Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 30, 2023

Receivables [Abstract]

Schedule of Allowance for Credit Losses and Recorded Investments in Loans

Allowance for Credit Losses Metrics

Three Months Ended September 30, 2023 (dollars in thousands)	FFELP Loans			Private Education Loans			Total
Allowance for Credit Losses
Beginning balance	$	4,422		$	1,360,294		$	1,364,716
Transfer from unfunded commitment liability(1)	—			101,687			101,687
Provisions:
Provision for current period	666			44,423			45,089
Total provisions(2)	666			44,423			45,089
Net charge-offs:
Charge-offs	(272)			(104,865)			(105,137)
Recoveries	—			9,693			9,693
Net charge-offs	(272)			(95,172)			(95,444)
Ending Balance	$	4,816		$	1,411,232		$	1,416,048
Allowance(3):
Ending balance: collectively evaluated for impairment	$	4,816		$	1,411,232		$	1,416,048
Loans(3):
Ending balance: collectively evaluated for impairment	$	554,309		$	21,680,867		$	22,235,176
Accrued interest to be capitalized(3):
Ending balance: collectively evaluated for impairment	$	—		$	1,283,388		$	1,283,388
Net charge-offs as a percentage of average loans in repayment (annualized)(4)	0.25		%	2.53		%
Allowance as a percentage of the ending total loan balance and accrued interest to be capitalized(5)	0.87		%	6.15		%
Allowance as a percentage of the ending loans in repayment and accrued interest to be capitalized on loans in repayment(4)(5)	1.15		%	8.84		%
Allowance coverage of net charge-offs (annualized)	4.43			3.71
Ending total loans, gross	$	554,309		$	21,680,867
Average loans in repayment(4)	$	428,028		$	15,023,993
Ending loans in repayment(4)	$	418,022		$	15,505,145
Accrued interest to be capitalized on loans in repayment(6)	$	—		$	464,807

(1) See Note 6, “Unfunded Loan Commitments,” for a summary of the activity in the allowance for and balance of unfunded loan commitments, respectively.

(2) Below is a reconciliation of the provisions for credit losses reported in the consolidated statements of income. When a new loan commitment is made, we record the CECL allowance as a liability for unfunded loan commitments by recording a provision for credit losses. When the loan is funded, we transfer that liability to the allowance for credit losses.

Consolidated Statements of Income Provisions for Credit Losses Reconciliation
Three Months Ended September 30, 2023 (dollars in thousands)
Private Education Loan provisions for credit losses:
Provisions for loan losses	$	44,423
Provisions for unfunded loan commitments	152,934
Total Private Education Loan provisions for credit losses	197,357
Other impacts to the provisions for credit losses:
FFELP Loans	666
Total	666
Provisions for credit losses reported in consolidated statements of income	$	198,023

(3) For the three months ended September 30, 2023, there were no allowance for credit losses, loans, or accrued interest to be capitalized balances that were individually evaluated for impairment.

(4) 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 (but, for purposes of the table, do not include those loans while they are in forbearance).

(5) Accrued interest to be capitalized on Private Education Loans only.

(6) Accrued interest to be capitalized on loans in repayment includes interest on loans that are in repayment but have not yet entered into full principal and interest repayment status after any applicable grace period (but, for purposes of the table, does not include the interest on those loans while they are in forbearance).

Three Months Ended September 30, 2022 (dollars in thousands)	FFELP  Loans			Private  Education Loans			Credit Cards			Total
Allowance for Credit Losses
Beginning balance	$	3,929		$	1,074,744		$	2,393		$	1,081,066
Transfer from unfunded commitment liability(1)	—			168,377			—			168,377
Provisions:
Provision for current period	29			95,482			2,039			97,550
Loan sale reduction to provision	—			(50,226)			—			(50,226)
Loans transferred from held-for-sale	—			—			(2,372)			(2,372)
Total provisions(2)	29			45,256			(333)			44,952
Net charge-offs:
Charge-offs	(147)			(109,350)			(2,062)			(111,559)
Recoveries	—			11,400			2			11,402
Net charge-offs	(147)			(97,950)			(2,060)			(100,157)
Ending Balance	$	3,811		$	1,190,427		$	—		$	1,194,238
Allowance(3):
Ending balance: collectively evaluated for impairment	$	3,811		$	1,190,427		$	—		$	1,194,238
Loans(3):
Ending balance: collectively evaluated for impairment	$	643,614		$	20,104,463		$	—		$	20,748,077
Accrued interest to be capitalized(3):
Ending balance: collectively evaluated for impairment	$	—		$	1,056,983		$	—		$	1,056,983
Net charge-offs as a percentage of average loans in repayment (annualized)(4)	0.11		%	2.67		%	—		%
Allowance as a percentage of the ending total loan balance and accrued interest to be capitalized(5)	0.59		%	5.63		%	—		%
Allowance as a percentage of the ending loans in repayment and accrued interest to be capitalized on loans in repayment(4)(5)	0.78		%	7.98		%	—		%
Allowance coverage of net charge-offs (annualized)	6.48			3.04			—
Ending total loans, gross	$	643,614		$	20,104,463		$	—
Average loans in repayment(4)	$	518,226		$	14,674,437		$	—
Ending loans in repayment(4)	$	489,920		$	14,546,556		$	—
Accrued interest to be capitalized on loans in repayment(6)	$	—		$	371,388		$	—

