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Borrowings | 12 Months Ended
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Dec. 31, 2016
Debt Disclosure [Abstract] |
Borrowings | Borrowings Outstanding borrowings consist of secured borrowings issued through our term ABS program and our ABCP Facility. The following table summarizes our secured borrowings at December 31, 2016 and 2015.
|  | December 31, 2016 |  | December 31, 2015
|  | Short-Term |  | Long-Term |  | Total |  | Short-Term |  | Long-Term |  | Total
Secured borrowings: |  |  |  |  |  |  |  |  |  |  |  |
Private Education Loan term securitizations |  | $ | — |  |  | $ | 2,167,979 |  |  | $ | 2,167,979 |  |  | $ | — |  |  | $ | 579,101 |  |  | $ | 579,101 |
ABCP Facility |  | — |  |  | — |  |  | — |  |  | 500,175 |  |  | — |  |  | 500,175 |
Total |  | $ | — |  |  | $ | 2,167,979 |  |  | $ | 2,167,979 |  |  | $ | 500,175 |  |  | $ | 579,101 |  |  | $ | 1,079,276 |
Short-term Borrowings Asset-Backed Commercial Paper Funding Facility On December 19, 2014, we closed on a $750.0 million ABCP Facility. We retained a 5 percent or $37.5 million ownership interest in the ABCP Facility, resulting in $712.5 million of funds available for us to draw under the ABCP Facility. During 2015, we incurred financing costs under the ABCP Facility of approximately 0.40 percent on average on unused borrowing capacity and approximately 3 month LIBOR plus 0.80 percent on outstandings under the ABCP Facility. On February 25, 2016 and February 22, 2017, we amended and extended the maturity of our $750.0 million ABCP Facility, in which we no longer hold a participation interest. As a result, the full $750.0 million is available for us to draw. We hold 100 percent of the residual interest in the ABCP Facility trust. Under the amended ABCP Facility, we incur financing costs of between 0.35 percent and 0.45 percent on unused borrowing capacity and approximately 3-month LIBOR plus 0.90 percent on outstandings. The amended ABCP Facility extends the revolving period, during which we may borrow, repay and reborrow funds, until February 22, 2018. The scheduled amortization period, during which amounts outstanding under the ABCP Facility must be repaid, ends on February 22, 2019 (or earlier, if certain material adverse events occur). For additional information, see Note 24, “Subsequent Events.” At December 31, 2016, there were no borrowings outstanding under the ABCP Facility. Short-term borrowings have a remaining term to maturity of one year or less. The following table summarizes the outstanding short-term borrowings, the weighted average interest rates at the end of the period and the related average balance and weighted average interest rates during the period. The ABCP Facility’s contractual maturity is two years from the date of inception or renewal (one year revolving period plus a one year amortization period); however, we classify advances under our ABCP Facility as short-term borrowings because it is our intention to repay those advances within one-year. Rates reflect stated interest of borrowings and related discounts and premiums.
