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Borrowings
 12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
Borrowings Borrowings
Outstanding borrowings consist of unsecured debt and secured borrowings issued through our term ABS program and our Secured Borrowing Facility. The issuing entities for those secured borrowings are VIEs and are consolidated for accounting purposes. The following table summarizes our secured borrowings at December 31, 2021 and 2020.

As of December 31,
(dollars in thousands)		20212020
Short-TermLong-TermTotalShort-TermLong-TermTotal
Unsecured borrowings:
Unsecured debt (fixed-rate)$— $986,138 $986,138 $— $692,879 $692,879 
Total unsecured borrowings— 986,138 986,138 — 692,879 692,879 
Secured borrowings:
Private Education Loan term securitizations:
Fixed-rate— 3,897,996 3,897,996 — 3,261,233 3,261,233 
Variable-rate— 1,046,856 1,046,856 — 1,235,105 1,235,105 
Total Private Education Loan term securitizations— 4,944,852 4,944,852 — 4,496,338 4,496,338 
Secured Borrowing Facility— — — — — — 
Total secured borrowings— 4,944,852 4,944,852 — 4,496,338 4,496,338 
Total $— $5,930,990 $5,930,990 $— $5,189,217 $5,189,217 

Short-term Borrowings
On July 30, 2021, we amended our Secured Borrowing Facility to extend the maturity of the facility. The amount that can be borrowed under the facility is $2 billion. We hold 100 percent of the residual interest in the Secured Borrowing Facility trust. Under the Secured Borrowing Facility, we incur financing costs on unused borrowing capacity and on outstanding advances. The amended Secured Borrowing Facility extended the revolving period, during which we may borrow, repay, and reborrow funds, until May 17, 2022. The scheduled amortization period, during which amounts outstanding under the Secured Borrowing Facility must be repaid, ends on May 17, 2023 (or earlier, if certain material adverse events occur). At December 31, 2021, and December 31, 2020, there were no secured borrowings outstanding under the Secured Borrowing Facility.
Short-term borrowings have a remaining term to maturity of one year or less. The following table summarizes the outstanding short-term borrowings, the weighted average interest rates at the end of the period, and the related average balance and weighted average interest rates during the period. The Secured Borrowing Facility’s contractual maturity is two years from the date of inception or renewal (one-year revolving period plus a one-year amortization period); however, we classify advances under our Secured Borrowing Facility as short-term borrowings because it is our intention to repay those advances within one year. The 5.125 percent unsecured Senior Notes due April 5, 2022, which we redeemed in the fourth quarter of 2021, were classified as short-term borrowings in April of 2021, and are included in the table below.
December 31, 2021Year Ended
December 31, 2021
(Dollars in thousands)Ending BalanceWeighted Average
Interest Rate		Average BalanceWeighted Average
Interest Rate
Short-term borrowings:
Unsecured Debt$— — %$122,396 5.78 %
Secured Borrowing Facility— — — — 
Total short-term borrowings$— — %$122,396 5.78 %
Maximum outstanding at any month end$199,651 
December 31, 2020Year Ended
December 31, 2020
(Dollars in thousands)Ending BalanceWeighted Average
Interest Rate		Average Balance
Weighted Average
Interest Rate(1)
Short-term borrowings:
Secured Borrowing Facility$— — %$45,820 24.99 %
Maximum outstanding at any month end$289,230 
    
(1)The interest for the non-use fees is calculated based on the Secured Borrowing Facility’s maximum borrowing limit, which was $2 billion in both 2021 and 2020.