(1) See Note 6, “Unfunded Loan Commitments,” for a summary of the activity in the allowance for and balance of unfunded loan commitments, respectively.

(2) Below is a reconciliation of the provisions for credit losses reported in the consolidated statements of income. When a new loan commitment is made, we record the CECL allowance as a liability for unfunded loan commitments by recording a provision for credit losses. When the loan is funded, we transfer that liability to the allowance for credit losses.

Consolidated Statements of Income Provisions for Credit Losses Reconciliation
Three Months Ended September 30, 2022 (dollars in thousands)
Private Education Loan provisions for credit losses:
Provisions for loan losses	$	45,256
Provisions for unfunded loan commitments	162,646
Total Private Education Loan provisions for credit losses	207,902
Other impacts to the provisions for credit losses:
FFELP Loans	29
Credit Cards	(333)
Total	(304)
Provisions for credit losses reported in consolidated statements of income	$	207,598

(3) For the three months ended September 30, 2022, there were no allowance for credit losses, loans, or accrued interest to be capitalized balances that were individually evaluated for impairment.

(4) 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 (but, for purposes of the table, do not include those loans while they are in forbearance).

(5) Accrued interest to be capitalized on Private Education Loans only.

(6) Accrued interest to be capitalized on loans in repayment includes interest on loans that are in repayment but have not yet entered into full principal and interest repayment status after any applicable grace period (but, for purposes of the table, does not include the interest on those loans while they are in forbearance).

Nine Months Ended September 30, 2023 (dollars in thousands)	FFELP Loans			Private Education Loans			Total
Allowance for Credit Losses
Beginning balance	$	3,444		$	1,353,631		$	1,357,075
Transfer from unfunded commitment liability(1)	—			278,388			278,388
Provisions:
Provision for current period	2,225			196,859			199,084
Loan sale reduction to provision	—			(136,531)			(136,531)
Total provisions(2)	2,225			60,328			62,553
Net charge-offs:
Charge-offs	(853)			(314,500)			(315,353)
Recoveries	—			33,385			33,385
Net charge-offs	(853)			(281,115)			(281,968)
Ending Balance	$	4,816		$	1,411,232		$	1,416,048
Allowance(3):
Ending balance: collectively evaluated for impairment	$	4,816		$	1,411,232		$	1,416,048
Loans(3):
Ending balance: collectively evaluated for impairment	$	554,309		$	21,680,867		$	22,235,176
Accrued interest to be capitalized(3):
Ending balance: collectively evaluated for impairment	$	—		$	1,283,388		$	1,283,388
Net charge-offs as a percentage of average loans in repayment (annualized)(4)	0.26		%	2.44		%
Allowance as a percentage of the ending total loan balance and accrued interest to be capitalized(5)	0.87		%	6.15		%
Allowance as a percentage of the ending loans in repayment and accrued interest to be capitalized on loans in repayment(4)(5)	1.15		%	8.84		%
Allowance coverage of net charge-offs (annualized)	4.23			3.77
Ending total loans, gross	$	554,309		$	21,680,867
Average loans in repayment(4)	$	440,716		$	15,358,596
Ending loans in repayment(4)	$	418,022		$	15,505,145
Accrued interest to be capitalized on loans in repayment(6)	$	—		$	464,807

(1) See Note 6, “Unfunded Loan Commitments,” for a summary of the activity in the allowance for and balance of unfunded loan commitments, respectively.

(2) Below is a reconciliation of the provisions for credit losses reported in the consolidated statements of income. When a new loan commitment is made, we record the CECL allowance as a liability for unfunded loan commitments by recording a provision for credit losses. When the loan is funded, we transfer that liability to the allowance for credit losses.

