Unfunded Loan Commitments (Tables)

12 Months Ended

Dec. 31, 2020

Allowance for credit losses and recorded investments in loans

Allowance for Credit Losses Metrics


	Allowance for Credit Losses
	Year Ended December 31, 2020
	FFELP Loans			Private Education Loans			Personal Loans			Credit Cards			Total
Allowance for Credit Losses
Beginning balance	$	1,633		$	374,300		$	65,877		$	102		$	441,912
Day 1 adjustment for the adoption of CECL	2,852			1,060,830			79,183			188			1,143,053
Balance at January 1, 2020	4,485			1,435,130			145,060			290			1,584,965
Transfer from unfunded commitment liability(1)	—			320,808			—			—			320,808
Provisions:
Provision for current period	412			148,673			40,485			1,328			190,898
Loan sale reduction to provision	—			(161,793)			(42,916)			—			(204,709)
Loan transfer to held-for-sale	—			(205,669)			—			—			(205,669)
Total provisions(2)	412			(218,789)			(2,431)			1,328			(219,480)
Net charge-offs:
Charge-offs	(519)			(205,326)			(39,079)			(119)			(245,043)
Recoveries	—			24,021			4,984			2			29,007
Net charge-offs	(519)			(181,305)			(34,095)			(117)			(216,036)
Loan sales	—			—			(108,534)			—			(108,534)
Ending Balance	$	4,378		$	1,355,844		$	—		$	1,501		$	1,361,723
Allowance:
Ending balance: individually evaluated for impairment	$	—		$	104,265		$	—		$	—		$	104,265
Ending balance: collectively evaluated for impairment	$	4,378		$	1,251,579		$	—		$	1,501		$	1,257,458
Loans:
Ending balance: individually evaluated for impairment	$	—		$	1,274,590		$	—		$	—		$	1,274,590
Ending balance: collectively evaluated for impairment	$	737,593		$	18,454,747		$	—		$	12,238		$	19,204,578
Net charge-offs as a percentage of average loans in repayment(3)	0.09		%	1.17		%	—		%	1.26		%
Allowance as a percentage of the ending total loan balance	0.59		%	6.87		%	—		%	12.27		%
Allowance as a percentage of the ending loans in repayment(3)	0.76		%	9.48		%	—		%	12.27		%
Allowance coverage of net charge-offs	8.44			7.48			—			12.83
Ending total loans, gross	$	737,593		$	19,729,337		$	—		$	12,238
Average loans in repayment(3)	$	549,584		$	15,518,851		$	—		$	9,286
Ending loans in repayment(3)	$	573,361		$	14,304,821		$	—		$	12,238

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(1) See Note 8, “Unfunded Loan Commitments,” for a summary of the activity in the allowance for and balance of unfunded loan commitments, respectively.

(2) Below is a reconciliation of the provisions for credit losses reported in the consolidated statements of income. When a new loan commitment is made, we record the CECL allowance as a liability for unfunded loan commitments by recording a provision for credit losses. When the loan is funded, we transfer that liability to the allowance for credit losses.


Consolidated Statements of Income Provisions for Credit Losses Reconciliation
	Year Ended December 31, 2020
Private Education Loan provisions for credit losses:
Provisions for loan losses	$	(218,789)
Provisions for unfunded loan commitments	312,613
Total Private Education Loan provisions for credit losses	93,824

Other impacts to the provisions for credit losses:
Personal Loans	(2,431)
FFELP Loans	412
Credit Cards	1,328
Total	(691)
Provisions for credit losses reported in consolidated statements of income	$	93,133

(3) Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period.


	Allowance for Credit Losses
	Year Ended December 31, 2019
	FFELP Loans			Private Education Loans			Personal Loans			Credit Cards			Total
Allowance for Credit Losses
Beginning balance	$	977		$	277,943		$	62,201		$	—		$	341,121
Total provision	1,478			279,570			72,783			103			353,934
Net charge-offs:
Charge-offs	(822)			(208,978)			(74,313)			(1)			(284,114)
Recoveries	—			25,765			5,206			—			30,971
Net charge-offs	(822)			(183,213)			(69,107)			(1)			(253,143)

