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Fair Value Measurements
 9 Months Ended
Sep. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
We use estimates of fair value in applying various accounting standards for our consolidated financial statements.

We categorize our fair value estimates based on a hierarchical framework associated with three levels of price transparency utilized in measuring financial instruments at fair value. For additional information regarding our policies for determining fair value and the hierarchical framework, see Note 2, “Significant Accounting Policies - Fair Value Measurement” in our 2024 Form 10-K.

During the nine months ended September 30, 2025, there were no significant transfers of financial instruments between levels or changes in our methodology or assumptions used to value our financial instruments.

The following table summarizes the valuation of our financial instruments that are marked-to-fair value on a recurring basis.

 Fair Value Measurements on a Recurring Basis
 September 30, 2025December 31, 2024
(Dollars in thousands)Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total 
Assets:
Trading investments$— $— $51,963 $51,963 $— $— $53,262 $53,262 
Available-for-sale investments— 1,773,720 2,064 1,775,784 — 1,930,537 2,689 1,933,226 
Derivative instruments— 3 — 3 — — — — 
Total$— $1,773,723 $54,027 $1,827,750 $— $1,930,537 $55,951 $1,986,488 
Liabilities:
Derivative instruments$— $(33)$— $(33)$— $(40)$— $(40)
Total$— $(33)$— $(33)$— $(40)$— $(40)
The following table summarizes the change in balance sheet carrying value associated with level 3 financial instruments carried at fair value on a recurring basis.

Nine Months Ended September 30,
20252024
InvestmentsInvestments
(Dollars in thousands)Available For Sale -
Debt Securities		Trading -
Residual Interests		TotalAvailable For Sale -
Debt Securities		Trading -
Residual Interests		Total
Balance, beginning of period$2,689 $53,262 $55,951 $— $54,481 $54,481 
Total gains/(losses):
   Included in earnings (or changes in net assets)(1)
16 1,748 1,764 14 398 412 
   Included in other comprehensive income(3)— (3)83 — 83 
Settlements(638)(3,047)(3,685)2,813 (39)2,774 
Transfers into level 3— — — — — — 
Transfers out of level 3— — — — — — 
Balance, end of period$2,064 $51,963 $54,027 $2,910 $54,840 $57,750 
Change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period$(3)$— $(3)$83 $— $83 
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets held at the end of the reporting period(2)
$— $1,748 $1,748 $— $398 $398 

(1) Included in earnings (or changes in net assets) is comprised of the amounts recorded in the specified line item in the consolidated statements of income:

Nine Months Ended September 30,
(Dollars in thousands)20252024
Interest Income - Investments$16 $14 
Gains (losses) on securities, net1,748 398 
Total$1,764 $412 

(2) Recorded in "gains (losses) on securities, net" in the consolidated statements of income.


The following table presents the significant unobservable inputs used in the recurring valuations of the level 3 financial instruments detailed above.

As of September 30, 2025
(dollars in thousands)		Fair ValueValuation TechniqueUnobservable InputRange (Average)
Debt Securities$2,064 Discounted cash flowConstant Prepayment Rate
  6.9%-11.0% (8.3%)
Probability of default
     4.4%-15.9% (11.4%)
Residual Interests51,963 Discounted cash flowConstant Prepayment Rate
  6.9%-11.0% (8.3%)
Probability of default
    4.4%-15.9% (11.4%)
Total$54,027 
The significant inputs detailed in the above table would be expected to have the following impacts to the valuations:
•A decrease in constant prepayment rate (“CPR”) would result in a longer weighted average life of the trust, resulting in a decrease to the valuation due to the delay in residual cash flows with the increased term. The opposite is true for an increase in the CPR.
•A decrease in the probability of defaults means increased principal receipts, resulting in an increase to the valuation due to the increase in residual cash flow.
•Conversely, an increase in the probability of defaults means decreased principal receipts, resulting in a decrease to the valuation due to the decrease in residual cash flow.

The following table summarizes the fair values of our financial assets and liabilities, including derivative financial instruments.

 September 30, 2025December 31, 2024
(Dollars in thousands)Fair
Value		Carrying
Value		DifferenceFair
Value		Carrying
Value		Difference
Earning assets:
Loans held for investment, net:
Private Education Loans$24,759,169 $21,615,067 $3,144,102 $24,110,381 $20,902,158 $3,208,223 
Cash and cash equivalents3,539,341 3,539,341 — 4,700,366 4,700,366 — 
Trading investments51,963 51,963 — 53,262 53,262 — 
Available-for-sale investments1,775,784 1,775,784 — 1,933,226 1,933,226 — 
Accrued interest receivable1,805,634 1,690,102 115,532 1,663,474 1,546,590 116,884 
Derivative instruments3 3 — — — — 
Total earning assets$31,931,894 $28,672,260 $3,259,634 $32,460,709 $29,135,602 $3,325,107 
Interest-bearing liabilities:
Money-market and savings accounts$10,725,860 $10,718,204 $(7,656)$10,503,731 $10,526,324 $22,593 
Certificates of deposit9,342,026 9,293,904 (48,122)10,593,666 10,540,428 (53,238)
Long-term borrowings6,828,914 6,838,995 10,081 6,323,384 6,440,345 116,961 
Accrued interest payable77,128 77,128 — 108,488 108,488 — 
Derivative instruments33 33 — 40 40 — 
Total interest-bearing liabilities$26,973,961 $26,928,264 $(45,697)$27,529,309 $27,615,625 $86,316 
Excess of net asset fair value over carrying value$3,213,937 $3,411,423 
Please refer to Note 15, “Fair Value Measurements” in our 2024 Form 10-K for a full discussion of the methods and assumptions used to estimate the fair value of each class of financial instruments.