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Allowance for Credit Losses and Unfunded Loan Commitments (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 Amortized Cost Basis of Financing Receivables
The following tables show the amortized cost basis at the end of the respective reporting periods of the loans to borrowers experiencing financial difficulty that were modified during the period, disaggregated by class of financing receivable and type of modification. When we approve a Private Education Loan at the beginning of an academic year, we do not always disburse the full amount of the loan at the time of approval, but instead have a commitment to fund a portion of the loan at a later date (usually at the start of the second semester or subsequent trimesters). We consider borrowers to be in financial difficulty after they have exited school and have difficulty making their scheduled principal and interest payments.
Loan Modifications Made to Borrowers Experiencing Financial Difficulty
Three Months Ended September 30, 2025
(dollars in thousands)
Interest Rate ReductionCombination - Interest Rate Reduction and Term Extension
Loan Type:Amortized Cost Basis% of Total Class of Financing ReceivableAmortized Cost Basis% of Total Class of Financing Receivable
Private Education Loans$6,866 0.03 %$142,208 0.57 %
Total$6,866 0.03 %$142,208 0.57 %

Loan Modifications Made to Borrowers Experiencing Financial Difficulty
Three Months Ended September 30, 2024
(dollars in thousands)
Interest Rate ReductionCombination - Interest Rate Reduction and Term Extension
Loan Type:Amortized Cost Basis% of Total Class of Financing ReceivableAmortized Cost Basis% of Total Class of Financing Receivable
Private Education Loans$21,159 0.09 %$449,484 1.92 %
Total$21,159 0.09 %$449,484 1.92 %

Loan Modifications Made to Borrowers Experiencing Financial Difficulty
Nine Months Ended September 30, 2025
(dollars in thousands)
Interest Rate ReductionCombination - Interest Rate Reduction and Term Extension
Loan Type:Amortized Cost Basis% of Total Class of Financing ReceivableAmortized Cost Basis% of Total Class of Financing Receivable
Private Education Loans$18,272 0.07 %$379,091 1.53 %
Total$18,272 0.07 %$379,091 1.53 %
Loan Modifications Made to Borrowers Experiencing Financial Difficulty
Nine Months Ended September 30, 2024
(dollars in thousands)
Interest Rate ReductionCombination - Interest Rate Reduction and Term Extension
Loan Type:Amortized Cost Basis% of Total Class of Financing ReceivableAmortized Cost Basis% of Total Class of Financing Receivable
Private Education Loans$28,633 0.12 %$937,723 4.01 %
Total$28,633 0.12 %$937,723 4.01 %

The following tables summarize the financial effect of the modifications made to loans whose borrowers are experiencing financial difficulty:

Three Months Ended September 30,
20252024
Interest Rate ReductionCombination -
Interest Rate Reduction and Term Extension		Interest Rate ReductionCombination -
Interest Rate Reduction and Term Extension
Financial Effect:Financial Effect:Financial Effect:Financial Effect:
Reduced average contractual rate from 12.44% to 4.46%
Added a weighted average 9.33 years to the life of loans

Reduced average contractual rate from 12.41% to 4.23%
Reduced average contractual rate from 13.16% to 3.59%
Added a weighted average 9.42 years to the life of loans

Reduced average contractual rate from 12.58% to 3.51%

Nine Months Ended September 30,
20252024
Interest Rate ReductionCombination -
Interest Rate Reduction and Term Extension		Interest Rate ReductionCombination -
Interest Rate Reduction and Term Extension
Financial Effect:Financial Effect:Financial Effect:Financial Effect:
Reduced average contractual rate from 12.77% to 4.39%
Added a weighted average 9.39 years to the life of loans

Reduced average contractual rate from 12.32% to 4.08%
Reduced average contractual rate from 13.18% to 3.59%
Added a weighted average 9.21 years to the life of loans

Reduced average contractual rate from 12.69% to 3.60%
Financing Receivable, Modified, Subsequent Default The following tables do not include loans that received a permanent term extension with no interest rate reduction during the fourth quarter of 2023, which are described earlier in this Note 4.
Three Months Ended September 30,
20252024
(Dollars in thousands)Defaulted AmountPeriod-end Amortized Cost BasisDefaulted AmountPeriod-end Amortized Cost Basis
Loan Type:
Private Education Loans
Interest Rate Reduction$2,839 $2,702 $4,635 $4,541 
Combination - Interest Rate Reduction and Term Extension44,355 40,766 83,087 82,428 
Total$47,194 $43,468 $87,722 $86,969 

