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Borrowings (Tables)

12 Months Ended

Dec. 31, 2023

The following table summarizes our borrowings.


	December 31, 2023															December 31, 2022
(Dollars in millions)	Short Term			Weighted Average Interest Rate(8)			Long Term			Weighted Average Interest Rate(8)			Total			Short Term			Weighted Average Interest Rate(8)			Long Term			Weighted Average Interest Rate(8)			Total
Unsecured borrowings:
Senior unsecured debt(1)	$	506			5.88	%	$	5,351			6.61	%	$	5,857		$	1,301			5.90	%	$	5,711			5.82	%	$	7,012
Total unsecured borrowings		506			5.88			5,351			6.61			5,857			1,301			5.90			5,711			5.82			7,012
Secured borrowings:
FFELP Loan securitizations(2)(3)(4)		59			6.84			35,626			6.06			35,685			76			6.01			42,675			4.96			42,751
Private Education Loan securitizations(5)		435			8.14			11,754			3.59			12,189			725			7.17			12,744			3.11			13,469
FFELP Loan ABCP facilities		1,854			6.60			89			6.29			1,943			923			5.31			386			5.33			1,309
Private Education Loan ABCP facilities		1,286			6.62			821			6.84			2,107			2,734			5.55			—			—			2,734
Other(6)		95			5.61			39			5.50			134			121			4.61			—			—			121
Total secured borrowings		3,729			6.76			48,329			5.47			52,058			4,579			5.74			55,805			4.54			60,384
Total before hedge accounting adjustments(7)		4,235			6.66			53,680			5.59			57,915			5,880			5.78			61,516			4.66			67,396
Hedge accounting adjustments		(9	)		.01			(278	)		.03			(287	)		(10	)		.01			(490	)		.04			(500	)
Total	$	4,226			6.67	%	$	53,402			5.62	%	$	57,628		$	5,870			5.78	%	$	61,026			4.70	%	$	66,896

(1)

Includes principal amount of $506 million and $1.3 billion of short-term debt as of December 31, 2023 and 2022, respectively. Includes principal amount of $5.4 billion and $5.7 billion of long-term debt as of December 31, 2023 and 2022, respectively.

(2)

Includes $59 million and $76 million of short-term debt and $122 and $0 million of long-term debt related to the FFELP Loan ABS repurchase facilities (FFELP Loan Repurchase Facilities) as of December 31, 2023 and 2022, respectively.

(3)

Includes $1.6 billion and $1.8 billion of non-U.S. dollar-denominated debt as of December 31, 2023 and 2022, respectively, which has been hedged with swaps converting to U.S. dollars.

(4)

Includes defaulted FFELP secured debt tranches with a remaining principal amount of $1.6 billion as of December 31, 2023 as a result of not maturing by their respective contractual maturity dates. Notices were delivered to the trustee, rating agencies and bondholders alerting them to these maturity date defaults. At this time, it is expected the bonds will be paid in full between 2031 and 2037. There is no impact to the principal amount owed or the coupon at which the bonds accrue, and there is no revised contractual maturity date.

(5)

Includes $435 million and $725 million of short-term debt related to the Private Education Loan ABS repurchase facilities (Private Education Loan Repurchase Facilities) as of December 31, 2023 and 2022, respectively.

(6)

“Other” primarily includes the obligation to return cash collateral held related to derivative exposure.

(7)

Includes $38.2 billion and $44.9 billion of long-term floating rate debt as of December 31, 2023 and 2022, respectively, and $15.5 billion and $16.6 billion of long-term fixed rate debt as of December 31, 2023 and 2022, respectively.

Weighted average interest rate is as of end of period.

Expected Maturities of Long-term Borrowings

As of December 31, 2023, the expected maturities of our long-term borrowings are shown in the following table.


	Expected Maturity
(Dollars in millions)	Senior Unsecured Debt			Secured Borrowings(1)			Total(2)
Year of Maturity
2024	$	—		$	4,528		$	4,528
2025		552			5,368			5,920
2026		523			4,115			4,638
2027		694			3,974			4,668
2028		513			3,867			4,380
2029-2048		3,069			26,477			29,546
Total before hedge accounting adjustments		5,351			48,329			53,680
Hedge accounting adjustments		(157	)		(121	)		(278	)
Total	$	5,194		$	48,208		$	53,402

(1)

We view our securitization trust debt as long-term based on the contractual maturity dates. However, we have projected the expected principal paydowns based on our current estimates regarding the loan prepayment speeds for purposes of this disclosure to better reflect how we expect this debt to be paid down over time. The projected principal paydowns in year 2024 include $4.5 billion related to the securitization trust debt.

(2)

The aggregate principal amount of debt that matures in each period is $4.5 billion in 2024, $6.0 billion in 2025, $4.7 billion in 2026, $4.7 billion in 2027, $4.4 billion in 2028 and $29.8 billion in 2029 to 2048.

Financing VIEs

We consolidated the following financing VIEs as of December 31, 2023 and 2022, as we are the primary beneficiary. As a result, these VIEs are accounted for as secured borrowings.


	December 31, 2023
	Debt Outstanding								Carrying Amount of Assets Securing Debt Outstanding
(Dollars in millions)	Short Term		Long Term			Total			Loans		Cash		Other Assets, Net			Total
Secured Borrowings — VIEs:
FFELP Loan securitizations	$	59	$	35,626		$	35,685		$	35,935	$	1,441	$	1,673		$	39,049
Private Education Loan securitizations		435		11,754			12,189			13,396		350		119			13,865
FFELP Loan ABCP facilities		1,854		89			1,943			1,897		77		92			2,066
Private Education Loan ABCP facilities		1,286		821			2,107			2,363		69		50			2,482
Total before hedge accounting adjustments		3,634		48,290			51,924			53,591		1,937		1,934			57,462
Hedge accounting adjustments		—		(121	)		(121	)		—		—		(190	)		(190	)
Total	$	3,634	$	48,169		$	51,803		$	53,591	$	1,937	$	1,744		$	57,272


	December 31, 2022
	Debt Outstanding								Carrying Amount of Assets Securing Debt Outstanding
(Dollars in millions)	Short Term		Long Term			Total			Loans		Cash		Other Assets, Net			Total
Secured Borrowings — VIEs:
FFELP Loan securitizations	$	76	$	42,675		$	42,751		$	42,148	$	2,705	$	1,544		$	46,397
Private Education Loan securitizations		725		12,744			13,469			14,168		367		105			14,640
FFELP Loan ABCP facilities		923		386			1,309			1,317		39		44			1,400
Private Education Loan ABCP facilities		2,734		—			2,734			3,039		122		(81	)		3,080
Total before hedge accounting adjustments		4,458		55,805			60,263			60,672		3,233		1,612			65,517
Hedge accounting adjustments		—		(207	)		(207	)		—		—		(256	)		(256	)
Total	$	4,458	$	55,598		$	60,056		$	60,672	$	3,233	$	1,356		$	65,261

Summary of Activity Related to Senior Unsecured Debt Repurchases

The following table summarizes activity related to our senior unsecured debt repurchases.


	Years Ended December 31,
(Dollars in millions)	2023			2022		2021
Debt principal repurchased	$	850		$	—	$	2,577
Losses on debt repurchases	$	(8	)	$	—	$	(73	)

- 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.

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