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v3.23.2

Borrowings (Tables) | 6 Months Ended
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Jun. 30, 2023
Debt Disclosure [Abstract] |
Schedule of Debt | The following table summarizes our borrowings at June 30, 2023 and December 31, 2022.
|  | June 30, 2023 |  | December 31, 2022
(Dollars in thousands) |  | Short-Term |  | Long-Term |  | Total |  | Short-Term |  | Long-Term |  | Total
Unsecured borrowings: |  |  |  |  |  |  |  |  |  |  |  |
Unsecured debt (fixed-rate) |  | $ | — |  |  | $ | 990,592 |  |  | $ | 990,592 |  |  | $ | — |  |  | $ | 988,986 |  |  | $ | 988,986 |
Total unsecured borrowings |  | — |  |  | 990,592 |  |  | 990,592 |  |  | — |  |  | 988,986 |  |  | 988,986 |
Secured borrowings: |  |  |  |  |  |  |  |  |  |  |  |
Private Education Loan term securitizations: |  |  |  |  |  |  |  |  |  |  |  |
Fixed-rate |  | — |  |  | 3,536,400 |  |  | 3,536,400 |  |  | — |  |  | 3,462,363 |  |  | 3,462,363 |
Variable-rate |  | — |  |  | 686,706 |  |  | 686,706 |  |  | — |  |  | 783,765 |  |  | 783,765 |
Total Private Education Loan term securitizations |  | — |  |  | 4,223,106 |  |  | 4,223,106 |  |  | — |  |  | 4,246,128 |  |  | 4,246,128 |
Secured Borrowing Facility |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total secured borrowings |  | — |  |  | 4,223,106 |  |  | 4,223,106 |  |  | — |  |  | 4,246,128 |  |  | 4,246,128 |
Total |  | $ | — |  |  | $ | 5,213,698 |  |  | $ | 5,213,698 |  |  | $ | — |  |  | $ | 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 six months ended June 30, 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 June 30, 2023, $588 million of our Private Education Loans, including $550 million of principal and $38 million in capitalized interest, were encumbered related to these transactions. (3) At June 30, 2023, $625 million of our Private Education Loans, including $581 million of principal and $44 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 June 30, 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 |  | $ | — |  |  | $ | 4,223,106 |  |  | $ | 4,223,106 |  |  | $ | 5,461,684 |  |  | $ | 150,585 |  |  | $ | 311,216 |  |  | $ | 5,923,485 |
Secured Borrowing Facility |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 2,475 |  |  | 2,475 |
Total |  | $ | — |  |  | $ | 4,223,106 |  |  | $ | 4,223,106 |  |  | $ | 5,461,684 |  |  | $ | 150,585 |  |  | $ | 313,691 |  |  | $ | 5,925,960 |
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.
|  | June 30, 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 |  | $ | 411,070 |  |  | $ | 52,146 |  |  | $ | 463,216 |  |  | $ | 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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