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Allowance for Loan Losses | 12 Months Ended
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Dec. 31, 2023
Receivables [Abstract] |
Allowance for Loan Losses | 4. Allowance for Loan Losses Allowance for Loan Losses Rollforward
|  | Year Ended December 31, 2023 |
(Dollars in millions) |  | FFELP Loans |  |  | Private Education Loans |  |  | Total |
Beginning balance |  | $ | 222 |  |  | $ | 800 |  |  | $ | 1,022 |
Total provision |  |  | 56 |  |  |  | 67 |  |  |  | 123 |
Charge-offs: |  |  |  |  |  |  |  |  |
Gross charge-offs |  |  | (63 | ) |  |  | (320 | ) |  |  | (383 | )
Expected future recoveries on current period gross charge-offs |  |  | — |  |  |  | 47 |  |  |  | 47 |
Total(1) |  |  | (63 | ) |  |  | (273 | ) |  |  | (336 | )
Adjustment resulting from the change in charge-off rate(2) |  |  | — |  |  |  | (25 | ) |  |  | (25 | )
Net charge-offs |  |  | (63 | ) |  |  | (298 | ) |  |  | (361 | )
Decrease in expected future recoveries on previously fully charged-off loans(3) |  |  | — |  |  |  | 48 |  |  |  | 48 |
Allowance at end of period |  | $ | 215 |  |  | $ | 617 |  |  | $ | 832 |
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) |  |  | .19 | % |  |  | 1.54 | % |  |  |
Net adjustment resulting from the change in charge-off rate as a percentage of average loans in repayment (annualized)(2) |  |  | — | % |  |  | .14 | % |  |  |
Net charge-offs as a percentage of average loans in repayment (annualized) |  |  | .19 | % |  |  | 1.68 | % |  |  |
Ending total loans |  | $ | 38,140 |  |  | $ | 17,519 |  |  |  |
Average loans in repayment |  | $ | 33,047 |  |  | $ | 17,749 |  |  |  |
Ending loans in repayment |  | $ | 30,436 |  |  | $ | 16,796 |  |  |  |
(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) An increase in the net charge-off rate on defaulted Private Education Loans in 2023 resulted in a $25 million reduction in the balance of 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:
|  | Year Ended December 31, |
(Dollars in millions) |  | 2023 |
Beginning of period expected future recoveries on previously fully charged-off loans |  | $ | 274 |
Expected future recoveries of current period defaults |  |  | 47 |
Recoveries (cash collected) |  |  | (46 | )
Charge-offs (as a result of lower recovery expectations) |  |  | (49 | )
End of period expected future recoveries on previously fully charged-off loans |  | $ | 226 |
Change in balance during period |  | $ | (48 | )
4. Allowance for Loan Losses (Continued)
|  | Year Ended December 31, 2022 |
(Dollars in millions) |  | FFELP Loans |  |  | Private Education Loans |  |  | Total |
Beginning balance |  | $ | 262 |  |  | $ | 1,009 |  |  | $ | 1,271 |
Total provision |  |  | — |  |  |  | 79 |  |  |  | 79 |
Charge-offs: |  |  |  |  |  |  |  |  |
Gross charge-offs |  |  | (40 | ) |  |  | (370 | ) |  |  | (410 | )
Expected future recoveries on current period gross charge-offs |  |  | — |  |  |  | 57 |  |  |  | 57 |
Total(1) |  |  | (40 | ) |  |  | (313 | ) |  |  | (353 | )
Adjustment resulting from the change in charge-off rate(2) |  |  | — |  |  |  | (30 | ) |  |  | (30 | )
Net charge-offs |  |  | (40 | ) |  |  | (343 | ) |  |  | (383 | )
Decrease in expected future recoveries on previously fully charged-off loans(3) |  |  | — |  |  |  | 55 |  |  |  | 55 |
