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Allowance for Loan Losses | 9 Months Ended
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Sep. 30, 2022
Receivables [Abstract] |
Allowance for Loan Losses | 2. Allowance for Loan Losses Allowance for Loan Losses Metrics
|  | Three Months Ended September 30, 2022 |
(Dollars in millions) |  | FFELP Loans |  |  | Private Education Loans |  |  | Total |
Beginning balance |  | $ | 245 |  |  | $ | 921 |  |  | $ | 1,166 |
Total provision |  |  | — |  |  |  | 28 |  |  |  | 28 |
Charge-offs: |  |  |  |  |  |  |  |  |  |  |  |
Gross charge-offs |  |  | (12 | ) |  |  | (118 | ) |  |  | (130 | )
Expected future recoveries on current period gross charge-offs |  |  | — |  |  |  | 19 |  |  |  | 19 |
Total(1) |  |  | (12 | ) |  |  | (99 | ) |  |  | (111 | )
Adjustment resulting from the change in charge-off rate(2) |  |  | — |  |  |  | (30 | ) |  |  | (30 | )
Net charge-offs |  |  | (12 | ) |  |  | (129 | ) |  |  | (141 | )
Decrease in expected future recoveries on previously fully charged-off loans(3) |  |  | — |  |  |  | 32 |  |  |  | 32 |
Allowance at end of period |  | $ | 233 |  |  | $ | 852 |  |  | $ | 1,085 |
Net charge-offs as a percentage of average loans in repayment, excluding the net adjustment resulting from the change in charge-off rate (annualized) (2) |  |  | .12 | % |  |  | 2.01 | % |  |  |  |
Net adjustment resulting from the change in charge-off rate as a percentage of average loans in repayment (annualized)(2) |  |  | — | % |  |  | .60 | % |  |  |  |
Net charge-offs as a percentage of average loans in repayment (annualized) |  |  | .12 | % |  |  | 2.61 | % |  |  |  |
Ending total loans |  | $ | 47,124 |  |  | $ | 20,003 |  |  |  |  |
Average loans in repayment |  | $ | 39,573 |  |  | $ | 19,628 |  |  |  |  |
Ending loans in repayment |  | $ | 37,731 |  |  | $ | 19,284 |  |  |  |  |
(1) | Charge-offs are reported net of expected recoveries. For Private Education Loans we charge off the estimated loss of a defaulted loan balance by charging off the entire defaulted loan balance and estimating recoveries on a pool basis. These estimated recoveries are referred to as “expected future recoveries on previously fully charged-off loans.” For FFELP Loans, the recovery is received at the time of charge-off.
(2) | In third-quarter 2022, the net charge-off rate on defaulted Private Education Loans increased from 81.7% to 81.9%. This change resulted in a $30 million reduction to the balance of the expected future recoveries on previously fully charged-off loans.
(3) | At the end of each month, for Private Education Loans that are 212 days past due, we charge off the estimated loss of a defaulted loan balance by charging off the entire loan balance and estimating recoveries on a pool basis. These estimated recoveries are referred to as “expected future recoveries on previously fully charged-off loans.” If actual periodic recoveries are less than expected, the difference is immediately reflected as a reduction to expected future recoveries on previously fully 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 previously fully charged-off loans:
|  | Three Months Ended September 30, |
(Dollars in millions) |  | 2022 |
Beginning of period expected future recoveries on previously fully charged-off loans |  | $ | 312 |
Expected future recoveries of current period defaults |  |  | 19 |
Recoveries (cash collected) |  |  | (14 | )
Charge-offs (as a result of lower recovery expectations) |  |  | (37 | )
End of period expected future recoveries on previously fully charged-off loans |  | $ | 280 |
Change in balance during period |  | $ | (32 | )
2. Allowance for Loan Losses (Continued)
|  | Three Months Ended September 30, 2021 |
(Dollars in millions) |  | FFELP Loans |  |  | Private Education Loans |  |  | Total |
Beginning balance |  | $ | 277 |  |  | $ | 976 |  |  | $ | 1,253 |
Total provision |  |  | — |  |  |  | 22 |  |  |  | 22 |
Charge-offs: |  |  |  |  |  |  |  |  |  |  |  |
Gross charge-offs |  |  | (8 | ) |  |  | (45 | ) |  |  | (53 | )
Expected future recoveries on current period gross charge-offs |  |  | — |  |  |  | 6 |  |  |  | 6 |
Total(1) |  |  | (8 | ) |  |  | (39 | ) |  |  | (47 | )
Adjustment resulting from the change in charge-off rate(2) |  |  | — |  |  |  | (16 | ) |  |  | (16 | )
Net charge-offs |  |  | (8 | ) |  |  | (55 | ) |  |  | (63 | )
Decrease in expected future recoveries on previously fully charged-off loans(3) |  |  | — |  |  |  | 37 |  |  |  | 37 |
Allowance at end of period |  | $ | 269 |  |  | $ | 980 |  |  | $ | 1,249 |
