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Allowance for Loan Losses | 6 Months Ended
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Jun. 30, 2021
Receivables [Abstract] |
Allowance for Loan Losses | 2. Allowance for Loan Losses Allowance for Loan Losses Metrics
|  | Three Months Ended June 30, 2021 |
(Dollars in millions) |  | FFELP Loans |  |  | Private Education Loans |  |  | Total |
Allowance at beginning of period |  | $ | 282 |  |  | $ | 992 |  |  | $ | 1,274 |
Provision: |  |  |  |  |  |  |  |  |  |  |  |
Reversal of allowance related to loan sales(1) |  |  | — |  |  |  | (5 | ) |  |  | (5 | )
Remaining provision |  |  | — |  |  |  | 4 |  |  |  | 4 |
Total provision |  |  | — |  |  |  | (1 | ) |  |  | (1 | )
Charge-offs(2) |  |  | (5 | ) |  |  | (35 | ) |  |  | (40 | )
Decrease in expected future recoveries on charged-off loans(3) |  |  | — |  |  |  | 20 |  |  |  | 20 |
Allowance at end of period |  |  | 277 |  |  |  | 976 |  |  |  | 1,253 |
Plus: expected future recoveries on charged-off loans(3) |  |  | — |  |  |  | 434 |  |  |  | 434 |
Allowance at end of period excluding expected future recoveries on charged-off loans(4) |  | $ | 277 |  |  | $ | 1,410 |  |  | $ | 1,687 |
Charge-offs as a percentage of average loans in repayment (annualized) |  |  | .04 | % |  |  | .71 | % |  |  |  |
Allowance coverage of charge-offs (annualized)(4) |  |  | 15.5 |  |  |  | 10.0 |  |  |  |  |
Allowance as a percentage of the ending total loan balance(4) |  |  | .5 | % |  |  | 6.8 | % |  |  |  |
Allowance as a percentage of ending loans in repayment(4) |  |  | .6 | % |  |  | 7.2 | % |  |  |  |
Ending total loans |  | $ | 55,827 |  |  | $ | 20,701 |  |  |  |  |
Average loans in repayment |  | $ | 46,348 |  |  | $ | 19,667 |  |  |  |  |
Ending loans in repayment |  | $ | 45,854 |  |  | $ | 19,692 |  |  |  |  |
(1) | In connection with the sale of approximately $30 million of Private Education Loans.
(2) | Charge-offs are reported net of expected recoveries. For Private Education Loans, at the time of charge-off, the expected recovery amount is transferred from the education loan balance to the allowance for loan loss and is referred to as the expected future recoveries on charged-off loans. For FFELP Loans, the recovery is received at the time of charge-off.
(3) | At the end of each month, for Private Education Loans that are 212 or more days past due, we charge off the estimated loss of a defaulted loan balance. Actual recoveries are applied against the remaining loan balance that was not charged off. We refer to this as the “expected future recoveries on charged-off loans.” If actual periodic recoveries are less than expected, the difference is immediately charged off through the allowance for Private Education Loan losses with an offsetting reduction in the expected future recoveries for charged-off loans. If actual periodic recoveries are greater than expected, they will be reflected as a recovery through the allowance for Private Education Loan losses once the cumulative recovery amount exceeds the cumulative amount originally expected to be recovered. The following table summarizes the activity in the expected future recoveries on charged-off loans:
|  | Three Months Ended June 30, |
(Dollars in millions) |  | 2021 |
Beginning of period expected recoveries |  | $ | 454 |
Expected future recoveries of current period defaults |  |  | 5 |
Recoveries |  |  | (22 | )
Charge-offs |  |  | (3 | )
End of period expected recoveries |  | $ | 434 |
Change in balance during period |  | $ | (20 | )
(4) | The allowance used for these metrics excludes the expected future recoveries on charged-off loans to better reflect the current expected credit losses remaining in the portfolio.