Allowance at end of period |  | $ | 222 |  |  | $ | 800 |  |  | $ | 1,022 |
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) |  |  | .10 | % |  |  | 1.59 | % |  |  |
Net adjustment resulting from the change in charge-off rate as a percentage of average loans in repayment (annualized)(2) |  |  | — | % |  |  | .15 | % |  |  |
Net charge-offs as a percentage of average loans in repayment (annualized) |  |  | .10 | % |  |  | 1.74 | % |  |  |
Ending total loans |  | $ | 43,747 |  |  | $ | 19,525 |  |  |  |
Average loans in repayment |  | $ | 40,332 |  |  | $ | 19,796 |  |  |  |
Ending loans in repayment |  | $ | 34,372 |  |  | $ | 18,770 |  |  |  |
(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) An increase in the net charge-off rate on defaulted Private Education Loans in 2022 resulted in a $30 million reduction in the balance of 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:
|  | Year Ended December 31, |
(Dollars in millions) |  | 2022 |
Beginning of period expected future recoveries on previously fully charged-off loans |  | $ | 329 |
Expected future recoveries of current period defaults |  |  | 57 |
Recoveries (cash collected) |  |  | (56 | )
Charge-offs (as a result of lower recovery expectations) |  |  | (56 | )
End of period expected future recoveries on previously fully charged-off loans |  | $ | 274 |
Change in balance during period |  | $ | (55 | )
4. Allowance for Loan Losses (Continued)
|  | Year Ended December 31, 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 |  |  | — |  |  |  | 46 |  |  |  | 46 |
Total provision |  |  | — |  |  |  | (61 | ) |  |  | (61 | )
Charge-offs: |  |  |  |  |  |  |  |  |
Gross charge-offs |  |  | (26 | ) |  |  | (175 | ) |  |  | (201 | )
Expected future recoveries on current period gross charge-offs |  |  | — |  |  |  | 22 |  |  |  | 22 |
Total(2) |  |  | (26 | ) |  |  | (153 | ) |  |  | (179 | )
Adjustment resulting from the change in charge-off rate(3) |  |  | — |  |  |  | (16 | ) |  |  | (16 | )
Net charge-offs |  |  | (26 | ) |  |  | (169 | ) |  |  | (195 | )
Decrease in expected future recoveries on previously fully charged-off loans(4) |  |  | — |  |  |  | 150 |  |  |  | 150 |
Allowance at end of period |  | $ | 262 |  |  | $ | 1,009 |  |  | $ | 1,271 |
Net charge-offs as a percentage of average loans in repayment, excluding the net adjustment resulting from the change in charge-off rate(3) |  |  | .06 | % |  |  | .76 | % |  |  |
Net adjustment resulting from the change in charge-off rate as a percentage of average loans in repayment(3) |  |  | — | % |  |  | .08 | % |  |  |
Net charge-offs as a percentage of average loans in repayment |  |  | .06 | % |  |  | .84 | % |  |  |
Ending total loans |  | $ | 52,903 |  |  | $ | 21,180 |  |  |  |
Average loans in repayment |  | $ | 45,781 |  |  | $ | 20,150 |  |  |  |
Ending loans in repayment |  | $ | 44,390 |  |  | $ | 20,284 |  |  |  |
(1) In connection with the sale of approximately $1.6 billion of Private Education Loans in 2021. (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) An increase in the net charge-off rate on defaulted Private Education Loans in 2021 resulted in a $16 million reduction in the balance of 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:
|  | Year Ended December 31, |
(Dollars in millions) |  | 2021 |