Long-term Borrowings
Unsecured Debt
On November 15, 2021, we redeemed our $200 million, 5.125 percent Senior Notes due April 5, 2022. The Senior Notes were redeemed at 101.39 percent of their principal amount, plus the accrued and unpaid interest thereon through the redemption date. As a result of the redemption, we recognized a $3 million loss on the transaction.
On October 29, 2020, we issued at par an unsecured debt offering of $500 million of 4.20 percent Senior Notes due October 29, 2025. At December 31, 2021, the outstanding balance was $495 million.
On November 1, 2021, we issued an unsecured debt offering of $500 million, 3.125 percent Senior Notes due November 2, 2026, at a price of 99.43 percent. At December 31, 2021, the outstanding balance was $491 million.
Secured Financings
2021 Transactions
On May 19, 2021, we executed our $531 million SMB Private Education Loan Trust 2021-B term ABS transaction, which was accounted for as a secured financing. We sold $531 million of notes to third-parties and retained a 100 percent interest in the residual certificates issued in the securitization, raising approximately $529 million of gross proceeds. The Class A and Class B notes had a weighted average life of 4.26 years and priced at a weighted average LIBOR equivalent cost of 1-month LIBOR plus 0.77 percent. At December 31, 2021, $496 million of our Private Education Loans, including $467 million of principal and $29 million in capitalized interest, were encumbered because of this transaction.
On August 18, 2021, we executed our $527 million SMB Private Education Loan Trust 2021-D term ABS transaction, which was accounted for as a secured financing. We sold $527 million of notes to third-parties and retained a 100 percent interest in the residual certificates issued in the securitization, raising approximately $525 million of gross proceeds. The Class A and Class B notes had a weighted average life of 4.22 years and priced at a weighted average LIBOR equivalent cost of 1-month LIBOR plus 0.69 percent. At December 31, 2021, $515 million of our Private Education Loans, including $485 million of principal and $30 million in capitalized interest, were encumbered because of this transaction.
On November 9, 2021, we executed our $534 million SMB Private Education Loan Trust 2021-E term ABS transaction, which was accounted for as a secured financing. We sold $534 million of notes to third-parties and retained a 100 percent interest in the residual certificates issued in the securitization, raising approximately $532 million of gross proceeds. The Class A and Class B notes had a weighted average life of 4.15 years and priced at a weighted average
LIBOR equivalent cost of 1-month LIBOR plus 0.69 percent. At December 31, 2021, $533 million of our Private Education Loans, including $502 million of principal and $31 million in capitalized interest, were encumbered because of this transaction.
2020 Transactions
On February 12, 2020, we executed our $636 million SMB Private Education Loan Trust 2020-A term ABS transaction, which was accounted for as a secured financing. We sold $636 million of notes to third-parties and retained a 100 percent interest in the residual certificates issued in the securitization, raising approximately $634 million of gross proceeds. The Class A and Class B notes had a weighted average life of 4.18 years and priced at a weighted average LIBOR equivalent cost of 1-month LIBOR plus 0.88 percent. At December 31, 2021, $496 million of our Private Education Loans, including $469 million of principal and $27 million in capitalized interest, were encumbered because of this transaction.
On August 12, 2020, we executed our $707 million SMB Private Education Loan Trust 2020-B term ABS transaction, which was accounted for as a secured financing. We sold $707 million of notes to third-parties and retained a 100 percent interest in the residual certificates issued in the securitization, raising approximately $705 million of gross proceeds. The Class A and Class B notes had a weighted average life of 4.14 years and priced at a weighted average LIBOR equivalent cost of 1-month LIBOR plus 1.30 percent. At December 31, 2021, $615 million of our Private Education Loans, including $581 million of principal and $34 million in capitalized interest, were encumbered because of this transaction.
Pre-2020 Transactions
Prior to 2020, we executed a total of $6.9 billion in ABS transactions that were accounted for as secured financings. At December 31, 2021, $3.6 billion of our Private Education Loans, including $3.5 billion of principal and $141 million in capitalized interest, were encumbered as a result of these transactions.
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 2025 to 2053.

December 31, 2021Year Ended
December 31, 2021		December 31, 2020Year Ended
December 31, 2020
(Dollars in thousands)Ending BalanceWeighted Average
Interest Rate		Average BalanceEnding BalanceWeighted Average
Interest Rate		Average Balance
Floating-rate borrowings$1,046,857 1.05 %$1,073,042 $1,235,105 1.09 %$1,432,446 
Fixed-rate borrowings4,884,133 2.65 4,094,640 3,954,112 3.08 3,316,425 
Total long-term borrowings$5,930,990 2.37 %$5,167,682 $5,189,217 2.60 %$4,748,871 

    
As of December 31, 2021, the stated maturity and maturity to call date of our brokered deposits and borrowings are summarized below.