Nine Months Ended September 30,
20252024
(Dollars in thousands)Defaulted AmountPeriod-end Amortized Cost BasisDefaulted AmountPeriod-end Amortized Cost Basis
Loan Type:
Private Education Loans
Interest Rate Reduction$5,664 $4,615 $5,657 $5,904 
Combination - Interest Rate Reduction and Term Extension104,031 82,439 115,375 117,223 
Total$109,695 $87,054 $121,032 $123,127 
Age Analysis of Past Due Loans Delinquencies The following table depicts the performance of loans that were modified within the nine months prior to September 30, 2025, the 12 months prior to September 30, 2025, and the 12 months prior to December 31, 2024, respectively.
Nine Months Ended
September 30, 2025		Twelve Months Ended
September 30, 2025		Twelve Months Ended
December 31, 2024
(Dollars in thousands)Balance%Balance%Balance%
Payment Status (Amortized Cost Basis at September 30, 2025)(1):
Loan modifications in deferment(2)
$11,871 $16,723 $33,645 
Loan modifications in repayment:
Loans current(3)(4)
245,827 64 %321,832 68 %826,007 83 %
Loans delinquent 30-59 days(3)(4)
68,363 18 %74,084 15 %77,446 8 %
Loans delinquent 60-89 days(3)(4)
37,704 10 %41,731 9 %43,484 4 %
Loans 90 days or greater past due(3)(4)
33,598 8 %38,025 8 %54,473 5 %
Total loan modifications in repayment385,492 100 %475,672 100 %1,001,410 100 %
Total Private Education Loan modifications$397,363 $492,395 $1,035,055 
(1) Loans that were modified during the twelve months ended September 30, 2025 and subsequently charged-off during the nine months ended September 30, 2025 are excluded from the table and had an amortized cost basis of $31.1 million. Loans that were both modified and subsequently charged-off during the twelve months ended September 30, 2025 are excluded from the table and had an amortized cost basis of $34.4 million. Loans that were both modified and subsequently charged-off during the twelve months ended December 31, 2024 are excluded from the table and had an amortized cost basis of $40.4 million. Additionally, loans that received a permanent term extension with no interest rate reduction during the fourth quarter of 2023 are excluded from the table, but are discussed elsewhere in this note 4.
(2) Deferment includes customers who have returned to school or are engaged in other permitted educational activities and are not yet required to make full principal and interest payments on the loans (e.g., residency periods for medical students or a grace period for bar exam preparation). Deferment also includes loans that have entered a forbearance after the loan modification was granted.
(3) Represents loans in repayment, which include 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).
(4) The period of delinquency is based on the number of days scheduled payments are contractually past due.
The following tables provide information regarding the loan status of our Private Education Loans held for investment, by year of origination approval/first disbursement. 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 following tables, do not include loans in the “loans in forbearance” metric).

