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Allowance for Loan Losses | 6 Months Ended
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Jun. 30, 2019
Receivables [Abstract] |
Allowance for Loan Losses | 2. Allowance for Loan Losses Our provisions for loan losses represent the periodic expense of maintaining an allowance sufficient to absorb incurred probable losses, net of expected recoveries, in the held-for-investment loan portfolios. The evaluation of the provisions for loan losses is inherently subjective, as it requires material estimates that may be susceptible to significant changes. We segregate our Private Education Loan portfolio into two classes of loans in monitoring and assessing credit risk — Troubled Debt Restructurings (“TDRs”) and Non-TDRs. We believe that the allowance for loan losses is appropriate to cover probable losses incurred in the loan portfolios. 2. Allowance for Loan Losses (Continued) Allowance for Loan Losses Metrics
|  | Three Months Ended June 30, 2019 |
(Dollars in millions) |  | FFELP Loans |  |  | Private Education Loans |  |  | Other Loans |  |  | Total |
Allowance for Loan Losses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 67 |  |  | $ | 1,178 |  |  | $ | 7 |  |  | $ | 1,252 |
Total provision |  |  | 8 |  |  |  | 60 |  |  |  | — |  |  |  | 68 |
Charge-offs(1) |  |  | (7 | ) |  |  | (87 | ) |  |  | (1 | ) |  |  | (95 | )
Reclassification of interest reserve(2) |  |  | — |  |  |  | 1 |  |  |  | — |  |  |  | 1 |
Loan sales |  |  | — |  |  |  | (1 | ) |  |  | (7 | ) |  |  | (8 | )
Ending balance |  | $ | 67 |  |  | $ | 1,151 |  |  | $ | — |  |  | $ | 1,218 |
Allowance Ending Balance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment — TDR |  | $ | — |  |  | $ | 1,040 |  |  | $ | — |  |  | $ | 1,040 |
Collectively evaluated for impairment: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Excluding Purchased Non-Credit Impaired Loans acquired at a discount and Purchased Credit Impaired Loans |  |  | 67 |  |  |  | 111 |  |  |  | — |  |  |  | 178 |
Purchased Non-Credit Impaired Loans acquired at a discount(3) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Purchased Credit Impaired Loans(3) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Ending total allowance |  | $ | 67 |  |  | $ | 1,151 |  |  | $ | — |  |  | $ | 1,218 |
Loans Ending Balance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment — TDR |  | $ | — |  |  | $ | 10,000 |  |  | $ | — |  |  | $ | 10,000 |
Collectively evaluated for impairment: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Excluding Purchased Non-Credit Impaired Loans acquired at a discount and Purchased Credit Impaired Loans |  |  | 64,783 |  |  |  | 11,215 |  |  |  | 4 |  |  |  | 76,002 |
Purchased Non-Credit Impaired Loans acquired at a discount(3) |  |  | 2,671 |  |  |  | 1,977 |  |  |  | — |  |  |  | 4,648 |
Purchased Credit Impaired Loans(3) |  |  | — |  |  |  | 214 |  |  |  | — |  |  |  | 214 |
Ending total loans(4) |  | $ | 67,454 |  |  | $ | 23,406 |  |  | $ | 4 |  |  | $ | 90,864 |
Charge-offs as a percentage of average loans in repayment |  |  | .05 | % |  |  | 1.59 | % |  |  | 10.19 | % |  |  |  |
Allowance coverage of charge-offs |  |  | 2.2 |  |  |  | 3.3 |  |  |  | — |  |  |  |  |
Allowance as a percentage of the ending total loan balance |  |  | .10 | % |  |  | 4.92 | % |  |  | — | % |  |  |  |
Allowance as a percentage of the ending loans in repayment |  |  | .12 | % |  |  | 5.37 | % |  |  | — | % |  |  |  |
Ending total loans(4) |  | $ | 67,454 |  |  | $ | 23,406 |  |  | $ | 4 |  |  |  |  |
Average loans in repayment |  | $ | 56,657 |  |  | $ | 21,854 |  |  | $ | 28 |  |  |  |  |
Ending loans in repayment |  | $ | 55,684 |  |  | $ | 21,439 |  |  | $ | 4 |  |  |  |  |
(1) | Charge-offs are reported net of expected recoveries. For Private Education Loans, the expected recovery amount is transferred to the receivable for partially charged-off loan balance. Charge-offs include charge-offs against the receivable for partially charged-off loans which represents the difference between what was expected to be recovered and any shortfalls in what was actually recovered in the period. See “Receivable for Partially Charged-Off Private Education Loans” for further discussion.
(2) | Represents the additional allowance related to the amount of uncollectible interest reserved within interest income that is transferred in the period to the allowance for loan losses when interest is capitalized to a loan’s principal balance.
