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Borrowings (Tables)

12 Months Ended

Dec. 31, 2024

The following table summarizes our secured borrowings at December 31, 2024 and 2023.


As of December 31, (dollars in thousands)	2024						2023
	Short-Term		Long-Term		Total		Short-Term		Long-Term		Total
Unsecured borrowings:
Unsecured debt (fixed-rate)	$	—	$	995,420	$	995,420	$	—	$	992,200	$	992,200
Total unsecured borrowings	—		995,420		995,420		—		992,200		992,200

Secured borrowings:
Private Education Loan term securitizations:
Fixed-rate	—		4,617,743		4,617,743		—		3,585,254		3,585,254
Variable-rate	—		827,182		827,182		—		650,058		650,058
Total Private Education Loan term securitizations	—		5,444,925		5,444,925		—		4,235,312		4,235,312
Secured Borrowing Facility	—		—		—		—		—		—
Total secured borrowings	—		5,444,925		5,444,925		—		4,235,312		4,235,312
Total	$	—	$	6,440,345	$	6,440,345	$	—	$	5,227,512	$	5,227,512

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 2056.


	December 31, 2024				Year Ended December 31, 2024		December 31, 2023				Year Ended December 31, 2023
(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	$	827,182	5.71	%	$	724,761	$	650,058	6.51	%	$	715,409
Fixed-rate borrowings	5,613,163		4.09		4,864,359		4,577,454		3.52		4,605,806
Total long-term borrowings	$	6,440,345	4.30	%	$	5,589,120	$	5,227,512	3.89	%	$	5,321,215

Schedule of Maturities of Long-term Debt

As of December 31, 2024, the maturities of our brokered CDs and borrowings are summarized below.


As of December 31, 2024 (dollars in thousands)	Brokered CDs		Unsecured Debt		Secured Borrowings(1)		Total

2025	$	2,763,401	$	498,897	$	823,843	$	4,086,141
2026	1,824,607		496,523		840,927		3,162,057
2027	783,061		—		823,320		1,606,381
2028	146,282		—		642,798		789,080
2029	683,748		—		568,779		1,252,527
2030 and after	—		—		1,764,900		1,764,900
	6,201,099		995,420		5,464,567		12,661,086
Hedge accounting adjustments	(241)		—		—		(241)
Total	$	6,200,858	$	995,420	$	5,464,567	$	12,660,845

(1) We view our secured borrowings as long-term based on the contractual maturity dates ranging from 2032 to 2056. 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 Financing Transactions

The following summarizes our term funding collateralized by pools of Private Education Loans in the long-term ABS market issued in 2023 and 2024 in which we retained 100 percent of the residual class certificates.


SMB Private Education Loan Trust	Date Closed	Loans Transferred to the Trust(1)		Notes Issued		Gross Proceeds		Weighted Average Cost of Funds(2)	Weighted Average Life of Class A and Class B Notes (in years)
(Dollars in thousands)

















2023-A ABS Transaction	March 15, 2023	$	644,573	$	579,000	$	571,910	SOFR plus 1.53%	5.06
2023-C ABS Transaction	August 16, 2023	647,934		568,000		567,881		SOFR plus 1.69%	4.93
Total 2023		$	1,292,507	$	1,147,000	$	1,139,791

2024-C ABS Transaction	May 15, 2024	$	733,644	$	668,000	$	667,888	SOFR plus 1.19%	5.36
2024-E ABS Transaction	August 14, 2024	944,645		868,000		867,743		SOFR plus 1.42%	5.17
2024-F ABS Transaction	November 6, 2024	732,445		680,000		679,981		SOFR plus 1.08%	5.09
Total 2024		$	2,410,734	$	2,216,000	$	2,215,612

(1)The transfer of such loans did not qualify for sale treatment and thus remain on our consolidated balance sheet. At December 31, 2024, the following Private Education Loan amounts remain encumbered related to these transactions:


SMB Private Education Loan Trust	Loan Principal		Capitalized Interest		Total Loans
(Dollars in thousands)
2023-A ABS Transaction	$	484,551	$	32,856	$	517,407
2023-C ABS Transaction	516,507		35,287		551,794
Total 2023	$	1,001,058	$	68,143	$	1,069,201

2024-C ABS Transaction	$	646,550	$	52,968	$	699,518
2024-E ABS Transaction	841,355		69,238		910,593
2024-F ABS Transaction	662,361		55,131		717,492
Total 2024	$	2,150,266	$	177,337	$	2,327,603

(2)Represents SOFR equivalent cost of funds for variable and fixed-rate bonds, excluding issuance costs.

The following summarizes our Private Education Loan ABS transactions closed in 2023 and 2024 where the respective VIEs were not consolidated.


SMB Private Education Loan Trust	Date Closed	Loans Transferred to the Trust by Third-Party Seller		Date Third-Party Seller Previously Purchased Loans from the Bank	Additional Loans the Bank Transferred to the Trust(1)		Gain on Sale for Additional Loans Transferred by Bank
(Dollars in thousands)
2023-B ABS transaction(2)	May 24, 2023	$	1,988,277	May 3, 2023	$	104,743	$	5,391
2023-D ABS transaction(2)	November 7, 2023	995,184		October 13, 2023	52,572		1,570
2024-A ABS transaction(2)	March 13, 2024	1,988,248		February 1, 2024	104,748		6,685
2024-R1 ABS transaction(3)	April 9, 2024	68,896		n/a	—		—
2024-B ABS transaction(2)	April 11, 2024	191,445		March 6, 2020 and November 17, 2021	10,132		35
2024-D ABS transaction(2)	June 28, 2024	1,494,953		May 23, 2024	78,782		$	6,051

(1)The transfer of such additional loans qualified for sale treatment and removed these loans from our balance sheet on the settlement date of the transaction.

(2)Sallie Mae Bank sponsored the transaction and is the servicer and administrator.

(3)An unaffiliated third party sold to the Trust approximately $69 million of Private Education Loan residual flows from our 2020-PTA and 2020-PTB transactions through a re-securitization. Sallie Mae Bank sponsored the 2024-R1 transaction and is the administrator of the Trust.

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, 2024 (dollars in thousands)
	Debt Outstanding						Carrying Amount of Net Assets Securing Debt Outstanding
	Short-Term		Long-Term		Total		Loans		Restricted Cash		Other Assets, Net(1)		Total
Secured borrowings:
Private Education Loan term securitizations	$	—	$	5,444,925	$	5,444,925	$	6,786,390	$	173,892	$	418,705	$	7,378,987
Secured Borrowing Facility	—		—		—		—		—		98		98
Total	$	—	$	5,444,925	$	5,444,925	$	6,786,390	$	173,892	$	418,803	$	7,379,085


As of December 31, 2023 (dollars in thousands)
	Debt Outstanding						Carrying Amount of Net Assets Securing Debt Outstanding
	Short-Term		Long-Term		Total		Loans		Restricted Cash		Other Assets, Net(1)		Total
Secured borrowings:
Private Education Loan term securitizations	$	—	$	4,235,312	$	4,235,312	$	5,539,964	$	149,412	$	303,653	$	5,993,029
Secured Borrowing Facility	—		—		—		—		—		100		100
Total	$	—	$	4,235,312	$	4,235,312	$	5,539,964	$	149,412	$	303,753	$	5,993,129

(1) Other assets, net primarily represents accrued interest receivable and payable.

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


	2024						2023
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	$	571,795	$	53,262	$	625,057	$	423,327	$	54,481	$	477,808

(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.

+ References

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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.

+ References + Details