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Loans Held for Investment (Tables)
 9 Months Ended
Sep. 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 September 30, 2024.
Three Months Ended September 30,Nine Months Ended September 30,

(Dollars in millions)		202520252024
Loan principal$1,769 $3,609 $3,418 
Capitalized interest
167 330 274 
Total Private Education Loans sold$1,936 $3,939 $3,692 
Gain on sale of loans, net
$136 $324 $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 nine months ended September 30, 2025 and 2024.
Three Months Ended September 30, 2025
(dollars in thousands)
Private Education
Loans
Allowance for loan losses, beginning balance$1,469,509 
Transfer from allowance for unfunded loan commitments109,422 
Provisions:
Provision for current period143,498 
Loan sale reduction to provision(118,794)
Total provisions(1)
24,704 
Net charge-offs:
Charge-offs(91,072)
Recoveries13,541 
Net charge-offs(77,531)
Allowance for loan losses, ending balance$1,526,104 
Allowance for unfunded loan commitments, beginning balance(2)
52,541 
Provision(1)(3)
154,758 
Transfer to allowance for loan losses(109,422)
Allowance for unfunded loan commitments, ending balance(2)
97,877 
Total allowance for credit losses, ending balance$1,623,981 
Net charge-offs as a percentage of average loans in repayment (annualized)(4)
1.95 %
Allowance for loan losses coverage of net charge-offs (annualized)4.92 
Total Allowance Percentage of Private Education Loan Exposure(5)
5.93 %
Ending total loans, gross$23,029,999 
Average loans in repayment(4)
$15,870,798 
Ending loans in repayment(4)
$16,292,470 
Unfunded loan commitments$2,673,369 
Total accrued interest receivable$1,693,268 
(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 September 30, 2024
(dollars in thousands)
FFELP 
Loans		Private
 Education
Loans		Total
Allowance for loan losses, beginning balance$4,060 $1,265,592 $1,269,652 
Transfer from allowance for unfunded loan commitments— 115,421 115,421 
Provisions:
Provision for current period4,368 109,196 113,564 
Total provisions(1)
4,368 109,196 113,564 
Net charge-offs:
Charge-offs(131)(87,737)(87,868)
Recoveries— 11,149 11,149 
Net charge-offs(131)(76,588)(76,719)
Write-downs arising from transfer of loans to held for sale(2)
(8,297)— (8,297)
Allowance for loan losses, ending balance$— $1,413,621 $1,413,621 
Allowance for unfunded loan commitments, beginning balance(3)
— 49,479 49,479 
Provision(1)(4)
— 157,901 157,901 
Transfer to allowance for loan losses— (115,421)(115,421)
Allowance for unfunded loan commitments, ending balance(3)
— 91,959 91,959 
Total allowance for credit losses, ending balance$— $1,505,580 $1,505,580 
Net charge-offs as a percentage of average loans in repayment (annualized)(5)
— %2.08 %
Allowance for loan losses coverage of net charge-offs (annualized)— 4.61 
Total Allowance Percentage of Private Education Loan Exposure(6)
— %5.84 %
Ending total loans, gross$— $21,777,466 
Average loans in repayment(5)
$— $14,708,205 
Ending loans in repayment(5)
$— $15,360,255 
Unfunded loan commitments$— $2,476,785 
Total accrued interest receivable$— $1,529,814 
(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) Represents fair value adjustments on loans transferred to held for sale.
(3) 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.
(4) Includes incremental provision for new commitments and changes to provision for existing commitments.
(5) 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).
(6) 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
Nine Months Ended September 30, 2025
(dollars in thousands)
Private Education
Loans
Allowance for loan losses, beginning balance$1,435,920 
Transfer from allowance for unfunded loan commitments242,434 
Provisions:
Provision for current period330,976 
Loan sale reduction to provision(235,253)
Total provisions(1)
95,723 
Net charge-offs:
Charge-offs(284,841)
Recoveries36,868 
Net charge-offs(247,973)
Allowance for loan losses, ending balance$1,526,104 
Allowance for unfunded loan commitments, beginning balance(2)
84,568 
Provision(1)(3)
255,743 
Transfer to allowance for loan losses(242,434)
Allowance for unfunded loan commitments, ending balance(2)
97,877 
Total allowance for credit losses, ending balance$1,623,981 
Net charge-offs as a percentage of average loans in repayment (annualized)(4)
2.06 %
Allowance for loan losses coverage of net charge-offs (annualized)4.62 
Total Allowance Percentage of Private Education Loan Exposure(5)
5.93 %
Ending total loans, gross$23,029,999 
Average loans in repayment(4)
$16,027,567 
Ending loans in repayment(4)
$16,292,470 
Unfunded loan commitments$2,673,369 
Total accrued interest receivable$1,693,268 
(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.
Nine Months Ended September 30, 2024
(dollars in thousands)
FFELP 
Loans		Private
 Education
Loans		Total
Allowance for loan losses, beginning balance$4,667 $1,335,105 $1,339,772 
Transfer from allowance for unfunded loan commitments— 276,750 276,750 
Provisions:
Provision for current period4,010 276,534 280,544 
Loan sale reduction to provision— (235,955)(235,955)
Total provisions(1)
4,010 40,579 44,589 
Net charge-offs:
Charge-offs(380)(272,653)(273,033)
Recoveries— 33,840 33,840 
Net charge-offs(380)(238,813)(239,193)
Write-downs arising from transfer of loans to held for sale(2)
(8,297)— (8,297)
Allowance for loan losses, ending balance$— $1,413,621 $1,413,621 
Allowance for unfunded loan commitments, beginning balance(3)
— 112,962 112,962 
Provision(1)(4)
— 255,747 255,747 
Transfer to allowance for loan losses— (276,750)(276,750)
Allowance for unfunded loan commitments, ending balance(3)
— 91,959 91,959 
Total allowance for credit losses, ending balance$— $1,505,580 $1,505,580 
Net charge-offs as a percentage of average loans in repayment (annualized)(5)
— %2.13 %
Allowance for loan losses coverage of net charge-offs (annualized)— 4.44 
Total Allowance Percentage of Private Education Loan Exposure(6)
— %5.84 %
Ending total loans, gross$— $21,777,466 
Average loans in repayment(5)
$— $14,944,421 
Ending loans in repayment(5)
$— $15,360,255 
Unfunded loan commitments$— $2,476,785 
Total accrued interest receivable$— $1,529,814 
(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) Represents fair value adjustments on loans transferred to held for sale.
(3) 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.
(4) Includes incremental provision for new commitments and changes to provision for existing commitments.
(5) 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).
(6) 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 September 30,Nine Months Ended September 30,
(Dollars in thousands)2025202420252024
Private Education Loan provisions for credit losses:
Provisions for loan losses$24,704 $109,196 $95,723 $40,579 
Provisions for unfunded loan commitments154,758 157,901 255,743 255,747 
Total Private Education Loan provisions for credit losses179,462 267,097 351,466 296,326 
Total FFELP Loans provisions for credit losses— 4,368 — 4,010 
Provisions for credit losses reported in consolidated statements of income$179,462 $271,465 $351,466 $300,336 
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 September 30,
(dollars in thousands)
AllowanceUnfunded CommitmentsAllowanceUnfunded Commitments
Beginning Balance$52,541 $1,358,163 $49,479 $1,300,393 
Provision/New commitments - net(1)
154,758 4,251,598 157,901 3,934,921 
Transfer - funded loans(2)
(109,422)(2,936,392)(115,421)(2,758,529)
Ending Balance$97,877 $2,673,369 $91,959 $2,476,785 