Private Education Loans Held for Investment - Delinquencies by Origination Approval Vintage
As of September 30, 2025
(dollars in thousands)
202520242023202220212020 and PriorTotal
Loans in-school/grace/deferment(1)
$1,827,104 $2,355,608 $925,764 $520,155 $271,985 $505,152 $6,405,768 
Loans in forbearance(2)
4,779 60,512 72,671 52,554 37,450 103,795 331,761 
Loans in repayment:
Loans current2,472,114 3,439,618 2,024,028 1,749,605 1,307,139 4,646,400 15,638,904 
Loans delinquent 30-59 days(3)
3,649 27,307 48,789 46,391 37,939 171,237 335,312 
Loans delinquent 60-89 days(3)
1,319 11,444 26,315 28,145 22,256 83,656 173,135 
Loans 90 days or greater past due(3)
463 6,580 22,509 22,575 17,086 75,906 145,119 
Total Private Education Loans in repayment2,477,545 3,484,949 2,121,641 1,846,716 1,384,420 4,977,199 16,292,470 
Total Private Education Loans, gross4,309,428 5,901,069 3,120,076 2,419,425 1,693,855 5,586,146 23,029,999 
Private Education Loans deferred origination costs and unamortized premium/(discount)37,660 35,602 15,123 7,812 4,749 10,226 111,172 
Total Private Education Loans4,347,088 5,936,671 3,135,199 2,427,237 1,698,604 5,596,372 23,141,171 
Private Education Loans allowance for losses(217,892)(325,227)(242,031)(199,827)(134,510)(406,617)(1,526,104)
Private Education Loans, net$4,129,196 $5,611,444 $2,893,168 $2,227,410 $1,564,094 $5,189,755 $21,615,067 
Percentage of Private Education Loans in repayment57.5 %59.1 %68.0 %76.3 %81.7 %89.1 %70.7 %
Delinquent Private Education Loans in repayment as a percentage of Private Education Loans in repayment0.2 %1.3 %4.6 %5.3 %5.6 %6.6 %4.0 %
Loans in forbearance as a percentage of loans in repayment and forbearance0.2 %1.7 %3.3 %2.8 %2.6 %2.0 %2.0 %
(1)Deferment includes customers who have returned to school or are engaged in other permitted educational activities and are not yet required to make payments on the loans (e.g., residency periods for medical students or a grace period for bar exam preparation).
(2)Loans for customers who have requested extension of grace period generally during employment transition or who have temporarily ceased making full payments due to hardship or other factors (other than delinquent loans in disaster forbearance), consistent with established loan program servicing policies and procedures.
(3)The period of delinquency is based on the number of days scheduled payments are contractually past due.
Private Education Loans Held for Investment - Delinquencies by Origination Vintage
As of December 31, 2024
(dollars in thousands)		202420232022202120202019 and PriorTotal
Loans in-school/grace/deferment(1)
$2,164,479 $1,817,705 $748,782 $355,248 $184,377 $452,236 $5,722,827 
Loans in forbearance(2)
19,984 124,728 87,961 52,686 31,575 88,496 405,430 
Loans in repayment:
Loans current2,820,940 3,312,916 2,259,455 1,590,812 1,107,189 4,422,021 15,513,333 
Loans delinquent 30-59 days(3)
13,533 36,441 45,543 35,245 27,302 152,684 310,748 
Loans delinquent 60-89 days(3)
3,973 15,239 23,359 18,365 10,921 68,878 140,735 
Loans 90 days or greater past due(3)
1,683 14,481 20,147 17,080 12,632 75,912 141,935 
Total Private Education Loans in repayment2,840,129 3,379,077 2,348,504 1,661,502 1,158,044 4,719,495 16,106,751 
Total Private Education Loans, gross5,024,592 5,321,510 3,185,247 2,069,436 1,373,996 5,260,227 22,235,008 
Private Education Loans deferred origination costs and unamortized premium/(discount)47,659 25,599 10,788 6,142 4,057 8,825 103,070 
Total Private Education Loans5,072,251 5,347,109 3,196,035 2,075,578 1,378,053 5,269,052 22,338,078 
Private Education Loans allowance for losses(258,235)(326,207)(234,532)(150,324)(90,600)(376,022)(1,435,920)
Private Education Loans, net$4,814,016 $5,020,902 $2,961,503 $1,925,254 $1,287,453 $4,893,030 $20,902,158 
Percentage of Private Education Loans in repayment56.5 %63.5 %73.7 %80.3 %84.3 %89.7 %72.4 %
Delinquent Private Education Loans in repayment as a percentage of Private Education Loans in repayment0.7 %2.0 %3.8 %4.3 %4.4 %6.3 %3.7 %
Loans in forbearance as a percentage of loans in repayment and forbearance0.7 %3.6 %3.6 %3.1 %2.7 %1.8 %2.5 %

