XML 23 R11.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Loans Held for Investment | 9 Months Ended
--- | ---
Sep. 30, 2018
Receivables [Abstract] |
Loans Held for Investment | Loans Held for Investment Loans held for investment consist of Private Education Loans, FFELP Loans and Personal Loans. We use “Private Education Loans” to mean education loans to students or their families that are not made, insured or guaranteed by any state or federal government. Private Education Loans do not include loans insured or guaranteed under the previously existing Federal Family Education Loan Program (“FFELP”). We use “Personal Loans” to mean those unsecured loans to individuals that may be used for non-educational purposes. We began acquiring Personal Loans from third parties in the fourth quarter of 2016 and originating Personal Loans in the first quarter of 2018. Our Private Education Loans are made largely to bridge the gap between the cost of higher education and the amount funded through financial aid, government loans and customers’ resources. Private Education Loans bear the full credit risk of the customer. We manage this risk through risk-performance underwriting strategies and qualified cosigners. Private Education Loans may be fixed rate or may carry a variable interest rate indexed to LIBOR. As of September 30, 2018, and December 31, 2017, 69 percent and 77 percent, respectively, of all of our Private Education Loans were indexed to LIBOR. We provide incentives for customers to include a cosigner on the loan, and the vast majority of loans in our portfolio are cosigned. We also encourage customers to make payments while in school. In connection with the separation of Navient Corporation (“Navient”) from SLM (the “Spin-Off”), we retained the right to require Navient to purchase delinquent loans (at fair value) when the borrower has a lending relationship with both us and Navient (“Split Loans”). In the second quarter of 2018, we sold our remaining $43 million portfolio of Split Loans (both current and non-current loans) to Navient and recognized a net gain of $2 million. FFELP Loans are insured as to their principal and accrued interest in the event of default, subject to a risk-sharing level based on the date of loan disbursement. These insurance obligations are supported by contractual rights against the United States. For loans disbursed on or after July 1, 2006, we receive 97 percent reimbursement on all qualifying claims. For loans disbursed after October 1, 1993, and before July 1, 2006, we receive 98 percent reimbursement on all qualifying claims. For loans disbursed prior to October 1, 1993, we receive 100 percent reimbursement on all qualifying claims. Loans held for investment are summarized as follows:
|  | September 30, |  | December 31,
|  | 2018 |  | 2017
Private Education Loans: |  |  |  |
Fixed rate |  | $ | 6,369,950 |  |  | $ | 4,000,447 |
Variable rate |  | 13,870,041 |  |  | 13,431,720 |
Total Private Education Loans, gross |  | 20,239,991 |  |  | 17,432,167 |
Deferred origination costs and unamortized premium/(discount) |  | 65,499 |  |  | 56,378 |
Allowance for loan losses |  | (274,684 | ) |  | (243,715 | )
Total Private Education Loans, net |  | 20,030,806 |  |  | 17,244,830 |
FFELP Loans |  | 866,786 |  |  | 927,660 |
Deferred origination costs and unamortized premium/(discount) |  | 2,432 |  |  | 2,631 |
Allowance for loan losses |  | (1,080 | ) |  | (1,132 | )
Total FFELP Loans, net |  | 868,138 |  |  | 929,159 |
Personal Loans (fixed rate) |  | 1,133,005 |  |  | 400,280 |
Deferred origination costs and unamortized premium/(discount) |  | 164 |  |  | — |
Allowance for loan losses |  | (53,210 | ) |  | (6,628 | )
Total Personal Loans, net |  | 1,079,959 |  |  | 393,652 |
Loans held for investment, net |  | $ | 21,978,903 |  |  | $ | 18,567,641 |
The estimated weighted average life of education loans in our portfolio was approximately 5.4 years and 5.5 years at September 30, 2018 and December 31, 2017, respectively. The average balance and the respective weighted average interest rates of loans in our portfolio are summarized as follows:
|  | Three Months Ended
|  | September 30,
|  | 2018 |  | 2017
|  | Average Balance |  | Weighted Average Interest Rate |  | Average Balance |  | Weighted Average Interest Rate
Private Education Loans |  | $ | 19,295,318 |  |  | 9.16 | % |  | $ | 16,228,751 |  |  | 8.50 | %
FFELP Loans |  | 877,279 |  |  | 4.65 |  |  | 960,185 |  |  | 4.02 |
Personal Loans |  | 1,082,177 |  |  | 11.03 |  |  | 86,441 |  |  | 9.66 |
Total portfolio |  | $ | 21,254,774 |  |  |  |  | $ | 17,275,377 |  |  |
|  | Nine Months Ended
|  | September 30,
|  | 2018 |  | 2017
|  | Average Balance |  | Weighted Average Interest Rate |  | Average Balance |  | Weighted Average Interest Rate
Private Education Loans |  | $ | 18,908,929 |  |  | 9.01 | % |  | $ | 15,791,557 |  |  | 8.37 | %
FFELP Loans |  | 898,208 |  |  | 4.47 |  |  | 981,106 |  |  | 3.86 |
Personal Loans |  | 810,753 |  |  | 10.82 |  |  | 61,263 |  |  | 9.44 |
Total portfolio |  | $ | 20,617,890 |  |  |  |  | $ | 16,833,926 |  |  |

X
- Definition The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=84173941&loc=d3e5074-111524 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02(4)) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.7-03(a)(5)) -URI http://asc.fasb.org/extlink&oid=6879938&loc=d3e572229-122910 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=84173941&loc=d3e5162-111524 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=84173941&loc=d3e5066-111524 Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02(3)) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.9-03(7)) -URI http://asc.fasb.org/extlink&oid=6876686&loc=d3e534808-122878 Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.6-04(6)) -URI http://asc.fasb.org/extlink&oid=6488278&loc=d3e603758-122996 + Details
Name: | us-gaap_LoansNotesTradeAndOtherReceivablesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_ReceivablesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration