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Borrowings (Tables) | 12 Months Ended
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Dec. 31, 2023
Debt Disclosure [Abstract] |
Company's Borrowings | The following table summarizes our borrowings.
|  | December 31, 2023 |  |  | December 31, 2022 |
(Dollars in millions) |  | Short Term |  |  | Weighted Average Interest Rate(8) |  |  | Long Term |  |  | Weighted Average Interest Rate(8) |  |  | Total |  |  | Short Term |  |  | Weighted Average Interest Rate(8) |  |  | Long Term |  |  | Weighted Average Interest Rate(8) |  |  | Total |
Unsecured borrowings: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Senior unsecured debt(1) |  | $ | 506 |  |  |  | 5.88 | % |  | $ | 5,351 |  |  |  | 6.61 | % |  | $ | 5,857 |  |  | $ | 1,301 |  |  |  | 5.90 | % |  | $ | 5,711 |  |  |  | 5.82 | % |  | $ | 7,012 |
Total unsecured borrowings |  |  | 506 |  |  |  | 5.88 |  |  |  | 5,351 |  |  |  | 6.61 |  |  |  | 5,857 |  |  |  | 1,301 |  |  |  | 5.90 |  |  |  | 5,711 |  |  |  | 5.82 |  |  |  | 7,012 |
Secured borrowings: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FFELP Loan securitizations(2)(3)(4) |  |  | 59 |  |  |  | 6.84 |  |  |  | 35,626 |  |  |  | 6.06 |  |  |  | 35,685 |  |  |  | 76 |  |  |  | 6.01 |  |  |  | 42,675 |  |  |  | 4.96 |  |  |  | 42,751 |
Private Education Loan securitizations(5) |  |  | 435 |  |  |  | 8.14 |  |  |  | 11,754 |  |  |  | 3.59 |  |  |  | 12,189 |  |  |  | 725 |  |  |  | 7.17 |  |  |  | 12,744 |  |  |  | 3.11 |  |  |  | 13,469 |
FFELP Loan ABCP facilities |  |  | 1,854 |  |  |  | 6.60 |  |  |  | 89 |  |  |  | 6.29 |  |  |  | 1,943 |  |  |  | 923 |  |  |  | 5.31 |  |  |  | 386 |  |  |  | 5.33 |  |  |  | 1,309 |
Private Education Loan ABCP facilities |  |  | 1,286 |  |  |  | 6.62 |  |  |  | 821 |  |  |  | 6.84 |  |  |  | 2,107 |  |  |  | 2,734 |  |  |  | 5.55 |  |  |  | — |  |  |  | — |  |  |  | 2,734 |
Other(6) |  |  | 95 |  |  |  | 5.61 |  |  |  | 39 |  |  |  | 5.50 |  |  |  | 134 |  |  |  | 121 |  |  |  | 4.61 |  |  |  | — |  |  |  | — |  |  |  | 121 |
Total secured borrowings |  |  | 3,729 |  |  |  | 6.76 |  |  |  | 48,329 |  |  |  | 5.47 |  |  |  | 52,058 |  |  |  | 4,579 |  |  |  | 5.74 |  |  |  | 55,805 |  |  |  | 4.54 |  |  |  | 60,384 |
Total before hedge accounting adjustments(7) |  |  | 4,235 |  |  |  | 6.66 |  |  |  | 53,680 |  |  |  | 5.59 |  |  |  | 57,915 |  |  |  | 5,880 |  |  |  | 5.78 |  |  |  | 61,516 |  |  |  | 4.66 |  |  |  | 67,396 |
Hedge accounting adjustments |  |  | (9 | ) |  |  | .01 |  |  |  | (278 | ) |  |  | .03 |  |  |  | (287 | ) |  |  | (10 | ) |  |  | .01 |  |  |  | (490 | ) |  |  | .04 |  |  |  | (500 | )
Total |  | $ | 4,226 |  |  |  | 6.67 | % |  | $ | 53,402 |  |  |  | 5.62 | % |  | $ | 57,628 |  |  | $ | 5,870 |  |  |  | 5.78 | % |  | $ | 61,026 |  |  |  | 4.70 | % |  | $ | 66,896 |