|  | December 31, 2016 |  | Year Ended December 31, 2016
|  | Ending Balance |  | Weighted Average Interest Rate |  | Average Balance |  | Weighted Average Interest Rate
Short-term borrowings: |  |  |  |  |  |  |  |
ABCP Facility |  | $ | — |  |  | — | % |  | $ | 229,719 |  |  | 2.61 | %
Maximum outstanding at any month end |  | $ | 526,500 |  |  |  |  |  |  |
|  | December 31, 2015 |  | Year Ended December 31, 2015
|  | Ending Balance |  | Weighted Average Interest Rate |  | Average Balance |  | Weighted Average Interest Rate
Short-term borrowings: |  |  |  |  |  |  |  |
ABCP Facility |  | $ | 500,175 |  |  | 0.84 | % |  | $ | 135,064 |  |  | 3.10 | %
Maximum outstanding at any month end |  | $ | 710,005 |  |  |  |  |  |  |
Long-term Borrowings 2016 Transactions On May 26, 2016, we executed our SMB Private Education Loan Trust 2016-A term ABS transaction, which was accounted for as a secured financing. A total of $551 million of notes were issued in connection with the transaction. We retained a 100 percent or $50 million interest in the Class B notes and 100 percent of the residual certificates issued in the securitization. $501 million of Class A notes from the securitization were sold to third parties, raising $501 million of gross proceeds. The Class A notes had a weighted average life of 4.01 years and priced at a weighted average LIBOR equivalent cost of 1-month LIBOR plus 1.38 percent. At December 31, 2016, $564 million of our Private Education Loans were encumbered as a result of this transaction. On July 21, 2016, we executed our SMB Private Education Loan Trust 2016-B term ABS transaction, which was accounted for as a secured financing. A total of $657 million of notes were issued in connection with the transaction. We retained a 100 percent or $50 million interest in the Class B notes and 100 percent of the residual certificates issued in the securitization. $607 million of Class A notes from the securitization were sold to third parties, raising $607 million of gross proceeds. The Class A notes had a weighted average life of 4.01 and priced at a weighted average LIBOR equivalent cost of 1-month LIBOR plus 1.36 percent. At December 31, 2016, $683 million of our Private Education Loans were encumbered as a result of this transaction. On October 12, 2016, we executed our SMB Private Education Loan Trust 2016-C term ABS transaction, which was accounted for as a secured financing. A total of $674 million of notes were issued in connection with the transaction. We retained a 100 percent interest in the residual certificates issued in the securitization. $674 million of notes from the securitization were sold to third-parties, raising $673 million of gross proceeds. The Class A and Class B notes had a weighted average life of 4.27 years and priced at a weighted average LIBOR equivalent cost of 1-month LIBOR plus 1.15 percent. At December 31, 2016, $689 million of our Private Education Loans were encumbered as a result of this transaction. 2015 Transaction On July 30, 2015, we executed our SMB Private Education Loan Trust 2015-B term ABS transaction, which was accounted for as a secured financing. A total of $714 million of notes were issued in connection with the transaction. We retained a 5 percent or $33 million interest in the Class A and B notes, a 100 percent or $50 million interest in the Class C notes and 100 percent of the residual certificates issued in the securitization. $631 million of notes from the securitization were sold to third-parties, raising $623 million of gross proceeds. The Class A and B notes had a weighted average life of 4.8 years and priced at a weighted average LIBOR equivalent cost of 1 month LIBOR plus 1.53 percent. At December 31, 2016, $627 million of our Private Education Loans were encumbered as a result of this transaction. 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 2023 to 2040.
|  | December 31, 2016 |  | Year Ended December 31, 2016 |  | December 31, 2015 |  | Year Ended December 31, 2015
|  | Ending Balance |  | Weighted Average Interest Rate |  | Average Balance |  | Ending Balance |  | Weighted Average Interest Rate |  | Average Balance
Floating rate borrowings |  | $ | 1,175,819 |  |  | 1.71 | % |  | $ | 687,580 |  |  | $ | 337,098 |  |  | 1.38 | % |  | $ | 151,373 |
Fixed rate borrowings |  | 992,160 |  |  | 2.68 |  |  | 548,465 |  |  | 242,003 |  |  | 3.11 |  |  | 102,386 |
Total long-term borrowings |  | $ | 2,167,979 |  |  | 2.15 | % |  | $ | 1,236,045 |  |  | $ | 579,101 |  |  | 2.10 | % |  | $ | 253,759 |
Secured Financings
Issue |  | Date Issued |  | Total Issued |  | Weighted Average Cost of Funds(1) |  | Weighted Average Life (in years)
Private Education: |  |  |  |  |  |
2015-B |  | July 2015 |  | $ | 630,800 |  |  | 1 month LIBOR plus 1.53% |  | 4.82
Total notes issued in 2015 |  | $ | 630,800 |  |  |  |  |
Total loans and accrued interest amount securitized at inception in 2015 |  | $ | 745,580 |  |  |  |  |
2016-A |  | May 2016 |  | $ | 501,000 |  |  | 1 month LIBOR plus 1.38% |  | 4.01
2016-B |  | July 2016 |  | 607,000 |  |  | 1 month LIBOR plus 1.36% |  | 4.01
2016-C |  | October 2016 |  | 674,000 |  |  | 1 month LIBOR plus 1.15% |  | 4.27
Total notes issued in 2016 |  | $ | 1,782,000 |  |  |  |  |
Total loans and accrued interest amount securitized at inception in 2016 |  | $ | 2,107,042 |  |  |  |  |
____________ (1) Represents LIBOR equivalent cost of funds for floating and fixed rate bonds, excluding issuance costs. Consolidated Funding Vehicles 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.