(3) | The Purchased Credit Impaired Loans’ losses are not provided for by the allowance for loan losses in the above table as these loans are separately reserved for, if needed. No allowance for loan losses has been established for these loans as of June 30, 2019. The losses of the Purchased Non-Credit Impaired Loans acquired at a discount are not provided for by the allowance for loan losses in the above table as the remaining purchased discount associated with the FFELP and Private Education Loans of $34 million and $298 million, respectively, as of June 30, 2019 is greater than the incurred losses and as a result no allowance for loan losses has been established for these loans as of June 30, 2019.
(4) | Ending total loans for Private Education Loans includes the receivable for partially charged-off loans.
2. Allowance for Loan Losses (Continued)
|  | Three Months Ended June 30, 2018 |
(Dollars in millions) |  | FFELP Loans |  |  | Private Education Loans |  |  | Other Loans |  |  | Total |
Allowance for Loan Losses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 59 |  |  | $ | 1,298 |  |  | $ | 10 |  |  | $ | 1,367 |
Total provision |  |  | 40 |  |  |  | 72 |  |  |  | — |  |  |  | 112 |
Charge-offs(1) |  |  | (17 | ) |  |  | (75 | ) |  |  | — |  |  |  | (92 | )
Reclassification of interest reserve(2) |  |  | — |  |  |  | 2 |  |  |  | — |  |  |  | 2 |
Ending balance |  | $ | 82 |  |  | $ | 1,297 |  |  | $ | 10 |  |  | $ | 1,389 |
Allowance Ending Balance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment — TDR |  | $ | — |  |  | $ | 1,142 |  |  | $ | 9 |  |  | $ | 1,151 |
Collectively evaluated for impairment: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Excluding Purchased Non-Credit Impaired Loans acquired at a discount and Purchased Credit Impaired Loans |  |  | 82 |  |  |  | 155 |  |  |  | 1 |  |  |  | 238 |
Purchased Non-Credit Impaired Loans acquired at a discount(3) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Purchased Credit Impaired Loans(3) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Ending total allowance |  | $ | 82 |  |  | $ | 1,297 |  |  | $ | 10 |  |  | $ | 1,389 |
Loans Ending Balance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment — TDR |  | $ | — |  |  | $ | 10,679 |  |  | $ | 28 |  |  | $ | 10,707 |
Collectively evaluated for impairment: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Excluding Purchased Non-Credit Impaired Loans acquired at a discount and Purchased Credit Impaired Loans |  |  | 73,018 |  |  |  | 11,411 |  |  |  | 51 |  |  |  | 84,480 |
Purchased Non-Credit Impaired Loans acquired at a discount(3) |  |  | 3,034 |  |  |  | 2,386 |  |  |  | — |  |  |  | 5,420 |
Purchased Credit Impaired Loans(3) |  |  | — |  |  |  | 236 |  |  |  | — |  |  |  | 236 |
Ending total loans(4) |  | $ | 76,052 |  |  | $ | 24,712 |  |  | $ | 79 |  |  | $ | 100,843 |
Charge-offs as a percentage of average loans in repayment |  |  | .11 | % |  |  | 1.34 | % |  |  | 2.63 | % |  |  |  |
Allowance coverage of charge-offs |  |  | 1.2 |  |  |  | 4.3 |  |  |  | 5.1 |  |  |  |  |
Allowance as a percentage of the ending total loan balance |  |  | .11 | % |  |  | 5.25 | % |  |  | 12.54 | % |  |  |  |
Allowance as a percentage of the ending loans in repayment |  |  | .13 | % |  |  | 5.85 | % |  |  | 12.54 | % |  |  |  |
Ending total loans(4) |  | $ | 76,052 |  |  | $ | 24,712 |  |  | $ | 79 |  |  |  |  |
Average loans in repayment |  | $ | 64,238 |  |  | $ | 22,289 |  |  | $ | 73 |  |  |  |  |
Ending loans in repayment |  | $ | 62,952 |  |  | $ | 22,174 |  |  | $ | 79 |  |  |  |  |
(1) | Charge-offs are reported net of expected recoveries. For Private Education Loans, the expected recovery amount is transferred to the receivable for partially charged-off loan balance. Charge-offs include charge-offs against the receivable for partially charged-off loans which represents the difference between what was expected to be recovered and any shortfalls in what was actually recovered in the period. See “Receivable for Partially Charged-Off Private Education Loans” for further discussion.
(2) | Represents the additional allowance related to the amount of uncollectible interest reserved within interest income that is transferred in the period to the allowance for loan losses when interest is capitalized to a loan’s principal balance.