(1) Includes principal amount of $506 million and $1.3 billion of short-term debt as of December 31, 2023 and 2022, respectively. Includes principal amount of $5.4 billion and $5.7 billion of long-term debt as of December 31, 2023 and 2022, respectively. (2) Includes $59 million and $76 million of short-term debt and $122 and $0 million of long-term debt related to the FFELP Loan ABS repurchase facilities (FFELP Loan Repurchase Facilities) as of December 31, 2023 and 2022, respectively. (3) Includes $1.6 billion and $1.8 billion of non-U.S. dollar-denominated debt as of December 31, 2023 and 2022, respectively, which has been hedged with swaps converting to U.S. dollars. (4) Includes defaulted FFELP secured debt tranches with a remaining principal amount of $1.6 billion as of December 31, 2023 as a result of not maturing by their respective contractual maturity dates. Notices were delivered to the trustee, rating agencies and bondholders alerting them to these maturity date defaults. At this time, it is expected the bonds will be paid in full between 2031 and 2037. There is no impact to the principal amount owed or the coupon at which the bonds accrue, and there is no revised contractual maturity date. (5) Includes $435 million and $725 million of short-term debt related to the Private Education Loan ABS repurchase facilities (Private Education Loan Repurchase Facilities) as of December 31, 2023 and 2022, respectively. (6) “Other” primarily includes the obligation to return cash collateral held related to derivative exposure. (7) Includes $38.2 billion and $44.9 billion of long-term floating rate debt as of December 31, 2023 and 2022, respectively, and $15.5 billion and $16.6 billion of long-term fixed rate debt as of December 31, 2023 and 2022, respectively. Weighted average interest rate is as of end of period.
Expected Maturities of Long-term Borrowings | As of December 31, 2023, the expected maturities of our long-term borrowings are shown in the following table.
|  | Expected Maturity |
(Dollars in millions) |  | Senior Unsecured Debt |  |  | Secured Borrowings(1) |  |  | Total(2) |
Year of Maturity |  |  |  |  |  |  |  |  |
2024 |  | $ | — |  |  | $ | 4,528 |  |  | $ | 4,528 |
2025 |  |  | 552 |  |  |  | 5,368 |  |  |  | 5,920 |
2026 |  |  | 523 |  |  |  | 4,115 |  |  |  | 4,638 |
2027 |  |  | 694 |  |  |  | 3,974 |  |  |  | 4,668 |
2028 |  |  | 513 |  |  |  | 3,867 |  |  |  | 4,380 |
2029-2048 |  |  | 3,069 |  |  |  | 26,477 |  |  |  | 29,546 |
Total before hedge accounting adjustments |  |  | 5,351 |  |  |  | 48,329 |  |  |  | 53,680 |
Hedge accounting adjustments |  |  | (157 | ) |  |  | (121 | ) |  |  | (278 | )
Total |  | $ | 5,194 |  |  | $ | 48,208 |  |  | $ | 53,402 |
(1) We view our securitization trust debt as long-term based on the contractual maturity dates. However, we have projected the expected principal paydowns based on our current estimates regarding the loan prepayment speeds for purposes of this disclosure to better reflect how we expect this debt to be paid down over time. The projected principal paydowns in year 2024 include $4.5 billion related to the securitization trust debt. (2) The aggregate principal amount of debt that matures in each period is $4.5 billion in 2024, $6.0 billion in 2025, $4.7 billion in 2026, $4.7 billion in 2027, $4.4 billion in 2028 and $29.8 billion in 2029 to 2048.
