Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2024

Receivables [Abstract]

Schedule of Allowance for Credit Losses and Recorded Investments in Loans

Allowance for Credit Losses Metrics

Three Months Ended June 30, 2024 (dollars in thousands)	FFELP Loans			Private Education Loans			Total
Allowance for Credit Losses
Beginning balance	$	4,627		$	1,345,431		$	1,350,058
Transfer from unfunded commitment liability(1)	—			29,715			29,715
Provisions:
Provision for current period	(441)			72,862			72,421
Loan sale reduction to provision	—			(102,751)			(102,751)
Total provisions(2)	(441)			(29,889)			(30,330)
Net charge-offs:
Charge-offs	(126)			(91,042)			(91,168)
Recoveries	—			11,377			11,377
Net charge-offs	(126)			(79,665)			(79,791)
Ending Balance	$	4,060		$	1,265,592		$	1,269,652
Allowance(3):
Ending balance: collectively evaluated for impairment	$	4,060		$	1,265,592		$	1,269,652
Loans(3):
Ending balance: collectively evaluated for impairment	$	485,608		$	19,619,531		$	20,105,139
Accrued interest to be capitalized(3):
Ending balance: collectively evaluated for impairment	$	—		$	1,231,754		$	1,231,754
Net charge-offs as a percentage of average loans in repayment (annualized)(4)	0.13		%	2.19		%
Allowance as a percentage of the ending total loan balance and accrued interest to be capitalized(5)	0.84		%	6.07		%
Allowance as a percentage of the ending loans in repayment and accrued interest to be capitalized on loans in repayment(4)(5)	1.10		%	8.62		%
Allowance coverage of net charge-offs (annualized)	8.06			3.97
Ending total loans, gross	$	485,608		$	19,619,531
Average loans in repayment(4)	$	378,667		$	14,543,669
Ending loans in repayment(4)	$	369,681		$	14,231,581
Accrued interest to be capitalized on loans in repayment(6)	$	—		$	453,150

(1) See Note 5, “Unfunded Loan Commitments,” in this Form 10-Q 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 June 30, 2024 (dollars in thousands)
Private Education Loan provisions for credit losses:
Provisions for loan losses	$	(29,889)
Provisions for unfunded loan commitments	47,160
Total Private Education Loan provisions for credit losses	17,271
Other impacts to the provisions for credit losses:
FFELP Loans	(441)
Total	(441)
Provisions for credit losses reported in consolidated statements of income	$	16,830

(3) For the three months ended June 30, 2024, 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 June 30, 2023 (dollars in thousands)	FFELP  Loans			Private  Education Loans			Credit Cards(7)			Total
Allowance for Credit Losses
Beginning balance	$	3,927		$	1,475,379		$	—		$	1,479,306
Transfer from unfunded commitment liability(1)	—			28,188			—			28,188
Provisions:
Provision for current period	820			96,102			(730)			96,192
Loan sale reduction to provision	—			(136,531)			—			(136,531)
Total provisions(2)	820			(40,429)			(730)			(40,339)
Net charge-offs:
Charge-offs	(325)			(114,550)			741			(114,134)
Recoveries	—			11,706			(11)			11,695
Net charge-offs	(325)			(102,844)			730			(102,439)
Ending Balance	$	4,422		$	1,360,294		$	—		$	1,364,716
Allowance(3):
Ending balance: collectively evaluated for impairment	$	4,422		$	1,360,294		$	—		$	1,364,716
Loans(3):
Ending balance: collectively evaluated for impairment	$	573,597		$	19,938,363		$	—		$	20,511,960
Accrued interest to be capitalized(3):
Ending balance: collectively evaluated for impairment	$	—		$	1,136,973		$	—		$	1,136,973
Net charge-offs as a percentage of average loans in repayment (annualized)(4)	0.29		%	2.69		%	—		%
Allowance as a percentage of the ending total loan balance and accrued interest to be capitalized(5)	0.77		%	6.45		%	—		%
Allowance as a percentage of the ending loans in repayment and accrued interest to be capitalized on loans in repayment(4)(5)	1.02		%	9.03		%	—		%
Allowance coverage of net charge-offs (annualized)	3.40			3.31			—
Ending total loans, gross	$	573,597		$	19,938,363		$	—
Average loans in repayment(4)	$	441,749		$	15,269,101		$	—
Ending loans in repayment(4)	$	431,543		$	14,652,527		$	—
Accrued interest to be capitalized on loans in repayment(6)	$	—		$	408,923		$	—

(1) See Note 5, “Unfunded Loan Commitments,” in this Form 10-Q 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 June 30, 2023 (dollars in thousands)
Private Education Loan provisions for credit losses:
Provisions for loan losses	$	(40,429)
Provisions for unfunded loan commitments	58,068
Total Private Education Loan provisions for credit losses	17,639
Other impacts to the provisions for credit losses:
FFELP Loans	820
Credit Cards	(730)
Total	90
Provisions for credit losses reported in consolidated statements of income	$	17,729

(3) For the three months ended June 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).