Net charge-offs as a percentage of average loans in repayment, excluding the net adjustment resulting from the change in charge-off rate (annualized)(2) |  |  | .07 | % |  |  | .77 | % |  |  |  |
Net adjustment resulting from the change in charge-off rate as a percentage of average loans in repayment (annualized)(2) |  |  | — | % |  |  | .33 | % |  |  |  |
Net charge-offs as a percentage of average loans in repayment (annualized) |  |  | .07 | % |  |  | 1.10 | % |  |  |  |
Ending total loans |  | $ | 54,619 |  |  | $ | 20,998 |  |  |  |  |
Average loans in repayment |  | $ | 45,201 |  |  | $ | 19,894 |  |  |  |  |
Ending loans in repayment |  | $ | 44,160 |  |  | $ | 19,795 |  |  |  |  |
(1) | Charge-offs are reported net of expected recoveries. For Private Education Loans we charge off the estimated loss of a defaulted loan balance by charging off the entire defaulted loan balance and estimating recoveries on a pool basis. These estimated recoveries are referred to as “expected future recoveries on previously fully charged-off loans.” For FFELP Loans, the recovery is received at the time of charge-off.
(2) | In third-quarter 2021, the net charge-off rate on defaulted Private Education Loans increased from 81.4% to 81.7%. This change resulted in a $16 million reduction to the balance of the expected future recoveries on previously fully charged-off loans.
(3) | At the end of each month, for Private Education Loans that are 212 days past due, we charge off the estimated loss of a defaulted loan balance by charging off the entire loan balance and estimating recoveries on a pool basis. These estimated recoveries are referred to as “expected future recoveries on previously fully charged-off loans.” If actual periodic recoveries are less than expected, the difference is immediately reflected as a reduction to expected future recoveries on previously fully 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 previously fully charged-off loans:
|  | Three Months Ended September 30, |
(Dollars in millions) |  | 2021 |
Beginning of period expected future recoveries on previously fully charged-off loans |  | $ | 434 |
Expected future recoveries of current period defaults |  |  | 6 |
Recoveries (cash collected) |  |  | (22 | )
Charge-offs (as a result of lower recovery expectations) |  |  | (21 | )
End of period expected future recoveries on previously fully charged-off loans |  | $ | 397 |
Change in balance during period |  | $ | (37 | )
2. Allowance for Loan Losses (Continued)
|  | Nine Months Ended September 30, 2022 |
(Dollars in millions) |  | FFELP Loans |  |  | Private Education Loans |  |  | Total |
Beginning balance |  | $ | 262 |  |  | $ | 1,009 |  |  | $ | 1,271 |
Total provision |  |  | — |  |  |  | 62 |  |  |  | 62 |
Charge-offs: |  |  |  |  |  |  |  |  |  |  |  |
Gross charge-offs |  |  | (29 | ) |  |  | (281 | ) |  |  | (310 | )
Expected future recoveries on current period gross charge-offs |  |  | — |  |  |  | 43 |  |  |  | 43 |
Total(1) |  |  | (29 | ) |  |  | (238 | ) |  |  | (267 | )
Adjustment resulting from the change in charge-off rate(2) |  |  | — |  |  |  | (30 | ) |  |  | (30 | )
Net charge-offs |  |  | (29 | ) |  |  | (268 | ) |  |  | (297 | )
Decrease in expected future recoveries on previously fully charged-off loans(3) |  |  | — |  |  |  | 49 |  |  |  | 49 |
Allowance at end of period |  | $ | 233 |  |  | $ | 852 |  |  | $ | 1,085 |
Net charge-offs as a percentage of average loans in repayment, excluding the net adjustment resulting from the change in charge-off rate (annualized)(2) |  |  | .09 | % |  |  | 1.59 | % |  |  |  |
Net adjustment resulting from the change in charge-off rate as a percentage of average loans in repayment (annualized)(2) |  |  | — | % |  |  | .20 | % |  |  |  |
Net charge-offs as a percentage of average loans in repayment (annualized) |  |  | .09 | % |  |  | 1.79 | % |  |  |  |
Ending total loans |  | $ | 47,124 |  |  | $ | 20,003 |  |  |  |  |
Average loans in repayment |  | $ | 41,793 |  |  | $ | 20,056 |  |  |  |  |
Ending loans in repayment |  | $ | 37,731 |  |  | $ | 19,284 |  |  |  |  |
(1) | Charge-offs are reported net of expected recoveries. For Private Education Loans we charge off the estimated loss of a defaulted loan balance by charging off the entire defaulted loan balance and estimating recoveries on a pool basis. These estimated recoveries are referred to as “expected future recoveries on previously fully charged-off loans.” For FFELP Loans, the recovery is received at the time of charge-off.
