XML 41 R19.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Borrowings | 12 Months Ended
--- | ---
Dec. 31, 2024
Debt Disclosure [Abstract] |
Borrowings | Borrowings Outstanding borrowings consist of unsecured debt and secured borrowings issued through our term asset-backed securities (“ABS”) program and our Secured Borrowing Facility. The issuing entities for those secured borrowings are VIEs and are consolidated for accounting purposes. The following table summarizes our secured borrowings at December 31, 2024 and 2023.
As of December 31, (dollars in thousands) |  | 2024 |  | 2023
| Short-Term |  | Long-Term |  | Total |  | Short-Term |  | Long-Term |  | Total
Unsecured borrowings: |  |  |  |  |  |  |  |  |  |  |  |
Unsecured debt (fixed-rate) |  | $ | — |  |  | $ | 995,420 |  |  | $ | 995,420 |  |  | $ | — |  |  | $ | 992,200 |  |  | $ | 992,200 |
Total unsecured borrowings |  | — |  |  | 995,420 |  |  | 995,420 |  |  | — |  |  | 992,200 |  |  | 992,200 |
Secured borrowings: |  |  |  |  |  |  |  |  |  |  |  |
Private Education Loan term securitizations: |  |  |  |  |  |  |  |  |  |  |  |
Fixed-rate |  | — |  |  | 4,617,743 |  |  | 4,617,743 |  |  | — |  |  | 3,585,254 |  |  | 3,585,254 |
Variable-rate |  | — |  |  | 827,182 |  |  | 827,182 |  |  | — |  |  | 650,058 |  |  | 650,058 |
Total Private Education Loan term securitizations |  | — |  |  | 5,444,925 |  |  | 5,444,925 |  |  | — |  |  | 4,235,312 |  |  | 4,235,312 |
Secured Borrowing Facility |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total secured borrowings |  | — |  |  | 5,444,925 |  |  | 5,444,925 |  |  | — |  |  | 4,235,312 |  |  | 4,235,312 |
Total |  | $ | — |  |  | $ | 6,440,345 |  |  | $ | 6,440,345 |  |  | $ | — |  |  | $ | 5,227,512 |  |  | $ | 5,227,512 |
Short-term Borrowings Secured Financings On June 14, 2024, we amended our $2 billion maximum Secured Borrowing Facility to extend the maturity. We hold 100 percent of the residual interest in the Secured Borrowing Facility trust. The amendment extended the revolving period, during which we may borrow, repay, and reborrow funds, until June 13, 2025. The scheduled amortization period, during which amounts outstanding under the Secured Borrowing Facility must be repaid, ends on June 13, 2026 (or earlier, if certain material adverse events occur). The one-year revolving period plus the one-year amortization period results in a contractual maturity that is two years from the date of inception or renewal; however, we classify advances under our Secured Borrowing Facility as short-term borrowings because it is our intention to repay those advances within one year. For the years ended December 31, 2024 and December 31, 2023, there were no outstanding short-term borrowings under the Secured Borrowing Facility. With the Secured Borrowing Facility, we incur financing costs on the unused borrowing capacity and on any outstanding advances. The non-use fee is based upon the Facility’s maximum borrowing limit of $2 billion, for both 2024 and 2023, and is applied to the unfunded balance. The Facility non-use fee was 55 basis points in both 2024 and 2023. Long-term Borrowings The following table summarizes the outstanding long-term borrowings, the weighted average interest rates at the end of the period and the related average balance during the period. Rates reflect stated interest of borrowings and related discounts and premiums. The long-term borrowings amortize over time and mature serially from 2025 to 2056.
|  | December 31, 2024 |  | Year Ended December 31, 2024 |  | December 31, 2023 |  | Year Ended December 31, 2023
(Dollars in thousands) |  | Ending Balance |  | Weighted Average Interest Rate |  | Average Balance |  | Ending Balance |  | Weighted Average Interest Rate |  | Average Balance
Long-term borrowings: |  |  |  |  |  |  |  |  |  |  |  |
Floating-rate borrowings |  | $ | 827,182 |  |  | 5.71 | % |  | $ | 724,761 |  |  | $ | 650,058 |  |  | 6.51 | % |  | $ | 715,409 |
Fixed-rate borrowings |  | 5,613,163 |  |  | 4.09 |  |  | 4,864,359 |  |  | 4,577,454 |  |  | 3.52 |  |  | 4,605,806 |
Total long-term borrowings |  | $ | 6,440,345 |  |  | 4.30 | % |  | $ | 5,589,120 |  |  | $ | 5,227,512 |  |  | 3.89 | % |  | $ | 5,321,215 |
As of December 31, 2024, the maturities of our brokered CDs and borrowings are summarized below.