(7) We use “Credit Cards” to refer to the suite of Credit Card loans that we previously held; we sold the Credit Card portfolio to a third party in May 2023.l

Six Months Ended June 30, 2024 (dollars in thousands)	FFELP Loans			Private Education Loans			Total
Allowance for Credit Losses
Beginning balance	$	4,667		$	1,335,105		$	1,339,772
Transfer from unfunded commitment liability(1)	—			161,329			161,329
Provisions:
Provision for current period	(358)			167,338			166,980
Loan sale reduction to provision	—			(235,955)			(235,955)
Total provisions(2)	(358)			(68,617)			(68,975)
Net charge-offs:
Charge-offs	(249)			(184,916)			(185,165)
Recoveries	—			22,691			22,691
Net charge-offs	(249)			(162,225)			(162,474)
Ending Balance	$	4,060		$	1,265,592		$	1,269,652
Allowance(3):
Ending balance: collectively evaluated for impairment	$	4,060		$	1,265,592		$	1,269,652
Loans(3):
Ending balance: collectively evaluated for impairment	$	485,608		$	19,619,531		$	20,105,139
Accrued interest to be capitalized(3):
Ending balance: collectively evaluated for impairment	$	—		$	1,231,754		$	1,231,754
Net charge-offs as a percentage of average loans in repayment (annualized)(4)	0.13		%	2.17		%
Allowance as a percentage of the ending total loan balance and accrued interest to be capitalized(5)	0.84		%	6.07		%
Allowance as a percentage of the ending loans in repayment and accrued interest to be capitalized on loans in repayment(4)(5)	1.10		%	8.62		%
Allowance coverage of net charge-offs (annualized)	8.15			3.90
Ending total loans, gross	$	485,608		$	19,619,531
Average loans in repayment(4)	$	388,510		$	14,977,567
Ending loans in repayment(4)	$	369,681		$	14,231,581
Accrued interest to be capitalized on loans in repayment(6)	$	—		$	453,150

(1) See Note 5, “Unfunded Loan Commitments,” in this Form 10-Q 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
Six Months Ended June 30, 2024 (dollars in thousands)
Private Education Loan provisions for credit losses:
Provisions for loan losses	$	(68,617)
Provisions for unfunded loan commitments	97,846
Total Private Education Loan provisions for credit losses	29,229
Other impacts to the provisions for credit losses:
FFELP Loans	(358)
Total	(358)
Provisions for credit losses reported in consolidated statements of income	$	28,871

(3) For the six months ended June 30, 2024, 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).

Six Months Ended June 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)	—			176,701			176,701
Provisions:
Provision for current period	1,559			152,436			153,995
Loan sale reduction to provision	—			(136,531)			(136,531)
Total provisions(2)	1,559			15,905			17,464
Net charge-offs:
Charge-offs	(581)			(209,635)			(210,216)
Recoveries	—			23,692			23,692
Net charge-offs	(581)			(185,943)			(186,524)
Ending Balance	$	4,422		$	1,360,294		$	1,364,716
Allowance(3):
Ending balance: collectively evaluated for impairment	$	4,422		$	1,360,294		$	1,364,716
Loans(3):
Ending balance: collectively evaluated for impairment	$	573,597		$	19,938,363		$	20,511,960
Accrued interest to be capitalized(3):
Ending balance: collectively evaluated for impairment	$	—		$	1,136,973		$	1,136,973
Net charge-offs as a percentage of average loans in repayment (annualized)(4)	0.26		%	2.41		%
Allowance as a percentage of the ending total loan balance and accrued interest to be capitalized(5)	0.77		%	6.45		%
Allowance as a percentage of the ending loans in repayment and accrued interest to be capitalized on loans in repayment(4)(5)	1.02		%	9.03		%
Allowance coverage of net charge-offs (annualized)	3.81			3.66
Ending total loans, gross	$	573,597		$	19,938,363
Average loans in repayment(4)	$	446,655		$	15,448,931
Ending loans in repayment(4)	$	431,543		$	14,652,527
Accrued interest to be capitalized on loans in repayment(6)	$	—		$	408,923

