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Loans Held for Investment (Tables)
 6 Months Ended
Jun. 30, 2025
Receivables [Abstract]  
Schedule of Allowance for Credit Losses and Recorded Investments in Loans
The following table summarizes our Private Education Loan sales to unaffiliated third parties for the periods presented. We did not sell any Private Education Loans in the three months ended June 30, 2025.
Three Months Ended June 30,Six Months Ended June 30,

(Dollars in millions)		202420252024
Loan principal$1,466 $1,840 $3,418 
Capitalized interest
123 163 274 
Total Private Education Loans sold$1,589 $2,003 $3,692 
Gain on sale of loans, net
$112 $188 $255 
Allowance for Credit Losses Metrics
The following tables provide a summary of the activity in the allowance for loan losses and the allowance for unfunded loan commitments during the three and six months ended June 30, 2025 and 2024.
Three Months Ended June 30, 2025
(dollars in thousands)
Private Education
Loans
Allowance for loan losses, beginning balance$1,443,715 
Transfer from allowance for unfunded loan commitments27,878 
Provisions:
Provision for current period92,189 
Total provisions(1)
92,189 
Net charge-offs:
Charge-offs(106,866)
Recoveries12,593 
Net charge-offs(94,273)
Allowance for loan losses, ending balance$1,469,509 
Allowance for unfunded loan commitments, beginning balance(2)
23,890 
Provision(1)(3)
56,529 
Transfer to allowance for loan losses(27,878)
Allowance for unfunded loan commitments, ending balance(2)
52,541 
Total allowance for credit losses, ending balance$1,522,050 
Net charge-offs as a percentage of average loans in repayment (annualized)(4)
2.36 %
Allowance for loan losses coverage of net charge-offs (annualized)3.90 
Total Allowance Percentage of Private Education Loan Exposure(5)
5.95 %
Ending total loans, gross$22,525,817 
Average loans in repayment(4)
$15,991,357 
Ending loans in repayment(4)
$16,231,194 
Unfunded loan commitments$1,358,163 
Total accrued interest receivable$1,701,944 
(1) See “—Provisions for Credit Losses” below in this Note 4 for a reconciliation of the provisions for credit losses reported in the consolidated statements of income.
(2) When a new loan commitment is made, we record an allowance to cover lifetime expected credit losses on the unfunded commitments, which is recorded in “Other Liabilities” on the consolidated balance sheet. See “—Unfunded Loan Commitments” in this Note 4 for further discussion.
(3 ) Includes incremental provision for new commitments and changes to provision for existing commitments.
(4) Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period (but, for purposes of the table, do not include loans in the “loans in forbearance” metric).
(5) The Total Allowance Percentage of Private Education Loan Exposure is the total allowance for credit losses as a percentage of ending total loans plus unfunded loan commitments and total accrued interest receivable on Private Education Loans.
Three Months Ended June 30, 2024
(dollars in thousands)
FFELP 
Loans		Private
 Education
Loans		Total
Allowance for loan losses, beginning balance$4,627 $1,345,431 $1,350,058 
Transfer from allowance for unfunded loan commitments— 29,715 29,715 
Provisions:
Provision for current period(441)72,862 72,421 
Loan sale reduction to provision— (102,751)(102,751)
Total provisions(1)
(441)(29,889)(30,330)
Net charge-offs:
Charge-offs(126)(91,042)(91,168)
Recoveries— 11,377 11,377 
Net charge-offs(126)(79,665)(79,791)
Allowance for loan losses, ending balance$4,060 $1,265,592 $1,269,652 
Allowance for unfunded loan commitments, beginning balance(2)
— 32,034 32,034 
Provision(1)(3)
— 47,160 47,160 
Transfer to allowance for loan losses— (29,715)(29,715)
Allowance for unfunded loan commitments, ending balance(2)
— 49,479 49,479 
Total allowance for credit losses, ending balance$4,060 $1,315,071 $1,319,131 
Net charge-offs as a percentage of average loans in repayment (annualized)(4)
0.13 %2.19 %
Allowance for loan losses coverage of net charge-offs (annualized)8.06 3.97 
Total Allowance Percentage of Private Education Loan Exposure(5)
0.84 %5.90 %
Ending total loans, gross$485,608 $19,619,531 
Average loans in repayment(4)
$378,667 $14,543,669 
Ending loans in repayment(4)
$369,681 $14,231,581 
Unfunded loan commitments$— $1,300,393 
Total accrued interest receivable$— $1,367,482 
(1) See “—Provisions for Credit Losses” below in this Note 4 for a reconciliation of the provisions for credit losses reported in the consolidated statements of income.
(2) When a new loan commitment is made, we record an allowance to cover lifetime expected credit losses on the unfunded commitments, which is recorded in “Other Liabilities” on the consolidated balance sheet. See “—Unfunded Loan Commitments” in this Note 4 for further discussion.
(3) Includes incremental provision for new commitments and changes to provision for existing commitments.
(4) Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period (but, for purposes of the table, do not include loans in the “loans in forbearance” metric).
(5) The Total Allowance Percentage of Private Education Loan Exposure is the total allowance for credit losses as a percentage of ending total loans plus unfunded loan commitments and total accrued interest receivable on Private Education Loans.