Beginning of period expected future recoveries on previously fully charged-off loans |  | $ | 479 |
Expected future recoveries of current period defaults |  |  | 22 |
Recoveries (cash collected) |  |  | (87 | )
Charge-offs (as a result of lower recovery expectations) |  |  | (35 | )
Reduction in expected recoveries related to regulatory settlement(5) |  |  | (50 | )
End of period expected future recoveries on previously fully charged-off loans |  | $ | 329 |
Change in balance during period |  | $ | (150 | )
(5) Related to the resolution of previously disclosed litigation. 4. 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 |
|  | December 31, 2023 |  |  | December 31, 2022 |
(Dollars in millions) |  | Balance |  |  | % |  |  | Balance |  |  | % |
Loans in-school/grace/deferment(1) |  | $ | 1,557 |  |  |  |  |  | $ | 1,772 |  |  |  |
Loans in forbearance(2) |  |  | 6,147 |  |  |  |  |  |  | 7,603 |  |  |  |
Loans in repayment and percentage of each status: |  |  |  |  |  |  |  |  |  |  |  |
Loans current |  |  | 26,204 |  |  |  | 86.1 | % |  |  | 29,004 |  |  |  | 84.4 | %
Loans delinquent 31-60 days(3) |  |  | 1,193 |  |  |  | 3.9 |  |  |  | 1,247 |  |  |  | 3.6 |
Loans delinquent 61-90 days(3) |  |  | 746 |  |  |  | 2.5 |  |  |  | 833 |  |  |  | 2.4 |
Loans delinquent greater than 90 days(3) |  |  | 2,293 |  |  |  | 7.5 |  |  |  | 3,288 |  |  |  | 9.6 |
Total FFELP Loans in repayment |  |  | 30,436 |  |  |  | 100 | % |  |  | 34,372 |  |  |  | 100 | %
Total FFELP Loans |  |  | 38,140 |  |  |  |  |  |  | 43,747 |  |  |  |
FFELP Loan allowance for losses |  |  | (215 | ) |  |  |  |  |  | (222 | ) |  |  |
FFELP Loans, net |  | $ | 37,925 |  |  |  |  |  | $ | 43,525 |  |  |  |
Percentage of FFELP Loans in repayment |  |  |  |  |  | 79.8 | % |  |  |  |  |  | 78.6 | %
Delinquencies as a percentage of FFELP Loans in repayment |  |  |  |  |  | 13.9 | % |  |  |  |  |  | 15.6 | %
FFELP Loans in forbearance as a percentage of loans in repayment and forbearance |  |  |  |  |  | 16.8 | % |  |  |  |  |  | 18.1 | %
(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) |  | December 31, 2023 |  |  | December 31, 2022 |  |  | Change |
Stafford Loans |  | $ | 12,171 |  |  | $ | 14,019 |  |  | $ | (1,848 | )
Consolidation Loans |  |  | 22,272 |  |  |  | 25,522 |  |  |  | (3,250 | )
Rehab Loans |  |  | 3,697 |  |  |  | 4,206 |  |  |  | (509 | )
Total loans, gross |  | $ | 38,140 |  |  | $ | 43,747 |  |  | $ | (5,607 | )
4. Allowance for Loan Losses (Continued) Private Education Loans The key credit quality indicators are credit scores (FICO scores), loan status, loan seasoning, certain loan modifications, 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 |
|  | December 31, 2023 |
(Dollars in millions) |  | 2023 |  |  | 2022 |  |  | 2021 |  |  | 2020 |  |  | 2019 |  |  | Prior |  |  | Total |  |  | % of Total |
Credit Quality Indicators |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FICO Scores: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
640 and above |  | $ | 815 |  |  | $ | 1,575 |  |  | $ | 3,898 |  |  | $ | 1,240 |  |  | $ | 1,162 |  |  | $ | 7,132 |  |  | $ | 15,822 |  |  |  | 90 | %
Below 640 |  |  | 11 |  |  |  | 67 |  |  |  | 122 |  |  |  | 29 |  |  |  | 49 |  |  |  | 1,419 |  |  |  | 1,697 |  |  |  | 10 |
Total |  | $ | 826 |  |  | $ | 1,642 |  |  | $ | 4,020 |  |  | $ | 1,269 |  |  | $ | 1,211 |  |  | $ | 8,551 |  |  | $ | 17,519 |  |  |  | 100 | %