Consolidated Statements of Income Provisions for Credit Losses Reconciliation
Nine Months Ended September 30, 2023 (dollars in thousands)
Private Education Loan provisions for credit losses:
Provisions for loan losses	$	60,328
Provisions for unfunded loan commitments	267,311
Total Private Education Loan provisions for credit losses	327,639
Other impacts to the provisions for credit losses:
FFELP Loans	2,225
Total	2,225
Provisions for credit losses reported in consolidated statements of income	$	329,864

(3) For the nine months ended September 30, 2023, there were no allowance for credit losses, loans, or accrued interest to be capitalized balances that were individually evaluated for impairment.

(4) 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 (but, for purposes of the table, do not include those loans while they are in forbearance).

(5) Accrued interest to be capitalized on Private Education Loans only.

(6) Accrued interest to be capitalized on loans in repayment includes interest on loans that are in repayment but have not yet entered into full principal and interest repayment status after any applicable grace period (but, for purposes of the table, does not include the interest on those loans while they are in forbearance).

Nine Months Ended September 30, 2022 (dollars in thousands)	FFELP  Loans			Private  Education Loans			Credit Cards			Total
Allowance for Credit Losses
Beginning balance	$	4,077		$	1,158,977		$	2,281		$	1,165,335
Transfer from unfunded commitment liability(1)	—			303,591			—			303,591
Provisions:
Provision for current period	110			168,473			2,635			171,218
Loan sale reduction to provision	—			(171,325)			—			(171,325)
Loans transferred from held-for-sale	—			—			(2,372)			(2,372)
Total provisions(2)	110			(2,852)			263			(2,479)
Net charge-offs:
Charge-offs	(376)			(299,699)			(2,549)			(302,624)
Recoveries	—			30,410			5			30,415
Net charge-offs	(376)			(269,289)			(2,544)			(272,209)
Ending Balance	$	3,811		$	1,190,427		$	—		$	1,194,238
Allowance(3):
Ending balance: collectively evaluated for impairment	$	3,811		$	1,190,427		$	—		$	1,194,238
Loans(3):
Ending balance: collectively evaluated for impairment	$	643,614		$	20,104,463		$	—		$	20,748,077
Accrued interest to be capitalized(3):
Ending balance: collectively evaluated for impairment	$	—		$	1,056,983		$	—		$	1,056,983
Net charge-offs as a percentage of average loans in repayment (annualized)(4)	0.09		%	2.37		%	—		%
Allowance as a percentage of the ending total loan balance and accrued interest to be capitalized(5)	0.59		%	5.63		%	—		%
Allowance as a percentage of the ending loans in repayment and accrued interest to be capitalized on loans in repayment(4)(5)	0.78		%	7.98		%	—		%
Allowance coverage of net charge-offs (annualized)	7.60			3.32			—
Ending total loans, gross	$	643,614		$	20,104,463		$	—
Average loans in repayment(4)	$	532,275		$	15,173,465		$	—
Ending loans in repayment(4)	$	489,920		$	14,546,556		$	—
Accrued interest to be capitalized on loans in repayment(6)	$	—		$	371,388		$	—

(1) See Note 6, “Unfunded Loan Commitments,” for a summary of the activity in the allowance for and balance of unfunded loan commitments, respectively.

(2) Below is a reconciliation of the provisions for credit losses reported in the consolidated statements of income. When a new loan commitment is made, we record the CECL allowance as a liability for unfunded loan commitments by recording a provision for credit losses. When the loan is funded, we transfer that liability to the allowance for credit losses.

Consolidated Statements of Income Provisions for Credit Losses Reconciliation
Nine Months Ended September 30, 2022 (dollars in thousands)
Private Education Loan provisions for credit losses:
Provisions for loan losses	$	(2,852)
Provisions for unfunded loan commitments	338,672
Total Private Education Loan provisions for credit losses	335,820
Other impacts to the provisions for credit losses:
FFELP Loans	110
Credit Cards	263
Total	373
Provisions for credit losses reported in consolidated statements of income	$	336,193

(3) For the nine months ended September 30, 2022, there were no allowance for credit losses, loans, or accrued interest to be capitalized balances that were individually evaluated for impairment.

(4) 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 (but, for purposes of the table, do not include those loans while they are in forbearance).

(5) Accrued interest to be capitalized on Private Education Loans only.

(6) Accrued interest to be capitalized on loans in repayment includes interest on loans that are in repayment but have not yet entered into full principal and interest repayment status after any applicable grace period (but, for purposes of the table, does not include the interest on those loans while they are in forbearance).

The tables below summarize the activity in the allowance recorded to cover lifetime expected credit losses on the unfunded commitments, which is recorded in “Other Liabilities” on the consolidated balance sheets, as well as the activity in the unfunded commitments balance.