As of December 31, 2021
(dollars in thousands)
Stated Maturity(1)
Maturity to Call Date
Brokered DepositsUnsecured DebtSecured BorrowingsTotalBrokered DepositsUnsecured DebtSecured BorrowingsTotal
Year of Maturity
2022$2,918,335 $— $718,153 $3,636,488 $2,918,335 $— $718,153 $3,636,488 
20232,033,829 — 698,078 2,731,907 2,033,829 — 698,078 2,731,907 
20241,236,522 — 687,600 1,924,122 1,236,522 — 687,600 1,924,122 
2025270,174 500,000 648,315 1,418,489 270,174 500,000 648,315 1,418,489 
20261,033,313 500,000 618,380 2,151,693 1,033,313 500,000 618,380 2,151,693 
2027 and after47,401 — 1,750,502 1,797,903 47,401 — 1,750,502 1,797,903 
7,539,574 1,000,000 5,121,028 13,660,602 7,539,574 1,000,000 5,121,028 13,660,602 
Hedge accounting adjustments33,426 — — 33,426 33,426 — — 33,426 
Total$7,573,000 $1,000,000 $5,121,028 $13,694,028 $7,573,000 $1,000,000 $5,121,028 $13,694,028 
(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 2022 include $718 million related to the securitization trust debt.
Secured Financings
The following summarizes our secured financings issued in 2020 and 2021:

IssueDate IssuedTotal Issued
Weighted Average
Cost of Funds(1)
Weighted Average Life
(in years)
(Dollars in thousands)
Private Education Loans:
2020-AFebruary 2020$636,000 
1-month LIBOR plus 0.88%
4.18
2020-BAugust 2020707,000 
1-month LIBOR plus 1.30%
4.14
Total notes issued in 2020$1,343,000 
Total loan and accrued interest amount securitized at inception in 2020(2)
$1,463,230 
2021-BMay 2021$531,000 
1-month LIBOR plus 0.77%
4.26
2021-DAugust 2021527,000 
1-month LIBOR plus 0.69%
4.22
2021-ENovember 2021534,000 
1-month LIBOR plus 0.69%
4.15
Total notes issued in 2021$1,592,000 
Total loan and accrued interest amount securitized at inception in 2021$1,656,263 
(1) Represents LIBOR equivalent cost of funds for floating and fixed-rate bonds, excluding issuance costs.
(2) At December 31, 2021, $1.11 billion of our Private Education Loans, including $1.05 billion of principal and $62 million in capitalized interest, were encumbered related to the 2020 transactions.
Consolidated Funding Vehicles

    We consolidate our financing entities that are VIEs as a result of our being the entities’ primary beneficiary. As a result, these financing VIEs are accounted for as secured borrowings.

As of December 31, 2021
(dollars in thousands)
Debt OutstandingCarrying Amount of Assets Securing Debt Outstanding
Short-TermLong-TermTotalLoansRestricted Cash
Other Assets(1)
Total
Secured borrowings:
Private Education Loan term securitizations$— $4,994,852 $4,994,852 $6,029,034 $210,741 $357,982 $6,597,757 
Secured Borrowing Facility— — — — — 867 867 
Total$— $4,994,852 $4,994,852 $6,029,034 $210,741 $358,849 $6,598,624 
    
As of December 31, 2020
(dollars in thousands)
Debt OutstandingCarrying Amount of Assets Securing Debt Outstanding
Short-TermLong-TermTotalLoansRestricted Cash
Other Assets(1)
Total
Secured borrowings:
Private Education Loan term securitizations$— $4,496,338 $4,496,338 $5,661,123 $154,417 $356,967 $6,172,507 
Secured Borrowing Facility— — — — — 436 436 
Total$— $4,496,338 $4,496,338 $5,661,123 $154,417 $357,403 $6,172,943 
(1) Other assets primarily represent accrued interest receivable.
        