2. Allowance for Loan Losses (Continued)
|  | Three Months Ended June 30, 2020 |
(Dollars in millions) |  | FFELP Loans |  |  | Private Education Loans |  |  | Other Loans |
Allowance at beginning of period |  | $ | 311 |  |  | $ | 1,083 |  |  | $ | 1,394 |
Total provision |  |  | 3 |  |  |  | 41 |  |  |  | 44 |
Charge-offs(1) |  |  | (12 | ) |  |  | (48 | ) |  |  | (60 | )
Decrease in expected future recoveries on charged-off loans(2) |  |  | — |  |  |  | 22 |  |  |  | 22 |
Allowance at end of period |  |  | 302 |  |  |  | 1,098 |  |  |  | 1,400 |
Plus: expected future recoveries on charged-off loans(2) |  |  | — |  |  |  | 549 |  |  |  | 549 |
Allowance at end of period excluding expected future recoveries on charged-off loans(3) |  | $ | 302 |  |  | $ | 1,647 |  |  | $ | 1,949 |
Charge-offs as a percentage of average loans in repayment (annualized) |  |  | .11 | % |  |  | .97 | % |  |  |  |
Allowance coverage of charge-offs (annualized)(3) |  |  | 6.3 |  |  |  | 8.6 |  |  |  |  |
Allowance as a percentage of the ending total loan balance(3) |  |  | .5 | % |  |  | 7.3 | % |  |  |  |
Allowance as a percentage of ending loans in repayment(3) |  |  | .7 | % |  |  | 8.2 | % |  |  |  |
Ending total loans |  | $ | 61,223 |  |  | $ | 22,560 |  |  |  |  |
Average loans in repayment |  | $ | 44,144 |  |  | $ | 19,731 |  |  |  |  |
Ending loans in repayment |  | $ | 42,640 |  |  | $ | 20,201 |  |  |  |  |
(1) | Charge-offs are reported net of expected recoveries. For Private Education Loans, at the time of charge-off, the expected recovery amount is transferred from the education loan balance to the allowance for loan loss and is referred to as the expected future recoveries on charged-off loans. For FFELP Loans, the recovery is received at the time of charge-off.
(2) | At the end of each month, for Private Education Loans that are 212 or more days past due, we charge off the estimated loss of a defaulted loan balance. Actual recoveries are applied against the remaining loan balance that was not charged off. We refer to this as the “expected future recoveries on charged-off loans.” If actual periodic recoveries are less than expected, the difference is immediately charged off through the allowance for Private Education Loan losses with an offsetting reduction in the expected future recoveries for charged-off loans. If actual periodic recoveries are greater than expected, they will be reflected as a recovery through the allowance for Private Education Loan losses once the cumulative recovery amount exceeds the cumulative amount originally expected to be recovered. The following table summarizes the activity in the expected future recoveries on charged-off loans:
|  | Three Months Ended June 30, |
(Dollars in millions) |  | 2020 |
Beginning of period expected recoveries |  | $ | 571 |
Expected future recoveries of current period defaults |  |  | 9 |
Recoveries |  |  | (28 | )
Charge-offs |  |  | (3 | )
End of period expected recoveries |  | $ | 549 |
Change in balance during period |  | $ | (22 | )
(3) | The allowance used for these metrics excludes the expected future recoveries on charged-off loans to better reflect the current expected credit losses remaining in the portfolio.
2. Allowance for Loan Losses (Continued)
|  | Six Months Ended June 30, 2021 |
(Dollars in millions) |  | FFELP Loans |  |  | Private Education Loans |  |  | Total |
Allowance at beginning of period |  | $ | 288 |  |  | $ | 1,089 |  |  | $ | 1,377 |
Provision: |  |  |  |  |  |  |  |  |  |  |  |
Reversal of allowance related to loan sales(1) |  |  | — |  |  |  | (107 | ) |  |  | (107 | )
Remaining provision |  |  | — |  |  |  | 19 |  |  |  | 19 |
Total provision |  |  | — |  |  |  | (88 | ) |  |  | (88 | )
Charge-offs(2) |  |  | (11 | ) |  |  | (70 | ) |  |  | (81 | )
Decrease in expected future recoveries on charged-off loans(3) |  |  | — |  |  |  | 45 |  |  |  | 45 |
Allowance at end of period |  |  | 277 |  |  |  | 976 |  |  |  | 1,253 |
Plus: expected future recoveries on charged-off loans(3) |  |  | — |  |  |  | 434 |  |  |  | 434 |
Allowance at end of period excluding expected future recoveries on charged-off loans(4) |  | $ | 277 |  |  | $ | 1,410 |  |  | $ | 1,687 |
Charge-offs as a percentage of average loans in repayment (annualized) |  |  | .05 | % |  |  | .70 | % |  |  |  |
Allowance coverage of charge-offs (annualized)(4) |  |  | 12.5 |  |  |  | 10.0 |  |  |  |  |
Allowance as a percentage of the ending total loan balance(4) |  |  | .5 | % |  |  | 6.8 | % |  |  |  |
Allowance as a percentage of ending loans in repayment(4) |  |  | .6 | % |  |  | 7.2 | % |  |  |  |
Ending total loans |  | $ | 55,827 |  |  | $ | 20,701 |  |  |  |  |
Average loans in repayment |  | $ | 46,694 |  |  | $ | 20,272 |  |  |  |  |
Ending loans in repayment |  | $ | 45,854 |  |  | $ | 19,692 |  |  |  |  |
(1) | In connection with the sale of approximately $1.6 billion of Private Education Loans.