	2023				2022
Three Months Ended September 30, (dollars in thousands)	Allowance		Unfunded Commitments		Allowance		Unfunded Commitments
Beginning Balance	$	62,600	$	1,562,856	$	113,525	$	1,413,840
Provision/New commitments - net(1)	115,605		3,258,234		192,559		3,148,434
Other provision items	37,329		—		(29,913)		—
Transfer - funded loans(2)	(101,687)		(2,451,203)		(168,377)		(2,345,348)
Ending Balance	$	113,847	$	2,369,887	$	107,794	$	2,216,926
	2023				2022
Nine Months Ended September 30, (dollars in thousands)	Allowance		Unfunded Commitments		Allowance		Unfunded Commitments
Beginning Balance	$	124,924	$	1,995,808	$	72,713	$	1,776,976
Provision/New commitments - net(1)	220,303		5,912,418		339,705		5,584,129
Other provision items	47,008		—		(1,033)		—
Transfer - funded loans(2)	(278,388)		(5,538,339)		(303,591)		(5,144,179)
Ending Balance	$	113,847	$	2,369,887	$	107,794	$	2,216,926

(1)     Net of expirations of commitments unused.

(2)     When a loan commitment is funded, its related liability for credit losses (which originally was recorded as a provision for unfunded commitments) is transferred to the allowance for credit losses.

Schedule of Amortized Cost Basis of Financing Receivables

The following tables show the amortized cost basis at the end of the respective reporting periods of the loans to borrowers experiencing financial difficulty that were modified during the period, disaggregated by class of financing receivable and type of modification. When we approve a Private Education Loan at the beginning of an academic year, we do not always disburse the full amount of the loan at the time of approval, but instead have a commitment to fund a portion of the loan at a later date (usually at the start of the second semester or subsequent trimesters). We consider borrowers to be in financial difficulty after they have exited school and have difficulty making their scheduled principal and interest payments.

	Loan Modifications Made to Borrowers Experiencing Financial Difficulty
Three Months Ended September 30, 2023 (dollars in thousands)	Interest Rate Reduction				Combination - Interest Rate Reduction and Term Extension
Loan Type:	Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable
Private Education Loans	$	16,620	0.07	%	$	90,193	0.39	%
Total	$	16,620	0.07	%	$	90,193	0.39	%

	Loan Modifications Made to Borrowers Experiencing Financial Difficulty
Three Months Ended September 30, 2022 (dollars in thousands)	Interest Rate Reduction				Combination - Interest Rate Reduction and Term Extension
Loan Type:	Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable
Private Education Loans	$	9,750	0.05	%	$	79,765	0.40	%
Total	$	9,750	0.05	%	$	79,765	0.40	%

	Loan Modifications Made to Borrowers Experiencing Financial Difficulty
Nine Months Ended September 30, 2023 (dollars in thousands)	Interest Rate Reduction				Combination - Interest Rate Reduction and Term Extension
Loan Type:	Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable
Private Education Loans	$	39,263	0.17	%	$	254,639	1.10	%
Total	$	39,263	0.17	%	$	254,639	1.10	%

	Loan Modifications Made to Borrowers Experiencing Financial Difficulty
Nine Months Ended September 30, 2022 (dollars in thousands)	Interest Rate Reduction				Combination - Interest Rate Reduction and Term Extension
Loan Type:	Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable
Private Education Loans	$	25,065	0.12	%	$	237,588	1.18	%
Total	$	25,065	0.12	%	$	237,588	1.18	%

The following tables describe the financial effect of the modifications made to loans whose borrowers are experiencing financial difficulty:

Three Months Ended September 30, 2023
Interest Rate Reduction		Combination - Interest Rate Reduction and Term Extension
Loan Type	Financial Effect	Loan Type	Financial Effect
Private Education Loans	Reduced average contractual rate from 13.57% to 4.00%	Private Education Loans	Added a weighted average 10.22 years to the life of loans Reduced average contractual rate from 13.12% to 4.00%

Three Months Ended September 30, 2022
Interest Rate Reduction		Combination - Interest Rate Reduction and Term Extension
Loan Type	Financial Effect	Loan Type	Financial Effect
Private Education Loans	Reduced average contractual rate from 11.31% to 4.00%	Private Education Loans	Added a weighted average 10.24 years to the life of loans Reduced average contractual rate from 10.87% to 4.00%

