Borrowings (Tables)

6 Months Ended

Jun. 30, 2016

The following table summarizes our borrowings.


	June 30, 2016							December 31, 2015
(Dollars in millions)	Short Term			Long Term		Total		Short Term			Long Term			Total
Unsecured borrowings:
Senior unsecured debt	$	1,077		$	12,801	$	13,878	$	1,120		$	13,976		$	15,096

Total unsecured borrowings		1,077			12,801		13,878		1,120			13,976			15,096
Secured borrowings:
FFELP Loan securitizations		—			75,698		75,698		—			77,764			77,764
Private Education Loan securitizations⁽¹⁾		—			16,168		16,168		—			16,900			16,900
FFELP Loan — other facilities		—			14,609		14,609		—			16,276			16,276
Private Education Loan — other facilities		361			—		361		710			—			710
Other⁽²⁾		955			—		955		760			—			760

Total secured borrowings		1,316			106,475		107,791		1,470			110,940			112,410

Total before hedge accounting adjustments		2,393			119,276		121,669		2,590			124,916			127,506
Hedge accounting adjustments		(23	)		361		338		(20	)		(83	)		(103	)

Total	$	2,370		$	119,637	$	122,007	$	2,570		$	124,833		$	127,403

⁽¹⁾	Includes $1.0 billion and $546 million of long-term debt related to the Private Education Loan asset-backed securitization repurchase facility (“Repurchase Facility”) as of June 30, 2016 and December 31, 2015, respectively.

⁽²⁾	“Other” includes the obligation to return cash collateral held related to derivative exposures.

Financing VIEs

We consolidated the following financing VIEs as of June 30, 2016 and December 31, 2015, as we are the primary beneficiary. As a result, these VIEs are accounted for as secured borrowings.


	June 30, 2016
	Debt Outstanding								Carrying Amount of Assets Securing Debt Outstanding
(Dollars in millions)	Short Term		Long Term			Total			Loans		Cash		Other Assets			Total
Secured Borrowings — VIEs:
FFELP Loan securitizations	$	—	$	75,698		$	75,698		$	76,330	$	2,649	$	754		$	79,733
Private Education Loan securitizations⁽¹⁾		—		16,168			16,168			21,213		477		284			21,974
FFELP Loan — other facilities		—		11,009			11,009			11,283		285		171			11,739
Private Education Loan — other facilities		361		—			361			534		8		16			558

Total before hedge accounting adjustments		361		102,875			103,236			109,360		3,419		1,225			114,004
Hedge accounting adjustments		—		(772	)		(772	)		—		—		(793	)		(793	)

Total	$	361	$	102,103		$	102,464		$	109,360	$	3,419	$	432		$	113,211


	December 31, 2015
	Debt Outstanding								Carrying Amount of Assets Securing Debt Outstanding
(Dollars in millions)	Short Term		Long Term			Total			Loans		Cash		Other Assets			Total
Secured Borrowings — VIEs:
FFELP Loan securitizations	$	—	$	77,764		$	77,764		$	78,358	$	2,760	$	682		$	81,800
Private Education Loan securitizations⁽¹⁾		—		16,900			16,900			22,014		452		323			22,789
FFELP Loan — other facilities		—		12,676			12,676			13,158		324		168			13,650
Private Education Loan — other facilities		710		—			710			1,110		17		31			1,158

Total before hedge accounting adjustments		710		107,340			108,050			114,640		3,553		1,204			119,397
Hedge accounting adjustments		—		(830	)		(830	)		—		—		(911	)		(911	)

Total	$	710	$	106,510		$	107,220		$	114,640	$	3,553	$	293		$	118,486

⁽¹⁾	Includes $1.0 billion and $546 million of long-term debt related to the Repurchase Facility as of June 30, 2016 and December 31, 2015, respectively. Includes $69 million and $41 million of restricted cash related to the Repurchase Facility as of June 30, 2016 and December 31, 2015, respectively.

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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