(1)Deferment includes customers who have returned to school or are engaged in other permitted educational activities and are not yet required to make payments on the loans (e.g., residency periods for medical students or a grace period for bar exam preparation).
(2)Loans for customers who have requested extension of grace period generally during employment transition or who have temporarily ceased making full payments due to hardship or other factors (other than delinquent loans in disaster forbearance), consistent with established loan program servicing policies and procedures.
(3)The period of delinquency is based on the number of days scheduled payments are contractually past due.
Schedule of Private Education Loan Portfolio Stratified by Key Credit Quality Indicators The following tables highlight the gross principal balance of our Private Education Loan portfolio (held for investment), by year of origination approval/first disbursement, stratified by key credit quality indicators.
As of September 30, 2025
(dollars in thousands)
Private Education Loans Held for Investment - Credit Quality Indicators
Year of Origination Approval
2025(1)
2024(1)
2023(1)
2022(1)
2021(1)
2020 and Prior(1)
Total(1)
% of Balance
Cosigners:
With cosigner$4,001,023 $5,382,558 $2,711,357 $2,069,418 $1,433,282 $4,870,814 $20,468,452 89 %
Without cosigner308,405 518,511 408,719 350,007 260,573 715,332 2,561,547 11 
Total$4,309,428 $5,901,069 $3,120,076 $2,419,425 $1,693,855 $5,586,146 $23,029,999 100 %
FICO at Origination Approval(2):
Less than 670$264,423 $344,011 $242,250 $205,864 $132,056 $488,605 $1,677,209 7 %
670-699526,201 708,826 447,327 345,558 236,629 931,168 3,195,709 14 
700-7491,249,988 1,784,529 966,814 759,111 542,008 1,888,189 7,190,639 31 
Greater than or equal to 7502,268,816 3,063,703 1,463,685 1,108,892 783,162 2,278,184 10,966,442 48 
Total$4,309,428 $5,901,069 $3,120,076 $2,419,425 $1,693,855 $5,586,146 $23,029,999 100 %
FICO Refreshed(2)(3):
Less than 670$379,852 $586,745 $487,553 $418,343 $302,527 $1,006,868 $3,181,888 14 %
670-699545,190 736,125 400,707 293,152 190,845 596,397 2,762,416 12 
700-7491,228,178 1,663,421 832,914 629,965 429,317 1,399,953 6,183,748 27 
Greater than or equal to 7502,156,208 2,914,778 1,398,902 1,077,965 771,166 2,582,928 10,901,947 47 
Total$4,309,428 $5,901,069 $3,120,076 $2,419,425 $1,693,855 $5,586,146 $23,029,999 100 %
Seasoning(4):
1-12 payments$2,482,324 $2,429,263 $428,769 $303,105 $180,906 $308,627 $6,132,994 27 %
13-24 payments— 1,116,198 1,155,528 217,601 140,598 333,972 2,963,897 13 
25-36 payments— — 610,015 941,554 139,939 406,873 2,098,381 9 
37-48 payments— — — 437,010 682,053 471,829 1,590,892 7 
More than 48 payments— — — — 278,374 3,559,693 3,838,067 17 
Not yet in repayment1,827,104 2,355,608 925,764 520,155 271,985 505,152 6,405,768 27 
Total$4,309,428 $5,901,069 $3,120,076 $2,419,425 $1,693,855 $5,586,146 $23,029,999 100 %
2025 Current period(5) gross charge-offs
$(658)$(12,418)$(50,812)$(49,340)$(36,173)$(135,440)$(284,841)
2025 Current period(5) recoveries
56 891 4,594 5,289 4,312 21,726 36,868 
2025 Current period(5) net charge-offs
$(602)$(11,527)$(46,218)$(44,051)$(31,861)$(113,714)$(247,973)
Total accrued interest by origination approval vintage$101,589 $485,987 $379,773 $280,428 $168,882 $276,609 $1,693,268 
        