Nine Months Ended September 30, 2023
Interest Rate Reduction		Combination - Interest Rate Reduction and Term Extension
Loan Type	Financial Effect	Loan Type	Financial Effect
Private Education Loans	Reduced average contractual rate from 13.29% to 4.00%	Private Education Loans	Added a weighted average 10.24 years to the life of loans Reduced average contractual rate from 12.84% to 4.00%

Nine Months Ended September 30, 2022
Interest Rate Reduction		Combination - Interest Rate Reduction and Term Extension
Loan Type	Financial Effect	Loan Type	Financial Effect
Private Education Loans	Reduced average contractual rate from 10.76% to 4.00%	Private Education Loans	Added a weighted average 10.38 years to the life of loans Reduced average contractual rate from 10.17% to 4.00%

We define payment default as 60 days or more past due for purposes of this disclosure.

	Three Months Ended September 30, 2023						Three Months Ended September 30, 2022
(Dollars in thousands)	Modified Loans(1)(2)		Payment Default(4)		Charge-Offs(5)		Modified Loans(1)(2)		Payment Default(4)		Charge-Offs(5)
Loan Type:
Private Education Loans	$	14,546	$	14,129	$	4,534	$	9,467	$	9,289	$	1,801
Total	$	14,546	$	14,129	$	4,534	$	9,467	$	9,289	$	1,801

	Nine Months Ended September 30, 2023						Nine Months Ended September 30, 2022
(Dollars in thousands)	Modified Loans(1)(3)		Payment Default(4)		Charge-Offs(5)		Modified Loans(1)(3)		Payment Default(4)		Charge-Offs(5)
Loan Type:
Private Education Loans	$	26,449	$	27,672	$	6,428	$	12,660	$	12,463	$	1,861
Total	$	26,449	$	27,672	$	6,428	$	12,660	$	12,463	$	1,861

(1) Represents period-end amortized cost basis of loans that have been modified and for which a payment default occurred in the relevant period presented and within 12 months of receiving a modification (or within the reporting period, for the loans shown in in the year-ago period, as the case may be).

(2) For the three months ended September 30, 2023, the modified loans include $12.4 million of interest rate reduction and term extension loan modifications and $2.1 million of interest rate reduction only loan modifications. For the three months ended September 30, 2022, the modified loans include $8.5 million of interest rate reduction and term extension loan modifications and $1.0 million of interest rate reduction only loan modifications.

(3) For the nine months ended September 30, 2023, the modified loans include $23.0 million of interest rate reduction and term extension loan modifications and $3.4 million of interest rate reduction only loan modifications. For the nine months ended September 30, 2022, the modified loans include $11.4 million of interest rate reduction and term extension loan modifications and $1.2 million of interest rate reduction only loan modifications.

(4) Represents the unpaid principal balance at the time of payment default.

(5) Represents the unpaid principal balance at the time of charge off.

Age Analysis of Past Due Loans Delinquencies

The following tables depict the performance of loans that have been modified during the respective reporting periods (first nine months of 2023 and full year 2022, respectively).

	Payment Status (Amortized Cost Basis)
At September 30, 2023 (dollars in thousands)	Deferment(1)		Current(2)(3)		30-59 Days Past Due(2)(3)		60-89 Days Past Due(2)(3)		90 Days or Greater  Past Due(2)(3)		Total
Loan Type:
Private Education Loans	$	5,140	$	266,090	$	10,137	$	5,565	$	6,970	$	293,902
Total	$	5,140	$	266,090	$	10,137	$	5,565	$	6,970	$	293,902

	Payment Status (Amortized Cost Basis)
At December 31, 2022 (dollars in thousands)	Deferment(1)		Current(2)(3)		30-59 Days Past Due(2)(3)		60-89 Days Past Due(2)(3)		90 Days or Greater  Past Due(2)(3)		Total
Loan Type:
Private Education Loans	$	7,698	$	289,134	$	13,859	$	8,809	$	6,616	$	326,116
Total	$	7,698	$	289,134	$	13,859	$	8,809	$	6,616	$	326,116

(1) Deferment includes customers who have returned to school or are engaged in other permitted educational activities and are not yet required to make full principal and interest payments on the loans (e.g., residency periods for medical students or a grace period for bar exam preparation). Deferment also includes loans that have entered a forbearance after the loan modification was granted.

(2) Loans in repayment include loans on which borrowers are making full principal and interest payments after any applicable grace period (but, for purposes of the table, do not include those loans while they are in forbearance).

(3) The period of delinquency is based on the number of days scheduled payments are contractually past due.

The following tables provide information regarding the loan status of our Private Education Loans held for investment, by year of origination approval. 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 (but, for purposes of the following tables, do not include those loans while they are in forbearance).

