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v3.25.2

Borrowings (Tables) | 6 Months Ended
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Jun. 30, 2025
Debt Disclosure [Abstract] |
Schedule of Debt | The following table summarizes our borrowings at June 30, 2025 and December 31, 2024.
|  | June 30, 2025 |  | December 31, 2024
(Dollars in thousands) |  | Short-Term |  | Long-Term |  | Total |  | Short-Term |  | Long-Term |  | Total
Unsecured borrowings: |  |  |  |  |  |  |  |  |  |  |  |
Unsecured debt (fixed-rate) |  | $ | — |  |  | $ | 990,356 |  |  | $ | 990,356 |  |  | $ | — |  |  | $ | 995,420 |  |  | $ | 995,420 |
Total unsecured borrowings |  | — |  |  | 990,356 |  |  | 990,356 |  |  | — |  |  | 995,420 |  |  | 995,420 |
Secured borrowings: |  |  |  |  |  |  |  |  |  |  |  |
Private Education Loan term securitizations: |  |  |  |  |  |  |  |  |  |  |  |
Fixed-rate |  | — |  |  | 4,625,193 |  |  | 4,625,193 |  |  | — |  |  | 4,617,743 |  |  | 4,617,743 |
Variable-rate |  | — |  |  | 795,429 |  |  | 795,429 |  |  | — |  |  | 827,182 |  |  | 827,182 |
Total Private Education Loan term securitizations |  | — |  |  | 5,420,622 |  |  | 5,420,622 |  |  | — |  |  | 5,444,925 |  |  | 5,444,925 |
Secured Borrowing Facility |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total secured borrowings |  | — |  |  | 5,420,622 |  |  | 5,420,622 |  |  | — |  |  | 5,444,925 |  |  | 5,444,925 |
Total |  | $ | — |  |  | $ | 6,410,978 |  |  | $ | 6,410,978 |  |  | $ | — |  |  | $ | 6,440,345 |  |  | $ | 6,440,345 |
Schedule of Securities Financing Transactions | The following table summarizes our term ABS fundings issued in the year ended December 31, 2024 and in the six months ended June 30, 2025, in which we retained 100 percent of the residual class certificates and which are collateralized by pools of Private Education Loans. The transfer of these loans did not qualify for sale treatment and thus remain encumbered on our consolidated balance sheet.
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 Notes (in years)
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |
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 |  |  |  |  |
Loans encumbered at June 30, 2025, related to 2024 term ABS: |  | $ | 2,216,829 |  |  |  |  |  |  |  |  |
2025-A ABS Transaction |  | May 7, 2025 |  | $ | 576,908 |  |  | $ | 539,000 |  |  | $ | 538,889 |  |  | SOFR plus 1.49% |  | 5.46
Total 2025 |  |  |  | $ | 576,908 |  |  | $ | 539,000 |  |  | $ | 538,889 |  |  |  |  |
Loans encumbered at June 30, 2025, related to 2025 term ABS: |  | $ | 570,107 |  |  |  |  |  |  |  |  |
(1) Represents principal and capitalized interest. (2) Represents SOFR equivalent cost of funds for floating and fixed-rate bonds, excluding issuance costs.
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, 2025 (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 |  | $ | — |  |  | $ | 5,420,622 |  |  | $ | 5,420,622 |  |  | $ | 6,753,682 |  |  | $ | 163,759 |  |  | $ | 455,364 |  |  | $ | 7,372,805 |
Secured Borrowing Facility |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 2,772 |  |  | 2,772 |
Total |  | $ | — |  |  | $ | 5,420,622 |  |  | $ | 5,420,622 |  |  | $ | 6,753,682 |  |  | $ | 163,759 |  |  | $ | 458,136 |  |  | $ | 7,375,577 |
As of December 31, 2024 |  | 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 |
(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.
|  | June 30, 2025 |  | December 31, 2024
(Dollars in thousands) |  | Debt Interests(1) |  | Equity Interests(2) |  | Total Exposure |  | Debt Interests(1) |  | Equity Interests(2) |  | Total Exposure
Private Education Loan term securitizations |  | $ | 520,987 |  |  | $ | 47,154 |  |  | $ | 568,141 |  |  | $ | 571,795 |  |  | $ | 53,262 |  |  | $ | 625,057 |
(1) Vertical risk retention interest classified as available-for-sale investment. (2) Vertical risk retention interest classified as trading investment.

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