(2) | In third-quarter 2022, the net charge-off rate on defaulted Private Education Loans increased from 81.7% to 81.9%. This change resulted in a $30 million reduction to the balance of the expected future recoveries on previously fully charged-off loans.
(3) | At the end of each month, for Private Education Loans that are 212 days past due, we charge off the estimated loss of a defaulted loan balance by charging off the entire loan balance and estimating recoveries on a pool basis. These estimated recoveries are referred to as “expected future recoveries on previously fully charged-off loans.” If actual periodic recoveries are less than expected, the difference is immediately reflected as a reduction to expected future recoveries on previously fully 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 previously fully charged-off loans:
|  | Nine Months Ended September 30, |
(Dollars in millions) |  | 2022 |
Beginning of period expected future recoveries on previously fully charged-off loans |  | $ | 329 |
Expected future recoveries of current period defaults |  |  | 43 |
Recoveries (cash collected) |  |  | (43 | )
Charge-offs (as a result of lower recovery expectations) |  |  | (49 | )
End of period expected future recoveries on previously fully charged-off loans |  | $ | 280 |
Change in balance during period |  | $ | (49 | )
2. Allowance for Loan Losses (Continued)
|  | Nine Months Ended September 30, 2021 |
(Dollars in millions) |  | FFELP Loans |  |  | Private Education Loans |  |  | Other Loans |
Beginning balance |  | $ | 288 |  |  | $ | 1,089 |  |  | $ | 1,377 |
Provision: |  |  |  |  |  |  |  |  |  |  |  |
Reversal of allowance related to loan sales(1) |  |  | — |  |  |  | (107 | ) |  |  | (107 | )
Remaining provision |  |  | — |  |  |  | 41 |  |  |  | 41 |
Total provision |  |  | — |  |  |  | (66 | ) |  |  | (66 | )
Charge-offs: |  |  |  |  |  |  |  |  |  |  |  |
Gross charge-offs |  |  | (19 | ) |  |  | (125 | ) |  |  | (144 | )
Expected future recoveries on current period gross charge-offs |  |  | — |  |  |  | 16 |  |  |  | 16 |
Total(2) |  |  | (19 | ) |  |  | (109 | ) |  |  | (128 | )
Adjustment resulting from the change in charge-off rate(3) |  |  | — |  |  |  | (16 | ) |  |  | (16 | )
Net charge-offs |  |  | (19 | ) |  |  | (125 | ) |  |  | (144 | )
Decrease in expected future recoveries on previously fully charged-off loans(4) |  |  | — |  |  |  | 82 |  |  |  | 82 |
Allowance at end of period |  | $ | 269 |  |  | $ | 980 |  |  | $ | 1,249 |
Net charge-offs as a percentage of average loans in repayment, excluding the net adjustment resulting from the change in charge-off rate (annualized)(3) |  |  | .06 | % |  |  | .72 | % |  |  |  |
Net adjustment resulting from the change in charge-off rate as a percentage of average loans in repayment (annualized)(3) |  |  | — | % |  |  | .11 | % |  |  |  |
Net charge-offs as a percentage of average loans in repayment (annualized) |  |  | .06 | % |  |  | .83 | % |  |  |  |
Ending total loans |  | $ | 54,619 |  |  | $ | 20,998 |  |  |  |  |
Average loans in repayment |  | $ | 46,191 |  |  | $ | 20,145 |  |  |  |  |
Ending loans in repayment |  | $ | 44,160 |  |  | $ | 19,795 |  |  |  |  |
(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 we charge off the estimated loss of a defaulted loan balance by charging off the entire defaulted loan balance and estimating recoveries on a pool basis. These estimated recoveries are referred to as “expected future recoveries on previously fully charged-off loans.” For FFELP Loans, the recovery is received at the time of charge-off.
(3) | In third-quarter 2021, the net charge-off rate on defaulted Private Education Loans increased from 81.4% to 81.7%. This change resulted in a $16 million reduction to the balance of the expected future recoveries on previously fully charged-off loans.