	Private Education Loans Held for Investment - Delinquencies by Origination Vintage
As of September 30, 2023 (dollars in thousands)	2023			2022			2021			2020			2019			2018 and Prior			Total
Loans in-school/grace/deferment(1)	$	1,713,896		$	2,118,976		$	925,728		$	410,375		$	280,963		$	511,941		$	5,961,879
Loans in forbearance(2)	4,584			28,747			29,129			21,854			24,555			104,974			213,843
Loans in repayment:
Loans current	2,005,363			3,218,301			2,327,629			1,500,801			1,382,249			4,504,119			14,938,462
Loans delinquent 30-59 days(3)	4,272			32,282			41,945			28,901			30,468			145,753			283,621
Loans delinquent 60-89 days(3)	1,788			15,013			22,612			16,566			16,311			81,159			153,449
Loans 90 days or greater past due(3)	582			8,219			16,660			12,936			14,521			76,695			129,613
Total Private Education Loans in repayment	2,012,005			3,273,815			2,408,846			1,559,204			1,443,549			4,807,726			15,505,145
Total Private Education Loans, gross	3,730,485			5,421,538			3,363,703			1,991,433			1,749,067			5,424,641			21,680,867
Private Education Loans deferred origination costs and unamortized premium/(discount)	26,268			21,367			11,090			6,555			3,993			9,400			78,673
Total Private Education Loans	3,756,753			5,442,905			3,374,793			1,997,988			1,753,060			5,434,041			21,759,540
Private Education Loans allowance for losses	(220,113)			(361,902)			(227,021)			(134,487)			(111,946)			(355,763)			(1,411,232)
Private Education Loans, net	$	3,536,640		$	5,081,003		$	3,147,772		$	1,863,501		$	1,641,114		$	5,078,278		$	20,348,308
Percentage of Private Education Loans in repayment	53.9		%	60.4		%	71.6		%	78.3		%	82.5		%	88.6		%	71.5		%
Delinquent Private Education Loans in repayment as a percentage of Private Education Loans in repayment	0.3		%	1.7		%	3.4		%	3.7		%	4.2		%	6.3		%	3.7		%
Loans in forbearance as a percentage of loans in repayment and forbearance	0.2		%	0.9		%	1.2		%	1.4		%	1.7		%	2.1		%	1.4		%

(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.

	Private Education Loans Held for Investment - Delinquencies by Origination Vintage
As of December 31, 2022 (dollars in thousands)	2022			2021			2020			2019			2018			2017 and Prior			Total
Loans in-school/grace/deferment(1)	$	1,827,649		$	1,433,322		$	578,253		$	380,639		$	219,280		$	455,910		$	4,895,053
Loans in forbearance(2)	16,046			64,360			38,613			37,802			30,583			91,681			279,085
Loans in repayment:
Loans current	2,411,441			2,991,839			1,907,574			1,683,986			1,301,809			4,262,698			14,559,347
Loans delinquent 30-59 days(3)	14,164			30,740			30,877			35,213			31,366			144,948			287,308
Loans delinquent 60-89 days(3)	5,523			15,056			14,433			18,201			16,697			77,595			147,505
Loans 90 days or greater past due(3)	1,710			11,842			14,872			16,819			16,107			74,040			135,390
Total Private Education Loans in repayment	2,432,838			3,049,477			1,967,756			1,754,219			1,365,979			4,559,281			15,129,550
Total Private Education Loans, gross	4,276,533			4,547,159			2,584,622			2,172,660			1,615,842			5,106,872			20,303,688
Private Education Loans deferred origination costs and unamortized premium/(discount)	26,714			15,933			9,062			5,496			3,575			8,876			69,656
Total Private Education Loans	4,303,247			4,563,092			2,593,684			2,178,156			1,619,417			5,115,748			20,373,344
Private Education Loans allowance for losses	(304,943)			(323,506)			(181,915)			(141,424)			(101,023)			(300,820)			(1,353,631)
Private Education Loans, net	$	3,998,304		$	4,239,586		$	2,411,769		$	2,036,732		$	1,518,394		$	4,814,928		$	19,019,713
Percentage of Private Education Loans in repayment	56.9		%	67.1		%	76.1		%	80.7		%	84.5		%	89.3		%	74.5		%
Delinquent Private Education Loans in repayment as a percentage of Private Education Loans in repayment	0.9		%	1.9		%	3.1		%	4.0		%	4.7		%	6.5		%	3.8		%
Loans in forbearance as a percentage of loans in repayment and forbearance	0.7		%	2.1		%	1.9		%	2.1		%	2.2		%	2.0		%	1.8		%

(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.

