Borrowings (Tables)

12 Months Ended

Dec. 31, 2017

The following table summarizes our borrowings.

	December 31, 2017							December 31, 2016
(Dollars in millions)	Short Term		Long Term			Total		Short Term			Long Term			Total
Unsecured borrowings:
Senior unsecured debt⁽¹⁾	$	1,306	$	12,624		$	13,930	$	717		$	13,029		$	13,746
Total unsecured borrowings		1,306		12,624			13,930		717			13,029			13,746
Secured borrowings:
FFELP Loan securitizations		—		71,208			71,208		—			73,522			73,522
Private Education Loan securitizations⁽²⁾		686		12,646			13,332		548			14,125			14,673
FFELP Loan — other facilities		1,536		6,830			8,366		—			12,443			12,443
Private Education Loan — other facilities		684		1,710			2,394		464			—			464
Other⁽³⁾		538		—			538		606			—			606
Total secured borrowings		3,444		92,394			95,838		1,618			100,090			101,708
Total before hedge accounting adjustments		4,750		105,018			109,768		2,335			113,119			115,454
Hedge accounting adjustments		21		(6	)		15		(1	)		(751	)		(752	)
Total	$	4,771	$	105,012		$	109,783	$	2,334		$	112,368		$	114,702

⁽¹⁾	Includes principal amount of $1.3 billion and $719 million of short-term debt as of December 31, 2017 and 2016, respectively. Includes principal amount of $12.7 billion and $13.1 billion of long-term debt as of December 31, 2017 and 2016, respectively.

⁽²⁾

Includes $686 million and $548 of short-term debt related to the Private Education Loan asset-backed securitization repurchase facilities (“Repurchase Facilities”) as of December 31, 2017 and 2016, respectively. Includes $1.3 billion and $475 million of long-term debt related to the Repurchase Facilities as of December 31, 2017 and 2016, respectively.

⁽³⁾	“Other” primarily includes the obligation to return cash collateral held related to derivative exposures, which includes $0 million and $193 million of securities re-pledged subject to an overnight repurchase transaction as of December 31, 2017 and 2016, respectively.

Outstanding Short-Term Borrowings

The following tables summarize outstanding short-term borrowings (secured and unsecured), the weighted average interest rates at the end of each period, and the related average balances and weighted average interest rates during the periods.

	December 31, 2017					Year Ended December 31, 2017
(Dollars in millions)	Ending Balance		Weighted Average Interest Rate			Average Balance		Weighted Average Interest Rate
Private Education Loan securitizations⁽¹⁾	$	686		4.65	%	$	706		4.32	%
FFELP Loan — other facilities		1,536		2.11			261		1.26
Private Education Loan — other facilities		684		2.92			572		2.42
Senior unsecured debt		1,327		8.06			1,197		6.80
Other interest-bearing liabilities		538		1.33			458		1.27
Total short-term borrowings	$	4,771		4.16	%	$	3,194		4.22	%
Maximum outstanding at any month end	$	4,771

	December 31, 2016					Year Ended December 31, 2016
(Dollars in millions)	Ending Balance		Weighted Average Interest Rate			Average Balance		Weighted Average Interest Rate
Private Education Loan securitizations⁽¹⁾	$	548		3.72	%	$	42		3.81	%
FFELP Loan — other facilities		—		—			—		—
Private Education Loan —other facilities		464		2.02			389		1.83
Senior unsecured debt		716		4.22			1,032		5.01
Other interest-bearing liabilities		606		.96			629		.48
Total short-term borrowings	$	2,334		2.82	%	$	2,092		3.03	%
Maximum outstanding at any month end	$	2,637

⁽¹⁾

Relates to Repurchase Facilities.

Long-Term Borrowings

The following tables summarize outstanding long-term borrowings, the weighted average interest rates at the end of the periods, and the related average balances during the periods.

	December 31, 2017
			Weighted Average			Year Ended December 31, 2017
(Dollars in millions)	Ending Balance⁽¹⁾		Interest Rate⁽²⁾			Average Balance
Floating rate notes:
U.S. dollar-denominated:
Interest bearing, due 2018-2083	$	83,209		2.31	%	$	86,186
Non-U.S. dollar-denominated:
Interest bearing, due 2023-2041		6,423		.37			7,355
Total floating rate notes		89,632		2.17			93,541
Fixed rate notes:
U.S. dollar-denominated:
Interest bearing, due 2019-2058		15,114		5.60			15,266
Non-U.S.-dollar denominated:
Interest bearing, due 2034-2035		266		2.72			281
Total fixed rate notes		15,380		5.55			15,547
Total long-term borrowings	$	105,012		2.67	%	$	109,088

