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Borrowings | 9 Months Ended
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Sep. 30, 2017
Debt Disclosure [Abstract] |
Borrowings | Borrowings Outstanding borrowings consist of unsecured debt and secured borrowings issued through our term asset-backed securitization (“ABS”) program and our asset-backed commercial paper (“ABCP”) funding facility (the “ABCP Facility”). The following table summarizes our borrowings at September 30, 2017 and December 31, 2016.
|  | September 30, 2017 |  | December 31, 2016
|  | Short-Term |  | Long-Term |  | Total |  | Short-Term |  | Long-Term |  | Total
Unsecured borrowings: |  |  |  |  |  |  |  |  |  |  |  |
Unsecured debt |  | $ | — |  |  | $ | 196,337 |  |  | $ | 196,337 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Total unsecured borrowings |  | — |  |  | 196,337 |  |  | 196,337 |  |  | — |  |  | — |  |  | — |
Secured borrowings: |  |  |  |  |  |  |  |  |  |  |  |
Private Education Loan term securitizations |  | $ | — |  |  | $ | 2,542,325 |  |  | $ | 2,542,325 |  |  | $ | — |  |  | $ | 2,167,979 |  |  | $ | 2,167,979 |
ABCP Facility |  | 300,000 |  |  | — |  |  | 300,000 |  |  | — |  |  | — |  |  | — |
Total secured borrowings |  | 300,000 |  |  | 2,542,325 |  |  | 2,842,325 |  |  | — |  |  | 2,167,979 |  |  | 2,167,979 |
Total |  | $ | 300,000 |  |  | $ | 2,738,662 |  |  | $ | 3,038,662 |  |  | $ | — |  |  | $ | 2,167,979 |  |  | $ | 2,167,979 |
Short-term Borrowings Asset-Backed Commercial Paper Funding Facility On February 25, 2016 and February 22, 2017, we amended and extended the maturity of our ABCP Facility. The amended ABCP Facility is a $750 million facility in which we no longer hold a participation interest. As a result, the full $750 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). At September 30, 2017, there were $300 million borrowings outstanding under the ABCP Facility. We expect to amend and extend the ABCP Facility on an annual basis. Long-term Borrowings Unsecured Debt On April 5, 2017, we issued an unsecured debt offering of $200 million of 5.125 percent Senior Notes due April 5, 2022 at par. Secured Financings On February 8, 2017, we executed our $772 million SMB Private Education Loan Trust 2017-A term ABS transaction, which was accounted for as a secured financing. We sold $772 million of notes to third parties and retained a 100 percent interest in the residual certificates issued in the securitization, raising approximately $768 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 0.93 percent. At September 30, 2017, $749 million of our Private Education Loans were encumbered as a result of this transaction. Secured Financings at Issuance
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 loan 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 loan and accrued interest amount securitized at inception in 2016 |  | $ | 2,107,042 |  |  |  |  |
2017-A |  | February 2017 |  | $ | 772,000 |  |  | 1-month LIBOR plus 0.93% |  | 4.27
Total notes issued in 2017 |  | $ | 772,000 |  |  |  |  |
Total loan and accrued interest amount securitized at inception in 2017 |  | $ | 856,253 |  |  |  |  |
____________ (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. We consolidate the following financing VIEs as of September 30, 2017 and December 31, 2016, respectively:
|  | September 30, 2017
|  | 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 securitizations |  | $ | — |  |  | $ | 2,542,325 |  |  | $ | 2,542,325 |  |  | $ | 3,067,431 |  |  | $ | 57,687 |  |  | $ | 229,797 |  |  | $ | 3,354,915 |
ABCP Facility |  | 300,000 |  |  | — |  |  | 300,000 |  |  | 369,780 |  |  | 5,539 |  |  | 25,072 |  |  | 400,391 |
Total |  | $ | 300,000 |  |  | $ | 2,542,325 |  |  | $ | 2,842,325 |  |  | $ | 3,437,211 |  |  | $ | 63,226 |  |  | $ | 254,869 |  |  | $ | 3,755,306 |
|  | 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 securitizations |  | $ | — |  |  | $ | 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 |
____ (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 million at September 30, 2017. 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 three or nine months ended September 30, 2017 or in the year ended December 31, 2016. We established an account at the Federal Reserve Bank (“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 to the FRB asset-backed and mortgage-backed securities, as well as FFELP Loans and Private Education Loans, as collateral for borrowings at the Window. Generally, collateral value is assigned based on the estimated fair value of the pledged assets. At September 30, 2017 and December 31, 2016, the value of our pledged collateral at the FRB totaled $2.5 billion and $2.6 billion, respectively. The interest rate charged to us is the discount rate set by the FRB. We did not utilize this facility in the three or nine months ended September 30, 2017 or in the year ended December 31, 2016.

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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 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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