Financing VIEs | We consolidated the following financing VIEs as of December 31, 2023 and 2022, as we are the primary beneficiary. As a result, these VIEs are accounted for as secured borrowings.
|  | December 31, 2023 |
|  | Debt Outstanding |  |  | Carrying Amount of Assets Securing Debt Outstanding |
(Dollars in millions) |  | Short Term |  |  | Long Term |  |  | Total |  |  | Loans |  |  | Cash |  |  | Other Assets, Net |  |  | Total |
Secured Borrowings — VIEs: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FFELP Loan securitizations |  | $ | 59 |  |  | $ | 35,626 |  |  | $ | 35,685 |  |  | $ | 35,935 |  |  | $ | 1,441 |  |  | $ | 1,673 |  |  | $ | 39,049 |
Private Education Loan securitizations |  |  | 435 |  |  |  | 11,754 |  |  |  | 12,189 |  |  |  | 13,396 |  |  |  | 350 |  |  |  | 119 |  |  |  | 13,865 |
FFELP Loan ABCP facilities |  |  | 1,854 |  |  |  | 89 |  |  |  | 1,943 |  |  |  | 1,897 |  |  |  | 77 |  |  |  | 92 |  |  |  | 2,066 |
Private Education Loan ABCP facilities |  |  | 1,286 |  |  |  | 821 |  |  |  | 2,107 |  |  |  | 2,363 |  |  |  | 69 |  |  |  | 50 |  |  |  | 2,482 |
Total before hedge accounting adjustments |  |  | 3,634 |  |  |  | 48,290 |  |  |  | 51,924 |  |  |  | 53,591 |  |  |  | 1,937 |  |  |  | 1,934 |  |  |  | 57,462 |
Hedge accounting adjustments |  |  | — |  |  |  | (121 | ) |  |  | (121 | ) |  |  | — |  |  |  | — |  |  |  | (190 | ) |  |  | (190 | )
Total |  | $ | 3,634 |  |  | $ | 48,169 |  |  | $ | 51,803 |  |  | $ | 53,591 |  |  | $ | 1,937 |  |  | $ | 1,744 |  |  | $ | 57,272 |
|  | December 31, 2022 |
|  | Debt Outstanding |  |  | Carrying Amount of Assets Securing Debt Outstanding |
(Dollars in millions) |  | Short Term |  |  | Long Term |  |  | Total |  |  | Loans |  |  | Cash |  |  | Other Assets, Net |  |  | Total |
Secured Borrowings — VIEs: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FFELP Loan securitizations |  | $ | 76 |  |  | $ | 42,675 |  |  | $ | 42,751 |  |  | $ | 42,148 |  |  | $ | 2,705 |  |  | $ | 1,544 |  |  | $ | 46,397 |
Private Education Loan securitizations |  |  | 725 |  |  |  | 12,744 |  |  |  | 13,469 |  |  |  | 14,168 |  |  |  | 367 |  |  |  | 105 |  |  |  | 14,640 |
FFELP Loan ABCP facilities |  |  | 923 |  |  |  | 386 |  |  |  | 1,309 |  |  |  | 1,317 |  |  |  | 39 |  |  |  | 44 |  |  |  | 1,400 |
Private Education Loan ABCP facilities |  |  | 2,734 |  |  |  | — |  |  |  | 2,734 |  |  |  | 3,039 |  |  |  | 122 |  |  |  | (81 | ) |  |  | 3,080 |
Total before hedge accounting adjustments |  |  | 4,458 |  |  |  | 55,805 |  |  |  | 60,263 |  |  |  | 60,672 |  |  |  | 3,233 |  |  |  | 1,612 |  |  |  | 65,517 |
Hedge accounting adjustments |  |  | — |  |  |  | (207 | ) |  |  | (207 | ) |  |  | — |  |  |  | — |  |  |  | (256 | ) |  |  | (256 | )
Total |  | $ | 4,458 |  |  | $ | 55,598 |  |  | $ | 60,056 |  |  | $ | 60,672 |  |  | $ | 3,233 |  |  | $ | 1,356 |  |  | $ | 65,261 |
Summary of Activity Related to Senior Unsecured Debt Repurchases | The following table summarizes activity related to our senior unsecured debt repurchases.
|  | Years Ended December 31, |
(Dollars in millions) |  | 2023 |  |  | 2022 |  |  | 2021 |
Debt principal repurchased |  | $ | 850 |  |  | $ | — |  |  | $ | 2,577 |
Losses on debt repurchases |  | $ | (8 | ) |  | $ | — |  |  | $ | (73 | )

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