As of December 31, 2024 (dollars in thousands) | Brokered CDs |  | Unsecured Debt |  | Secured Borrowings(1) |  | Total |  |  |  |  |  |  |  |
2025 | $ | 2,763,401 |  |  | $ | 498,897 |  |  | $ | 823,843 |  |  | $ | 4,086,141 |  |  |  |  |  |  |  |  |
2026 | 1,824,607 |  |  | 496,523 |  |  | 840,927 |  |  | 3,162,057 |  |  |  |  |  |  |  |  |
2027 | 783,061 |  |  | — |  |  | 823,320 |  |  | 1,606,381 |  |  |  |  |  |  |  |  |
2028 | 146,282 |  |  | — |  |  | 642,798 |  |  | 789,080 |  |  |  |  |  |  |  |  |
2029 | 683,748 |  |  | — |  |  | 568,779 |  |  | 1,252,527 |  |  |  |  |  |  |  |  |
2030 and after | — |  |  | — |  |  | 1,764,900 |  |  | 1,764,900 |  |  |  |  |  |  |  |  |
| 6,201,099 |  |  | 995,420 |  |  | 5,464,567 |  |  | 12,661,086 |  |  |  |  |  |  |  |  |
Hedge accounting adjustments | (241) |  |  | — |  |  | — |  |  | (241) |  |  |  |  |  |  |  |  |
Total | $ | 6,200,858 |  |  | $ | 995,420 |  |  | $ | 5,464,567 |  |  | $ | 12,660,845 |  |  |  |  |  |  |  |  |
(1) We view our secured borrowings as long-term based on the contractual maturity dates ranging from 2032 to 2056. However, the actual maturity of our secured borrowings depends on the prepayment speeds of the underlying collateralized loans. To disclose how we expect this debt to pay down over time, the maturities for our secured borrowings are based on the projected bond principal paydowns using the current estimated loan prepayment speeds. Unsecured Financing Transactions On October 29, 2020, we issued $500 million of 4.20 percent unsecured Senior Notes due October 29, 2025. At December 31, 2024, the outstanding balance was $499 million. This unsecured borrowing remained classified as long-term as of December 31, 2024 in accordance with our ability and intent to refinance the debt on a long-term basis. On February 18, 2025, we redeemed these Senior Notes with proceeds from $500 million of 6.50 percent unsecured Senior Notes issued on January 31, 2025 and due January 31, 2030. See Note 23, “Subsequent Events” in this Form 10-K for additional information. On November 1, 2021, we issued $500 million of 3.125 percent unsecured Senior Notes due November 2, 2026, at a price of 99.43 percent. At December 31, 2024, the outstanding balance was $496 million. Secured Financing Transactions The following summarizes our term funding collateralized by pools of Private Education Loans in the long-term ABS market issued in 2023 and 2024 in which we retained 100 percent of the residual class certificates.
SMB Private Education Loan Trust |  | Date Closed |  | Loans Transferred to the Trust(1) |  | Notes Issued |  | Gross Proceeds |  | Weighted Average Cost of Funds(2) |  | Weighted Average Life of Class A and Class B Notes (in years) |  |
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |
2023-A ABS Transaction |  | March 15, 2023 |  | $ | 644,573 |  |  | $ | 579,000 |  |  | $ | 571,910 |  |  | SOFR plus 1.53% |  | 5.06 |  |
2023-C ABS Transaction |  | August 16, 2023 |  | 647,934 |  |  | 568,000 |  |  | 567,881 |  |  | SOFR plus 1.69% |  | 4.93 |  |
Total 2023 |  |  |  | $ | 1,292,507 |  |  | $ | 1,147,000 |  |  | $ | 1,139,791 |  |  |  |  |  |  |
2024-C ABS Transaction |  | May 15, 2024 |  | $ | 733,644 |  |  | $ | 668,000 |  |  | $ | 667,888 |  |  | SOFR plus 1.19% |  | 5.36 |  |
2024-E ABS Transaction |  | August 14, 2024 |  | 944,645 |  |  | 868,000 |  |  | 867,743 |  |  | SOFR plus 1.42% |  | 5.17 |  |
2024-F ABS Transaction |  | November 6, 2024 |  | 732,445 |  |  | 680,000 |  |  | 679,981 |  |  | SOFR plus 1.08% |  | 5.09 |  |
Total 2024 |  |  |  | $ | 2,410,734 |  |  | $ | 2,216,000 |  |  | $ | 2,215,612 |  |  |  |  |  |  |
(1)The transfer of such loans did not qualify for sale treatment and thus remain on our consolidated balance sheet. At December 31, 2024, the following Private Education Loan amounts remain encumbered related to these transactions:
SMB Private Education Loan Trust |  | Loan Principal |  | Capitalized Interest |  | Total Loans
(Dollars in thousands) |  |  |  |  |  |