Loan Status: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
In-school/grace/ deferment/forbearance |  | $ | 51 |  |  | $ | 79 |  |  | $ | 87 |  |  | $ | 21 |  |  | $ | 27 |  |  | $ | 458 |  |  | $ | 723 |  |  |  | 4 | %
Current/90 days or less delinquent |  |  | 774 |  |  |  | 1,554 |  |  |  | 3,917 |  |  |  | 1,244 |  |  |  | 1,177 |  |  |  | 7,750 |  |  |  | 16,416 |  |  |  | 94 |
Greater than 90 days delinquent |  |  | 1 |  |  |  | 9 |  |  |  | 16 |  |  |  | 4 |  |  |  | 7 |  |  |  | 343 |  |  |  | 380 |  |  |  | 2 |
Total |  | $ | 826 |  |  | $ | 1,642 |  |  | $ | 4,020 |  |  | $ | 1,269 |  |  | $ | 1,211 |  |  | $ | 8,551 |  |  | $ | 17,519 |  |  |  | 100 | %
Seasoning(1): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
1-12 payments |  | $ | 781 |  |  | $ | 130 |  |  | $ | 28 |  |  | $ | 7 |  |  | $ | 4 |  |  | $ | 54 |  |  | $ | 1,004 |  |  |  | 6 | %
13-24 payments |  |  | — |  |  |  | 1,453 |  |  |  | 812 |  |  |  | 12 |  |  |  | 13 |  |  |  | 62 |  |  |  | 2,352 |  |  |  | 13 |
25-36 payments |  |  | — |  |  |  | — |  |  |  | 3,127 |  |  |  | 142 |  |  |  | 35 |  |  |  | 113 |  |  |  | 3,417 |  |  |  | 20 |
37-48 payments |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,097 |  |  |  | 388 |  |  |  | 179 |  |  |  | 1,664 |  |  |  | 9 |
More than 48 payments |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 759 |  |  |  | 7,963 |  |  |  | 8,722 |  |  |  | 50 |
Loans in-school/ grace/deferment |  |  | 45 |  |  |  | 59 |  |  |  | 53 |  |  |  | 11 |  |  |  | 12 |  |  |  | 180 |  |  |  | 360 |  |  |  | 2 |
Total |  | $ | 826 |  |  | $ | 1,642 |  |  | $ | 4,020 |  |  | $ | 1,269 |  |  | $ | 1,211 |  |  | $ | 8,551 |  |  | $ | 17,519 |  |  |  | 100 | %
Certain Loan Modifications(2): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Modified |  | $ | — |  |  | $ | 41 |  |  | $ | 130 |  |  | $ | 46 |  |  | $ | 82 |  |  | $ | 5,775 |  |  | $ | 6,074 |  |  |  | 35 | %
Non-Modified |  |  | 826 |  |  |  | 1,601 |  |  |  | 3,890 |  |  |  | 1,223 |  |  |  | 1,129 |  |  |  | 2,776 |  |  |  | 11,445 |  |  |  | 65 |
Total |  | $ | 826 |  |  | $ | 1,642 |  |  | $ | 4,020 |  |  | $ | 1,269 |  |  | $ | 1,211 |  |  | $ | 8,551 |  |  | $ | 17,519 |  |  |  | 100 | %
Cosigners: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
With cosigner(3) |  | $ | 202 |  |  | $ | 179 |  |  | $ | 93 |  |  | $ | 23 |  |  | $ | 9 |  |  | $ | 5,206 |  |  | $ | 5,712 |  |  |  | 33 | %
Without cosigner |  |  | 624 |  |  |  | 1,463 |  |  |  | 3,927 |  |  |  | 1,246 |  |  |  | 1,202 |  |  |  | 3,345 |  |  |  | 11,807 |  |  |  | 67 |
Total |  | $ | 826 |  |  | $ | 1,642 |  |  | $ | 4,020 |  |  | $ | 1,269 |  |  | $ | 1,211 |  |  | $ | 8,551 |  |  | $ | 17,519 |  |  |  | 100 | %
School Type: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Not-for-profit |  | $ | 777 |  |  | $ | 1,555 |  |  | $ | 3,786 |  |  | $ | 1,213 |  |  | $ | 1,126 |  |  | $ | 7,225 |  |  | $ | 15,682 |  |  |  | 90 | %
For-profit |  |  | 49 |  |  |  | 87 |  |  |  | 234 |  |  |  | 56 |  |  |  | 85 |  |  |  | 1,326 |  |  |  | 1,837 |  |  |  | 10 |
Total |  | $ | 826 |  |  | $ | 1,642 |  |  | $ | 4,020 |  |  | $ | 1,269 |  |  | $ | 1,211 |  |  | $ | 8,551 |  |  | $ | 17,519 |  |  |  | 100 | %
Allowance for loan losses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (617 | ) |  |  |