(4) | At the end of each month, for Private Education Loans that are 212 days past due, we charge off the estimated loss of a defaulted loan balance by charging off the entire loan balance and estimating recoveries on a pool basis. These estimated recoveries are referred to as “expected future recoveries on previously fully charged-off loans.” If actual periodic recoveries are less than expected, the difference is immediately reflected as a reduction to expected future recoveries on previously fully 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 previously fully charged-off loans:
|  | Nine Months Ended September 30, |
(Dollars in millions) |  | 2021 |
Beginning of period expected future recoveries on previously fully charged-off loans |  | $ | 479 |
Expected future recoveries of current period defaults |  |  | 16 |
Recoveries (cash collected) |  |  | (69 | )
Charge-offs (as a result of lower recovery expectations) |  |  | (29 | )
End of period expected future recoveries on previously fully charged-off loans |  | $ | 397 |
Change in balance during period |  | $ | (82 | )
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 77% and 75% of the loans granted forbearance have qualified as a TDR loan at September 30, 2022 and December 31, 2021, respectively. The unpaid principal balance of TDR loans that were in an interest rate reduction program as of September 30, 2022 and December 31, 2021 was $900 million and $831 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 September 30, |  |  | Nine Months Ended September 30, |
(Dollars in millions) |  | 2022 |  |  | 2021 |  |  | 2022 |  |  | 2021 |
Modified loans |  | $ | 68 |  |  | $ | 40 |  |  | $ | 186 |  |  | $ | 109 |
Charge-offs |  | $ | 101 |  |  | $ | 37 |  |  | $ | 217 |  |  | $ | 90 |
Payment default |  | $ | 13 |  |  | $ | 6 |  |  | $ | 31 |  |  | $ | 15 |
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 |
|  | September 30, 2022 |  |  | December 31, 2021 |  |  | September 30, 2021 |
(Dollars in millions) |  | Balance |  |  | % |  |  | Balance |  |  | % |  |  | Balance |  |  | % |
Loans in-school/grace/deferment(1) |  | $ | 1,983 |  |  |  |  |  |  | $ | 2,220 |  |  |  |  |  |  | $ | 2,430 |  |  |  |  |
Loans in forbearance(2) |  |  | 7,410 |  |  |  |  |  |  |  | 6,292 |  |  |  |  |  |  |  | 8,029 |  |  |  |  |
Loans in repayment and percentage of each status: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans current |  |  | 30,720 |  |  |  | 81.4 | % |  |  | 39,679 |  |  |  | 89.4 | % |  |  | 40,404 |  |  |  | 91.5 | %
Loans delinquent 31-60 days(3) |  |  | 1,917 |  |  |  | 5.1 |  |  |  | 1,696 |  |  |  | 3.8 |  |  |  | 1,181 |  |  |  | 2.7 |
Loans delinquent 61-90 days(3) |  |  | 1,291 |  |  |  | 3.4 |  |  |  | 904 |  |  |  | 2.0 |  |  |  | 665 |  |  |  | 1.5 |
Loans delinquent greater than 90 days(3) |  |  | 3,803 |  |  |  | 10.1 |  |  |  | 2,112 |  |  |  | 4.8 |  |  |  | 1,910 |  |  |  | 4.3 |
Total FFELP Loans in repayment |  |  | 37,731 |  |  |  | 100 | % |  |  | 44,391 |  |  |  | 100 | % |  |  | 44,160 |  |  |  | 100 | %
Total FFELP Loans |  |  | 47,124 |  |  |  |  |  |  |  | 52,903 |  |  |  |  |  |  |  | 54,619 |  |  |  |  |
FFELP Loan allowance for losses |  |  | (233 | ) |  |  |  |  |  |  | (262 | ) |  |  |  |  |  |  | (269 | ) |  |  |  |
FFELP Loans, net |  | $ | 46,891 |  |  |  |  |  |  | $ | 52,641 |  |  |  |  |  |  | $ | 54,350 |  |  |  |  |
Percentage of FFELP Loans in repayment |  |  |  |  |  |  | 80.1 | % |  |  |  |  |  |  | 83.9 | % |  |  |  |  |  |  | 80.9 | %