	December 31, 2016
			Weighted Average			Year Ended December 31, 2016
(Dollars in millions)	Ending Balance⁽¹⁾		Interest Rate⁽²⁾			Average Balance
Floating rate notes:
U.S. dollar-denominated:
Interest bearing, due 2017-2083	$	88,575		1.65	%	$	93,881
Non-U.S. dollar-denominated:
Interest bearing, due 2023-2041		7,265		.28			8,761
Total floating rate notes		95,840		1.54			102,642
Fixed rate notes:
U.S. dollar-denominated:
Interest bearing, due 2018-2058		16,271		5.65			16,050
Non-U.S.-dollar denominated:
Interest bearing, due 2034-2035		257		2.82			281
Total fixed rate notes		16,528		5.60			16,331
Total long-term borrowings	$	112,368		2.14	%	$	118,973

⁽¹⁾

Ending balance is expressed in U.S. dollars using the spot currency exchange rate. Includes fair value adjustments under hedge accounting for notes designated as the hedged item in a fair value hedge.

⁽²⁾

Weighted average interest rate is stated rate relative to currency denomination of debt.

Expected Maturities of Long-term Borrowings

As of December 31, 2017, 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
2018	$	—	$	11,810		$	11,810
2019		2,369		10,276			12,645
2020		2,041		9,076			11,117
2021		1,428		7,477			8,905
2022		1,731		6,326			8,057
2023-2039		5,055		47,429			52,484
		12,624		92,394			105,018
Hedge accounting adjustments		240		(246	)		(6	)
Total	$	12,864	$	92,148		$	105,012

⁽¹⁾

We view our securitization trust debt as long-term based on the contractual maturity dates which range from 2018 to 2083. However, we have projected the expected principal paydowns based on our current estimates regarding the securitized loans’ 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 2018 include $11.8 billion related to the securitization trust debt.

⁽²⁾

The aggregate principal amount of debt that matures in each period is $11.9 billion in 2018, $12.7 billion in 2019, $11.2 billion in 2020, $9.0 billion in 2021, $8.1 billion in 2022 and $53.0 billion in 2023-2039.

Financing VIEs

We consolidate the following financing VIEs as of December 31, 2017 and 2016, as we are the primary beneficiary. As a result, these VIEs are accounted for as secured borrowings.

	December 31, 2017
	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	$	—	$	71,208		$	71,208		$	72,145	$	2,335	$	1,078		$	75,558
Private Education Loan securitizations⁽¹⁾		686		12,646			13,332			17,739		484		237			18,460
FFELP Loan — other facilities		1,536		3,999			5,535			5,565		204		156			5,925
Private Education Loan — other facilities		684		1,710			2,394			3,147		68		31			3,246
Total before hedge accounting adjustments		2,906		89,563			92,469			98,596		3,091		1,502			103,189
Hedge accounting adjustments		—		(246	)		(246	)		—		—		(342	)		(342	)
Total	$	2,906	$	89,317		$	92,223		$	98,596	$	3,091	$	1,160		$	102,847

	December 31, 2016
	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	$	—	$	73,522		$	73,522		$	74,197	$	2,676	$	778		$	77,651
Private Education Loan securitizations⁽¹⁾		548		14,125			14,673			19,815		455		260			20,530
FFELP Loan — other facilities		—		9,046			9,046			9,232		289		172			9,693
Private Education Loan — other facilities		464		—			464			685		10		14			709
Other		66		—			66			79		4		—			83
Total before hedge accounting adjustments		1,078		96,693			97,771			104,008		3,434		1,224			108,666
Hedge accounting adjustments		—		(1,201	)		(1,201	)		—		—		(1,235	)		(1,235	)
Total	$	1,078	$	95,492		$	96,570		$	104,008	$	3,434	$	(11	)	$	107,431

⁽¹⁾

Includes $686 million of short-term debt, $1.3 billion of long-term debt and $96 million of restricted cash related to the Repurchase Facilities as of December 31, 2017. Includes $548 million of short-term debt, $475 million of long-term debt and $49 million of restricted cash related to the Repurchase Facilities as of December 31, 2016.

Gains (Losses) on Debt Repurchases

The following table summarizes activity related to our senior unsecured debt and ABS repurchases. “Gains (losses) on debt repurchases” is shown net of hedging-related gains and losses.

	Years Ended December 31,
(Dollars in millions)	2017			2016		2015
Debt principal repurchased	$	513		$	1,467	$	1,744
Gains (losses) on debt repurchases		(3	)		1		21

- 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.

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