Total loans, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 16,902 |  |  |  |
Charge-Offs |  | $ | — |  |  | $ | (7 | ) |  | $ | (10 | ) |  | $ | (5 | ) |  | $ | (7 | ) |  | $ | (269 | ) |  | $ | (298 | ) |  |  | 100 | %
(1) Number of months in active repayment for which a scheduled payment was received. (2) Loan Modifications represents the historical definition of a troubled debt restructuring (TDR) prior to the implementation of ASU No. 2022-02 on January 1, 2023. Any loan that meets the historical definition of a TDR retains that classification for the life of the loan (including loans that meet that definition in 2023). This includes loans given rate modifications, term extensions or forbearance greater than 3 months in the prior 24-month period. This classification is not intended to reconcile in any way to the new modification disclosures required under ASU No. 2022-02. (3) Excluding Private Education Refinance Loans, which do not have a cosigner, the cosigner rate was 65% for total loans at December 31, 2023. 4. Allowance for Loan Losses (Continued)
|  | Private Education Loan Credit Quality Indicators by Origination Year |
|  | December 31, 2022 |
(Dollars in millions) |  | 2022 |  |  | 2021 |  |  | 2020 |  |  | 2019 |  |  | 2018 |  |  | Prior |  |  | Total |  |  | % of Total |
Credit Quality Indicators |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FICO Scores: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
640 and above |  | $ | 1,721 |  |  | $ | 4,529 |  |  | $ | 1,515 |  |  | $ | 1,426 |  |  | $ | 529 |  |  | $ | 8,107 |  |  | $ | 17,827 |  |  |  | 91 | %
Below 640 |  |  | 35 |  |  |  | 85 |  |  |  | 23 |  |  |  | 41 |  |  |  | 19 |  |  |  | 1,495 |  |  |  | 1,698 |  |  |  | 9 |
Total |  | $ | 1,756 |  |  | $ | 4,614 |  |  | $ | 1,538 |  |  | $ | 1,467 |  |  | $ | 548 |  |  | $ | 9,602 |  |  | $ | 19,525 |  |  |  | 100 | %
Loan Status: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
In-school/grace/ deferment/forbearance |  | $ | 56 |  |  | $ | 91 |  |  | $ | 29 |  |  | $ | 33 |  |  | $ | 13 |  |  | $ | 533 |  |  | $ | 755 |  |  |  | 4 | %
Current/90 days or less delinquent |  |  | 1,697 |  |  |  | 4,514 |  |  |  | 1,506 |  |  |  | 1,428 |  |  |  | 533 |  |  |  | 8,681 |  |  |  | 18,359 |  |  |  | 94 |
Greater than 90 days delinquent |  |  | 3 |  |  |  | 9 |  |  |  | 3 |  |  |  | 6 |  |  |  | 2 |  |  |  | 388 |  |  |  | 411 |  |  |  | 2 |
Total |  | $ | 1,756 |  |  | $ | 4,614 |  |  | $ | 1,538 |  |  | $ | 1,467 |  |  | $ | 548 |  |  | $ | 9,602 |  |  | $ | 19,525 |  |  |  | 100 | %
Seasoning(1): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
1-12 payments |  | $ | 1,714 |  |  | $ | 860 |  |  | $ | 10 |  |  | $ | 9 |  |  | $ | 1 |  |  | $ | 83 |  |  | $ | 2,677 |  |  |  | 14 | %
13-24 payments |  |  | — |  |  |  | 3,699 |  |  |  | 147 |  |  |  | 31 |  |  |  | 6 |  |  |  | 91 |  |  |  | 3,974 |  |  |  | 20 |
25-36 payments |  |  | — |  |  |  | — |  |  |  | 1,365 |  |  |  | 452 |  |  |  | 15 |  |  |  | 161 |  |  |  | 1,993 |  |  |  | 10 |
37-48 payments |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 957 |  |  |  | 132 |  |  |  | 260 |  |  |  | 1,349 |  |  |  | 7 |
More than 48 payments |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 388 |  |  |  | 8,790 |  |  |  | 9,178 |  |  |  | 47 |