Ending Balance	$	1,633		$	374,300		$	65,877		$	102		$	441,912
Allowance:
Ending balance: individually evaluated for impairment	$	—		$	186,697		$	—		$	—		$	186,697
Ending balance: collectively evaluated for impairment	$	1,633		$	187,603		$	65,877		$	102		$	255,215
Loans:
Ending balance: individually evaluated for impairment	$	—		$	1,581,966		$	—		$	—		$	1,581,966
Ending balance: collectively evaluated for impairment	$	783,306		$	21,607,625		$	1,049,007		$	3,884		$	23,443,822
Net charge-offs as a percentage of average loans in repayment(1)	0.13		%	1.17		%	6.07		%	0.13		%
Allowance as a percentage of the ending total loan balance	0.21		%	1.61		%	6.28		%	2.63		%
Allowance as a percentage of the ending loans in repayment(1)	0.26		%	2.23		%	6.28		%	2.63		%
Allowance coverage of net charge-offs	1.99			2.04			0.95			102.00
Ending total loans, gross	$	783,306		$	23,189,591		$	1,049,007		$	3,884
Average loans in repayment(1)	$	631,029		$	15,605,927		$	1,138,887		$	786
Ending loans in repayment(1)	$	617,646		$	16,787,670		$	1,049,007		$	3,884

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(1)Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period.


	Allowance for Credit Losses
	Year Ended December 31, 2018
	FFELP Loans			Private Education Loans			Personal Loans			Total
Allowance for Credit Losses
Beginning balance	$	1,132		$	243,715		$	6,628		$	251,475
Total provision	980			169,287			74,317			244,584
Net charge-offs:
Charge-offs	(1,135)			(154,701)			(19,690)			(175,526)
Recoveries	—			20,858			946			21,804
Net charge-offs	(1,135)			(133,843)			(18,744)			(153,722)
Loan sales(1)	—			(1,216)			—			(1,216)
Ending Balance	$	977		$	277,943		$	62,201		$	341,121
Allowance:
Ending balance: individually evaluated for impairment	$	—		$	120,110		$	—		$	120,110
Ending balance: collectively evaluated for impairment	$	977		$	157,833		$	62,201		$	221,011
Loans:
Ending balance: individually evaluated for impairment	$	—		$	1,257,856		$	—		$	1,257,856
Ending balance: collectively evaluated for impairment	$	846,487		$	19,246,609		$	1,190,091		$	21,283,187
Net charge-offs as a percentage of average loans in repayment(2)	0.16		%	1.01		%	2.11		%
Allowance as a percentage of the ending total loan balance	0.12		%	1.36		%	5.23		%
Allowance as a percentage of the ending loans in repayment(2)	0.15		%	1.90		%	5.23		%
Allowance coverage of net charge-offs	0.86			2.08			3.32
Ending total loans, gross	$	846,487		$	20,504,465		$	1,190,091
Average loans in repayment(2)	$	691,406		$	13,303,801		$	889,348
Ending loans in repayment(2)	$	665,807		$	14,666,856		$	1,190,091

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(1)Represents fair value adjustments on loans sold.

(2)Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period.

The tables below summarize the activity in the allowance recorded to cover lifetime expected credit losses on the unfunded commitments, which is recorded in “Other Liabilities” on the consolidated balance sheets, as well as the activity in the unfunded commitments balance.


	Years Ended December 31,
	2020				2019				2018
	Allowance		Unfunded Commitments		Allowance		Unfunded Commitments		Allowance		Unfunded Commitments

Beginning Balance	$	2,481	$	1,910,603	$	2,165	$	2,010,744	$	1,885	$	1,838,840
Day 1 adjustment for the adoption of CECL	115,758		—		—		—		—		—
Balance January 1, 2020	118,239		1,910,603		2,165		2,010,744		1,885		1,838,840
Provision/New commitments - net(1)	312,613		5,070,175		6,533		5,513,790		5,611		5,474,284
Transfer - funded loans(2)	(320,808)		(5,307,760)		(6,217)		(5,613,931)		(5,331)		(5,302,380)
Ending Balance	$	110,044	$	1,673,018	$	2,481	$	1,910,603	$	2,165	$	2,010,744

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(1) Net of expirations of commitments unused.

(2) When a loan commitment is funded, its related liability for credit losses (which originally was recorded as a provision for unfunded commitments) is transferred to the allowance for credit losses.