(3) | The Purchased Credit Impaired Loans’ losses are not provided for by the allowance for loan losses in the above table as these loans are separately reserved for, if needed. No allowance for loan losses has been established for these loans as of June 30, 2018. The losses of the Purchased Non-Credit Impaired Loans acquired at a discount are not provided for by the allowance for loan losses in the above table as the remaining purchased discount associated with the FFELP and Private Education Loans of $40 million and $362 million, respectively, as of June 30, 2018 is greater than the incurred losses and as a result no allowance for loan losses has been established for these loans as of June 30, 2018.
(4) | Ending total loans for Private Education Loans includes the receivable for partially charged-off loans.
2. Allowance for Loan Losses (Continued)
|  | Six Months Ended June 30, 2019 |
(Dollars in millions) |  | FFELP Loans |  |  | Private Education Loans |  |  | Other Loans |  |  | Total |
Allowance for Loan Losses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 76 |  |  | $ | 1,201 |  |  | $ | 9 |  |  | $ | 1,286 |
Total provision |  |  | 15 |  |  |  | 128 |  |  |  | 1 |  |  |  | 144 |
Charge-offs(1) |  |  | (24 | ) |  |  | (181 | ) |  |  | (2 | ) |  |  | (207 | )
Reclassification of interest reserve(2) |  |  | — |  |  |  | 4 |  |  |  | — |  |  |  | 4 |
Loan sales |  |  | — |  |  |  | (1 | ) |  |  | (8 | ) |  |  | (9 | )
Ending balance |  | $ | 67 |  |  | $ | 1,151 |  |  | $ | — |  |  | $ | 1,218 |
Allowance Ending Balance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment — TDR |  | $ | — |  |  | $ | 1,040 |  |  | $ | — |  |  | $ | 1,040 |
Collectively evaluated for impairment: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Excluding Purchased Non-Credit Impaired Loans acquired at a discount and Purchased Credit Impaired Loans |  |  | 67 |  |  |  | 111 |  |  |  | — |  |  |  | 178 |
Purchased Non-Credit Impaired Loans acquired at a discount(3) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Purchased Credit Impaired Loans(3) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Ending total allowance |  | $ | 67 |  |  | $ | 1,151 |  |  | $ | — |  |  | $ | 1,218 |
Loans Ending Balance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment — TDR |  | $ | — |  |  | $ | 10,000 |  |  | $ | — |  |  | $ | 10,000 |
Collectively evaluated for impairment: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Excluding Purchased Non-Credit Impaired Loans acquired at a discount and Purchased Credit Impaired Loans |  |  | 64,783 |  |  |  | 11,215 |  |  |  | 4 |  |  |  | 76,002 |
Purchased Non-Credit Impaired Loans acquired at a discount(3) |  |  | 2,671 |  |  |  | 1,977 |  |  |  | — |  |  |  | 4,648 |
Purchased Credit Impaired Loans(3) |  |  | — |  |  |  | 214 |  |  |  | — |  |  |  | 214 |
Ending total loans(4) |  | $ | 67,454 |  |  | $ | 23,406 |  |  | $ | 4 |  |  | $ | 90,864 |
Charge-offs as a percentage of average loans in repayment |  |  | 0.08 | % |  |  | 1.66 | % |  |  | 7.78 | % |  |  |  |
Allowance coverage of charge-offs |  |  | 1.4 |  |  |  | 3.2 |  |  |  | — |  |  |  |  |
Allowance as a percentage of the ending total loan balance |  |  | .10 | % |  |  | 4.92 | % |  |  | — | % |  |  |  |
Allowance as a percentage of the ending loans in repayment |  |  | .12 | % |  |  | 5.37 | % |  |  | — | % |  |  |  |
Ending total loans(4) |  | $ | 67,454 |  |  | $ | 23,406 |  |  | $ | 4 |  |  |  |  |
Average loans in repayment |  | $ | 57,435 |  |  | $ | 21,957 |  |  | $ | 52 |  |  |  |  |
Ending loans in repayment |  | $ | 55,684 |  |  | $ | 21,439 |  |  | $ | 4 |  |  |  |  |
(1) | Charge-offs are reported net of expected recoveries. For Private Education Loans, the expected recovery amount is transferred to the receivable for partially charged-off loan balance. Charge-offs include charge-offs against the receivable for partially charged-off loans which represents the difference between what was expected to be recovered and any shortfalls in what was actually recovered in the period. See “Receivable for Partially Charged-Off Private Education Loans” for further discussion.
(2) | Represents the additional allowance related to the amount of uncollectible interest reserved within interest income that is transferred in the period to the allowance for loan losses when interest is capitalized to a loan’s principal balance.
(3) | The Purchased Credit Impaired Loans’ losses are not provided for by the allowance for loan losses in the above table as these loans are separately reserved for, if needed. No allowance for loan losses has been established for these loans as of June 30, 2019. The losses of the Purchased Non-Credit Impaired Loans acquired at a discount are not provided for by the allowance for loan losses in the above table as the remaining purchased discount associated with the FFELP and Private Education Loans of $34 million and $298 million, respectively, as of June 30, 2019 is greater than the incurred losses and as a result no allowance for loan losses has been established for these loans as of June 30, 2019.