(1) See Note 5, “Unfunded Loan Commitments,” in this Form 10-Q 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
Six Months Ended June 30, 2023 (dollars in thousands)
Private Education Loan provisions for credit losses:
Provisions for loan losses	$	15,905
Provisions for unfunded loan commitments	114,377
Total Private Education Loan provisions for credit losses	130,282
Other impacts to the provisions for credit losses:
FFELP Loans	$	1,559
Total	1,559
Provisions for credit losses reported in consolidated statements of income	$	131,841

(3) For the six months ended June 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).

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.

	2024				2023
Three Months Ended June 30, (dollars in thousands)	Allowance		Unfunded Commitments		Allowance		Unfunded Commitments
Beginning Balance	$	32,034	$	673,492	$	32,720	$	684,353
Provision/New commitments - net(1)	47,160		1,317,770		58,068		1,529,368
Transfer - funded loans(2)	(29,715)		(690,869)		(28,188)		(650,865)
Ending Balance	$	49,479	$	1,300,393	$	62,600	$	1,562,856

	2024				2023
Six Months Ended June 30, (dollars in thousands)	Allowance		Unfunded Commitments		Allowance		Unfunded Commitments
Beginning Balance	$	112,962	$	2,221,077	$	124,924	$	1,995,808
Provision/New commitments - net(1)	97,846		2,352,228		114,377		2,654,184
Transfer - funded loans(2)	(161,329)		(3,272,912)		(176,701)		(3,087,136)
Ending Balance	$	49,479	$	1,300,393	$	62,600	$	1,562,856

(1)     Net of expirations of commitments unused. Also includes incremental provision for new commitments and changes to provision for existing commitments.

(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 June 30, 2024 (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	$	5,571	0.03	%	$	272,125	1.29	%
Total	$	5,571	0.03	%	$	272,125	1.29	%

	Loan Modifications Made to Borrowers Experiencing Financial Difficulty
Three Months Ended June 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	$	14,809	0.07	%	$	94,485	0.44	%
Total	$	14,809	0.07	%	$	94,485	0.44	%

	Loan Modifications Made to Borrowers Experiencing Financial Difficulty
Six Months Ended June 30, 2024 (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	$	9,005	0.04	%	$	504,366	2.39	%
Total	$	9,005	0.04	%	$	504,366	2.39	%

	Loan Modifications Made to Borrowers Experiencing Financial Difficulty
Six Months Ended June 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	$	23,995	0.11	%	$	166,882	0.78	%
Total	$	23,995	0.11	%	$	166,882	0.78	%

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

Three Months Ended June 30, 2024
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 13.31% to 3.46%	Private Education Loans	Added a weighted average 9.32 years to the life of loans Reduced average contractual rate from 12.72% to 3.70%

Three Months Ended June 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 13.30% to 4.00%	Private Education Loans	Added a weighted average 10.23 years to the life of loans Reduced average contractual rate from 12.84% to 4.00%

Six Months Ended June 30, 2024
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 13.25% to 3.62%	Private Education Loans	Added a weighted average 9.01 years to the life of loans Reduced average contractual rate from 12.66% to 3.71%

Six Months Ended June 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 13.06% to 4.00%	Private Education Loans	Added a weighted average 10.23 years to the life of loans Reduced average contractual rate from 12.69% to 4.00%

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

	Three Months Ended   June 30, 2024						Three Months Ended   June 30, 2023
(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	$	27,322	$	26,760	$	4,304	$	12,360	$	12,099	$	3,348
Total	$	27,322	$	26,760	$	4,304	$	12,360	$	12,099	$	3,348

	Six Months Ended   June 30, 2024						Six Months Ended   June 30, 2023
(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	$	39,634	$	40,128	$	6,371	$	19,374	$	20,304	$	5,279
Total	$	39,634	$	40,128	$	6,371	$	19,374	$	20,304	$	5,279

(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.

(2) For the three months ended June 30, 2024, the modified loans include $25.7 million of interest rate reduction and term extension loan modifications and $1.6 million of interest rate reduction only loan modifications. For the three months ended June 30, 2023, the modified loans include $11.0 million of interest rate reduction and term extension loan modifications and $1.4 million of interest rate reduction only loan modifications.