Schedule of Private Education Loan Portfolio Stratified by Key Credit Quality Indicators

The following tables highlight the gross principal balance of our Private Education Loan portfolio (held for investment), by year of origination approval, stratified by key credit quality indicators.

As of September 30, 2023 (dollars in thousands)	Private Education Loans Held for Investment - Credit Quality Indicators
Year of Origination Approval	2023(1)		2022(1)		2021(1)		2020(1)		2019(1)		2018 and Prior(1)		Total(1)		% of Balance
Cosigners:
With cosigner	$	3,262,857	$	4,710,256	$	2,894,829	$	1,686,843	$	1,480,270	$	4,860,436	$	18,895,491	87	%
Without cosigner	467,628		711,282		468,874		304,590		268,797		564,205		2,785,376		13
Total	$	3,730,485	$	5,421,538	$	3,363,703	$	1,991,433	$	1,749,067	$	5,424,641	$	21,680,867	100	%
FICO at Origination Approval(2):
Less than 670	$	278,407	$	418,966	$	236,903	$	127,660	$	146,011	$	481,014	$	1,688,961	8	%
670-699	530,255		752,093		455,895		278,207		275,056		929,262		3,220,768		15
700-749	1,150,877		1,690,871		1,067,755		645,549		584,322		1,830,206		6,969,580		32
Greater than or equal to 750	1,770,946		2,559,608		1,603,150		940,017		743,678		2,184,159		9,801,558		45
Total	$	3,730,485	$	5,421,538	$	3,363,703	$	1,991,433	$	1,749,067	$	5,424,641	$	21,680,867	100	%
FICO Refreshed(2)(3):
Less than 670	$	353,491	$	605,817	$	387,375	$	218,261	$	214,908	$	807,495	$	2,587,347	12	%
670-699	528,071		733,990		422,792		211,964		187,283		607,515		2,691,615		12
700-749	1,144,110		1,602,766		980,859		553,576		486,058		1,469,715		6,237,084		29
Greater than or equal to 750	1,704,813		2,478,965		1,572,677		1,007,632		860,818		2,539,916		10,164,821		47
Total	$	3,730,485	$	5,421,538	$	3,363,703	$	1,991,433	$	1,749,067	$	5,424,641	$	21,680,867	100	%
Seasoning(4):
1-12 payments	$	2,016,589	$	2,187,876	$	414,530	$	232,959	$	201,057	$	379,107	$	5,432,118	25	%
13-24 payments	—		1,114,686		1,380,064		183,885		186,471		459,239		3,324,345		15
25-36 payments	—		—		643,381		753,256		120,744		487,209		2,004,590		9
37-48 payments	—		—		—		410,918		696,040		471,110		1,578,068		7
More than 48 payments	—		—		—		40		263,792		3,116,035		3,379,867		16
Not yet in repayment	1,713,896		2,118,976		925,728		410,375		280,963		511,941		5,961,879		28
Total	$	3,730,485	$	5,421,538	$	3,363,703	$	1,991,433	$	1,749,067	$	5,424,641	$	21,680,867	100	%
2023 Current period(5) gross charge-offs	$	(614)	$	(17,832)	$	(52,861)	$	(38,251)	$	(39,710)	$	(165,232)	$	(314,500)
2023 Current period(5) recoveries	76		1,278		4,802		3,522		3,923		19,784		33,385
2023 Current period(5) net charge-offs	$	(538)	$	(16,554)	$	(48,059)	$	(34,729)	$	(35,787)	$	(145,448)	$	(281,115)
Total accrued interest by origination vintage	$	94,292	$	407,226	$	328,076	$	186,063	$	150,655	$	262,913	$	1,429,225
(1)Balance represents gross Private Education Loans held for investment. (2)Represents the higher credit score of the cosigner or the borrower. (3)Represents the FICO score updated as of the third-quarter 2023. (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. (5)Current period refers to period from January 1, 2023 through September 30, 2023.