(4) | Ending total loans for Private Education Loans includes the receivable for partially charged-off loans.
2. Allowance for Loan Losses (Continued)
|  | Six Months Ended June 30, 2018 |
(Dollars in millions) |  | FFELP Loans |  |  | Private Education Loans |  |  | Other Loans |  |  | Total |
Allowance for Loan Losses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 60 |  |  | $ | 1,297 |  |  | $ | 10 |  |  | $ | 1,367 |
Total provision |  |  | 50 |  |  |  | 149 |  |  |  | — |  |  |  | 199 |
Charge-offs(1) |  |  | (28 | ) |  |  | (153 | ) |  |  | — |  |  |  | (181 | )
Reclassification of interest reserve(2) |  |  | — |  |  |  | 4 |  |  |  | — |  |  |  | 4 |
Ending balance |  | $ | 82 |  |  | $ | 1,297 |  |  | $ | 10 |  |  | $ | 1,389 |
Allowance Ending Balance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment - TDR |  | $ | — |  |  | $ | 1,142 |  |  | $ | 9 |  |  | $ | 1,151 |
Collectively evaluated for impairment: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Excluding Purchased Non-Credit Impaired Loans acquired at a discount and Purchased Credit Impaired Loans |  |  | 82 |  |  |  | 155 |  |  |  | 1 |  |  |  | 238 |
Purchased Non-Credit Impaired Loans acquired at a discount(3) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Purchased Credit Impaired Loans(3) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Ending total allowance |  | $ | 82 |  |  | $ | 1,297 |  |  | $ | 10 |  |  | $ | 1,389 |
Loans Ending Balance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment - TDR |  | $ | — |  |  | $ | 10,679 |  |  | $ | 28 |  |  | $ | 10,707 |
Collectively evaluated for impairment: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Excluding Purchased Non-Credit Impaired Loans acquired at a discount and Purchased Credit Impaired Loans |  |  | 73,018 |  |  |  | 11,411 |  |  |  | 51 |  |  |  | 84,480 |
Purchased Non-Credit Impaired Loans acquired at a discount(3) |  |  | 3,034 |  |  |  | 2,386 |  |  |  | — |  |  |  | 5,420 |
Purchased Credit Impaired Loans(3) |  |  | — |  |  |  | 236 |  |  |  | — |  |  |  | 236 |
Ending total loans(4) |  | $ | 76,052 |  |  | $ | 24,712 |  |  | $ | 79 |  |  | $ | 100,843 |
Charge-offs as a percentage of average loans in repayment |  |  | .09 | % |  |  | 1.37 | % |  |  | 1.13 | % |  |  |  |
Allowance coverage of charge-offs |  |  | 1.5 |  |  |  | 4.2 |  |  |  | 11.9 |  |  |  |  |
Allowance as a percentage of the ending total loan balance |  |  | .11 | % |  |  | 5.25 | % |  |  | 12.21 | % |  |  |  |
Allowance as a percentage of the ending loans in repayment |  |  | .13 | % |  |  | 5.85 | % |  |  | 12.21 | % |  |  |  |
Ending total loans(4) |  | $ | 76,052 |  |  | $ | 24,712 |  |  | $ | 79 |  |  |  |  |
Average loans in repayment |  | $ | 64,940 |  |  | $ | 22,474 |  |  | $ | 72 |  |  |  |  |
Ending loans in repayment |  | $ | 62,952 |  |  | $ | 22,174 |  |  | $ | 79 |  |  |  |  |
(1) | Charge-offs are reported net of expected recoveries. For Private Education Loans, the expected recovery amount is transferred to the receivable for partially charged-off loan balance. Charge-offs include charge-offs against the receivable for partially charged-off loans which represents the difference between what was expected to be recovered and any shortfalls in what was actually recovered in the period. See “Receivable for Partially Charged-Off Private Education Loans” for further discussion.
(2) | Represents the additional allowance related to the amount of uncollectible interest reserved within interest income that is transferred in the period to the allowance for loan losses when interest is capitalized to a loan’s principal balance.
(3) | The Purchased Credit Impaired Loans’ losses are not provided for by the allowance for loan losses in the above table as these loans are separately reserved for, if needed. No allowance for loan losses has been established for these loans as of June 30, 2018. The losses of the Purchased Non-Credit Impaired Loans acquired at a discount are not provided for by the allowance for loan losses in the above table as the remaining purchased discount associated with the FFELP and Private Education Loans of $40 million and $362 million, respectively, as of June 30, 2018 is greater than the incurred losses and as a result no allowance for loan losses has been established for these loans as of June 30, 2018.
(4) | Ending total loans for Private Education Loans includes the receivable for partially charged-off loans.
