹⁾ Represents LIBOR equivalent cost of funds for floating and fixed-rate bonds, excluding issuance costs.

Schedule of variable interest entities



	December 31, 2019
	Debt Outstanding						Carrying Amount of Assets Securing Debt Outstanding
	Short-Term		Long-Term		Total		Loans		Restricted Cash		Other Assets⁽¹⁾		Total
Secured borrowings:
Private Education Loan term securitizations	$	—	$	4,155,878	$	4,155,878	$	5,246,986	$	145,760	$	333,173	$	5,725,919
Secured Borrowing Facility	289,230		—		289,230		339,666		8,803		23,832		372,301
Total	$	289,230	$	4,155,878	$	4,445,108	$	5,586,652	$	154,563	$	357,005	$	6,098,220



	December 31, 2018
	Debt Outstanding						Carrying Amount of Assets Securing Debt Outstanding
	Short-Term		Long-Term		Total		Loans		Restricted Cash		Other Assets⁽¹⁾		Total
Secured borrowings:
Private Education Loan term securitizations	$	—	$	4,086,956	$	4,086,956	$	5,030,837	$	113,431	$	326,570	$	5,470,838
Secured Borrowing Facility	—		—		—		—		—		157		157
Total	$	—	$	4,086,956	$	4,086,956	$	5,030,837	$	113,431	$	326,727	$	5,470,995

________

⁽¹⁾Other assets primarily represent accrued interest receivable.

- 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.

+ References

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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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