l
Six Months Ended June 30, 2025
(dollars in thousands)
Private Education
Loans
Allowance for loan losses, beginning balance$1,435,920 
Transfer from allowance for unfunded loan commitments133,012 
Provisions:
Provision for current period187,478 
Loan sale reduction to provision(116,459)
Total provisions(1)
71,019 
Net charge-offs:
Charge-offs(193,769)
Recoveries23,327 
Net charge-offs(170,442)
Allowance for loan losses, ending balance$1,469,509 
Allowance for unfunded loan commitments, beginning balance(2)
84,568 
Provision(1)(3)
100,985 
Transfer to allowance for loan losses(133,012)
Allowance for unfunded loan commitments, ending balance(2)
52,541 
Total allowance for credit losses, ending balance$1,522,050 
Net charge-offs as a percentage of average loans in repayment (annualized)(4)
2.11 %
Allowance for loan losses coverage of net charge-offs (annualized)4.31 
Total Allowance Percentage of Private Education Loan Exposure(5)
5.95 %
Ending total loans, gross$22,525,817 
Average loans in repayment(4)
$16,146,239 
Ending loans in repayment(4)
$16,231,194 
Unfunded loan commitments$1,358,163 
Total accrued interest receivable$1,701,944 
(1) See “—Provisions for Credit Losses” below in this Note 4 for a reconciliation of the provisions for credit losses reported in the consolidated statements of income.
(2) When a new loan commitment is made, we record an allowance to cover lifetime expected credit losses on the unfunded commitments, which is recorded in “Other Liabilities” on the consolidated balance sheet. See “—Unfunded Loan Commitments” in this Note 4 for further discussion.
(3 ) Includes incremental provision for new commitments and changes to provision for existing commitments.
(4) Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period (but, for purposes of the table, do not include loans in the “loans in forbearance” metric).
(5) The Total Allowance Percentage of Private Education Loan Exposure is the total allowance for credit losses as a percentage of ending total loans plus unfunded loan commitments and total accrued interest receivable on Private Education Loans.
Six Months Ended June 30, 2024
(dollars in thousands)
FFELP 
Loans		Private
 Education
Loans		Total
Allowance for loan losses, beginning balance$4,667 $1,335,105 $1,339,772 
Transfer from allowance for unfunded loan commitments— 161,329 161,329 
Provisions:
Provision for current period(358)167,338 166,980 
Loan sale reduction to provision— (235,955)(235,955)
Total provisions(1)
(358)(68,617)(68,975)
Net charge-offs:
Charge-offs(249)(184,916)(185,165)
Recoveries— 22,691 22,691 
Net charge-offs(249)(162,225)(162,474)
Allowance for loan losses, ending balance$4,060 $1,265,592 $1,269,652 
Allowance for unfunded loan commitments, beginning balance(2)
— 112,962 112,962 
Provision(1)(3)
— 97,846 97,846 
Transfer to allowance for loan losses— (161,329)(161,329)
Allowance for unfunded loan commitments, ending balance(2)
— 49,479 49,479 
Total allowance for credit losses, ending balance$4,060 $1,315,071 $1,319,131 
Net charge-offs as a percentage of average loans in repayment (annualized)(4)
0.13 %2.17 %
Allowance for loan losses coverage of net charge-offs (annualized)8.15 3.90 
Total Allowance Percentage of Private Education Loan Exposure(5)
0.84 %5.90 %
Ending total loans, gross$485,608 $19,619,531 
Average loans in repayment(4)
$388,510 $14,977,567 
Ending loans in repayment(4)
$369,681 $14,231,581 
Unfunded loan commitments$— $1,300,393 
Total accrued interest receivable$— $1,367,482 
(1) See “—Provisions for Credit Losses” below in this Note 4 for a reconciliation of the provisions for credit losses reported in the consolidated statements of income.
(2) When a new loan commitment is made, we record an allowance to cover lifetime expected credit losses on the unfunded commitments, which is recorded in “Other Liabilities” on the consolidated balance sheet. See “—Unfunded Loan Commitments” in this Note 4 for further discussion.
(3) Includes incremental provision for new commitments and changes to provision for existing commitments.
(4) Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period (but, for purposes of the table, do not include loans in the “loans in forbearance” metric).
(5) The Total Allowance Percentage of Private Education Loan Exposure is the total allowance for credit losses as a percentage of ending total loans plus unfunded loan commitments and total accrued interest receivable on Private Education Loans.
Provisions for Credit Losses
Below is a reconciliation of the provisions for credit losses reported in the consolidated statements of income.
Consolidated Statements of Income
Provisions for Credit Losses Reconciliation
Three Months Ended June 30,Six Months Ended June 30,
(Dollars in thousands)2025202420252024
Private Education Loan provisions for credit losses:
Provisions for loan losses$92,189 $(29,889)$71,019 $(68,617)
Provisions for unfunded loan commitments56,529 47,160 100,985 97,846 
Total Private Education Loan provisions for credit losses148,718 17,271 172,004 29,229 
Total FFELP Loans provisions for credit losses— (441)— (358)
Provisions for credit losses reported in consolidated statements of income$148,718 $16,830 $172,004 $28,871 
The table below summarizes the activity in the allowance recorded to cover lifetime expected credit losses on the unfunded commitments, which is recorded in “Other Liabilities” on the consolidated balance sheets, as well as the activity in the unfunded commitments balance.
20252024
Three Months Ended June 30,
(dollars in thousands)
AllowanceUnfunded CommitmentsAllowanceUnfunded Commitments
Beginning Balance$23,890 $584,140 $32,034 $673,492 
Provision/New commitments - net(1)
56,529 1,459,626 47,160 1,317,770 
Transfer - funded loans(2)
(27,878)(685,603)(29,715)(690,869)
Ending Balance$52,541 $1,358,163 $49,479 $1,300,393 