(2) | Charge-offs are reported net of expected recoveries. For Private Education Loans, at the time of charge-off, the expected recovery amount is transferred from the education loan balance to the allowance for loan loss and is referred to as the expected future recoveries on charged-off loans. For FFELP Loans, the recovery is received at the time of charge-off.
(3) | At the end of each month, for Private Education Loans that are 212 or more days past due, we charge off the estimated loss of a defaulted loan balance. Actual recoveries are applied against the remaining loan balance that was not charged off. We refer to this as the “expected future recoveries on charged-off loans.” If actual periodic recoveries are less than expected, the difference is immediately charged off through the allowance for Private Education Loan losses with an offsetting reduction in the expected future recoveries for charged-off loans. If actual periodic recoveries are greater than expected, they will be reflected as a recovery through the allowance for Private Education Loan losses once the cumulative recovery amount exceeds the cumulative amount originally expected to be recovered. The following table summarizes the activity in the expected future recoveries on charged-off loans:
|  | Six Months Ended June 30, |
(Dollars in millions) |  | 2021 |
Beginning of period expected recoveries |  | $ | 479 |
Expected future recoveries of current period defaults |  |  | 10 |
Recoveries |  |  | (47 | )
Charge-offs |  |  | (8 | )
End of period expected recoveries |  | $ | 434 |
Change in balance during period |  | $ | (45 | )
(4) | The allowance used for these metrics excludes the expected future recoveries on charged-off loans to better reflect the current expected credit losses remaining in the portfolio.
2. Allowance for Loan Losses (Continued)
|  | Six Months Ended June 30, 2020 |
(Dollars in millions) |  | FFELP Loans |  |  | Private Education Loans |  |  | Other Loans |
Allowance as of December 31, 2019 |  | $ | 64 |  |  | $ | 1,048 |  |  | $ | 1,112 |
Transition adjustment made under CECL on January 1, 2020(1) |  |  | 260 |  |  |  | (3 | ) |  |  | 257 |
Allowance as of January 1, 2020 after transition adjustment to CECL |  |  | 324 |  |  |  | 1,045 |  |  |  | 1,369 |
Total provision |  |  | 9 |  |  |  | 130 |  |  |  | 139 |
Charge-offs(2) |  |  | (31 | ) |  |  | (116 | ) |  |  | (147 | )
Decrease in expected future recoveries on charged-off loans(3) |  |  | — |  |  |  | 39 |  |  |  | 39 |
Allowance at end of period |  |  | 302 |  |  |  | 1,098 |  |  |  | 1,400 |
Plus: expected future recoveries on charged-off loans(3) |  |  | — |  |  |  | 549 |  |  |  | 549 |
Allowance at end of period excluding expected future recoveries on charged-off loans(4) |  | $ | 302 |  |  | $ | 1,647 |  |  | $ | 1,949 |
Charge-offs as a percentage of average loans in repayment (annualized) |  |  | .13 | % |  |  | 1.13 | % |  |  |  |
Allowance coverage of charge-offs (annualized)(4) |  |  | 4.8 |  |  |  | 7.1 |  |  |  |  |
Allowance as a percentage of the ending total loan balance(4) |  |  | .5 | % |  |  | 7.3 | % |  |  |  |
Allowance as a percentage of ending loans in repayment(4) |  |  | .7 | % |  |  | 8.2 | % |  |  |  |
Ending total loans |  | $ | 61,223 |  |  | $ | 22,560 |  |  |  |  |
Average loans in repayment |  | $ | 48,302 |  |  | $ | 20,666 |  |  |  |  |
Ending loans in repayment |  | $ | 42,640 |  |  | $ | 20,201 |  |  |  |  |
(1) | For a further discussion of our adoption of CECL, see “Note 2 – Significant Accounting Policies” in our 2020 Annual Report on Form 10-K.
(2) | Charge-offs are reported net of expected recoveries. For Private Education Loans, at the time of charge-off, the expected recovery amount is transferred from the education loan balance to the allowance for loan loss and is referred to as the expected future recoveries on charged-off loans. For FFELP Loans, the recovery is received at the time of charge-off.
(3) | At the end of each month, for Private Education Loans that are 212 or more days past due, we charge off the estimated loss of a defaulted loan balance. Actual recoveries are applied against the remaining loan balance that was not charged off. We refer to this as the “expected future recoveries on charged-off loans.” If actual periodic recoveries are less than expected, the difference is immediately charged off through the allowance for Private Education Loan losses with an offsetting reduction in the expected future recoveries for charged-off loans. If actual periodic recoveries are greater than expected, they will be reflected as a recovery through the allowance for Private Education Loan losses once the cumulative recovery amount exceeds the cumulative amount originally expected to be recovered. The following table summarizes the activity in the expected future recoveries on charged-off loans:
|  | Six Months Ended June 30, |
(Dollars in millions) |  | 2020 |
Beginning of period expected recoveries |  | $ | 588 |
Expected future recoveries of current period defaults |  |  | 22 |
Recoveries |  |  | (57 | )
Charge-offs |  |  | (4 | )
End of period expected recoveries |  | $ | 549 |
Change in balance during period |  | $ | (39 | )
(4) | The allowance used for these metrics excludes the expected future recoveries on charged-off loans to better reflect the current expected credit losses remaining in the portfolio.