20252024
Nine Months Ended September 30,
(dollars in thousands)
AllowanceUnfunded CommitmentsAllowanceUnfunded Commitments
Beginning Balance$84,568 $2,311,660 $112,962 $2,221,077 
Provision/New commitments - net(1)
255,743 6,755,182 255,747 6,287,149 
Transfer - funded loans(2)
(242,434)(6,393,473)(276,750)(6,031,441)
Ending Balance$97,877 $2,673,369 $91,959 $2,476,785 
(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:
September 30,December 31,
(Dollars in thousands)20252024
Loans Held for Investment, net:
Fixed-rate$18,112,352 $17,093,382 
Variable-rate4,917,647 5,141,626 
Total Private Education Loans, gross23,029,999 22,235,008 
Deferred origination costs and unamortized premium/(discount)111,172 103,070 
Allowance for credit losses(1,526,104)(1,435,920)
Loans held for investment, net$21,615,067 $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 September 30,
(dollars in thousands)
Average BalanceWeighted Average Interest RateAverage BalanceWeighted Average Interest Rate
Private Education Loans$22,263,445 10.58 %$20,497,173 10.79 %
Total portfolio$22,263,445 $20,497,173 


20252024
Nine Months Ended September 30,
(dollars in thousands)
Average BalanceWeighted Average Interest RateAverage BalanceWeighted Average Interest Rate
Private Education Loans$22,578,272 10.60 %$20,805,777 10.90 %
Total portfolio$22,578,272 $20,805,777