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Borrowings (Tables)

6 Months Ended

Jun. 30, 2025

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.

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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