2. Allowance for Loan Losses (Continued) Troubled Debt Restructurings (“TDRs”) We sometimes modify the terms of loans for customers experiencing financial difficulty. Certain Private Education Loans for which we have granted either a forbearance of greater than three months, an interest rate reduction or an extended repayment plan are classified as TDRs. Approximately 73% and 72% of the loans granted forbearance have qualified as a TDR loan at June 30, 2021 and December 31, 2020, respectively. The unpaid principal balance of TDR loans that were in an interest rate reduction program as of June 30, 2021 and December 31, 2020 was $802 million and $948 million, respectively. 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) |  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
Modified loans |  | $ | 29 |  |  | $ | 70 |  |  | $ | 69 |  |  | $ | 165 |
Charge-offs |  | $ | 27 |  |  | $ | 35 |  |  | $ | 53 |  |  | $ | 93 |
Payment default |  | $ | 4 |  |  | $ | 11 |  |  | $ | 9 |  |  | $ | 32 |
2. Allowance for Loan Losses (Continued) Key Credit Quality Indicators We assess and determine the collectability of our education loan portfolios by evaluating certain risk characteristics we refer to as key credit quality indicators. Key credit quality indicators are incorporated into the allowance for loan losses calculation. FFELP Loans FFELP Loans are substantially insured and guaranteed as to their principal and accrued interest in the event of default. The key credit quality indicators are loan status and loan type.
|  | FFELP Loan Delinquencies |
|  | June 30, 2021 |  |  | December 31, 2020 |  |  | June 30, 2020 |
(Dollars in millions) |  | Balance |  |  | % |  |  | Balance |  |  | % |  |  | Balance |  |  | % |
Loans in-school/grace/deferment(1) |  | $ | 2,576 |  |  |  |  |  |  | $ | 2,791 |  |  |  |  |  |  | $ | 3,130 |  |  |  |  |
Loans in forbearance(2) |  |  | 7,397 |  |  |  |  |  |  |  | 7,725 |  |  |  |  |  |  |  | 15,453 |  |  |  |  |
Loans in repayment and percentage of each status: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans current |  |  | 42,026 |  |  |  | 91.7 | % |  |  | 43,623 |  |  |  | 90.8 | % |  |  | 39,152 |  |  |  | 91.8 | %
Loans delinquent 31-60 days(3) |  |  | 1,398 |  |  |  | 3.0 |  |  |  | 1,374 |  |  |  | 2.9 |  |  |  | 1,222 |  |  |  | 2.9 |
Loans delinquent 61-90 days(3) |  |  | 685 |  |  |  | 1.5 |  |  |  | 836 |  |  |  | 1.7 |  |  |  | 657 |  |  |  | 1.5 |
Loans delinquent greater than 90 days(3) |  |  | 1,745 |  |  |  | 3.8 |  |  |  | 2,223 |  |  |  | 4.6 |  |  |  | 1,609 |  |  |  | 3.8 |
Total FFELP Loans in repayment |  |  | 45,854 |  |  |  | 100 | % |  |  | 48,056 |  |  |  | 100 | % |  |  | 42,640 |  |  |  | 100 | %
Total FFELP Loans |  |  | 55,827 |  |  |  |  |  |  |  | 58,572 |  |  |  |  |  |  |  | 61,223 |  |  |  |  |
FFELP Loan allowance for losses |  |  | (277 | ) |  |  |  |  |  |  | (288 | ) |  |  |  |  |  |  | (302 | ) |  |  |  |
FFELP Loans, net |  | $ | 55,550 |  |  |  |  |  |  | $ | 58,284 |  |  |  |  |  |  | $ | 60,921 |  |  |  |  |
Percentage of FFELP Loans in repayment |  |  |  |  |  |  | 82.1 | % |  |  |  |  |  |  | 82.0 | % |  |  |  |  |  |  | 69.6 | %
Delinquencies as a percentage of FFELP Loans in repayment |  |  |  |  |  |  | 8.3 | % |  |  |  |  |  |  | 9.2 | % |  |  |  |  |  |  | 8.2 | %
FFELP Loans in forbearance as a percentage of loans in repayment and forbearance |  |  |  |  |  |  | 13.9 | % |  |  |  |  |  |  | 13.8 | % |  |  |  |  |  |  | 26.6 | %
(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, including COVID-19 relief programs, 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.