2023-A ABS Transaction |  | $ | 484,551 |  |  | $ | 32,856 |  |  | $ | 517,407 |
2023-C ABS Transaction |  | 516,507 |  |  | 35,287 |  |  | 551,794 |
Total 2023 |  | $ | 1,001,058 |  |  | $ | 68,143 |  |  | $ | 1,069,201 |
2024-C ABS Transaction |  | $ | 646,550 |  |  | $ | 52,968 |  |  | $ | 699,518 |
2024-E ABS Transaction |  | 841,355 |  |  | 69,238 |  |  | 910,593 |
2024-F ABS Transaction |  | 662,361 |  |  | 55,131 |  |  | 717,492 |
Total 2024 |  | $ | 2,150,266 |  |  | $ | 177,337 |  |  | $ | 2,327,603 |
(2)Represents SOFR equivalent cost of funds for variable and fixed-rate bonds, excluding issuance costs. Pre-2023 Transactions Prior to 2023, we executed a total of $10.38 billion in ABS transactions that were accounted for as secured financings. At December 31, 2024, $3.74 billion of our Private Education Loans, including $3.63 billion of principal and $107 million in capitalized interest, were encumbered as a result of these transactions. Consolidated Funding Vehicles 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 December 31, 2024 (dollars in thousands) |  |
| Debt Outstanding |  | Carrying Amount of Net Assets Securing Debt Outstanding
| Short-Term |  | Long-Term |  | Total |  | Loans |  | Restricted Cash |  | Other Assets, Net(1) |  | Total
Secured borrowings: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Private Education Loan term securitizations |  | $ | — |  |  | $ | 5,444,925 |  |  | $ | 5,444,925 |  |  | $ | 6,786,390 |  |  | $ | 173,892 |  |  | $ | 418,705 |  |  | $ | 7,378,987 |
Secured Borrowing Facility |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 98 |  |  | 98 |
Total |  | $ | — |  |  | $ | 5,444,925 |  |  | $ | 5,444,925 |  |  | $ | 6,786,390 |  |  | $ | 173,892 |  |  | $ | 418,803 |  |  | $ | 7,379,085 |
As of December 31, 2023 (dollars in thousands) |  |
| Debt Outstanding |  | Carrying Amount of Net Assets Securing Debt Outstanding
| Short-Term |  | Long-Term |  | Total |  | Loans |  | Restricted Cash |  | Other Assets, Net(1) |  | Total
Secured borrowings: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Private Education Loan term securitizations |  | $ | — |  |  | $ | 4,235,312 |  |  | $ | 4,235,312 |  |  | $ | 5,539,964 |  |  | $ | 149,412 |  |  | $ | 303,653 |  |  | $ | 5,993,029 |
Secured Borrowing Facility |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 100 |  |  | 100 |
Total |  | $ | — |  |  | $ | 4,235,312 |  |  | $ | 4,235,312 |  |  | $ | 5,539,964 |  |  | $ | 149,412 |  |  | $ | 303,753 |  |  | $ | 5,993,129 |
(1) Other assets, net primarily represents accrued interest receivable and payable. Unconsolidated Funding Vehicles Private Education Loan Securitizations Unconsolidated VIEs include variable interests that we hold in certain securitization trusts created by the sale of our Private Education Loans to unaffiliated third parties. We remained the servicer of these loans pursuant to applicable servicing agreements executed in connection with the sales, and we are also the administrator of these trusts. Additionally, we own five percent of the securities issued by the trusts to meet risk retention requirements. We were not required to consolidate these entities because the fees we receive as the servicer/administrator are commensurate with our responsibility, so the fees are not considered a variable interest. Additionally, the five percent vertical interest we maintain does not absorb more than an insignificant amount of the VIE’s expected losses, nor do we receive more than an insignificant amount of the VIE’s expected residual returns. We classified those vertical risk retention interests related to the securitization transactions listed below as available-for-sale investments, except for the interest in the residual class, which we classified as trading investments recorded at fair value with changes recorded through earnings. The following summarizes our Private Education Loan ABS transactions closed in 2023 and 2024 where the respective VIEs were not consolidated.