As of December 31, 2022 (dollars in thousands)	Private Education Loans Held for Investment - Credit Quality Indicators
Year of Origination Approval	2022(1)		2021(1)		2020(1)		2019(1)		2018(1)		2017 and Prior(1)		Total(1)		% of Balance
Cosigners:
With cosigner	$	3,656,111	$	3,941,921	$	2,208,033	$	1,853,619	$	1,402,828	$	4,626,491	$	17,689,003	87	%
Without cosigner	620,422		605,238		376,589		319,041		213,014		480,381		2,614,685		13
Total	$	4,276,533	$	4,547,159	$	2,584,622	$	2,172,660	$	1,615,842	$	5,106,872	$	20,303,688	100	%
FICO at Origination Approval(2):
Less than 670	$	326,991	$	307,646	$	158,606	$	177,098	$	143,674	$	439,587	$	1,553,602	8	%
670-699	593,216		611,649		356,541		339,685		259,142		878,426		3,038,659		15
700-749	1,336,765		1,440,510		834,819		719,777		537,680		1,722,068		6,591,619		32
Greater than or equal to 750	2,019,561		2,187,354		1,234,656		936,100		675,346		2,066,791		9,119,808		45
Total	$	4,276,533	$	4,547,159	$	2,584,622	$	2,172,660	$	1,615,842	$	5,106,872	$	20,303,688	100	%
FICO Refreshed(2)(3):
Less than 670	$	443,868	$	461,589	$	242,310	$	237,105	$	204,894	$	773,324	$	2,363,090	12	%
670-699	594,118		579,784		284,244		240,999		173,754		564,344		2,437,243		12
700-749	1,322,558		1,378,910		748,368		628,060		449,701		1,388,090		5,915,687		29
Greater than or equal to 750	1,915,989		2,126,876		1,309,700		1,066,496		787,493		2,381,114		9,587,668		47
Total	$	4,276,533	$	4,547,159	$	2,584,622	$	2,172,660	$	1,615,842	$	5,106,872	$	20,303,688	100	%
Seasoning(4):
1-12 payments	$	2,448,884	$	636,073	$	384,334	$	330,316	$	235,878	$	424,636	$	4,460,121	22	%
13-24 payments	—		2,477,764		255,510		195,753		166,045		455,782		3,550,854		18
25-36 payments	—		—		1,366,398		257,534		126,223		489,157		2,239,312		11
37-48 payments	—		—		127		1,008,418		224,805		451,102		1,684,452		8
More than 48 payments	—		—		—		—		643,611		2,830,285		3,473,896		17
Not yet in repayment	1,827,649		1,433,322		578,253		380,639		219,280		455,910		4,895,053		24
Total	$	4,276,533	$	4,547,159	$	2,584,622	$	2,172,660	$	1,615,842	$	5,106,872	$	20,303,688	100	%
2022 Current period(5) gross charge-offs	$	(2,224)	$	(25,698)	$	(48,271)	$	(62,071)	$	(57,505)	$	(231,647)	$	(427,416)
2022 Current period(5) recoveries	124		1,841		4,170		5,556		5,407		24,639		41,737
2022 Current period(5) net charge-offs	$	(2,100)	$	(23,857)	$	(44,101)	$	(56,515)	$	(52,098)	$	(207,008)	$	(385,679)
Total accrued interest by origination vintage	$	142,915	$	315,308	$	207,858	$	184,832	$	116,211	$	210,438	$	1,177,562

(1)Balance represents gross Private Education Loans held for investment.

(2)Represents the higher credit score of the cosigner or the borrower.

(3)Represents the FICO score updated as of the fourth-quarter 2022.

(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.

(5)Current period refers to January 1, 2022 through December 31, 2022.

Schedule of 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 90 days or greater past due as compared to our allowance for uncollectible interest on loans making full interest payments. The majority of the total accrued interest receivable represents accrued interest on deferred loans where no payments are due while the borrower is in school and fixed-pay loans where the borrower makes a $25 monthly payment that is smaller than the interest accruing on the loan in that month. The accrued interest on these loans will be capitalized to the balance of the loans when the borrower exits the grace period after separation from school, and the current expected credit losses on accrued interest that will be capitalized is included in our allowance for credit losses.

	Private Education Loans
	Accrued Interest Receivable
(Dollars in thousands)	Total Interest Receivable		90 Days or Greater Past Due		Allowance for Uncollectible Interest(1)(2)
September 30, 2023	$	1,429,225	$	6,756	$	8,516
December 31, 2022	$	1,177,562	$	6,609	$	8,121

(1)The allowance for uncollectible interest at September 30, 2023 represents the expected losses related to the portion of accrued interest receivable on those loans that are in repayment ($146 million of accrued interest receivable) that is not expected to be capitalized. The accrued interest receivable that is expected to be capitalized ($1.3 billion) is reserved in the allowance for credit losses.

(2)The allowance for uncollectible interest at December 31, 2022 represents the expected losses related to the portion of accrued interest receivable on those loans in repayment ($240 million of accrued interest receivable) that was not expected to be capitalized. The accrued interest receivable that was expected to be capitalized ($937 million) was reserved in the allowance for credit losses.