Loan type:
(Dollars in millions) |  | June 30, 2021 |  |  | June 30, 2020 |  |  | Change |
Stafford Loans |  | $ | 16,996 |  |  | $ | 18,364 |  |  | $ | (1,368 | )
Consolidation Loans |  |  | 34,011 |  |  |  | 37,829 |  |  |  | (3,818 | )
Rehab Loans |  |  | 4,820 |  |  |  | 5,030 |  |  |  | (210 | )
Total |  | $ | 55,827 |  |  | $ | 61,223 |  |  | $ | (5,396 | )
2. Allowance for Loan Losses (Continued) Private Education Loans The key credit quality indicators are credit scores (FICO scores), loan status, loan seasoning, whether a loan is a TDR, the existence of a cosigner and school type. The FICO score is the higher of the borrower or co-borrower score and is updated at least every six months while school type is assessed at origination. The other Private Education Loan key quality indicators are updated quarterly.
|  | Private Education Loan Credit Quality Indicators by Origination Year |
|  | June 30, 2021 |
(Dollars in millions) |  | June 30, 2021 |  |  | 2020 |  |  | 2019 |  |  | 2018 |  |  | 2017 |  |  | Prior |  |  | Total |  |  | % of Total |
Credit Quality Indicators |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FICO Scores: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
640 and above |  | $ | 2,713 |  |  | $ | 2,517 |  |  | $ | 2,291 |  |  | $ | 839 |  |  | $ | 259 |  |  | $ | 10,467 |  |  | $ | 19,086 |  |  |  | 92 | %
Below 640 |  |  | 15 |  |  |  | 9 |  |  |  | 31 |  |  |  | 20 |  |  |  | 8 |  |  |  | 1,532 |  |  | $ | 1,615 |  |  |  | 8 |
Total |  | $ | 2,728 |  |  | $ | 2,526 |  |  | $ | 2,322 |  |  | $ | 859 |  |  | $ | 267 |  |  | $ | 11,999 |  |  | $ | 20,701 |  |  |  | 100 | %
Loan Status: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
In-school/grace/ deferment/forbearance |  | $ | 12 |  |  | $ | 29 |  |  | $ | 37 |  |  | $ | 19 |  |  | $ | 7 |  |  | $ | 905 |  |  | $ | 1,009 |  |  |  | 5 | %
Current/90 days or less delinquent |  |  | 2,716 |  |  |  | 2,496 |  |  |  | 2,283 |  |  |  | 839 |  |  |  | 259 |  |  |  | 10,906 |  |  |  | 19,499 |  |  |  | 94 |
Greater than 90 days delinquent |  |  | — |  |  |  | 1 |  |  |  | 2 |  |  |  | 1 |  |  |  | 1 |  |  |  | 188 |  |  |  | 193 |  |  |  | 1 |
Total |  | $ | 2,728 |  |  | $ | 2,526 |  |  | $ | 2,322 |  |  | $ | 859 |  |  | $ | 267 |  |  | $ | 11,999 |  |  | $ | 20,701 |  |  |  | 100 | %
Seasoning(1): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
1-12 payments |  | $ | 2,720 |  |  | $ | 1,497 |  |  | $ | 50 |  |  | $ | 6 |  |  | $ | 2 |  |  | $ | 152 |  |  | $ | 4,427 |  |  |  | 22 | %
13-24 payments |  |  | — |  |  |  | 1,010 |  |  |  | 1,869 |  |  |  | 27 |  |  |  | 4 |  |  |  | 181 |  |  |  | 3,091 |  |  | 15 |
25-36 payments |  |  | — |  |  |  | — |  |  |  | 381 |  |  |  | 621 |  |  |  | 16 |  |  |  | 297 |  |  |  | 1,315 |  |  |  | 6 |
37-48 payments |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 195 |  |  |  | 197 |  |  |  | 463 |  |  |  | 855 |  |  | 4 |
More than 48 payments |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 46 |  |  |  | 10,564 |  |  |  | 10,610 |  |  |  | 51 |
Loans in-school/ grace/deferment |  |  | 8 |  |  |  | 19 |  |  |  | 22 |  |  |  | 10 |  |  |  | 2 |  |  |  | 342 |  |  |  | 403 |  |  | 2 |