(3) For the six months ended June 30, 2024, the modified loans include $37.5 million of interest rate reduction and term extension loan modifications and $2.1 million of interest rate reduction only loan modifications. For the six months ended June 30, 2023, the modified loans include $17.0 million of interest rate reduction and term extension loan modifications and $2.4 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 six months of 2024 and full year 2023, respectively).

	Payment Status (Amortized Cost Basis)
At June 30, 2024 (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	$	7,527	$	468,384	$	17,356	$	8,605	$	11,499	$	513,371
Total	$	7,527	$	468,384	$	17,356	$	8,605	$	11,499	$	513,371

	Payment Status (Amortized Cost Basis)
At December 31, 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	$	6,843	$	334,967	$	17,205	$	7,689	$	13,822	$	380,526
Total	$	6,843	$	334,967	$	17,205	$	7,689	$	13,822	$	380,526

(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) Represents loans in repayment which 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 June 30, 2024 (dollars in thousands)	2024			2023			2022			2021			2020			2019 and Prior			Total
Loans in-school/grace/deferment(1)	$	708,196		$	2,254,427		$	955,723		$	452,970		$	231,555		$	525,887		$	5,128,758
Loans in forbearance(2)	2,295			33,722			60,256			35,789			25,101			102,029			259,192
Loans in repayment:
Loans current	765,729			3,100,292			2,215,133			1,630,195			1,172,591			4,872,598			13,756,538
Loans delinquent 30-59 days(3)	2,542			18,637			29,618			27,766			19,455			126,427			224,445
Loans delinquent 60-89 days(3)	759			9,069			19,011			15,343			11,809			69,393			125,384
Loans 90 days or greater past due(3)	827			6,872			18,028			15,657			11,728			72,102			125,214
Total Private Education Loans in repayment	769,857			3,134,870			2,281,790			1,688,961			1,215,583			5,140,520			14,231,581
Total Private Education Loans, gross	1,480,348			5,423,019			3,297,769			2,177,720			1,472,239			5,768,436			19,619,531
Private Education Loans deferred origination costs and unamortized premium/(discount)	17,774			27,568			11,897			6,845			4,575			10,002			78,661
Total Private Education Loans	1,498,122			5,450,587			3,309,666			2,184,565			1,476,814			5,778,438			19,698,192
Private Education Loans allowance for losses	(80,912)			(304,066)			(228,421)			(152,123)			(94,330)			(405,740)			(1,265,592)
Private Education Loans, net	$	1,417,210		$	5,146,521		$	3,081,245		$	2,032,442		$	1,382,484		$	5,372,698		$	18,432,600
Percentage of Private Education Loans in repayment	52.0		%	57.8		%	69.2		%	77.6		%	82.6		%	89.1		%	72.5		%
Delinquent Private Education Loans in repayment as a percentage of Private Education Loans in repayment	0.5		%	1.1		%	2.9		%	3.5		%	3.5		%	5.2		%	3.3		%
Loans in forbearance as a percentage of loans in repayment and forbearance	0.3		%	1.1		%	2.6		%	2.1		%	2.0		%	1.9		%	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.

	Private Education Loans Held for Investment - Delinquencies by Origination Vintage
As of December 31, 2023 (dollars in thousands)	2023			2022			2021			2020			2019			2018 and Prior			Total
Loans in-school/grace/deferment(1)	$	1,976,040		$	1,672,333		$	669,250		$	307,781		$	213,593		$	452,994		$	5,291,991
Loans in forbearance(2)	19,265			93,079			58,438			35,450			31,818			85,989			324,039
Loans in repayment:
Loans current	2,469,817			3,254,534			2,131,040			1,416,069			1,323,825			4,213,986			14,809,271
Loans delinquent 30-59 days(3)	17,599			34,627			37,147			28,020			31,432			149,926			298,751
Loans delinquent 60-89 days(3)	5,720			17,227			20,077			16,614			15,482			75,897			151,017
Loans 90 days or greater past due(3)	1,678			16,939			21,470			15,155			16,150			79,383			150,775
Total Private Education Loans in repayment	2,494,814			3,323,327			2,209,734			1,475,858			1,386,889			4,519,192			15,409,814
Total Private Education Loans, gross	4,490,119			5,088,739			2,937,422			1,819,089			1,632,300			5,058,175			21,025,844
Private Education Loans deferred origination costs and unamortized premium/(discount)	35,616			18,556			9,465			5,809			3,556			8,552			81,554
Total Private Education Loans	4,525,735			5,107,295			2,946,887			1,824,898			1,635,856			5,066,727			21,107,398
Private Education Loans allowance for losses	(269,642)			(335,090)			(194,104)			(118,755)			(100,111)			(317,403)			(1,335,105)
Private Education Loans, net	$	4,256,093		$	4,772,205		$	2,752,783		$	1,706,143		$	1,535,745		$	4,749,324		$	19,772,293
Percentage of Private Education Loans in repayment	55.6		%	65.3		%	75.2		%	81.1		%	85.0		%	89.3		%	73.3		%
Delinquent Private Education Loans in repayment as a percentage of Private Education Loans in repayment	1.0		%	2.1		%	3.6		%	4.1		%	4.5		%	6.8		%	3.9		%
Loans in forbearance as a percentage of loans in repayment and forbearance	0.8		%	2.7		%	2.6		%	2.3		%	2.2		%	1.9		%	2.1		%

