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Fair Value Measurements
 9 Months Ended
Sep. 30, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
We use estimates of fair value in applying various accounting standards for our consolidated financial statements.

We categorize our fair value estimates based on a hierarchical framework associated with three levels of price transparency utilized in measuring financial instruments at fair value. For additional information regarding our policies for determining fair value and the hierarchical framework, see Notes to Consolidated Financial Statements, Note 2, “Significant Accounting Policies - Fair Value Measurement” in our 2023 Form 10-K.

During the nine months ended September 30, 2024, there were no significant transfers of financial instruments between levels or changes in our methodology or assumptions used to value our financial instruments.

The following table summarizes the valuation of our financial instruments that are marked-to-fair value on a recurring basis.

 Fair Value Measurements on a Recurring Basis
 September 30, 2024December 31, 2023
(Dollars in thousands)Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total 
Assets:
Trading investments$— $— $54,840 $54,840 $— $— $54,481 $54,481 
Available-for-sale investments— 2,019,695 2,910 2,022,605 — 2,411,622 — 2,411,622 
Held for sale loans— 485,701 — 485,701 — — — — 
Derivative instruments— 600 — 600 — — — — 
Total$— $2,505,996 $57,750 $2,563,746 $— $2,411,622 $54,481 $2,466,103 
Liabilities:
Derivative instruments$— $(84)$— $(84)$— $(370)$— $(370)
Total$— $(84)$— $(84)$— $(370)$— $(370)
The following table summarizes the change in balance sheet carrying value associated with level 3 financial instruments carried at fair value on a recurring basis.

Nine Months Ended September 30,
20242023
InvestmentsInvestments
(Dollars in thousands)Available For Sale -
Debt Securities		Trading -
Residual Interests		TotalAvailable For Sale -
Debt Securities		Trading -
Residual Interests		Total
Balance, beginning of period$— $54,481 $54,481 $— $50,786 $50,786 
Total gains/(losses):
   Included in earnings (or changes in net assets)(1)
14 398 412 — 2,016 2,016 
   Included in other comprehensive income83 — 83 — — — 
Settlements2,813 (39)2,774 — (241)(241)
Transfers into level 3— — — — — — 
Transfers out of level 3— — — — — — 
Balance, end of period$2,910 $54,840 $57,750 $— $52,561 $52,561 
Change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period$83 $— $83 $— $— $— 
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets held at the end of the reporting period(2)
$— $398 $398 $— $2,016 $2,016 

(1) Included in earnings (or changes in net assets) is comprised of the amounts recorded in the specified line item in the consolidated statements of income:

Nine Months Ended September 30,
(Dollars in thousands)20242023
Interest Income - Investments$14 $— 
Gains (losses) on securities, net398 2,016 
Total$412 $2,016 

(2) Recorded in "gains (losses) on securities, net" in the consolidated statements of income.


The following table presents the significant unobservable inputs used in the recurring valuations of the level 3 financial instruments detailed above.

(Dollars in thousands)Fair Value at
9/30/2024		Valuation TechniqueUnobservable InputRange (Average)
Debt Securities$2,910 Discounted cash flowConstant Prepayment Rate
7.1%-11.1% (8.5%)
Probability of default
4.0%-17.0% (11.5%)
Residual Interests54,840 Discounted cash flowConstant Prepayment Rate
7.1%-11.1% (8.5%)
Probability of default
4.0%-17.0% (11.5%)
Total$57,750 
The significant inputs detailed in the above table would be expected to have the following impacts to the valuations:
•A decrease in CPR would result in a longer weighted average life of the trust, resulting in a decrease to the valuation due to the delay in residual cash flows with the increased term. The opposite is true for an increase in the CPR.
•A decrease in the probability of defaults means increased principal receipts, resulting in an increase to the valuation due to the increase in residual cash flow.
•Conversely, an increase in the probability of defaults means decreased principal receipts, resulting in a decrease to the valuation due to the decrease in residual cash flow.

The following table summarizes the fair values of our financial assets and liabilities, including derivative financial instruments.

 September 30, 2024December 31, 2023
(Dollars in thousands)Fair
Value		Carrying
Value		DifferenceFair
Value		Carrying
Value		Difference
Earning assets:
Loans held for investment, net:
Private Education Loans$23,812,201 $20,459,933 $3,352,268 $22,229,045 $19,772,293 $2,456,752 
FFELP Loans— — — 542,775 534,064 8,711 
Loans held for sale485,701 485,701 — — — — 
Cash and cash equivalents4,489,539 4,489,539 — 4,149,838 4,149,838 — 
Trading investments54,840 54,840 — 54,481 54,481 — 
Available-for-sale investments2,022,605 2,022,605 — 2,411,622 2,411,622 — 
Accrued interest receivable1,667,539 1,537,594 129,945 1,448,766 1,379,904 68,862 
Derivative instruments600 600 — — — — 
Total earning assets$32,533,025 $29,050,812 $3,482,213 $30,836,527 $28,302,202 $2,534,325 
Interest-bearing liabilities:
Money-market and savings accounts$10,477,366 $10,484,269 $6,903 $11,134,883 $11,203,292 $68,409 
Certificates of deposit11,027,258 10,960,441 (66,817)10,380,684 10,448,365 67,681 
Long-term borrowings5,889,769 6,036,527 146,758 4,873,690 5,227,512 353,822 
Accrued interest payable98,945 98,945 — 105,066 105,066 — 
Derivative instruments84 84 — 370 370 — 
Total interest-bearing liabilities$27,493,422 $27,580,266 $86,844 $26,494,693 $26,984,605 $489,912 
Excess of net asset fair value over carrying value$3,569,057 $3,024,237 

Please refer to Notes to Consolidated Financial Statements, Note 17, “Fair Value Measurements” in our 2023 Form 10-K for a full discussion of the methods and assumptions used to estimate the fair value of each class of financial instruments.