Total |  | $ | 2,728 |  |  | $ | 2,526 |  |  | $ | 2,322 |  |  | $ | 859 |  |  | $ | 267 |  |  | $ | 11,999 |  |  | $ | 20,701 |  |  |  | 100 | %
TDR Status: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
TDR |  | $ | — |  |  | $ | 3 |  |  | $ | 20 |  |  | $ | 26 |  |  | $ | 30 |  |  | $ | 7,504 |  |  | $ | 7,583 |  |  |  | 37 | %
Non-TDR |  |  | 2,728 |  |  |  | 2,523 |  |  |  | 2,302 |  |  |  | 833 |  |  |  | 237 |  |  |  | 4,495 |  |  |  | 13,118 |  |  |  | 63 |
Total |  | $ | 2,728 |  |  | $ | 2,526 |  |  | $ | 2,322 |  |  | $ | 859 |  |  | $ | 267 |  |  | $ | 11,999 |  |  | $ | 20,701 |  |  |  | 100 | %
Cosigners: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
With cosigner(2) |  | $ | 8 |  |  | $ | 36 |  |  | $ | 13 |  |  | $ | 1 |  |  | $ | 39 |  |  | $ | 7,883 |  |  | $ | 7,980 |  |  |  | 39 | %
Without cosigner |  |  | 2,720 |  |  |  | 2,490 |  |  |  | 2,309 |  |  |  | 858 |  |  |  | 228 |  |  |  | 4,116 |  |  |  | 12,721 |  |  |  | 61 |
Total |  | $ | 2,728 |  |  | $ | 2,526 |  |  | $ | 2,322 |  |  | $ | 859 |  |  | $ | 267 |  |  | $ | 11,999 |  |  | $ | 20,701 |  |  |  | 100 | %
School Type: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Not-for-profit |  | $ | 2,583 |  |  | $ | 2,412 |  |  | $ | 2,166 |  |  | $ | 792 |  |  | $ | 256 |  |  | $ | 9,960 |  |  | $ | 18,169 |  |  |  | 88 | %
For-profit |  |  | 145 |  |  |  | 114 |  |  |  | 156 |  |  |  | 67 |  |  |  | 11 |  |  |  | 2,039 |  |  |  | 2,532 |  |  |  | 12 |
Total |  | $ | 2,728 |  |  | $ | 2,526 |  |  | $ | 2,322 |  |  | $ | 859 |  |  | $ | 267 |  |  | $ | 11,999 |  |  | $ | 20,701 |  |  |  | 100 | %
Allowance for loan losses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (976 | ) |  |  |  |
Total loans, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 19,725 |  |  |  |  |
(1) | Number of months in active repayment for which a scheduled payment was received.
(2) | Excluding Private Education Refinance Loans, which do not have a cosigner, the cosigner rate was 65% for total loans at June 30, 2021.
2. Allowance for Loan Losses (Continued)
|  | Private Education Loan Credit Quality Indicators by Origination Year |
|  | June 30, 2020 |
(Dollars in millions) |  | June 30, 2020 |  |  | 2019 |  |  | 2018 |  |  | 2017 |  |  | 2016 |  |  | Prior |  |  | Total |  |  | % of Total |
Credit Quality Indicators |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FICO Scores: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
640 and above |  | $ | 2,028 |  |  | $ | 3,831 |  |  | $ | 1,368 |  |  | $ | 445 |  |  | $ | 94 |  |  | $ | 12,346 |  |  | $ | 20,112 |  |  |  | 89 | %
Below 640 |  |  | 8 |  |  |  | 40 |  |  |  | 27 |  |  |  | 11 |  |  |  | 3 |  |  |  | 2,359 |  |  |  | 2,448 |  |  |  | 11 |
Total |  | $ | 2,036 |  |  | $ | 3,871 |  |  | $ | 1,395 |  |  | $ | 456 |  |  | $ | 97 |  |  | $ | 14,705 |  |  | $ | 22,560 |  |  |  | 100 | %
Loan Status: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
In-school/grace/ deferment/forbearance |  | $ | 89 |  |  | $ | 180 |  |  | $ | 80 |  |  | $ | 28 |  |  | $ | 8 |  |  | $ | 1,974 |  |  | $ | 2,359 |  |  |  | 10 | %
Current/90 days or less delinquent |  |  | 1,947 |  |  |  | 3,690 |  |  |  | 1,313 |  |  |  | 427 |  |  |  | 89 |  |  |  | 12,525 |  |  |  | 19,991 |  |  |  | 89 |