Delinquencies as a percentage of FFELP Loans in repayment |  |  |  |  |  |  | 18.6 | % |  |  |  |  |  |  | 10.6 | % |  |  |  |  |  |  | 8.5 | %
FFELP Loans in forbearance as a percentage of loans in repayment and forbearance |  |  |  |  |  |  | 16.4 | % |  |  |  |  |  |  | 12.4 | % |  |  |  |  |  |  | 15.4 | %
(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) |  | September 30, 2022 |  |  | September 30, 2021 |  |  | Change |
Stafford Loans |  | $ | 14,956 |  |  | $ | 16,719 |  |  | $ | (1,763 | )
Consolidation Loans |  |  | 27,766 |  |  |  | 33,143 |  |  |  | (5,377 | )
Rehab Loans |  |  | 4,402 |  |  |  | 4,757 |  |  |  | (355 | )
Total loans, gross |  | $ | 47,124 |  |  | $ | 54,619 |  |  | $ | (7,495 | )
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 |
|  | September 30, 2022 |
(Dollars in millions) |  | September 30, 2022 |  |  | 2021 |  |  | 2020 |  |  | 2019 |  |  | 2018 |  |  | Prior |  |  | Total |  |  | % of Total |
Credit Quality Indicators |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FICO Scores: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
640 and above |  | $ | 1,503 |  |  | $ | 4,708 |  |  | $ | 1,593 |  |  | $ | 1,502 |  |  | $ | 556 |  |  | $ | 8,485 |  |  | $ | 18,347 |  |  |  | 92 | %
Below 640 |  |  | 17 |  |  |  | 64 |  |  |  | 19 |  |  |  | 37 |  |  |  | 20 |  |  |  | 1,499 |  |  |  | 1,656 |  |  |  | 8 |
Total |  | $ | 1,520 |  |  | $ | 4,772 |  |  | $ | 1,612 |  |  | $ | 1,539 |  |  | $ | 576 |  |  | $ | 9,984 |  |  | $ | 20,003 |  |  |  | 100 | %
Loan Status: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
In-school/grace/ deferment/forbearance |  | $ | 31 |  |  | $ | 88 |  |  | $ | 28 |  |  | $ | 34 |  |  | $ | 13 |  |  | $ | 525 |  |  | $ | 719 |  |  |  | 4 | %
Current/90 days or less delinquent |  |  | 1,488 |  |  |  | 4,678 |  |  |  | 1,582 |  |  |  | 1,499 |  |  |  | 560 |  |  |  | 9,083 |  |  |  | 18,890 |  |  |  | 94 |
Greater than 90 days delinquent |  |  | 1 |  |  |  | 6 |  |  |  | 2 |  |  |  | 6 |  |  |  | 3 |  |  |  | 376 |  |  |  | 394 |  |  |  | 2 |
Total |  | $ | 1,520 |  |  | $ | 4,772 |  |  | $ | 1,612 |  |  | $ | 1,539 |  |  | $ | 576 |  |  | $ | 9,984 |  |  | $ | 20,003 |  |  |  | 100 | %
Seasoning(1): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
1-12 payments |  | $ | 1,499 |  |  | $ | 2,186 |  |  | $ | 14 |  |  | $ | 10 |  |  | $ | 2 |  |  | $ | 95 |  |  | $ | 3,806 |  |  |  | 19 | %
13-24 payments |  |  | — |  |  |  | 2,534 |  |  |  | 736 |  |  |  | 39 |  |  |  | 8 |  |  |  | 102 |  |  |  | 3,419 |  |  | 17 |
25-36 payments |  |  | — |  |  |  | — |  |  |  | 846 |  |  |  | 968 |  |  |  | 19 |  |  |  | 177 |  |  |  | 2,010 |  |  |  | 10 |
37-48 payments |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 503 |  |  |  | 287 |  |  |  | 293 |  |  |  | 1,083 |  |  | 5 |
More than 48 payments |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 254 |  |  |  | 9,083 |  |  |  | 9,337 |  |  |  | 47 |
Loans in-school/ grace/deferment |  |  | 21 |  |  |  | 52 |  |  |  | 16 |  |  |  | 19 |  |  |  | 6 |  |  |  | 234 |  |  |  | 348 |  |  | 2 |
Total |  | $ | 1,520 |  |  | $ | 4,772 |  |  | $ | 1,612 |  |  | $ | 1,539 |  |  | $ | 576 |  |  | $ | 9,984 |  |  | $ | 20,003 |  |  |  | 100 | %
TDR Status: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
TDR |  | $ | 6 |  |  | $ | 48 |  |  | $ | 28 |  |  | $ | 62 |  |  | $ | 35 |  |  | $ | 6,617 |  |  | $ | 6,796 |  |  |  | 34 | %
Non-TDR |  |  | 1,514 |  |  |  | 4,724 |  |  |  | 1,584 |  |  |  | 1,477 |  |  |  | 541 |  |  |  | 3,367 |  |  |  | 13,207 |  |  |  | 66 |