(1)Balance represents gross Private Education Loans held for investment.
(2)Represents the higher credit score of the cosigner or the borrower.
(3)Represents the FICO score updated as of the third-quarter 2025.
(4)Number of months in active repayment (whether interest only payment, fixed payment, or full principal and interest payment status) for which a scheduled payment was due.
(5)Current period refers to period from January 1, 2025 through September 30, 2025.
As of December 31, 2024
(dollars in thousands)		Private Education Loans Held for Investment - Credit Quality Indicators
Year of Origination Approval
2024(1)
2023(1)
2022(1)
2021(1)
2020(1)
2019 and Prior(1)
Total(1)
% of Balance
Cosigners:
With cosigner$4,519,952 $4,707,685 $2,741,871 $1,759,261 $1,151,751 $4,642,019 $19,522,539 88 %
Without cosigner504,640 613,825 443,376 310,175 222,245 618,208 2,712,469 12 
Total$5,024,592 $5,321,510 $3,185,247 $2,069,436 $1,373,996 $5,260,227 $22,235,008 100 %
FICO at Origination Approval(2):
Less than 670$293,025 $394,962 $261,589 $155,661 $94,355 $475,186 $1,674,778 8 %
670-699615,617 753,548 449,214 285,181 197,205 898,535 3,199,300 14 
700-7491,525,547 1,641,641 998,834 660,373 451,695 1,782,121 7,060,211 32 
Greater than or equal to 7502,590,403 2,531,359 1,475,610 968,221 630,741 2,104,385 10,300,719 46 
Total$5,024,592 $5,321,510 $3,185,247 $2,069,436 $1,373,996 $5,260,227 $22,235,008 100 %
FICO Refreshed(2)(3):
Less than 670$453,705 $666,049 $467,562 $301,367 $194,124 $831,053 $2,913,860 13 %
670-699633,749 710,546 409,808 248,325 138,730 578,639 2,719,797 12 
700-7491,485,771 1,512,643 879,450 563,941 362,715 1,398,737 6,203,257 28 
Greater than or equal to 7502,451,367 2,432,272 1,428,427 955,803 678,427 2,451,798 10,398,094 47 
Total$5,024,592 $5,321,510 $3,185,247 $2,069,436 $1,373,996 $5,260,227 $22,235,008 100 %
Seasoning(4):
1-12 payments$2,860,113 $774,471 $499,812 $280,154 $159,762 $324,506 $4,898,818 22 %
13-24 payments—2,729,334372,496191,989122,938340,5563,757,31317 
25-36 payments——1,564,157254,068110,952429,1272,358,30411 
37-48 payments———987,977170,051451,4941,609,5227 
More than 48 payments————625,9163,262,3083,888,22417 
Not yet in repayment2,164,4791,817,705748,782355,248184,377452,2365,722,82726 
Total$5,024,592 $5,321,510 $3,185,247 $2,069,436 $1,373,996 $5,260,227 $22,235,008 100 %
2024 Current period(5) gross charge-offs
$(1,826)$(29,094)$(68,454)$(53,697)$(37,318)$(186,451)$(376,840)
2024 Current period(5) recoveries
117 2,191 6,487 5,771 3,840 26,350 44,756 
2024 Current period(5) net charge-offs
$(1,709)$(26,903)$(61,967)$(47,926)$(33,478)$(160,101)$(332,084)
Total accrued interest by origination approval vintage$195,291 $484,531 $325,962 $197,504 $106,565 $239,562 $1,549,415 
(1)Balance represents gross Private Education Loans held for investment.
(2)Represents the higher credit score of the cosigner or the borrower.
(3)Represents the FICO score updated as of the fourth-quarter 2024.
(4)Number of months in active repayment (whether interest only payment, fixed payment, or full principal and interest payment status) for which a scheduled payment was due.
(5)Current period refers to January 1, 2024 through December 31, 2024.
Schedule of Accrued Interest Receivable
The following table provides information regarding accrued interest receivable on our Private Education Loans. The table also discloses the amount of accrued interest on loans 90 days or greater past due as compared to our allowance for uncollectible interest. The majority of the total accrued interest receivable represents accrued interest on deferred loans where no payments are due while the borrower is in school and fixed-pay loans where the borrower makes a $25 monthly payment that is smaller than the interest accruing on the loan in that month. The accrued interest on these loans will be capitalized to the balance of the loans when the borrower exits the grace period after separation from school. The allowance for credit losses considers the collectibility of both principal and accrued interest. The allowance for uncollectible interest estimates the additional uncollectible interest that is not captured in the allowance for credit losses.

 Private Education Loans
Accrued Interest Receivable
(Dollars in thousands)Total Interest Receivable90 Days or Greater Past Due
Allowance for Uncollectible Interest(1)
September 30, 2025$1,693,268 $6,378 $13,187 
December 31, 2024$1,549,415 $6,420 $12,366 
(1)At September 30, 2025 and December 31, 2024, $155 million and $164 million, respectively, of accrued interest receivable was not expected to be capitalized and $1.5 billion and $1.4 billion of accrued interest receivable was expected to be capitalized.