(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 June 30, 2024 (dollars in thousands)	Private Education Loans Held for Investment - Credit Quality Indicators
Year of Origination Approval	2024(1)		2023(1)		2022(1)		2021(1)		2020(1)		2019 and Prior(1)		Total(1)		% of Balance
Cosigners:
With cosigner	$	1,263,118	$	4,792,996	$	2,830,170	$	1,844,136	$	1,229,753	$	5,084,224	$	17,044,397	87	%
Without cosigner	217,230		630,023		467,599		333,584		242,486		684,212		2,575,134		13
Total	$	1,480,348	$	5,423,019	$	3,297,769	$	2,177,720	$	1,472,239	$	5,768,436	$	19,619,531	100	%
FICO at Origination Approval(2):
Less than 670	$	90,651	$	396,047	$	265,203	$	158,763	$	99,015	$	515,518	$	1,525,197	8	%
670-699	197,505		757,395		457,439		294,690		209,037		979,895		2,895,961		15
700-749	463,674		1,663,571		1,030,601		693,019		480,075		1,948,940		6,279,880		32
Greater than or equal to 750	728,518		2,606,006		1,544,526		1,031,248		684,112		2,324,083		8,918,493		45
Total	$	1,480,348	$	5,423,019	$	3,297,769	$	2,177,720	$	1,472,239	$	5,768,436	$	19,619,531	100	%
FICO Refreshed(2)(3):
Less than 670	$	139,717	$	648,278	$	471,147	$	307,412	$	195,258	$	883,767	$	2,645,579	13	%
670-699	198,681		719,888		412,143		262,386		152,440		631,641		2,377,179		12
700-749	449,714		1,559,804		919,511		590,474		390,302		1,538,382		5,448,187		28
Greater than or equal to 750	692,236		2,495,049		1,494,968		1,017,448		734,239		2,714,646		9,148,586		47
Total	$	1,480,348	$	5,423,019	$	3,297,769	$	2,177,720	$	1,472,239	$	5,768,436	$	19,619,531	100	%
Seasoning(4):
1-12 payments	$	772,152	$	2,750,486	$	448,319	$	286,029	$	173,738	$	411,072	$	4,841,796	25	%
13-24 payments	—		418,106		1,635,135		190,611		135,833		412,987		2,792,672		14
25-36 payments	—		—		258,592		1,094,789		116,401		528,339		1,998,121		10
37-48 payments	—		—		—		153,321		687,962		472,389		1,313,672		7
More than 48 payments	—		—		—		—		126,750		3,417,762		3,544,512		18
Not yet in repayment	708,196		2,254,427		955,723		452,970		231,555		525,887		5,128,758		26
Total	$	1,480,348	$	5,423,019	$	3,297,769	$	2,177,720	$	1,472,239	$	5,768,436	$	19,619,531	100	%
2024 Current period(5) gross charge-offs	$	(163)	$	(8,669)	$	(32,873)	$	(26,921)	$	(18,886)	$	(97,404)	$	(184,916)
2024 Current period(5) recoveries	—		700		3,257		2,941		2,011		13,782		22,691
2024 Current period(5) net charge-offs	$	(163)	$	(7,969)	$	(29,616)	$	(23,980)	$	(16,875)	$	(83,622)	$	(162,225)
Total accrued interest by origination vintage	$	43,576	$	357,479	$	329,161	$	221,437	$	128,373	$	287,456	$	1,367,482
(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 second-quarter 2024. (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, 2024 through June 30, 2024.