Total |  | $ | 1,520 |  |  | $ | 4,772 |  |  | $ | 1,612 |  |  | $ | 1,539 |  |  | $ | 576 |  |  | $ | 9,984 |  |  | $ | 20,003 |  |  |  | 100 | %
Cosigners: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
With cosigner(2) |  | $ | 24 |  |  | $ | 109 |  |  | $ | 28 |  |  | $ | 11 |  |  | $ | — |  |  | $ | 6,425 |  |  | $ | 6,597 |  |  |  | 33 | %
Without cosigner |  |  | 1,496 |  |  |  | 4,663 |  |  |  | 1,584 |  |  |  | 1,528 |  |  |  | 576 |  |  |  | 3,559 |  |  |  | 13,406 |  |  |  | 67 |
Total |  | $ | 1,520 |  |  | $ | 4,772 |  |  | $ | 1,612 |  |  | $ | 1,539 |  |  | $ | 576 |  |  | $ | 9,984 |  |  | $ | 20,003 |  |  |  | 100 | %
School Type: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Not-for-profit |  | $ | 1,427 |  |  | $ | 4,496 |  |  | $ | 1,541 |  |  | $ | 1,434 |  |  | $ | 529 |  |  | $ | 8,338 |  |  | $ | 17,765 |  |  |  | 89 | %
For-profit |  |  | 93 |  |  |  | 276 |  |  |  | 71 |  |  |  | 105 |  |  |  | 47 |  |  |  | 1,646 |  |  |  | 2,238 |  |  |  | 11 |
Total |  | $ | 1,520 |  |  | $ | 4,772 |  |  | $ | 1,612 |  |  | $ | 1,539 |  |  | $ | 576 |  |  | $ | 9,984 |  |  | $ | 20,003 |  |  |  | 100 | %
Allowance for loan losses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (852 | ) |  |  |  |
Total loans, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 19,151 |  |  |  |  |
(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 September 30, 2022.
2. Allowance for Loan Losses (Continued)
|  | Private Education Loan Credit Quality Indicators by Origination Year |
|  | September 30, 2021 |
(Dollars in millions) |  | September 30, 2021 |  |  | 2020 |  |  | 2019 |  |  | 2018 |  |  | 2017 |  |  | Prior |  |  | Total |  |  | % of Total |
Credit Quality Indicators |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FICO Scores: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
640 and above |  | $ | 4,049 |  |  | $ | 2,228 |  |  | $ | 2,064 |  |  | $ | 762 |  |  | $ | 233 |  |  | $ | 10,021 |  |  | $ | 19,357 |  |  |  | 92 | %
Below 640 |  |  | 28 |  |  |  | 10 |  |  |  | 33 |  |  |  | 20 |  |  |  | 8 |  |  |  | 1,542 |  |  |  | 1,641 |  |  |  | 8 |
Total |  | $ | 4,077 |  |  | $ | 2,238 |  |  | $ | 2,097 |  |  | $ | 782 |  |  | $ | 241 |  |  | $ | 11,563 |  |  | $ | 20,998 |  |  |  | 100 | %
Loan Status: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
In-school/grace/ deferment/forbearance |  | $ | 32 |  |  | $ | 34 |  |  | $ | 45 |  |  | $ | 19 |  |  | $ | 8 |  |  | $ | 1,065 |  |  | $ | 1,203 |  |  |  | 6 | %
Current/90 days or less delinquent |  |  | 4,044 |  |  |  | 2,203 |  |  |  | 2,049 |  |  |  | 762 |  |  |  | 232 |  |  |  | 10,289 |  |  |  | 19,579 |  |  |  | 93 |
Greater than 90 days delinquent |  |  | 1 |  |  |  | 1 |  |  |  | 3 |  |  |  | 1 |  |  |  | 1 |  |  |  | 209 |  |  |  | 216 |  |  |  | 1 |
Total |  | $ | 4,077 |  |  | $ | 2,238 |  |  | $ | 2,097 |  |  | $ | 782 |  |  | $ | 241 |  |  | $ | 11,563 |  |  | $ | 20,998 |  |  |  | 100 | %
Seasoning(1): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
1-12 payments |  | $ | 4,058 |  |  | $ | 1,017 |  |  | $ | 37 |  |  | $ | 5 |  |  | $ | 1 |  |  | $ | 142 |  |  | $ | 5,260 |  |  |  | 25 | %
13-24 payments |  |  | — |  |  |  | 1,201 |  |  |  | 1,330 |  |  |  | 20 |  |  |  | 4 |  |  |  | 167 |  |  |  | 2,722 |  |  | 13 |
25-36 payments |  |  | — |  |  |  | — |  |  |  | 709 |  |  |  | 385 |  |  |  | 12 |  |  |  | 273 |  |  |  | 1,379 |  |  |  | 7 |
37-48 payments |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 364 |  |  |  | 133 |  |  |  | 417 |  |  |  | 914 |  |  | 4 |