Greater than 90 days delinquent |  |  | — |  |  |  | 1 |  |  |  | 2 |  |  |  | 1 |  |  |  | — |  |  |  | 206 |  |  |  | 210 |  |  |  | 1 |
Total |  | $ | 2,036 |  |  | $ | 3,871 |  |  | $ | 1,395 |  |  | $ | 456 |  |  | $ | 97 |  |  | $ | 14,705 |  |  | $ | 22,560 |  |  |  | 100 | %
Seasoning(1): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
1-12 payments |  | $ | 2,032 |  |  | $ | 3,203 |  |  | $ | 14 |  |  | $ | 2 |  |  | $ | — |  |  | $ | 214 |  |  | $ | 5,465 |  |  |  | 24 | %
13-24 payments |  |  | — |  |  |  | 651 |  |  |  | 1,017 |  |  |  | 14 |  |  |  | 2 |  |  |  | 283 |  |  |  | 1,967 |  |  | 9 |
25-36 payments |  |  | — |  |  |  | — |  |  |  | 352 |  |  |  | 350 |  |  |  | 6 |  |  |  | 465 |  |  |  | 1,173 |  |  |  | 5 |
37-48 payments |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 86 |  |  |  | 86 |  |  |  | 698 |  |  |  | 870 |  |  | 4 |
More than 48 payments |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2 |  |  |  | 12,571 |  |  |  | 12,573 |  |  |  | 56 |
Loans in-school/ grace/deferment |  |  | 4 |  |  |  | 17 |  |  |  | 12 |  |  |  | 4 |  |  |  | 1 |  |  |  | 474 |  |  |  | 512 |  |  | 2 |
Total |  | $ | 2,036 |  |  | $ | 3,871 |  |  | $ | 1,395 |  |  | $ | 456 |  |  | $ | 97 |  |  | $ | 14,705 |  |  | $ | 22,560 |  |  |  | 100 | %
TDR Status: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
TDR |  | $ | — |  |  | $ | 5 |  |  | $ | 21 |  |  | $ | 31 |  |  | $ | 12 |  |  | $ | 8,679 |  |  | $ | 8,748 |  |  |  | 39 | %
Non-TDR |  |  | 2,036 |  |  |  | 3,866 |  |  |  | 1,374 |  |  |  | 425 |  |  |  | 85 |  |  |  | 6,026 |  |  |  | 13,812 |  |  |  | 61 |
Total |  | $ | 2,036 |  |  | $ | 3,871 |  |  | $ | 1,395 |  |  | $ | 456 |  |  | $ | 97 |  |  | $ | 14,705 |  |  | $ | 22,560 |  |  |  | 100 | %
Cosigners: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
With cosigner(2) |  | $ | 2 |  |  | $ | 14 |  |  | $ | 1 |  |  | $ | 58 |  |  | $ | 26 |  |  | $ | 9,641 |  |  | $ | 9,742 |  |  |  | 43 | %
Without cosigner |  |  | 2,034 |  |  |  | 3,857 |  |  |  | 1,394 |  |  |  | 398 |  |  |  | 71 |  |  |  | 5,064 |  |  |  | 12,818 |  |  |  | 57 |
Total |  | $ | 2,036 |  |  | $ | 3,871 |  |  | $ | 1,395 |  |  | $ | 456 |  |  | $ | 97 |  |  | $ | 14,705 |  |  | $ | 22,560 |  |  |  | 100 | %
School Type: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Not-for-profit |  | $ | 1,918 |  |  | $ | 3,618 |  |  | $ | 1,292 |  |  | $ | 436 |  |  | $ | 96 |  |  | $ | 12,155 |  |  | $ | 19,515 |  |  |  | 86 | %
For-profit |  |  | 118 |  |  |  | 253 |  |  |  | 103 |  |  |  | 20 |  |  |  | 1 |  |  |  | 2,550 |  |  |  | 3,045 |  |  |  | 14 |
Total |  | $ | 2,036 |  |  | $ | 3,871 |  |  | $ | 1,395 |  |  | $ | 456 |  |  | $ | 97 |  |  | $ | 14,705 |  |  | $ | 22,560 |  |  |  | 100 | %
Allowance for loan losses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (1,098 | ) |  |  |  |
Total loans, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 21,462 |  |  |  |  |
(1) | Number of months in active repayment for which a scheduled payment was received.
(2) | Excluding Private Education Refinance Loans, which do not have a cosigner, the cosigner rate was 65% for total loans at June 30, 2020.