As of December 31, 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	$	3,903,676	$	4,428,163	$	2,516,380	$	1,535,308	$	1,378,699	$	4,529,768	$	18,291,994	87	%
Without cosigner	586,443		660,576		421,042		283,781		253,601		528,407		2,733,850		13
Total	$	4,490,119	$	5,088,739	$	2,937,422	$	1,819,089	$	1,632,300	$	5,058,175	$	21,025,844	100	%
FICO at Origination Approval(2):
Less than 670	$	328,199	$	395,526	$	208,696	$	118,935	$	137,494	$	451,613	$	1,640,463	8	%
670-699	635,642		704,642		400,744		254,762		257,840		868,777		3,122,407		15
700-749	1,383,779		1,586,783		934,033		590,401		545,333		1,709,299		6,749,628		32
Greater than or equal to 750	2,142,499		2,401,788		1,393,949		854,991		691,633		2,028,486		9,513,346		45
Total	$	4,490,119	$	5,088,739	$	2,937,422	$	1,819,089	$	1,632,300	$	5,058,175	$	21,025,844	100	%
FICO Refreshed(2)(3):
Less than 670	$	495,451	$	638,381	$	379,738	$	217,956	$	214,665	$	791,875	$	2,738,066	13	%
670-699	616,684		672,777		365,674		193,462		176,963		564,245		2,589,805		12
700-749	1,347,094		1,477,310		836,747		498,414		445,244		1,361,073		5,965,882		28
Greater than or equal to 750	2,030,890		2,300,271		1,355,263		909,257		795,428		2,340,982		9,732,091		47
Total	$	4,490,119	$	5,088,739	$	2,937,422	$	1,819,089	$	1,632,300	$	5,058,175	$	21,025,844	100	%
Seasoning(4):
1-12 payments	$	2,514,079	$	740,450	$	440,293	$	245,631	$	208,941	$	332,608	$	4,482,002	21	%
13-24 payments	—		2,675,956		303,045		167,532		165,577		384,760		3,696,870		18
25-36 payments	—		—		1,524,834		195,091		129,571		456,448		2,305,944		11
37-48 payments	—		—		—		902,938		208,521		446,350		1,557,809		7
More than 48 payments	—		—		—		116		706,097		2,985,015		3,691,228		18
Not yet in repayment	1,976,040		1,672,333		669,250		307,781		213,593		452,994		5,291,991		25
Total	$	4,490,119	$	5,088,739	$	2,937,422	$	1,819,089	$	1,632,300	$	5,058,175	$	21,025,844	100	%
2023 Current period(5) gross charge-offs	$	(1,812)	$	(31,032)	$	(70,331)	$	(49,624)	$	(50,585)	$	(216,711)	$	(420,095)
2023 Current period(5) recoveries	172		2,342		6,496		4,923		5,260		27,175		46,368
2023 Current period(5) net charge-offs	$	(1,640)	$	(28,690)	$	(63,835)	$	(44,701)	$	(45,325)	$	(189,536)	$	(373,727)
Total accrued interest by origination vintage	$	177,959	$	408,800	$	269,978	$	152,094	$	116,618	$	229,116	$	1,354,565

(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 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 January 1, 2023 through December 31, 2023.

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)
June 30, 2024	$	1,367,482	$	6,602	$	8,500
December 31, 2023	$	1,354,565	$	8,373	$	9,897

(1)The allowance for uncollectible interest at June 30, 2024 represents the expected losses related to the portion of accrued interest receivable on those loans that are in repayment ($136 million of accrued interest receivable) that is not expected to be capitalized. The accrued interest receivable that is expected to be capitalized ($1.2 billion) is reserved in the allowance for credit losses. The accrued interest receivable for the loans delinquent 90 days or greater includes $5.8 million of accrued interest receivable on those loans that are in repayment that is not expected to be capitalized and $0.8 million that is expected to be capitalized.

(2)The allowance for uncollectible interest at December 31, 2023 represents the expected losses related to the portion of accrued interest receivable on those loans in repayment ($151 million of accrued interest receivable) that was not expected to be capitalized. The accrued interest receivable that was expected to be capitalized ($1.2 billion) was reserved in the allowance for credit losses. The accrued interest receivable for the loans delinquent 90 days or greater includes $7.7 million of accrued interest receivable on those loans that are in repayment that is not expected to be capitalized and $0.6 million that is expected to be capitalized.