20252024
Six Months Ended June 30,
(dollars in thousands)
AllowanceUnfunded CommitmentsAllowanceUnfunded Commitments
Beginning Balance$84,568 $2,311,660 $112,962 $2,221,077 
Provision/New commitments - net(1)
100,985 2,503,584 97,846 2,352,228 
Transfer - funded loans(2)
(133,012)(3,457,081)(161,329)(3,272,912)
Ending Balance$52,541 $1,358,163 $49,479 $1,300,393 
(1)     Net of expirations of commitments unused. Also includes incremental provision for new commitments and changes to provision for existing commitments.
(2)     When a loan commitment is funded, its related liability for credit losses (which originally was recorded as a provision for unfunded commitments) is transferred to the allowance for credit losses.
Schedule of Loans Held for Investment
Loans held for investment are summarized as follows:
June 30,December 31,
(Dollars in thousands)20252024
Loans Held for Investment, net:
Fixed-rate$17,646,982 $17,093,382 
Variable-rate4,878,835 5,141,626 
Total Private Education Loans, gross22,525,817 22,235,008 
Deferred origination costs and unamortized premium/(discount)104,024 103,070 
Allowance for credit losses(1,469,509)(1,435,920)
Loans held for investment, net$21,160,332 $20,902,158 
The average balance (net of unamortized premium/(discount)) and the respective weighted average interest rates of loans held for investment in our portfolio are summarized as follows:

20252024
Three Months Ended June 30,
(dollars in thousands)
Average BalanceWeighted Average Interest RateAverage BalanceWeighted Average Interest Rate
Private Education Loans$22,561,636 10.62 %$20,480,805 10.91 %
FFELP Loans(1)
— — 501,439 7.73 
Total portfolio$22,561,636 $20,982,244 

(1) FFELP Loans were transferred to loans held for sale during the third quarter of 2024 and subsequently sold to a third-party in the fourth quarter of 2024.

20252024
Six Months Ended June 30,
(dollars in thousands)
Average BalanceWeighted Average Interest RateAverage BalanceWeighted Average Interest Rate
Private Education Loans$22,738,295 10.61 %$20,961,775 10.96 %
FFELP Loans(1)
— — 514,225 7.48 
Total portfolio$22,738,295 $21,476,000 

(1) FFELP Loans were transferred to loans held for sale during the third quarter of 2024 and subsequently sold to a third-party in the fourth quarter of 2024.