2. Allowance for Loan Losses (Continued)
|  | Private Education Loan Delinquencies |
|  | TDRs |
|  | June 30, 2021 |  |  | December 31, 2020 |  |  | June 30, 2020 |
(Dollars in millions) |  | Balance |  |  | % |  |  | Balance |  |  | % |  |  | Balance |  |  | % |
Loans in-school/grace/deferment(1) |  | $ | 220 |  |  |  |  |  |  | $ | 280 |  |  |  |  |  |  | $ | 293 |  |  |  |  |
Loans in forbearance(2) |  |  | 517 |  |  |  |  |  |  |  | 703 |  |  |  |  |  |  |  | 1,253 |  |  |  |  |
Loans in repayment and percentage of each status: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans current |  |  | 6,387 |  |  |  | 93.3 | % |  |  | 6,952 |  |  |  | 93.4 | % |  |  | 6,827 |  |  |  | 94.8 | %
Loans delinquent 31-60 days(3) |  |  | 186 |  |  |  | 2.7 |  |  |  | 185 |  |  |  | 2.5 |  |  |  | 110 |  |  |  | 1.5 |
Loans delinquent 61-90 days(3) |  |  | 95 |  |  |  | 1.4 |  |  |  | 114 |  |  |  | 1.5 |  |  |  | 77 |  |  |  | 1.1 |
Loans delinquent greater than 90 days(3) |  |  | 178 |  |  |  | 2.6 |  |  |  | 197 |  |  |  | 2.6 |  |  |  | 188 |  |  |  | 2.6 |
Total TDR loans in repayment |  |  | 6,846 |  |  |  | 100 | % |  |  | 7,448 |  |  |  | 100 | % |  |  | 7,202 |  |  |  | 100 | %
Total TDR loans |  |  | 7,583 |  |  |  |  |  |  |  | 8,431 |  |  |  |  |  |  |  | 8,748 |  |  |  |  |
TDR loans allowance for losses |  |  | (826 | ) |  |  |  |  |  |  | (929 | ) |  |  |  |  |  |  | (933 | ) |  |  |  |
TDR loans, net |  | $ | 6,757 |  |  |  |  |  |  | $ | 7,502 |  |  |  |  |  |  | $ | 7,815 |  |  |  |  |
Percentage of TDR loans in repayment |  |  |  |  |  |  | 90.3 | % |  |  |  |  |  |  | 88.3 | % |  |  |  |  |  |  | 82.3 | %
Delinquencies as a percentage of TDR loans in repayment |  |  |  |  |  |  | 6.7 | % |  |  |  |  |  |  | 6.6 | % |  |  |  |  |  |  | 5.2 | %
Loans in forbearance as a percentage of TDR loans in repayment and forbearance |  |  |  |  |  |  | 7.0 | % |  |  |  |  |  |  | 8.6 | % |  |  |  |  |  |  | 14.8 | %
(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, including COVID-19 relief programs, 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, 2021 |  |  | December 31, 2020 |  |  | June 30, 2020 |
(Dollars in millions) |  | Balance |  |  | % |  |  | Balance |  |  | % |  |  | Balance |  |  | % |
Loans in-school/grace/deferment(1) |  | $ | 183 |  |  |  |  |  |  | $ | 203 |  |  |  |  |  |  | $ | 219 |  |  |  |  |
Loans in forbearance(2) |  |  | 89 |  |  |  |  |  |  |  | 141 |  |  |  |  |  |  |  | 594 |  |  |  |  |
Loans in repayment and percentage of each status: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans current |  |  | 12,800 |  |  |  | 99.6 | % |  |  | 13,335 |  |  |  | 99.6 | % |  |  | 12,948 |  |  |  | 99.6 | %
Loans delinquent 31-60 days(3) |  |  | 22 |  |  |  | .2 |  |  |  | 26 |  |  |  | .2 |  |  |  | 18 |  |  |  | .1 |
Loans delinquent 61-90 days(3) |  |  | 9 |  |  |  | .1 |  |  |  | 12 |  |  |  | .1 |  |  |  | 11 |  |  |  | .1 |
Loans delinquent greater than 90 days(3) |  |  | 15 |  |  |  | .1 |  |  |  | 20 |  |  |  | .1 |  |  |  | 22 |  |  |  | .2 |
Total non-TDR loans in repayment |  |  | 12,846 |  |  |  | 100 | % |  |  | 13,393 |  |  |  | 100 | % |  |  | 12,999 |  |  |  | 100 | %
Total non-TDR loans |  |  | 13,118 |  |  |  |  |  |  |  | 13,737 |  |  |  |  |  |  |  | 13,812 |  |  |  |  |
Non-TDR loans allowance for losses |  |  | (150 | ) |  |  |  |  |  |  | (160 | ) |  |  |  |  |  |  | (165 | ) |  |  |  |
Non-TDR loans, net |  | $ | 12,968 |  |  |  |  |  |  | $ | 13,577 |  |  |  |  |  |  | $ | 13,647 |  |  |  |  |
Percentage of non-TDR loans in repayment |  |  |  |  |  |  | 97.9 | % |  |  |  |  |  |  | 97.5 | % |  |  |  |  |  |  | 94.1 | %
Delinquencies as a percentage of non-TDR loans in repayment |  |  |  |  |  |  | .4 | % |  |  |  |  |  |  | .4 | % |  |  |  |  |  |  | .4 | %
Loans in forbearance as a percentage of non- TDR loans in repayment and forbearance |  |  |  |  |  |  | .7 | % |  |  |  |  |  |  | 1.0 | % |  |  |  |  |  |  | 4.4 | %
(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, including COVID-19 relief programs, 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.

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