2. Allowance for Loan Losses (Continued) Key Credit Quality Indicators FFELP Loans are substantially insured and guaranteed as to their principal and accrued interest in the event of default. The key credit quality indicator for this portfolio is loan status. The impact of changes in loan status is incorporated quarterly into the allowance for loan losses calculation.
|  | FFELP Loan Delinquencies |
|  | June 30, 2019 |  |  | December 31, 2018 |
(Dollars in millions) |  | Balance |  |  | % |  |  | Balance |  |  | % |
Loans in-school/grace/deferment(1) |  | $ | 3,530 |  |  |  |  |  |  | $ | 3,793 |  |  |  |  |
Loans in forbearance(2) |  |  | 8,240 |  |  |  |  |  |  |  | 8,386 |  |  |  |  |
Loans in repayment and percentage of each status: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans current |  |  | 49,855 |  |  |  | 89.5 | % |  |  | 53,500 |  |  |  | 89.8 | %
Loans delinquent 31-60 days(3) |  |  | 1,540 |  |  |  | 2.8 |  |  |  | 1,964 |  |  |  | 3.4 |
Loans delinquent 61-90 days(3) |  |  | 870 |  |  |  | 1.6 |  |  |  | 910 |  |  |  | 1.5 |
Loans delinquent greater than 90 days(3) |  |  | 3,419 |  |  |  | 6.1 |  |  |  | 3,177 |  |  |  | 5.3 |
Total FFELP Loans in repayment |  |  | 55,684 |  |  |  | 100 | % |  |  | 59,551 |  |  |  | 100 | %
Total FFELP Loans, gross |  |  | 67,454 |  |  |  |  |  |  |  | 71,730 |  |  |  |  |
FFELP Loan unamortized premium |  |  | 569 |  |  |  |  |  |  |  | 599 |  |  |  |  |
Total FFELP Loans |  |  | 68,023 |  |  |  |  |  |  |  | 72,329 |  |  |  |  |
FFELP Loan allowance for losses |  |  | (67 | ) |  |  |  |  |  |  | (76 | ) |  |  |  |
FFELP Loans, net |  | $ | 67,956 |  |  |  |  |  |  | $ | 72,253 |  |  |  |  |
Percentage of FFELP Loans in repayment |  |  |  |  |  |  | 82.6 | % |  |  |  |  |  |  | 83.0 | %
Delinquencies as a percentage of FFELP Loans in repayment |  |  |  |  |  |  | 10.5 | % |  |  |  |  |  |  | 10.2 | %
FFELP Loans in forbearance as a percentage of loans in repayment and forbearance |  |  |  |  |  |  | 12.9 | % |  |  |  |  |  |  | 12.3 | %
(1) | Loans for customers who may still be attending school or engaging in other permitted educational activities and are not yet required to make payments on their loans, e.g., residency periods for medical students or a grace period for bar exam preparation, as well as loans for customers who have requested and qualify for other permitted program deferments such as military, unemployment, or economic hardships.
(2) | Loans for customers who have used their allowable deferment time or do not qualify for deferment, that need additional time to obtain employment or who have temporarily ceased making full payments due to hardship or other factors such as disaster relief.
(3) | The period of delinquency is based on the number of days scheduled payments are contractually past due.
2. Allowance for Loan Losses (Continued) For Private Education Loans, the key credit quality indicators are FICO scores, school type, the existence of a cosigner, the loan status and loan seasoning. The FICO scores and school type are assessed at origination. The other Private Education Loan key quality indicators can change and are incorporated quarterly into the allowance for loan losses calculation. The following table highlights the principal balance (excluding the receivable for partially charged-off loans) of our Private Education Loan portfolio stratified by the key credit quality indicators.
