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Borrowings (Tables)

9 Months Ended

Sep. 30, 2025

Debt Disclosure [Abstract]

Schedule of Debt

The following table summarizes our borrowings at September 30, 2025 and December 31, 2024.

						September 30, 2025																		December 31, 2024
(Dollars in thousands)						Short-Term						Long-Term						Total						Short-Term						Long-Term						Total
Unsecured borrowings:
Unsecured debt (fixed-rate)						$	—					$	990,956					$	990,956					$	—					$	995,420					$	995,420
Total unsecured borrowings						—						990,956						990,956						—						995,420						995,420
Secured borrowings:
Private Education Loan term securitizations:
Fixed-rate						—						4,404,267						4,404,267						—						4,617,743						4,617,743
Variable-rate						—						743,772						743,772						—						827,182						827,182
Total Private Education Loan term securitizations						—						5,148,039						5,148,039						—						5,444,925						5,444,925
Secured Borrowing Facility						—						700,000						700,000						—						—						—
Total secured borrowings						—						5,848,039						5,848,039						—						5,444,925						5,444,925
Total						$	—					$	6,838,995					$	6,838,995					$	—					$	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 nine months ended September 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 September 30, 2025, related to 2024 term ABS:												$	2,158,665
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 September 30, 2025, related to 2025 term ABS:												$	561,734

(1) Represents principal and capitalized interest.

(2) Represents SOFR equivalent cost of funds for floating and fixed-rate bonds, excluding issuance costs.

The following summarizes our Private Education Loan ABS transactions closed in the nine months ended September 30, 2025 where the respective VIEs were not consolidated.

SMB Private Education Loan Trust			Date Closed			Loans Transferred to the Trust by Third-Party Seller			Date Third-Party Seller Previously Purchased Loans from the Bank			Additional Loans the Bank Transferred to the Trust(1)			Gain on Sale for Additional Loans Transferred by Bank
(Dollars in thousands)
2025-B ABS transaction(2)			July 17, 2025			$	496,749		February 6, 2025			$	26,223		$	2,315
2025-C ABS transaction(2)			August 21, 2025			$	1,807,961		July 30, 2025			$	95,101		$	5,353

(1)The transfer of such additional loans qualified for sale treatment and removed these loans from our balance sheet on the settlement date of the transaction.

(2)Sallie Mae Bank sponsored the transaction and is the servicer and administrator.

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 September 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						$	—					$	5,148,039					$	5,148,039					$	6,483,030					$	163,186					$	450,322					$	7,096,538
Secured Borrowing Facility						—						700,000						700,000						834,497						29,955						82,637						947,089
Total						$	—					$	5,848,039					$	5,848,039					$	7,317,527					$	193,141					$	532,959					$	8,043,627

As of December 31, 2024 (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						$	—					$	5,444,925					$	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.

						September 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						$	643,446					$	51,963					$	695,409					$	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.

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