Loans in-school/ grace/deferment |  |  | 42 |  |  |  | 55 |  |  |  | 16 |  |  |  | 18 |  |  |  | 6 |  |  |  | 217 |  |  |  | 354 |  |  |  | 2 |
Total |  | $ | 1,756 |  |  | $ | 4,614 |  |  | $ | 1,538 |  |  | $ | 1,467 |  |  | $ | 548 |  |  | $ | 9,602 |  |  | $ | 19,525 |  |  |  | 100 | %
Certain Loan Modifications(2): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Modified |  | $ | 11 |  |  | $ | 71 |  |  | $ | 34 |  |  | $ | 68 |  |  | $ | 37 |  |  | $ | 6,447 |  |  | $ | 6,668 |  |  |  | 34 | %
Non-Modified |  |  | 1,745 |  |  |  | 4,543 |  |  |  | 1,504 |  |  |  | 1,399 |  |  |  | 511 |  |  |  | 3,155 |  |  |  | 12,857 |  |  |  | 66 |
Total |  | $ | 1,756 |  |  | $ | 4,614 |  |  | $ | 1,538 |  |  | $ | 1,467 |  |  | $ | 548 |  |  | $ | 9,602 |  |  | $ | 19,525 |  |  |  | 100 | %
Cosigners: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
With cosigner(3) |  | $ | 122 |  |  | $ | 106 |  |  | $ | 27 |  |  | $ | 10 |  |  | $ | — |  |  | $ | 6,184 |  |  | $ | 6,449 |  |  |  | 33 | %
Without cosigner |  |  | 1,634 |  |  |  | 4,508 |  |  |  | 1,511 |  |  |  | 1,457 |  |  |  | 548 |  |  |  | 3,418 |  |  |  | 13,076 |  |  |  | 67 |
Total |  | $ | 1,756 |  |  | $ | 4,614 |  |  | $ | 1,538 |  |  | $ | 1,467 |  |  | $ | 548 |  |  | $ | 9,602 |  |  | $ | 19,525 |  |  |  | 100 | %
School Type: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Not-for-profit |  | $ | 1,655 |  |  | $ | 4,347 |  |  | $ | 1,470 |  |  | $ | 1,366 |  |  | $ | 503 |  |  | $ | 8,026 |  |  | $ | 17,367 |  |  |  | 89 | %
For-profit |  |  | 101 |  |  |  | 267 |  |  |  | 68 |  |  |  | 101 |  |  |  | 45 |  |  |  | 1,576 |  |  |  | 2,158 |  |  |  | 11 |
Total |  | $ | 1,756 |  |  | $ | 4,614 |  |  | $ | 1,538 |  |  | $ | 1,467 |  |  | $ | 548 |  |  | $ | 9,602 |  |  | $ | 19,525 |  |  |  | 100 | %
Allowance for loan losses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (800 | ) |  |  |
Total loans, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 18,725 |  |  |  |
(1) Number of months in active repayment for which a scheduled payment was received. (2) Loan Modifications represents the historical definition of a TDR prior to the implementation of ASU No. 2022-02 on January 1, 2023. Any loan that meets the historical definition of a TDR retains that classification for the life of the loan (including loans that meet that definition in 2023). This includes loans given rate modifications, term extensions or forbearance greater than 3 months in the prior 24-month period. This classification is not intended to reconcile in any way to the new modification disclosures required under ASU No. 2022-02. (3) Excluding Private Education Refinance Loans, which do not have a cosigner, the cosigner rate was 65% for total loans at December 31, 2022. 4. Allowance for Loan Losses (Continued)
|  | Private Education Loan Delinquencies |
|  | December 31, 2023 |  |  | December 31, 2022 |
(Dollars in millions) |  | Balance |  |  | % |  |  | Balance |  |  | % |
Loans in-school/grace/deferment(1) |  | $ | 360 |  |  |  |  |  | $ | 354 |  |  |  |
Loans in forbearance(2) |  |  | 363 |  |  |  |  |  |  | 401 |  |  |  |
Loans in repayment and percentage of each status: |  |  |  |  |  |  |  |  |  |  |  |
Loans current |  |  | 15,935 |  |  |  | 94.9 | % |  |  | 17,838 |  |  |  | 95.0 | %
Loans delinquent 31-60 days(3) |  |  | 308 |  |  |  | 1.8 |  |  |  | 335 |  |  |  | 1.8 |
