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Loans Receivable and Allowance for Loan Losses | 9 Months Ended
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Sep. 30, 2019
Receivables [Abstract] |
Loans Receivable and Allowance for Loan Losses | Loans Receivable and Allowance for Loan Losses Loans receivable consisted of the following:
| As of |  |  |  | As of
| September 30, 2019 |  |  |  | December 31, 2018
Federally insured student loans: |  |  |  |  |
Stafford and other | $ | 4,720,338 |  |  |  |  | 4,969,667 |
Consolidation | 15,975,499 |  |  |  |  | 17,186,229 |
Total | 20,695,837 |  |  |  |  | 22,155,896 |
Private education loans | 189,912 |  |  |  |  | 225,975 |
Consumer loans | 321,199 |  |  |  |  | 138,627 |
| 21,206,948 |  |  |  |  | 22,520,498 |
Loan discount, net of unamortized loan premiums and deferred origination costs | (36,483) |  |  |  |  | (53,572) |
Non-accretable discount | (32,607) |  |  |  |  | (29,396) |
Allowance for loan losses: |  |  |  |  |
Federally insured loans | (37,676) |  |  |  |  | (42,310) |
Private education loans | (9,882) |  |  |  |  | (10,838) |
Consumer loans | (18,859) |  |  |  |  | (7,240) |
| $ | 21,071,441 |  |  |  |  | 22,377,142 |
On May 1, 2019, the Company sold $47.7 million (par value) of consumer loans to an unrelated third party who securitized such loans. The Company recognized a $1.7 million (pre-tax) gain as part of this transaction. As partial consideration received for the consumer loans sold, the Company received an approximate 11 percent residual interest in the consumer loan securitization that is included in "investments and notes receivable" on the Company's consolidated balance sheet. Subsequent to September 30, 2019, the Company made the decision to sell an additional $179.3 million (par value) of consumer loans to an unrelated third party who securitized such loans. As of September 30, 2019, these loans were classified as held for investment and are included in the table above. As partial consideration received for the consumer loans sold, the Company received an approximate 29 percent residual interest in the consumer loan securitization. The Company will recognize a gain in the fourth quarter of 2019 of $15.5 million (pre-tax) from the sale of these loans. Activity in the Allowance for Loan Losses The provision for loan losses represents the periodic expense of maintaining an allowance sufficient to absorb losses, net of recoveries, inherent in the portfolio of loans. Activity in the allowance for loan losses is shown below.
| Balance at beginning of period |  | Provision for loan losses |  | Charge-offs |  | Recoveries |  | Loan sale and other |  | Balance at end of period
| Three months ended September 30, 2019 |  |  |  |  |  |  |  |  |  |  |
Federally insured loans | $ | 39,056 |  |  | 2,000 |  |  | (3,380) |  |  | — |  |  | — |  |  | 37,676 |
Private education loans | 10,157 |  |  | — |  |  | (459) |  |  | 184 |  |  | — |  |  | 9,882 |
Consumer loans | 13,378 |  |  | 8,000 |  |  | (2,759) |  |  | 240 |  |  | — |  |  | 18,859 |
| $ | 62,591 |  |  | 10,000 |  |  | (6,598) |  |  | 424 |  |  | — |  |  | 66,417 |
| Three months ended September 30, 2018 |  |  |  |  |  |  |  |  |  |
Federally insured loans | $ | 37,263 |  |  | 8,000 |  |  | (2,210) |  |  | — |  |  | — |  |  | 43,053 |
Private education loans | 11,664 |  |  | — |  |  | (535) |  |  | 124 |  |  | — |  |  | 11,253 |
Consumer loans | 4,788 |  |  | 2,500 |  |  | (1,403) |  |  | 26 |  |  | — |  |  | 5,911 |
| $ | 53,715 |  |  | 10,500 |  |  | (4,148) |  |  | 150 |  |  | — |  |  | 60,217 |
| Nine months ended September 30, 2019 |  |  |  |  |  |  |  |  |  |
Federally insured loans | $ | 42,310 |  |  | 6,000 |  |  | (10,634) |  |  | — |  |  | — |  |  | 37,676 |
Private education loans | 10,838 |  |  | — |  |  | (1,529) |  |  | 573 |  |  | — |  |  | 9,882 |
Consumer loans | 7,240 |  |  | 20,000 |  |  | (7,417) |  |  | 536 |  |  | (1,500) |  |  | 18,859 |
| $ | 60,388 |  |  | 26,000 |  |  | (19,580) |  |  | 1,109 |  |  | (1,500) |  |  | 66,417 |
| Nine months ended September 30, 2018 |  |  |  |  |  |  |  |  |  |
Federally insured loans | $ | 38,706 |  |  | 12,000 |  |  | (8,653) |  |  | — |  |  | 1,000 |  |  | 43,053 |
Private education loans | 12,629 |  |  | — |  |  | (1,846) |  |  | 470 |  |  | — |  |  | 11,253 |
Consumer loans | 3,255 |  |  | 6,000 |  |  | (3,376) |  |  | 32 |  |  | — |  |  | 5,911 |
| $ | 54,590 |  |  | 18,000 |  |  | (13,875) |  |  | 502 |  |  | 1,000 |  |  | 60,217 |
Loan Status and Delinquencies Delinquencies have the potential to adversely impact the Company’s earnings through increased servicing and collection costs and account charge-offs. The table below shows the Company’s loan delinquency amounts.
