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Borrowings (Tables) | 12 Months Ended
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Dec. 31, 2024
Debt Disclosure [Abstract] |
Schedule of Secured Borrowings | 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 |
Schedule of 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 |
Schedule of Maturities of Long-term Debt | 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.
Schedule of Securities Financing Transactions | 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. 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.
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 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. 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.

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