Loans delinquent 61-90 days(3) |  |  | 173 |  |  |  | 1.0 |  |  |  | 186 |  |  |  | 1.0 |
Loans delinquent greater than 90 days(3) |  |  | 380 |  |  |  | 2.3 |  |  |  | 411 |  |  |  | 2.2 |
Total loans in repayment |  |  | 16,796 |  |  |  | 100 | % |  |  | 18,770 |  |  |  | 100 | %
Total loans |  |  | 17,519 |  |  |  |  |  |  | 19,525 |  |  |  |
Allowance for losses |  |  | (617 | ) |  |  |  |  |  | (800 | ) |  |  |
Loans, net |  | $ | 16,902 |  |  |  |  |  | $ | 18,725 |  |  |  |
Percentage of loans in repayment |  |  |  |  |  | 95.9 | % |  |  |  |  |  | 96.1 | %
Delinquencies as a percentage of loans in repayment |  |  |  |  |  | 5.1 | % |  |  |  |  |  | 5.0 | %
Loans in forbearance as a percentage of loans in repayment and forbearance |  |  |  |  |  | 2.1 | % |  |  |  |  |  | 2.1 | %
(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. 4. Allowance for Loan Losses (Continued) Loan Modifications to Borrowers Experiencing Financial Difficulty We adjust the terms of Private Education Loans for certain borrowers when we believe such changes will help our customers better manage their student loan obligations, achieve better outcomes and increase the collectability of the loans. These changes generally take the form of a temporary interest rate reduction, a temporary forbearance of payments, a temporary interest only payment, and a temporary interest rate reduction with a permanent extension of the loan term. The effect of modifications of loans made to borrowers who are experiencing financial difficulty is already included in the allowance for credit losses because of the measurement methodologies used to estimate the allowance. The model design predicts borrowers that will have financial difficulty in the future and require loan modification and increased life of loan default risk. Under our current forbearance practices, temporary hardship forbearance of payments generally cannot exceed 12 months over the life of the loan. However, exceptions can be made in cases where borrowers have shown the ability to make a substantial number of monthly principal and interest payments and in those cases borrowers can be granted up to 24 months of hardship forbearance over the life of the loan. We offer other administrative forbearances (e.g., death and disability, bankruptcy, military service, and disaster forbearance) that are either required by law (such as the Servicemembers Civil Relief Act) or are considered separate from our active loss mitigation programs and therefore are not considered to be loan modifications requiring disclosure under ASU No. 2022-02. FFELP Loans are at least 97 percent guaranteed as to their principal and accrued interest by the federal government in the event of default and, therefore, we do not deem FFELP Loans as nonperforming from a credit risk perspective at any point in their life cycle prior to claim payment and continue to accrue interest on those loans through the date of claim. Further, FFELP loan modification events are either legal entitlements subject to regulatory-driven eligibility criteria or addressed in the promissory note terms, so we do not consider these events as a component of our loan modification programs. The following table shows the amortized cost basis as of December 31, 2023 of the loans to borrowers experiencing financial difficulty that were modified in 2023.