| As of September 30, 2019 |  |  |  | As of December 31, 2018 |  |  |  | As of September 30, 2018 |  |  |
Federally insured loans: |  |  |  |  |  |  |  |  |  |  |
Loans in-school/grace/deferment | $ | 1,243,705 |  |  |  |  | $ | 1,298,493 |  |  |  |  | $ | 1,410,902 |  |  |
Loans in forbearance | 1,391,482 |  |  |  |  | 1,430,291 |  |  |  |  | 1,487,107 |  |  |
Loans in repayment status: |  |  |  |  |  |  |  |  |  |  |
Loans current | 15,646,231 |  |  | 86.7 | % |  | 16,882,252 |  |  | 86.9 | % |  | 16,921,119 |  |  | 86.8 | %
Loans delinquent 31-60 days | 662,431 |  |  | 3.8 |  |  | 683,084 |  |  | 3.5 |  |  | 689,454 |  |  | 3.5 |
Loans delinquent 61-90 days | 402,197 |  |  | 2.2 |  |  | 427,764 |  |  | 2.2 |  |  | 412,639 |  |  | 2.1 |
Loans delinquent 91-120 days | 279,524 |  |  | 1.5 |  |  | 283,831 |  |  | 1.5 |  |  | 347,013 |  |  | 1.8 |
Loans delinquent 121-270 days | 795,230 |  |  | 4.4 |  |  | 806,692 |  |  | 4.2 |  |  | 853,224 |  |  | 4.4 |
Loans delinquent 271 days or greater | 275,037 |  |  | 1.4 |  |  | 343,489 |  |  | 1.7 |  |  | 269,285 |  |  | 1.4 |
Total loans in repayment | 18,060,650 |  |  | 100.0 | % |  | 19,427,112 |  |  | 100.0 | % |  | 19,492,734 |  |  | 100.0 | %
Total federally insured loans | $ | 20,695,837 |  |  |  |  | $ | 22,155,896 |  |  |  |  | $ | 22,390,743 |  |  |
Private education loans: |  |  |  |  |  |  |  |  |  |  |
Loans in-school/grace/deferment | $ | 3,944 |  |  |  |  | $ | 4,320 |  |  |  |  | $ | 3,550 |  |  |
Loans in forbearance | 2,242 |  |  |  |  | 1,494 |  |  |  |  | 1,577 |  |  |
Loans in repayment status: |  |  |  |  |  |  |  |  |  |  |
Loans current | 173,883 |  |  | 94.7 | % |  | 208,977 |  |  | 95.0 | % |  | 156,383 |  |  | 95.2 | %
Loans delinquent 31-60 days | 3,011 |  |  | 1.6 |  |  | 3,626 |  |  | 1.6 |  |  | 1,796 |  |  | 1.1 |
Loans delinquent 61-90 days | 1,370 |  |  | 0.7 |  |  | 1,560 |  |  | 0.7 |  |  | 1,155 |  |  | 0.7 |
Loans delinquent 91 days or greater | 5,462 |  |  | 3.0 |  |  | 5,998 |  |  | 2.7 |  |  | 5,006 |  |  | 3.0 |
Total loans in repayment | 183,726 |  |  | 100.0 | % |  | 220,161 |  |  | 100.0 | % |  | 164,340 |  |  | 100.0 | %
Total private education loans | $ | 189,912 |  |  |  |  | $ | 225,975 |  |  |  |  | $ | 169,467 |  |  |
Consumer loans: |  |  |  |  |  |  |  |  |  |  |
Loans in repayment status: |  |  |  |  |  |  |  |  |  |  |
Loans current | $ | 315,708 |  |  | 98.3 | % |  | $ | 136,130 |  |  | 98.2 | % |  | $ | 110,885 |  |  | 98.5 | %
Loans delinquent 31-60 days | 2,249 |  |  | 0.7 |  |  | 1,012 |  |  | 0.7 |  |  | 905 |  |  | 0.8 |
Loans delinquent 61-90 days | 1,617 |  |  | 0.5 |  |  | 832 |  |  | 0.6 |  |  | 355 |  |  | 0.3 |
Loans delinquent 91 days or greater | 1,625 |  |  | 0.5 |  |  | 653 |  |  | 0.5 |  |  | 402 |  |  | 0.4 |
Total loans in repayment | 321,199 |  |  | 100.0 | % |  | 138,627 |  |  | 100.0 | % |  | 112,547 |  |  | 100.0 | %
Total consumer loans | $ | 321,199 |  |  |  |  | $ | 138,627 |  |  |  |  | $ | 112,547 |  |  |

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