|  | December 31, 2016
|  | Debt Outstanding |  | Carrying Amount of Assets Securing Debt Outstanding
|  | Short-Term |  | Long-Term |  | Total |  | Loans |  | Restricted Cash |  | Other Assets(1) |  | Total
Secured borrowings: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Private Education Loan term securitization |  | $ | — |  |  | $ | 2,167,979 |  |  | $ | 2,167,979 |  |  | $ | 2,562,156 |  |  | $ | 44,617 |  |  | $ | 160,783 |  |  | $ | 2,767,556 |
ABCP Facility |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total |  | $ | — |  |  | $ | 2,167,979 |  |  | $ | 2,167,979 |  |  | $ | 2,562,156 |  |  | $ | 44,617 |  |  | $ | 160,783 |  |  | $ | 2,767,556 |
|  | December 31, 2015
|  | Debt Outstanding |  | Carrying Amount of Assets Securing Debt Outstanding
|  | Short-Term |  | Long-Term |  | Total |  | Loans |  | Restricted Cash |  | Other Assets(1) |  | Total
Secured borrowings: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Private Education Loan term securitization |  | $ | — |  |  | $ | 579,101 |  |  | $ | 579,101 |  |  | $ | 687,298 |  |  | $ | 9,996 |  |  | $ | 45,566 |  |  | $ | 742,860 |
ABCP Facility |  | 500,175 |  |  | — |  |  | 500,175 |  |  | 923,687 |  |  | 12,443 |  |  | 58,095 |  |  | 994,225 |
Total |  | $ | 500,175 |  |  | $ | 579,101 |  |  | $ | 1,079,276 |  |  | $ | 1,610,985 |  |  | $ | 22,439 |  |  | $ | 103,661 |  |  | $ | 1,737,085 |
________ (1) Other assets primarily represent accrued interest receivable. Other Borrowing Sources We maintain discretionary uncommitted Federal Funds lines of credit with various correspondent banks, which totaled $125.0 million at December 31, 2016. The interest rate we are charged on these lines of credit is priced at Fed Funds plus a spread at the time of borrowing, and is payable daily. We did not utilize these lines of credit in the years ended December 31, 2016, 2015 and 2014. We established an account at the FRB to meet eligibility requirements for access to the Primary Credit borrowing facility at the FRB’s Discount Window (the “Window”). The Primary Credit borrowing facility is a lending program available to depository institutions that are in generally sound financial condition. All borrowings at the Window must be fully collateralized. We can pledge asset-backed and mortgage-backed securities, as well as FFELP Loans and Private Education Loans, to the FRB as collateral for borrowings at the Window. Generally, collateral value is assigned based on the estimated fair value of the pledged assets. At December 31, 2016 and December 31, 2015, the value of our pledged collateral at the FRB totaled $2.6 billion and $1.7 billion, respectively. The interest rate charged to us is the discount rate set by the FRB. We did not utilize this facility in the years ended December 31, 2016, 2015 and 2014.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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