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Borrowings (Tables)

12 Months Ended

Dec. 31, 2022

The following table summarizes our secured borrowings at December 31, 2022 and 2021.


As of December 31, (dollars in thousands)	2022						2021
	Short-Term		Long-Term		Total		Short-Term		Long-Term		Total
Unsecured borrowings:
Unsecured debt (fixed-rate)	$	—	$	988,986	$	988,986	$	—	$	986,138	$	986,138
Total unsecured borrowings	—		988,986		988,986		—		986,138		986,138

Secured borrowings:
Private Education Loan term securitizations:
Fixed-rate	—		3,462,363		3,462,363		—		3,897,996		3,897,996
Variable-rate	—		783,765		783,765		—		1,046,856		1,046,856
Total Private Education Loan term securitizations	—		4,246,128		4,246,128		—		4,944,852		4,944,852
Secured Borrowing Facility	—		—		—		—		—		—
Total secured borrowings	—		4,246,128		4,246,128		—		4,944,852		4,944,852
Total	$	—	$	5,235,114	$	5,235,114	$	—	$	5,930,990	$	5,930,990

Schedule of 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, 2022

Year Ended
December 31, 2022

(Dollars in thousands)

Ending Balance

Weighted Average
Interest Rate

Average Balance

Weighted Average
Interest Rate

Short-term borrowings:

Floating-rate borrowings

—

Fixed-rate borrowings(1)

—

Total short-term borrowings

—

Maximum outstanding at any month end

—


	December 31, 2021				Year Ended December 31, 2021
(Dollars in thousands)	Ending Balance		Weighted Average Interest Rate		Average Balance		Weighted Average Interest Rate(1)
Short-term borrowings:
Floating-rate borrowings	$	—	—	%	$	—	—	%
Fixed-rate borrowings(1)	—		—		122,396		5.78
Total short-term borrowings	$	—	—	%	$	122,396	5.78	%
Maximum outstanding at any month end	$	199,651

(1) Included in floating-rate borrowings is the Secured Borrowing Facility, which also incurs a non-use fee based upon the facility’s maximum borrowing limit of $2 billion, for both 2022 and 2021, which is applied to the unfunded balance. The facility non-use fee was 45 basis points and 46 basis points in 2022 and 2021, respectively.

Schedule of 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, 2022				Year Ended December 31, 2022		December 31, 2021				Year Ended December 31, 2021
(Dollars in thousands)	Ending Balance		Weighted Average Interest Rate		Average Balance		Ending Balance		Weighted Average Interest Rate		Average Balance
Long-term borrowings:
Floating-rate borrowings	$	783,765	5.26	%	$	898,002	$	1,046,857	1.05	%	$	1,073,042
Fixed-rate borrowings	4,451,349		2.93		4,571,690		4,884,133		2.65		4,094,640
Total long-term borrowings	$	5,235,114	3.28	%	$	5,469,692	$	5,930,990	2.37	%	$	5,167,682

Schedule of Maturities of Long-term Debt

As of December 31, 2022, the maturities of our brokered deposits and borrowings are summarized below.


As of December 31, 2022 (dollars in thousands)	Brokered Deposits		Unsecured Debt		Secured Borrowings(1)		Total

2023	$	2,031,404	$	—	$	725,981	$	2,757,385
2024	2,397,229		—		682,781		3,080,010
2025	1,681,406		496,240		678,633		2,856,279
2026	1,029,385		492,746		609,998		2,132,129
2027	152,227		—		530,521		682,748
2028 and after	47,221		—		1,018,214		1,065,435
	7,338,872		988,986		4,246,128		12,573,986
Hedge accounting adjustments	(5,599)		—		—		(5,599)
Total	$	7,333,273	$	988,986	$	4,246,128	$	12,568,387

(1)We view our secured borrowings as long-term based on the contractual maturity dates ranging from 2031 to 2053. However, the actual maturity of our secured borrowings depends on the prepayment speeds of the underlying collateralized loans. To disclose how we expect this debt to pay down over time, the maturities for our secured borrowings are based on the projected bond principal paydowns using the current estimated loan prepayment speeds.

Schedule of Securities Financing Transactions

Secured Financings

The following summarizes our secured financings issued in 2021 and 2022:


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






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(2)		$	1,656,263

2022-C	August 2022	575,000		SOFR plus 1.76%	4.69
Total notes issued in 2022		$	575,000

Total loan and accrued interest amount securitized at inception in 2022(3)		$	674,387

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

(2) At December 31, 2022, $1.27 billion of our Private Education Loans, including $1.21 billion of principal and $66 million in capitalized interest, were encumbered related to the 2021 transactions.

(3) At December 31, 2022, $635 million of our Private Education Loans, including $597 million of principal and $38 million in capitalized interest, were encumbered related to the 2022 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, 2022 (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	$	—	$	4,246,128	$	4,246,128	$	5,433,602	$	156,719	$	286,093	$	5,876,414
Secured Borrowing Facility	—		—		—		—		—		1,066		1,066
Total	$	—	$	4,246,128	$	4,246,128	$	5,433,602	$	156,719	$	287,159	$	5,877,480


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

(1) Other assets primarily represent accrued interest receivable.

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


	2022						2021
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	$	329,188	$	50,786	$	379,974	$	192,245	$	37,465	$	229,710

(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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