Unconsolidated VIEs
Private Education Loan Securitizations
Unconsolidated VIEs include variable interests that we hold in certain securitization trusts created by the sale of our Private Education Loans to unaffiliated third-parties in the first quarter of 2020 and the first six months of 2021. We remained the servicer of these loans pursuant to applicable servicing agreements executed in connection with the sales, and we are also the administrator of these trusts. Additionally, we own five percent of the securities issued by the trusts in order to meet risk retention requirements. We were not required to consolidate these entities because while as servicer we may have a significant impact on economic performance, the risk of absorbing losses that could be significant is low.
2021-A Transaction
On February 9, 2021, we closed an SMB Private Education Loan Trust 2021-A term ABS transaction (the “2021-A Transaction”), in which the unaffiliated third-party sold to the trust approximately $2.5 billion of Private Education Loans that the third-party seller previously purchased from us on January 8, 2021. In the 2021-A Transaction, we were the sponsor, servicer and administrator, and the seller of an additional $130 million of Private Education Loans into the trust. The sale of such additional loans qualified for sale treatment and removed these loans from our balance sheet on the settlement date of the 2021-A Transaction and we recorded an $18 million gain on sale associated with this transaction. In connection with the 2021-A Transaction settlement, we retained a five percent vertical risk retention interest (i.e., five percent of each class issued in the securitization). We classified those vertical risk retention interests related to the 2021-A Transaction as available-for-sale investments, except for the interest in the residual class, which we classified as a trading investment recorded at fair value with changes recorded through earnings.
2021-C Transaction
On May 27, 2021, we closed an SMB Private Education Loan Trust 2021-C term ABS transaction (the “2021-C Transaction”), in which the unaffiliated third-party sold to the trust approximately $505 million of Private Education Loans that the third-party seller previously purchased from us on January 8, 2021. In the 2021-C Transaction, we were the sponsor, servicer and administrator, and the seller of an additional $27 million of Private Education Loans into the trust. The sale of such additional loans qualified for sale treatment and removed these loans from our balance sheet on the settlement date of the 2021-C Transaction and we recorded an $4 million gain on sale associated with this transaction. In connection with the 2021-C Transaction settlement, we retained a five percent vertical risk retention interest (i.e., five percent of each class issued in the securitization). We classified those vertical risk retention interests related to the 2021-C Transaction as available-for-sale investments, except for the interest in the residual class, which we classified as a trading investment recorded at fair value with changes recorded through earnings.

The table below provides a summary of our exposure related to our unconsolidated VIEs.
20212020
As of December 31,
(dollars in thousands)
Debt Interests(1)
Equity Interests(2)
Total Exposure
Debt Interests(1)
Equity Interests(2)
Total Exposure
Private Education Loan term securitizations$192,245 $37,465 $229,710 $68,908 $16,923 $85,831 
(1) Vertical risk retention interest classified as available-for-sale investment.
(2) Vertical risk retention interest classified as trading investment.
Other Borrowing Sources
We maintain discretionary uncommitted Federal Funds lines of credit with various correspondent banks, which totaled $125 million at December 31, 2021. The interest rate we are charged on these lines of credit is priced at Fed Funds plus a spread at the time of borrowing, and is payable daily. We did not utilize these lines of credit in the years ended December 31, 2021 and 2020.
We established an account at the FRB to meet eligibility requirements for access to the Primary Credit borrowing facility at the FRB’s Discount Window (the “Window”). The Primary Credit borrowing facility is a lending program available to depository institutions that are in generally sound financial condition. All borrowings at the Window must be fully collateralized. We can pledge asset-backed and mortgage-backed securities, as well as FFELP Loans and Private Education Loans, to the FRB as collateral for borrowings at the Window. Generally, collateral value is assigned based on the estimated fair value of the pledged assets. At December 31, 2021 and December 31, 2020, the value of our pledged collateral at the FRB totaled $3.3 billion and $3.8 billion, respectively. The interest rate charged to us is the discount rate set by the FRB. We did not utilize this facility in the years ended December 31, 2021 and 2020.