SMB Private Education Loan Trust | Date Closed | Loans Transferred to the Trust by Third-Party Seller | Date Third-Party Seller Previously Purchased Loans from the Bank | Additional Loans the Bank Transferred to the Trust(1) | Gain on Sale for Additional Loans Transferred by Bank
(Dollars in thousands) |  |  |  |  |
2023-B ABS transaction(2) | May 24, 2023 | $ | 1,988,277 |  | May 3, 2023 | $ | 104,743 |  | $ | 5,391 |
2023-D ABS transaction(2) | November 7, 2023 | 995,184 |  | October 13, 2023 | 52,572 |  | 1,570 |
2024-A ABS transaction(2) | March 13, 2024 | 1,988,248 |  | February 1, 2024 | 104,748 |  | 6,685 |
2024-R1 ABS transaction(3) | April 9, 2024 | 68,896 |  | n/a | — |  | — |
2024-B ABS transaction(2) | April 11, 2024 | 191,445 |  | March 6, 2020 and November 17, 2021 | 10,132 |  | 35 |
2024-D ABS transaction(2) | June 28, 2024 | 1,494,953 |  | May 23, 2024 | 78,782 |  | $ | 6,051 |
(1)The transfer of such additional loans qualified for sale treatment and removed these loans from our balance sheet on the settlement date of the transaction. (2)Sallie Mae Bank sponsored the transaction and is the servicer and administrator. (3)An unaffiliated third party sold to the Trust approximately $69 million of Private Education Loan residual flows from our 2020-PTA and 2020-PTB transactions through a re-securitization. Sallie Mae Bank sponsored the 2024-R1 transaction and is the administrator of the Trust. The table below provides a summary of our exposure related to our unconsolidated VIEs.
|  | 2024 |  | 2023
As of December 31, (dollars in thousands) |  | Debt Interests(1) |  | Equity Interests(2) |  | Total Exposure |  | Debt Interests(1) |  | Equity Interests(2) |  | Total Exposure
Private Education Loan term securitizations |  | $ | 571,795 |  |  | $ | 53,262 |  |  | $ | 625,057 |  |  | $ | 423,327 |  |  | $ | 54,481 |  |  | $ | 477,808 |
(1) Vertical risk retention interest classified as available-for-sale investment. (2) Vertical risk retention interest classified as trading investment. Other Borrowing Sources We maintain discretionary uncommitted Federal Funds lines of credit with various correspondent banks, which totaled $125 million at December 31, 2023. The interest rate we are charged on these lines of credit is priced at Fed Funds plus a spread at the time of borrowing, and is payable daily. We did not utilize these lines of credit in the years ended December 31, 2024 and 2023. We established an account at the FRB to meet eligibility requirements for access to the Primary Credit borrowing facility at the FRB’s Discount Window (the “Window”). The Primary Credit borrowing facility is a lending program available to depository institutions that are in generally sound financial condition. All borrowings at the Window must be fully collateralized. We can pledge asset-backed and mortgage-backed securities, as well as Private Education Loans, to the FRB as collateral for borrowings at the Window. Generally, collateral value is assigned based on the estimated fair value of the pledged assets. At December 31, 2024 and December 31, 2023, the value of our pledged collateral at the FRB totaled $2.2 billion and $1.6 billion, respectively. The interest rate charged to us is the discount rate set by the FRB. We did not utilize this facility in the years ended December 31, 2024 and 2023.

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

X
- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481544/470-10-50-6 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481544/470-10-50-6 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 405 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477092/405-40-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 405 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477092/405-40-50-1 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 405 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477092/405-40-50-1 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 405 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477092/405-40-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 405 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477092/405-40-50-1 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(c)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1 Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 470 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/470/tableOfContent Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 835 -SubTopic 30 -Name Accounting Standards Codification -Section 45 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482925/835-30-45-2 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Publisher FASB -URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (i) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481139/470-20-50-1C Reference 16: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481139/470-20-50-1C Reference 17: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481139/470-20-50-1C Reference 18: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1E -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481139/470-20-50-1E Reference 19: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481139/470-20-50-1I Reference 20: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481139/470-20-50-1I Reference 21: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481139/470-20-50-1I + Details
Name: | us-gaap_DebtDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration