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Borrowings (Tables)

12 Months Ended

Dec. 31, 2021

The following table summarizes our secured borrowings at December 31, 2021 and 2020.


As of December 31, (dollars in thousands)	2021						2020
	Short-Term		Long-Term		Total		Short-Term		Long-Term		Total
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

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, 2021				Year Ended December 31, 2021
(Dollars in thousands)	Ending Balance		Weighted Average Interest Rate		Average Balance		Weighted 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, 2020				Year Ended December 31, 2020
(Dollars in thousands)	Ending Balance		Weighted 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

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, 2021				Year Ended December 31, 2021		December 31, 2020				Year Ended December 31, 2020
(Dollars in thousands)	Ending Balance		Weighted Average Interest Rate		Average Balance		Ending Balance		Weighted 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 borrowings	4,884,133		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

Schedule of Maturities of Long-term Debt

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 Deposits		Unsecured Debt		Secured Borrowings		Total		Brokered Deposits		Unsecured Debt		Secured Borrowings		Total
Year of Maturity
2022	$	2,918,335	$	—	$	718,153	$	3,636,488	$	2,918,335	$	—	$	718,153	$	3,636,488
2023	2,033,829		—		698,078		2,731,907		2,033,829		—		698,078		2,731,907
2024	1,236,522		—		687,600		1,924,122		1,236,522		—		687,600		1,924,122
2025	270,174		500,000		648,315		1,418,489		270,174		500,000		648,315		1,418,489
2026	1,033,313		500,000		618,380		2,151,693		1,033,313		500,000		618,380		2,151,693
2027 and after	47,401		—		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 adjustments	33,426		—		—		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 financing

Secured Financings

The following summarizes our secured financings issued in 2020 and 2021:


Issue	Date Issued	Total Issued		Weighted Average Cost of Funds(1)	Weighted Average Life (in years)
(Dollars in thousands)
Private Education Loans:

























2020-A	February 2020	$	636,000	1-month LIBOR plus 0.88%	4.18
2020-B	August 2020	707,000		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-B	May 2021	$	531,000	1-month LIBOR plus 0.77%	4.26
2021-D	August 2021	527,000		1-month LIBOR plus 0.69%	4.22
2021-E	November 2021	534,000		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.

Schedule of variable interest entities

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 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	$	—	$	4,994,852	$	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 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	$	—	$	4,496,338	$	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.

The table below provides a summary of our exposure related to our unconsolidated VIEs.


	2021						2020
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.

- 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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