Loans Receivable and Allowance for Loan Losses (Tables)

12 Months Ended

Dec. 31, 2017

Receivables [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable

Loans receivable consisted of the following:

	As of December 31,
	2017			2016
Federally insured student loans:
Stafford and other	$	4,418,881		5,186,047
Consolidation	17,302,725			19,643,937
Total	21,721,606			24,829,984
Private education loans	212,160			273,659
Consumer loans	62,111			—
	21,995,877			25,103,643
Loan discount, net of unamortized loan premiums and deferred origination costs	(113,695		)	(129,507	)
Non-accretable discount (a)	(13,085		)	(18,570	)
Allowance for loan losses:
Federally insured loans	(38,706		)	(37,268	)
Private education loans	(12,629		)	(14,574	)
Consumer loans	(3,255		)	—
	$	21,814,507		24,903,724

(a) At December 31, 2017 and 2016, the non-accretable discount related to purchased loan portfolios of $5.8 billion and $8.3 billion, respectively.

Allowance for Credit Losses on Financing Receivables

The provision for loan losses represents the periodic expense of maintaining an allowance sufficient to absorb losses, net of recoveries, inherent in the portfolio of student loans. Activity in the allowance for loan losses is shown below.

	Year ended December 31,
	2017			2016		2015
Balance at beginning of period	$	51,842		50,498		48,900
Provision for loan losses:
Federally insured loans	13,000			14,000		8,000
Private education loans	(2,000		)	(500	)	2,150
Consumer loans	3,450			—		—
Total provision for loan losses	14,450			13,500		10,150
Charge-offs:
Federally insured loans	(11,562		)	(12,292	)	(11,730	)
Private education loans	(1,313		)	(1,728	)	(2,414	)
Consumer loans	(195		)	—		—
Total charge-offs	(13,070		)	(14,020	)	(14,144	)
Recoveries - private education loans	768			954		1,050
Purchase (sale) of loans, net:
Federally insured loans	—			70		50
Private education loans	—			480		(140	)
Transfer from repurchase obligation related to private education loans repurchased, net (a)	600			360		4,632
Balance at end of period	$	54,590		51,842		50,498
Allocation of the allowance for loan losses:
Federally insured loans	$	38,706		37,268		35,490
Private education loans	12,629			14,574		15,008
Consumer loans	3,255			—		—
Total allowance for loan losses	$	54,590		51,842		50,498

(a) The Company sold various portfolios of private education loans to third-parties. Per the terms of the servicing agreements, the Company’s servicing operations were obligated to repurchase loans subject to the sale agreements in the event such loans became 60 or 90 days delinquent. As of December 31, 2016, the balance of loans subject to these repurchase obligations was $39.5 million. The Company's estimate related to its obligation to repurchase these loans is included in "other liabilities" in the Company's consolidated balance sheet and was $2.3 million as of December 31, 2016. On November 3, 2017, the loans subject to the repurchase obligations were sold by the owner of the loans to an unrelated third-party and the Company's repurchase obligation was terminated.

Financing Receivable Credit Quality Indicators

Delinquencies have the potential to adversely impact the Company’s earnings through increased servicing and collection costs and account charge-offs.  The table below shows the Company’s loan delinquency amounts for federally insured and private education loans.

	As of December 31,
	2017				2016				2015
Federally insured loans:
Loans in-school/grace/deferment (a)	$	1,260,394			$	1,606,468			$	2,292,941
Loans in forbearance (b)	1,774,405				2,295,367				2,979,357
Loans in repayment status:
Loans current	16,477,004		88.2	%	18,125,768		86.6	%	19,447,541		84.4	%
Loans delinquent 31-60 days (c)	682,586		3.7		818,976		3.9		1,028,396		4.5
Loans delinquent 61-90 days (c)	374,534		2.0		487,647		2.3		566,953		2.5
Loans delinquent 91-120 days (c)	287,922		1.5		335,291		1.6		415,747		1.8
Loans delinquent 121-270 days (c)	629,480		3.4		854,432		4.1		1,166,940		5.1
Loans delinquent 271 days or greater (c)(d)	235,281		1.2		306,035		1.5		390,232		1.7
Total loans in repayment	18,686,807		100.0	%	20,928,149		100.0	%	23,015,809		100.0	%
Total federally insured loans	$	21,721,606			$	24,829,984			$	28,288,107
Private education loans:
Loans in-school/grace/deferment (a)	$	6,053			$	35,146			$	30,795
Loans in forbearance (b)	2,237				3,448				350
Loans in repayment status:
Loans current	196,720		96.5	%	228,612		97.2	%	228,464		96.7	%
Loans delinquent 31-60 days (c)	1,867		0.9		1,677		0.7		1,771		0.7
Loans delinquent 61-90 days (c)	1,052		0.5		1,110		0.5		1,283		0.5
Loans delinquent 91 days or greater (c)	4,231		2.1		3,666		1.6		4,979		2.1
Total loans in repayment	203,870		100.0	%	235,065		100.0	%	236,497		100.0	%
Total private education loans	$	212,160			$	273,659			$	267,642

(a) Loans for borrowers who still may be attending school or engaging 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 for law students.

(b) Loans for borrowers who have temporarily ceased making full payments due to hardship or other factors, according to a schedule approved by the servicer consistent with the established loan program servicing procedures and policies.

(c) The period of delinquency is based on the number of days scheduled payments are contractually past due and relate to repayment loans, that is, receivables not charged off, and not in school, grace, deferment, or forbearance.

(d) A portion of loans included in loans delinquent 271 days or greater includes loans in claim status, which are loans that have gone into default and have been submitted to the guaranty agency.