More than 48 payments |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 89 |  |  |  | 10,245 |  |  |  | 10,334 |  |  |  | 49 |
Loans in-school/ grace/deferment |  |  | 19 |  |  |  | 20 |  |  |  | 21 |  |  |  | 8 |  |  |  | 2 |  |  |  | 319 |  |  |  | 389 |  |  | 2 |
Total |  | $ | 4,077 |  |  | $ | 2,238 |  |  | $ | 2,097 |  |  | $ | 782 |  |  | $ | 241 |  |  | $ | 11,563 |  |  | $ | 20,998 |  |  |  | 100 | %
TDR Status: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
TDR |  | $ | 1 |  |  | $ | 5 |  |  | $ | 26 |  |  | $ | 27 |  |  | $ | 30 |  |  | $ | 7,323 |  |  | $ | 7,412 |  |  |  | 35 | %
Non-TDR |  |  | 4,076 |  |  |  | 2,233 |  |  |  | 2,071 |  |  |  | 755 |  |  |  | 211 |  |  |  | 4,240 |  |  |  | 13,586 |  |  |  | 65 |
Total |  | $ | 4,077 |  |  | $ | 2,238 |  |  | $ | 2,097 |  |  | $ | 782 |  |  | $ | 241 |  |  | $ | 11,563 |  |  | $ | 20,998 |  |  |  | 100 | %
Cosigners: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
With cosigner(2) |  | $ | 12 |  |  | $ | 34 |  |  | $ | 13 |  |  | $ | — |  |  | $ | 37 |  |  | $ | 7,560 |  |  | $ | 7,656 |  |  |  | 36 | %
Without cosigner |  |  | 4,065 |  |  |  | 2,204 |  |  |  | 2,084 |  |  |  | 782 |  |  |  | 204 |  |  |  | 4,003 |  |  |  | 13,342 |  |  |  | 64 |
Total |  | $ | 4,077 |  |  | $ | 2,238 |  |  | $ | 2,097 |  |  | $ | 782 |  |  | $ | 241 |  |  | $ | 11,563 |  |  | $ | 20,998 |  |  |  | 100 | %
School Type: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Not-for-profit |  | $ | 3,850 |  |  | $ | 2,137 |  |  | $ | 1,957 |  |  | $ | 721 |  |  | $ | 231 |  |  | $ | 9,607 |  |  | $ | 18,503 |  |  |  | 88 | %
For-profit |  |  | 227 |  |  |  | 101 |  |  |  | 140 |  |  |  | 61 |  |  |  | 10 |  |  |  | 1,956 |  |  |  | 2,495 |  |  |  | 12 |
Total |  | $ | 4,077 |  |  | $ | 2,238 |  |  | $ | 2,097 |  |  | $ | 782 |  |  | $ | 241 |  |  | $ | 11,563 |  |  | $ | 20,998 |  |  |  | 100 | %
Allowance for loan losses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (980 | ) |  |  |  |
Total loans, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 20,018 |  |  |  |  |
(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 September 30, 2021.
2. Allowance for Loan Losses (Continued)
|  | Private Education Loan Delinquencies |
|  | TDRs |
|  | September 30, 2022 |  |  | December 31, 2021 |  |  | September 30, 2021 |
(Dollars in millions) |  | Balance |  |  | % |  |  | Balance |  |  | % |  |  | Balance |  |  | % |
Loans in-school/grace/deferment(1) |  | $ | 164 |  |  |  |  |  |  | $ | 194 |  |  |  |  |  |  | $ | 210 |  |  |  |  |
Loans in forbearance(2) |  |  | 284 |  |  |  |  |  |  |  | 446 |  |  |  |  |  |  |  | 667 |  |  |  |  |
Loans in repayment and percentage of each status: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans current |  |  | 5,573 |  |  |  | 87.8 | % |  |  | 6,023 |  |  |  | 91.0 | % |  |  | 5,988 |  |  |  | 91.6 | %
Loans delinquent 31-60 days(3) |  |  | 269 |  |  |  | 4.2 |  |  |  | 199 |  |  |  | 3.0 |  |  |  | 224 |  |  |  | 3.5 |
Loans delinquent 61-90 days(3) |  |  | 143 |  |  |  | 2.3 |  |  |  | 120 |  |  |  | 1.8 |  |  |  | 124 |  |  |  | 1.9 |
Loans delinquent greater than 90 days(3) |  |  | 363 |  |  |  | 5.7 |  |  |  | 274 |  |  |  | 4.2 |  |  |  | 198 |  |  |  | 3.0 |
Total TDR loans in repayment |  |  | 6,348 |  |  |  | 100 | % |  |  | 6,616 |  |  |  | 100 | % |  |  | 6,534 |  |  |  | 100 | %
Total TDR loans |  |  | 6,796 |  |  |  |  |  |  |  | 7,256 |  |  |  |  |  |  |  | 7,411 |  |  |  |  |