|  | Loan Modifications Made to Borrowers Experiencing Financial Difficulty |
|  | Year Ended December 31, 2023 |
(Dollars in millions) |  | Interest Rate Reductions(1) |  |  | More Than an Insignificant Payment Delay (2) |  |  | Combination Rate Reduction and Term Extension |
Loan Type |  | Amortized Cost |  |  | % of Loan Type |  |  | Amortized Cost |  |  | % of Loan Type |  |  | Amortized Cost |  |  | % of Loan Type |
Private Education Loans |  | $ | 1,668 |  |  |  | 9.5 | % |  | $ | 923 |  |  |  | 5.3 | % |  | $ | 138 |  |  |  | .8 | %
(1) As of December 31, 2023, there was $1.2 billion of loans in the interest rate reduction program. (2) More Than an Insignificant Payment Delay includes loans granted more than 3 months of short-term interest only payments or hardship forbearance. For those loans modified in 2023, the following table shows the impact of such modification.
Year Ended December 31, 2023
Loan Type | Interest Rate Reductions | More Than an Insignificant Payment Delay | Combination Rate Reduction and Term Extension
Private Education Loans | Reduced the weighted average contractual rate from 13.2% to 5.3% | Added an average 7 months to the remaining life of the loans | Added an average 8 years to the remaining life of the loans and reduced the weighted average contractual rate from 12.7% to 5.2%.
4. Allowance for Loan Losses (Continued) The following table provides the amount of loan modifications for which a payment default occurred in the year ended December 31, 2023 and receiving a loan modification since January 1, 2023, the effective date of adoption for ASU No. 2022-02. We define payment default as 60 days or more past due for purposes of this disclosure. We closely monitor performance of the loans to borrowers experiencing financial difficulty that are modified to understand the effectiveness of the modification efforts.
(Dollars in millions) |  |  |  |  |  |
|  | Year Ended December 31, 2023 |
Loan Type |  | Modified Loans (Amortized Cost) |  |  | Payment Default (Par) |
Private Education Loans(1) |  | $ | 272 |  |  | $ | 278 |
(1) For the year ended December 31, 2023, the modified loans include $175 million of Interest Rate Reduction, $14 million of Combination Rate Reduction and Term Extension, and $83 million of More Than Insignificant Payment Delay. The following table provides the performance and related loan status as of December 31, 2023 of loans that were modified in 2023.
(Dollars in millions) |  |  |  |  |
Loan Type: |  |  |  |  |
Private Education Loans |  | Status |  | Payment status (Amortized Cost) |
|  | Loans in School/Deferment |  | $ | 22 |
|  | Loans in Forbearance |  |  | 93 |
|  | Loans current |  |  | 2,199 |
|  | Loans delinquent 31 - 60 days |  |  | 160 |
|  | Loans delinquent 61 - 90 days |  |  | 96 |
|  | Loans delinquent greater than 90 days |  |  | 159 |
|  | Total Modified Loans |  | $ | 2,729 |
(1) For the year ended December 31, 2023, $15 million of loans modified during the period were charged off. Prior to our adoption of ASU No. 2022-02 on January 1, 2023, we accounted for a modification to the contractual terms of a loan that resulted in granting a concession to a borrower experiencing financial difficulties as a TDR. 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 were classified as TDRs. The following table provides the amount of loans modified in the period 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.
|  | Years Ended December 31, |
(Dollars in millions) |  | 2022 |  |  | 2021 |
Modified loans |  | $ | 250 |  |  | $ | 149 |
Charge-offs |  | $ | 280 |  |  | $ | 124 |
Payment default |  | $ | 46 |  |  | $ | 21 |

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