v3.26.1
Loans Held for Investment (Tables)
 6 Months Ended
Jun. 30, 2026
Receivables [Abstract]  
Schedule of Allowance for Credit Losses and Recorded Investments in Loans
The following table summarizes our Private Education Loan sales to unaffiliated third parties for the periods presented. We did not sell any Private Education Loans in the three months ended June 30, 2025.
Three Months Ended June 30,Six Months Ended June 30,

(Dollars in millions)		202620262025
Loan principal$399 $3,530 $1,840 
Capitalized interest
21 222 163 
Total Private Education Loans sold$420 $3,752 $2,003 
Gain on sale of loans, net
$15 $161 $188 
Allowance for Credit Losses Metrics
The following tables provide a summary of the activity in the allowance for loan losses and the allowance for unfunded loan commitments during the three and six months ended June 30, 2026 and 2025.
Three Months Ended June 30, 2026
(dollars in thousands)
Private Education
Loans
Allowance for loan losses, beginning balance$1,383,166 
Transfer from allowance for unfunded loan commitments28,209 
Provisions:
Provision for current period68,330 
Loan sale reduction to provision(10,826)
Loans transferred to held for sale(2,311)
Total provisions(1)
55,193 
Net charge-offs:
Charge-offs(122,216)
Recoveries9,662 
Net charge-offs(112,554)
Allowance for loan losses, ending balance$1,354,014 
Allowance for unfunded loan commitments, beginning balance(2)
23,754 
Provision(1)(3)
70,470 
Transfer to allowance for loan losses(28,209)
Allowance for unfunded loan commitments, ending balance(2)
66,015 
Total allowance for credit losses, ending balance$1,420,029 
Net charge-offs as a percentage of average loans in repayment (annualized)(4)
2.95 %
Allowance for loan losses coverage of net charge-offs (annualized)3.01 
Total Allowance Percentage of Private Education Loan Exposure(5)(6)
5.89 %
Ending total loans, gross$20,791,497 
Average loans in repayment(4)
$15,287,312 
Ending loans in repayment(4)
$15,366,596 
Unfunded loan commitments for loans held for investment(6)
$1,700,089 
Total accrued interest receivable$1,604,848 
(1) See “—Provisions for Credit Losses” below in this Note 5 for a reconciliation of the provisions for credit losses reported in the consolidated statements of income.
(2) When a new loan commitment is made, we record an allowance to cover lifetime expected credit losses on the unfunded commitments, which is recorded in “Other Liabilities” on the consolidated balance sheet. See “—Unfunded Loan Commitments” in this Note 5 for further discussion.
(3) Includes incremental provision for new commitments and changes to provision for existing commitments.
(4) Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period (but, for purposes of the table, do not include loans in the “loans in forbearance” metric).
(5) The Total Allowance Percentage of Private Education Loan Exposure is the total allowance for credit losses as a percentage of ending total loans plus unfunded loan commitments and total accrued interest receivable on Private Education Loans.
(6) Unfunded loan commitments for loans held for investment and the calculation of the Total Allowance Percentage of Private Education Loan Exposure do not include $28 million of unfunded loan commitments associated with loans classified as held for sale at June 30, 2026. Due to the near-term timing of the loan sale and credit quality of the loans, we believe there is no risk of credit loss and are not recording an allowance for the unfunded loan commitments related to the loans classified as held for sale.
Three Months Ended June 30, 2025
(dollars in thousands)
Private
 Education
Loans
Allowance for loan losses, beginning balance$1,443,715 
Transfer from allowance for unfunded loan commitments27,878 
Provisions:
Provision for current period92,189 
Total provisions(1)
92,189 
Net charge-offs:
Charge-offs(106,866)
Recoveries12,593 
Net charge-offs(94,273)
Allowance for loan losses, ending balance$1,469,509 
Allowance for unfunded loan commitments, beginning balance(2)
23,890 
Provision(1)(3)
56,529 
Transfer to allowance for loan losses(27,878)
Allowance for unfunded loan commitments, ending balance(2)
52,541 
Total allowance for credit losses, ending balance$1,522,050 
Net charge-offs as a percentage of average loans in repayment (annualized)(4)
2.36 %
Allowance for loan losses coverage of net charge-offs (annualized)3.90 
Total Allowance Percentage of Private Education Loan Exposure(5)
5.95 %
Ending total loans, gross$22,525,817 
Average loans in repayment(4)
$15,991,357 
Ending loans in repayment(4)
$16,231,194 
Unfunded loan commitments for loans held for investment$1,358,163 
Total accrued interest receivable$1,701,944 
(1) See “—Provisions for Credit Losses” below in this Note 5 for a reconciliation of the provisions for credit losses reported in the consolidated statements of income.
(2) When a new loan commitment is made, we record an allowance to cover lifetime expected credit losses on the unfunded commitments, which is recorded in “Other Liabilities” on the consolidated balance sheet. See “—Unfunded Loan Commitments” in this Note 5 for further discussion.
(3) Includes incremental provision for new commitments and changes to provision for existing commitments.
(4) Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period (but, for purposes of the table, do not include loans in the “loans in forbearance” metric).
(5) The Total Allowance Percentage of Private Education Loan Exposure is the total allowance for credit losses as a percentage of ending total loans plus unfunded loan commitments and total accrued interest receivable on Private Education Loans.