TDR loans allowance for losses |  |  | (666 | ) |  |  |  |  |  |  | (829 | ) |  |  |  |  |  |  | (814 | ) |  |  |  |
TDR loans, net |  | $ | 6,130 |  |  |  |  |  |  | $ | 6,427 |  |  |  |  |  |  | $ | 6,597 |  |  |  |  |
Percentage of TDR loans in repayment |  |  |  |  |  |  | 93.4 | % |  |  |  |  |  |  | 91.2 | % |  |  |  |  |  |  | 88.2 | %
Delinquencies as a percentage of TDR loans in repayment |  |  |  |  |  |  | 12.2 | % |  |  |  |  |  |  | 9.0 | % |  |  |  |  |  |  | 8.4 | %
Loans in forbearance as a percentage of TDR loans in repayment and forbearance |  |  |  |  |  |  | 4.3 | % |  |  |  |  |  |  | 6.3 | % |  |  |  |  |  |  | 9.3 | %
(1) | Loans for customers who are attending school or are in other permitted educational activities and are not yet required to make payments on their loans, e.g., internship periods, as well as loans for customers who have requested and qualify for other permitted program deferments such as various military eligible deferments.
(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 |
|  | September 30, 2022 |  |  | December 31, 2021 |  |  | September 30, 2021 |
(Dollars in millions) |  | Balance |  |  | % |  |  | Balance |  |  | % |  |  | Balance |  |  | % |
Loans in-school/grace/deferment(1) |  | $ | 184 |  |  |  |  |  |  | $ | 167 |  |  |  |  |  |  | $ | 179 |  |  |  |  |
Loans in forbearance(2) |  |  | 87 |  |  |  |  |  |  |  | 89 |  |  |  |  |  |  |  | 147 |  |  |  |  |
Loans in repayment and percentage of each status: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans current |  |  | 12,853 |  |  |  | 99.4 | % |  |  | 13,611 |  |  |  | 99.6 | % |  |  | 13,208 |  |  |  | 99.6 | %
Loans delinquent 31-60 days(3) |  |  | 36 |  |  |  | .3 |  |  |  | 23 |  |  |  | .2 |  |  |  | 23 |  |  |  | .2 |
Loans delinquent 61-90 days(3) |  |  | 16 |  |  |  | .1 |  |  |  | 11 |  |  |  | .1 |  |  |  | 12 |  |  |  | .1 |
Loans delinquent greater than 90 days(3) |  |  | 31 |  |  |  | .2 |  |  |  | 23 |  |  |  | .1 |  |  |  | 18 |  |  |  | .1 |
Total non-TDR loans in repayment |  |  | 12,936 |  |  |  | 100 | % |  |  | 13,668 |  |  |  | 100 | % |  |  | 13,261 |  |  |  | 100 | %
Total non-TDR loans |  |  | 13,207 |  |  |  |  |  |  |  | 13,924 |  |  |  |  |  |  |  | 13,587 |  |  |  |  |
Non-TDR loans allowance for losses |  |  | (186 | ) |  |  |  |  |  |  | (180 | ) |  |  |  |  |  |  | (166 | ) |  |  |  |
Non-TDR loans, net |  | $ | 13,021 |  |  |  |  |  |  | $ | 13,744 |  |  |  |  |  |  | $ | 13,421 |  |  |  |  |
Percentage of non-TDR loans in repayment |  |  |  |  |  |  | 97.9 | % |  |  |  |  |  |  | 98.2 | % |  |  |  |  |  |  | 97.6 | %
Delinquencies as a percentage of non-TDR loans in repayment |  |  |  |  |  |  | .6 | % |  |  |  |  |  |  | .4 | % |  |  |  |  |  |  | .4 | %
Loans in forbearance as a percentage of non-TDR loans in repayment and forbearance |  |  |  |  |  |  | .7 | % |  |  |  |  |  |  | .6 | % |  |  |  |  |  |  | 1.1 | %
(1) | Loans for customers who are attending school or are in other permitted educational activities and are not yet required to make payments on their loans, e.g., internship periods, as well as loans for customers who have requested and qualify for other permitted program deferments such as various military eligible deferments.
(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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- Definition The entire disclosure for allowance for credit losses. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -URI https://asc.fasb.org/topic&trid=2196771 + Details
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