XML 40 R27.htm IDEA: XBRL DOCUMENT v3.25.1
Loans Held for Investment (Tables)
 3 Months Ended
Mar. 31, 2025
Receivables [Abstract]  
Schedule of Allowance for Credit Losses and Recorded Investments in Loans
The following table summarizes our Private Education Loan sales to unaffiliated third parties for the periods presented.
Three Months Ended March 31,
(dollars in millions)		20252024
Loan principal$1,840 $1,952 
Capitalized interest
163 151 
Total Private Education Loans sold$2,003 $2,103 
Gain on sale of loans, net
$188 $143 
Allowance for Credit Losses Metrics
The following tables provide a summary of the activity in the allowance for loan losses and the allowance for unfunded loan commitments during the three months ended March 31, 2025 and 2024.
Three Months Ended March 31, 2025
(dollars in thousands)
Private Education
Loans
Allowance for loan losses, beginning balance$1,435,920 
Transfer from allowance for unfunded loan commitments105,134 
Provisions:
Provision for current period95,289 
Loan sale reduction to provision(116,459)
Total provisions(1)
(21,170)
Net charge-offs:
Charge-offs(86,903)
Recoveries10,734 
Net charge-offs(76,169)
Allowance for loan losses, ending balance$1,443,715 
Allowance for unfunded loan commitments, beginning balance(2)
84,568 
Provision(1)(3)
44,456 
Transfer to allowance for loan losses(105,134)
Allowance for unfunded loan commitments, ending balance(2)
23,890 
Total allowance for credit losses, ending balance$1,467,605 
Net charge-offs as a percentage of average loans in repayment (annualized)(4)
1.88 %
Allowance for loan losses coverage of net charge-offs (annualized)4.74 
Total Allowance Percentage of Private Education Loan Exposure(5)
5.97 %
Ending total loans, gross$22,432,125 
Average loans in repayment(4)
$16,240,511 
Ending loans in repayment(4)
$15,903,797 
Unfunded loan commitments$584,140 
Total accrued interest receivable$1,558,465 
(1) See “—Provisions for Credit Losses” below in this Note 4 for a reconciliation of the provisions for credit losses reported in the consolidated statements of income.
(2) When a new loan commitment is made, we record an allowance to cover lifetime expected credit losses on the unfunded commitments, which is recorded in “Other Liabilities” on the consolidated balance sheet. See “—Unfunded Loan Commitments” in this Note 4 for further discussion.
(3 ) Includes incremental provision for new commitments and changes to provision for existing commitments.
(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 loans in the “loans in forbearance” metric).
(5) The Total Allowance Percentage of Private Education Loan Exposure is the total allowance for credit losses as a percentage of ending total loans plus unfunded loan commitments and total accrued interest receivable on Private Education Loans.
Three Months Ended March 31, 2024
(dollars in thousands)
FFELP 
Loans		Private
 Education
Loans		Total
Allowance for loan losses, beginning balance$4,667 $1,335,105 $1,339,772 
Transfer from allowance for unfunded loan commitments— 131,614 131,614 
Provisions:
Provision for current period83 94,476 94,559 
Loan sale reduction to provision— (133,204)(133,204)
Total provisions(1)
83 (38,728)(38,645)
Net charge-offs:
Charge-offs(123)(93,874)(93,997)
Recoveries— 11,314 11,314 
Net charge-offs(123)(82,560)(82,683)
Allowance for loan losses, ending balance$4,627 $1,345,431 $1,350,058 
Allowance for unfunded loan commitments, beginning balance(2)
— 112,962 112,962 
Provision(1)(3)
— 50,686 50,686 
Transfer to allowance for loan losses— (131,614)(131,614)
Allowance for unfunded loan commitments, ending balance(2)
— 32,034 32,034 
Total allowance for credit losses, ending balance$4,627 $1,377,465 $1,382,092 
Net charge-offs as a percentage of average loans in repayment (annualized)(4)
0.12 %2.14 %
Allowance for loan losses coverage of net charge-offs (annualized)9.40 4.07 
Total Allowance Percentage of Private Education Loan Exposure(5)
0.90 %5.99 %
Ending total loans, gross$516,363 $20,952,346 
Average loans in repayment(4)
$399,680 $15,407,495 
Ending loans in repayment(4)
$393,820 $14,961,692 
Unfunded loan commitments$— $673,492 
Total accrued interest receivable$— $1,357,987 
(1) See “—Provisions for Credit Losses” below in this Note 4 for a reconciliation of the provisions for credit losses reported in the consolidated statements of income.
(2) When a new loan commitment is made, we record an allowance to cover lifetime expected credit losses on the unfunded commitments, which is recorded in “Other Liabilities” on the consolidated balance sheet. See “—Unfunded Loan Commitments” in this Note 4 for further discussion.
(3) Includes incremental provision for new commitments and changes to provision for existing commitments.
(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 loans in the “loans in forbearance” metric).
(5) The Total Allowance Percentage of Private Education Loan Exposure is the total allowance for credit losses as a percentage of ending total loans plus unfunded loan commitments and total accrued interest receivable on Private Education Loans.

l
Provisions for Credit Losses
Below is a reconciliation of the provisions for credit losses reported in the consolidated statements of income.
Consolidated Statements of Income
Provisions for Credit Losses Reconciliation
Three Months Ended March 31,
(dollars in thousands)20252024
Private Education Loan provisions for credit losses:
Provisions for loan losses$(21,170)$(38,728)
Provisions for unfunded loan commitments44,456 50,686 
Total Private Education Loan provisions for credit losses23,286 11,958 
Total FFELP Loans provisions for credit losses— 83 
Provisions for credit losses reported in consolidated statements of income$23,286 $12,041 
The table below summarizes 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.
20252024
Three Months Ended March 31,
(dollars in thousands)
AllowanceUnfunded CommitmentsAllowanceUnfunded Commitments
Beginning Balance$84,568 $2,311,660 $112,962 $2,221,077 
Provision/New commitments - net(1)
44,456 1,043,958 50,686 1,034,458 
Transfer - funded loans(2)
(105,134)(2,771,478)(131,614)(2,582,043)
Ending Balance$23,890 $584,140 $32,034 $673,492 
(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 Loans Held for Investment
Loans held for investment are summarized as follows:
March 31,December 31,
(Dollars in thousands)20252024
Loans Held for Investment, net:
Fixed-rate$17,463,708 $17,093,382 
Variable-rate4,968,417 5,141,626 
Total Private Education Loans, gross22,432,125 22,235,008 
Deferred origination costs and unamortized premium/(discount)102,794 103,070 
Allowance for credit losses(1,443,715)(1,435,920)
Loans held for investment, net$21,091,204 $20,902,158 
The average balance (net of unamortized premium/(discount)) and the respective weighted average interest rates of loans held for investment in our portfolio are summarized as follows:

20252024
Three Months Ended March 31,
(dollars in thousands)
Average BalanceWeighted Average Interest RateAverage BalanceWeighted Average Interest Rate
Private Education Loans$22,916,916 10.59 %$21,442,744 11.01 %
FFELP Loans(1)
— — 527,012 7.24 
Total portfolio$22,916,916 $21,969,756 

(1) FFELP Loans were transferred to loans held for sale during the third quarter of 2024 and subsequently sold to a third-party in the fourth quarter of 2024.