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v3.23.1

Borrowings (Tables) | 3 Months Ended
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Mar. 31, 2023
Debt Disclosure [Abstract] |
Schedule of Debt | The following table summarizes our borrowings at March 31, 2023 and December 31, 2022.
|  | March 31, 2023 |  | December 31, 2022
(Dollars in thousands) |  | Short-Term |  | Long-Term |  | Total |  | Short-Term |  | Long-Term |  | Total
Unsecured borrowings: |  |  |  |  |  |  |  |  |  |  |  |
Unsecured debt (fixed-rate) |  | $ | — |  |  | $ | 989,788 |  |  | $ | 989,788 |  |  | $ | — |  |  | $ | 988,986 |  |  | $ | 988,986 |
Total unsecured borrowings |  | — |  |  | 989,788 |  |  | 989,788 |  |  | — |  |  | 988,986 |  |  | 988,986 |
Secured borrowings: |  |  |  |  |  |  |  |  |  |  |  |
Private Education Loan term securitizations: |  |  |  |  |  |  |  |  |  |  |  |
Fixed-rate |  | — |  |  | 3,759,190 |  |  | 3,759,190 |  |  | — |  |  | 3,462,363 |  |  | 3,462,363 |
Variable-rate |  | — |  |  | 764,998 |  |  | 764,998 |  |  | — |  |  | 783,765 |  |  | 783,765 |
Total Private Education Loan term securitizations |  | — |  |  | 4,524,188 |  |  | 4,524,188 |  |  | — |  |  | 4,246,128 |  |  | 4,246,128 |
Secured Borrowing Facility |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total secured borrowings |  | — |  |  | 4,524,188 |  |  | 4,524,188 |  |  | — |  |  | 4,246,128 |  |  | 4,246,128 |
Total |  | $ | — |  |  | $ | 5,513,976 |  |  | $ | 5,513,976 |  |  | $ | — |  |  | $ | 5,235,114 |  |  | $ | 5,235,114 |
Schedule of Securities Financing Transactions | The following table summarizes our secured financings issued in the year ended December 31, 2022 and in the three months ended March 31, 2023.
Issue |  | Date Issued |  | Total Issued |  | Weighted Average Cost of Funds(1) |  | Weighted Average Life (in years)
(Dollars in thousands) |  |  |  |  |  |  |  |
Private Education Loans: |  |  |  |  |  |
2022-C |  | August 2022 |  | $ | 575,000 |  |  | SOFR plus 1.76% |  | 4.69
Total notes issued in 2022 |  | $ | 575,000 |  |  |  |  |
Total loan and accrued interest amount securitized at inception in 2022(2) |  | $ | 674,387 |  |  |  |  |
2023-A |  | March 2023 |  | $ | 579,000 |  |  | SOFR plus 1.53% |  | 5.06
Total notes issued in 2023 |  | $ | 579,000 |  |  |  |  |
Total loan and accrued interest amount securitized at inception in 2023(3) |  | $ | 644,573 |  |  |  |  |
(1) Represents SOFR equivalent cost of funds for floating and fixed-rate bonds, excluding issuance costs. (2) At March 31, 2023, $610 million of our Private Education Loans, including $572 million of principal and $38 million in capitalized interest, were encumbered related to these transactions. (3) At March 31, 2023, $639 million of our Private Education Loans, including $598 million of principal and $41 million in capitalized interest, were encumbered related to these transactions.
Schedule of Variable Interest Entities | 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.
As of March 31, 2023 (dollars in thousands) |  | 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 |  | $ | — |  |  | $ | 4,524,188 |  |  | $ | 4,524,188 |  |  | $ | 5,728,010 |  |  | $ | 181,764 |  |  | $ | 322,715 |  |  | $ | 6,232,489 |
Secured Borrowing Facility |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 360 |  |  | 360 |
Total |  | $ | — |  |  | $ | 4,524,188 |  |  | $ | 4,524,188 |  |  | $ | 5,728,010 |  |  | $ | 181,764 |  |  | $ | 323,075 |  |  | $ | 6,232,849 |
As of December 31, 2022 (dollars in thousands) |  | 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 |  | $ | — |  |  | $ | 4,246,128 |  |  | $ | 4,246,128 |  |  | $ | 5,433,602 |  |  | $ | 156,719 |  |  | $ | 286,093 |  |  | $ | 5,876,414 |
Secured Borrowing Facility |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,066 |  |  | 1,066 |
Total |  | $ | — |  |  | $ | 4,246,128 |  |  | $ | 4,246,128 |  |  | $ | 5,433,602 |  |  | $ | 156,719 |  |  | $ | 287,159 |  |  | $ | 5,877,480 |
(1) Other assets primarily represent accrued interest receivable. The table below provides a summary of our exposure related to our unconsolidated VIEs.
|  | March 31, 2023 |  | December 31, 2022
(Dollars in thousands) |  | Debt Interests(1) |  | Equity Interests(2) |  | Total Exposure |  | Debt Interests(1) |  | Equity Interests(2) |  | Total Exposure
Private Education Loan term securitizations |  | $ | 317,077 |  |  | $ | 51,342 |  |  | $ | 368,419 |  |  | $ | 329,188 |  |  | $ | 50,786 |  |  | $ | 379,974 |
(1) Vertical risk retention interest classified as available-for-sale investment. (2) Vertical risk retention interest classified as trading investment.

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