|  | Private Education Loan Credit Quality Indicators |
|  | TDRs |
|  | June 30, 2019 |  |  | December 31, 2018 |
(Dollars in millions) |  | Balance(3) |  |  | % of Balance |  |  | Balance(3) |  |  | % of Balance |
Credit Quality Indicators |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Original Winning FICO Scores: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FICO 640 and above |  | $ | 8,828 |  |  |  | 92 | % |  | $ | 9,133 |  |  |  | 92 | %
FICO below 640 |  |  | 808 |  |  |  | 8 |  |  |  | 836 |  |  |  | 8 |
Total |  | $ | 9,636 |  |  |  | 100 | % |  | $ | 9,969 |  |  |  | 100 | %
School Type: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Not-for-profit |  | $ | 7,651 |  |  |  | 79 | % |  | $ | 7,888 |  |  |  | 79 | %
For-profit |  |  | 1,985 |  |  |  | 21 |  |  |  | 2,081 |  |  |  | 21 |
Total |  | $ | 9,636 |  |  |  | 100 | % |  | $ | 9,969 |  |  |  | 100 | %
Cosigners: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
With cosigner(1) |  | $ | 5,998 |  |  |  | 62 | % |  | $ | 6,172 |  |  |  | 62 | %
Without cosigner |  |  | 3,638 |  |  |  | 38 |  |  |  | 3,797 |  |  |  | 38 |
Total |  | $ | 9,636 |  |  |  | 100 | % |  | $ | 9,969 |  |  |  | 100 | %
Seasoning(2): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
1-12 payments |  | $ | 282 |  |  |  | 3 | % |  | $ | 335 |  |  |  | 3 | %
13-24 payments |  |  | 363 |  |  |  | 4 |  |  |  | 436 |  |  |  | 4 |
25-36 payments |  |  | 556 |  |  |  | 6 |  |  |  | 660 |  |  |  | 7 |
37-48 payments |  |  | 784 |  |  |  | 8 |  |  |  | 934 |  |  |  | 10 |
More than 48 payments |  |  | 7,280 |  |  |  | 75 |  |  |  | 7,178 |  |  |  | 72 |
Not yet in repayment |  |  | 371 |  |  |  | 4 |  |  |  | 426 |  |  |  | 4 |
Total |  | $ | 9,636 |  |  |  | 100 | % |  | $ | 9,969 |  |  |  | 100 | %
(1) | Excluding Private Education Refinance Loans, which do not have a cosigner, the cosigner rate was 62% at June 30, 2019 and December 31, 2018.
(2) | Number of months in active repayment for which a scheduled payment was received.
(3) | Balance equals the gross Private Education Loans.
2. Allowance for Loan Losses (Continued)
|  | Private Education Loan Credit Quality Indicators |
|  | Non-TDRs |
|  | June 30, 2019 |  |  | December 31, 2018 |
(Dollars in millions) |  | Balance(3) |  |  | % of Balance |  |  | Balance(3) |  |  | % of Balance |
Credit Quality Indicators |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Original Winning FICO Scores: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FICO 640 and above |  | $ | 12,715 |  |  |  | 97 | % |  | $ | 13,087 |  |  |  | 96 | %
FICO below 640 |  |  | 415 |  |  |  | 3 |  |  |  | 475 |  |  |  | 4 |
Total |  | $ | 13,130 |  |  |  | 100 | % |  | $ | 13,562 |  |  |  | 100 | %
School Type: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Not-for-profit |  | $ | 11,648 |  |  |  | 89 | % |  | $ | 11,953 |  |  |  | 88 | %
For-profit |  |  | 1,482 |  |  |  | 11 |  |  |  | 1,609 |  |  |  | 12 |
Total |  | $ | 13,130 |  |  |  | 100 | % |  | $ | 13,562 |  |  |  | 100 | %
Cosigners: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
With cosigner(1) |  | $ | 5,979 |  |  |  | 46 | % |  | $ | 6,961 |  |  |  | 51 | %
Without cosigner |  |  | 7,151 |  |  |  | 54 |  |  |  | 6,601 |  |  |  | 49 |
Total |  | $ | 13,130 |  |  |  | 100 | % |  | $ | 13,562 |  |  |  | 100 | %
Seasoning(2): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
1-12 payments |  | $ | 3,205 |  |  |  | 24 | % |  | $ | 3,353 |  |  |  | 25 | %
13-24 payments |  |  | 1,285 |  |  |  | 10 |  |  |  | 486 |  |  |  | 3 |
25-36 payments |  |  | 465 |  |  |  | 4 |  |  |  | 322 |  |  |  | 2 |
37-48 payments |  |  | 280 |  |  |  | 2 |  |  |  | 383 |  |  |  | 3 |
More than 48 payments |  |  | 7,580 |  |  |  | 58 |  |  |  | 8,626 |  |  |  | 64 |
Not yet in repayment |  |  | 315 |  |  |  | 2 |  |  |  | 392 |  |  |  | 3 |
Total |  | $ | 13,130 |  |  |  | 100 | % |  | $ | 13,562 |  |  |  | 100 | %
(1) | Excluding Private Education Refinance Loans, which do not have a cosigner, the cosigner rate was 67% at June 30, 2019 and December 31, 2018.
(2) | Number of months in active repayment for which a scheduled payment was received.
(3) | Balance equals the gross Private Education Loans.
2. Allowance for Loan Losses (Continued)
|  | Private Education Loan Delinquencies |
|  | TDRs |
|  | June 30, 2019 |  |  | December 31, 2018 |
(Dollars in millions) |  | Balance |  |  | % |  |  | Balance |  |  | % |
Loans in-school/grace/deferment(1) |  | $ | 371 |  |  |  |  |  |  | $ | 426 |  |  |  |  |
Loans in forbearance(2) |  |  | 505 |  |  |  |  |  |  |  | 518 |  |  |  |  |
Loans in repayment and percentage of each status: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans current |  |  | 7,816 |  |  |  | 89.2 | % |  |  | 7,890 |  |  |  | 87.4 | %
Loans delinquent 31-60 days(3) |  |  | 276 |  |  |  | 3.2 |  |  |  | 344 |  |  |  | 3.8 |
Loans delinquent 61-90 days(3) |  |  | 191 |  |  |  | 2.2 |  |  |  | 235 |  |  |  | 2.6 |
Loans delinquent greater than 90 days(3) |  |  | 477 |  |  |  | 5.4 |  |  |  | 556 |  |  |  | 6.2 |
Total TDR loans in repayment |  |  | 8,760 |  |  |  | 100 | % |  |  | 9,025 |  |  |  | 100 | %
Total TDR loans, gross |  |  | 9,636 |  |  |  |  |  |  |  | 9,969 |  |  |  |  |
TDR loans unamortized discount |  |  | (209 | ) |  |  |  |  |  |  | (212 | ) |  |  |  |
Total TDR loans |  |  | 9,427 |  |  |  |  |  |  |  | 9,757 |  |  |  |  |
TDR loans receivable for partially charged-off loans |  |  | 364 |  |  |  |  |  |  |  | 367 |  |  |  |  |
TDR loans allowance for losses |  |  | (1,040 | ) |  |  |  |  |  |  | (1,100 | ) |  |  |  |
TDR loans, net |  | $ | 8,751 |  |  |  |  |  |  | $ | 9,024 |  |  |  |  |
Percentage of TDR loans in repayment |  |  |  |  |  |  | 90.9 | % |  |  |  |  |  |  | 90.5 | %
Delinquencies as a percentage of TDR loans in repayment |  |  |  |  |  |  | 10.8 | % |  |  |  |  |  |  | 12.6 | %
Loans in forbearance as a percentage of TDR loans in repayment and forbearance |  |  |  |  |  |  | 5.4 | % |  |  |  |  |  |  | 5.4 | %
(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 their 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 such as disaster relief, 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.
2. Allowance for Loan Losses (Continued)
|  | Private Education Loan Delinquencies |
|  | Non-TDRs |
|  | June 30, 2019 |  |  | December 31, 2018 |
(Dollars in millions) |  | Balance |  |  | % |  |  | Balance |  |  | % |
Loans in-school/grace/deferment(1) |  | $ | 315 |  |  |  |  |  |  | $ | 392 |  |  |  |  |
Loans in forbearance(2) |  |  | 136 |  |  |  |  |  |  |  | 158 |  |  |  |  |
Loans in repayment and percentage of each status: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans current |  |  | 12,553 |  |  |  | 99.0 | % |  |  | 12,851 |  |  |  | 98.8 | %
Loans delinquent 31-60 days(3) |  |  | 51 |  |  |  | .4 |  |  |  | 71 |  |  |  | .5 |
Loans delinquent 61-90 days(3) |  |  | 28 |  |  |  | .2 |  |  |  | 32 |  |  |  | .3 |
Loans delinquent greater than 90 days(3) |  |  | 47 |  |  |  | .4 |  |  |  | 58 |  |  |  | .4 |
Total non-TDR loans in repayment |  |  | 12,679 |  |  |  | 100 | % |  |  | 13,012 |  |  |  | 100 | %
Total non-TDR loans, gross |  |  | 13,130 |  |  |  |  |  |  |  | 13,562 |  |  |  |  |
Non-TDR loans unamortized discount |  |  | (482 | ) |  |  |  |  |  |  | (547 | ) |  |  |  |
Total non-TDR loans |  |  | 12,648 |  |  |  |  |  |  |  | 13,015 |  |  |  |  |
Non-TDR loans receivable for partially charged-off loans |  |  | 276 |  |  |  |  |  |  |  | 307 |  |  |  |  |
Non-TDR loans allowance for losses |  |  | (111 | ) |  |  |  |  |  |  | (101 | ) |  |  |  |
Non-TDR loans, net |  | $ | 12,813 |  |  |  |  |  |  | $ | 13,221 |  |  |  |  |
Percentage of non-TDR loans in repayment |  |  |  |  |  |  | 96.6 | % |  |  |  |  |  |  | 95.9 | %
Delinquencies as a percentage of non-TDR loans in repayment |  |  |  |  |  |  | 1.0 | % |  |  |  |  |  |  | 1.2 | %
Loans in forbearance as a percentage of non- TDR loans in repayment and forbearance |  |  |  |  |  |  | 1.1 | % |  |  |  |  |  |  | 1.2 | %
(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 their 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 such as disaster relief, 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.
2. Allowance for Loan Losses (Continued) Receivable for Partially Charged-Off Private Education Loans At the end of each month, for loans that are 212 or more days past due, we charge off the estimated loss of a defaulted loan balance. We refer to the remaining loan balance as the “receivable for partially charged-off loans.” Actual recoveries are applied against this receivable balance. If actual periodic recoveries are less than expected, the difference is immediately charged off through the allowance for Private Education Loan losses. The following table summarizes the activity in the receivable for partially charged-off Private Education Loans.
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
(Dollars in millions) |  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |
Receivable at beginning of period |  | $ | 657 |  |  | $ | 741 |  |  | $ | 674 |  |  | $ | 760 |
Expected future recoveries of current period defaults(1) |  |  | 18 |  |  |  | 19 |  |  |  | 38 |  |  |  | 38 |
Recoveries(2) |  |  | (33 | ) |  |  | (36 | ) |  |  | (67 | ) |  |  | (74 | )
Charge-offs(3) |  |  | (2 | ) |  |  | — |  |  |  | (5 | ) |  |  | — |
Receivable at end of period |  | $ | 640 |  |  | $ | 724 |  |  | $ | 640 |  |  | $ | 724 |
(1) | Represents our estimate of the amount to be collected in the future.
(2) | Current period cash collections.
(3) | Represents the current period recovery shortfall — the difference between what was expected to be collected and what was actually collected. These amounts are included in total charge-offs as reported in the “Allowance for Private Education Loan Losses” table.
Troubled Debt Restructurings (“TDRs”) We sometimes modify the terms of loans for customers experiencing financial difficulty. Where we have granted either a forbearance of greater than three months, an interest rate reduction or an extended repayment plan, these are classified as TDRs. Approximately 68% and 65% of the loans granted forbearance have qualified as a TDR loan at June 30, 2019 and December 31, 2018, respectively. The unpaid principal balance of TDR loans that were in an interest rate reduction program as of June 30, 2019 and December 31, 2018 was $2.0 billion and $1.8 billion, respectively. 2. Allowance for Loan Losses (Continued) At June 30, 2019 and December 31, 2018, all of our TDR loans had a related allowance recorded. The following table provides the recorded investment, unpaid principal balance and related allowance for our TDR loans.
|  | TDRs |
(Dollars in millions) |  | June 30, 2019 |  |  | December 31, 2018 |
Recorded investment(1) |  | $ | 9,980 |  |  | $ | 10,326 |
Total ending loans(2) |  | $ | 10,000 |  |  | $ | 10,336 |
Related allowance |  | $ | 1,040 |  |  | $ | 1,100 |
| (1) | Recorded investment is equal to the unpaid principal balance (which includes the receivable for partially charged-off loans), accrued interest and unamortized discount.
| (2) | Total ending loans includes the receivable for partially charged-off loans.
The following tables provide the average recorded investment and interest income recognized for our TDR loans.
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
(Dollars in millions) |  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |
Average recorded investment |  | $ | 9,995 |  |  | $ | 10,733 |  |  | $ | 10,025 |  |  | $ | 10,794 |
Interest income recognized |  | $ | 194 |  |  | $ | 187 |  |  | $ | 392 |  |  | $ | 367 |
The following table provides the amount of loans modified in the periods presented that resulted in a TDR. Additionally, the table summarizes charge-offs occurring in the TDR portfolio, as well as TDRs for which a payment default occurred in the current period within 12 months of the loan first being designated as a TDR. We define payment default as 60 days past due for this disclosure.
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
(Dollars in millions) |  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |
Modified loans(1) |  | $ | 123 |  |  | $ | 137 |  |  | $ | 256 |  |  | $ | 307 |
Charge-offs(2) |  | $ | 75 |  |  | $ | 60 |  |  | $ | 155 |  |  | $ | 120 |
Payment default |  | $ | 27 |  |  | $ | 33 |  |  | $ | 59 |  |  | $ | 70 |
(1) | Represents period ending balance of loans that have been modified during the period and resulted in a TDR.
(2) | Represents loans that charged off that were classified as TDRs.
2. Allowance for Loan Losses (Continued) Accrued Interest Receivable The following table provides information regarding accrued interest receivable on our Private Education Loans.
(Dollars in millions) |  | Total |  |  | Greater Than 90 Days Past Due |  |  | Allowance for Uncollectible Interest |
June 30, 2019 |  |  |  |  |  |  |  |  |  |  |  |
TDR |  | $ | 191 |  |  | $ | 26 |  |  | $ | 22 |
Non-TDR |  |  | 128 |  |  |  | 3 |  |  |  | 6 |
Total |  | $ | 319 |  |  | $ | 29 |  |  | $ | 28 |
December 31, 2018 |  |  |  |  |  |  |  |  |  |  |  |
TDR |  | $ | 205 |  |  | $ | 26 |  |  | $ | 23 |
Non-TDR |  |  | 149 |  |  |  | 3 |  |  |  | 4 |
Total |  | $ | 354 |  |  | $ | 29 |  |  | $ | 27 |

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