l
Six Months Ended June 30, 2026
(dollars in thousands)
Private Education
Loans
Allowance for loan losses, beginning balance$1,430,318 
Transfer from allowance for unfunded loan commitments127,503 
Provisions:
Provision for current period141,526 
Loan sale reduction to provision(130,912)
Loans transferred to held for sale(12,803)
Total provisions(1)
(2,189)
Net charge-offs:
Charge-offs(225,049)
Recoveries23,431 
Net charge-offs(201,618)
Allowance for loan losses, ending balance$1,354,014 
Allowance for unfunded loan commitments, beginning balance(2)
77,132 
Provision(1)(3)
116,386 
Transfer to allowance for loan losses(127,503)
Allowance for unfunded loan commitments, ending balance(2)
66,015 
Total allowance for credit losses, ending balance$1,420,029 
Net charge-offs as a percentage of average loans in repayment (annualized)(4)
2.55 %
Allowance for loan losses coverage of net charge-offs (annualized)3.36 
Total Allowance Percentage of Private Education Loan Exposure(5)(6)
5.89 %
Ending total loans, gross$20,791,497 
Average loans in repayment(4)
$15,786,152 
Ending loans in repayment(4)
$15,366,596 
Unfunded loan commitments for loans held for investment(6)
$1,700,089 
Total accrued interest receivable$1,604,848 
(1) See “—Provisions for Credit Losses” below in this Note 5 for a reconciliation of the provisions for credit losses reported in the consolidated statements of income.
(2) When a new loan commitment is made, we record an allowance to cover lifetime expected credit losses on the unfunded commitments, which is recorded in “Other Liabilities” on the consolidated balance sheet. See “—Unfunded Loan Commitments” in this Note 5 for further discussion.
(3) Includes incremental provision for new commitments and changes to provision for existing commitments.
(4) Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period (but, for purposes of the table, do not include loans in the “loans in forbearance” metric).
(5) The Total Allowance Percentage of Private Education Loan Exposure is the total allowance for credit losses as a percentage of ending total loans plus unfunded loan commitments and total accrued interest receivable on Private Education Loans.
(6) Unfunded loan commitments for loans held for investment and the calculation of the Total Allowance Percentage of Private Education Loan Exposure do not include $28 million of unfunded loan commitments associated with loans classified as held for sale at June 30, 2026. Due to the near-term timing of the loan sale and credit quality of the loans, we believe there is no risk of credit loss and are not recording an allowance for the unfunded loan commitments related to the loans classified as held for sale.
Six Months Ended June 30, 2025
(dollars in thousands)
Private Education
Loans
Allowance for loan losses, beginning balance$1,435,920 
Transfer from allowance for unfunded loan commitments133,012 
Provisions:
Provision for current period187,478 
Loan sale reduction to provision(116,459)
Total provisions(1)
71,019 
Net charge-offs:
Charge-offs(193,769)
Recoveries23,327 
Net charge-offs(170,442)
Allowance for loan losses, ending balance$1,469,509 
Allowance for unfunded loan commitments, beginning balance(2)
84,568 
Provision(1)(3)
100,985 
Transfer to allowance for loan losses(133,012)
Allowance for unfunded loan commitments, ending balance(2)
52,541 
Total allowance for credit losses, ending balance$1,522,050 
Net charge-offs as a percentage of average loans in repayment (annualized)(4)
2.11 %
Allowance for loan losses coverage of net charge-offs (annualized)4.31 
Total Allowance Percentage of Private Education Loan Exposure(5)(6)
5.95 %
Ending total loans, gross$22,525,817 
Average loans in repayment(4)
$16,146,239 
Ending loans in repayment(4)
$16,231,194 
Unfunded loan commitments for loans held for investment$1,358,163 
Total accrued interest receivable$1,701,944 
(1) See “—Provisions for Credit Losses” below in this Note 5 for a reconciliation of the provisions for credit losses reported in the consolidated statements of income.
(2) When a new loan commitment is made, we record an allowance to cover lifetime expected credit losses on the unfunded commitments, which is recorded in “Other Liabilities” on the consolidated balance sheet. See “—Unfunded Loan Commitments” in this Note 5 for further discussion.
(3) Includes incremental provision for new commitments and changes to provision for existing commitments.
(4) Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period (but, for purposes of the table, do not include loans in the “loans in forbearance” metric).
(5) The Total Allowance Percentage of Private Education Loan Exposure is the total allowance for credit losses as a percentage of ending total loans plus unfunded loan commitments and total accrued interest receivable on Private Education Loans.
Provisions for Credit Losses
Below is a reconciliation of the provisions for credit losses reported in the consolidated statements of income.
Consolidated Statements of Income
Provisions for Credit Losses Reconciliation
Three Months Ended June 30,Six Months Ended June 30,
(dollars in thousands)2026202520262025
Provisions for credit losses:
Provisions for loan losses$55,193 $92,189 $(2,189)$71,019 
Provisions for unfunded loan commitments70,470 56,529 116,386 100,985 
Provisions for credit losses reported in consolidated statements of income$125,663 $148,718 114,197 172,004 
The table below summarizes the activity in the allowance recorded to cover lifetime expected credit losses on the unfunded commitments, which is recorded in “Other Liabilities” on the consolidated balance sheets, as well as the activity in the unfunded commitments balance.
20262025
Three Months Ended June 30,
(dollars in thousands)
AllowanceUnfunded CommitmentsAllowanceUnfunded Commitments
Beginning Balance$23,754 $587,882 $23,890 $584,140 
Provision/New commitments - net(1)
70,470 1,848,800 56,529 1,459,626 
Transfer - funded loans(2)
(28,209)(673,590)(27,878)(685,603)
Unfunded loan commitments sold— (34,614)— — 
Ending Balance(3)
$66,015 $1,728,478 $52,541 $1,358,163 

20262025
Six Months Ended June 30,
(dollars in thousands)
AllowanceUnfunded CommitmentsAllowanceUnfunded Commitments
Beginning Balance$77,132 $2,437,035 $84,568 $2,311,660 
Provision/New commitments - net(1)
116,386 2,945,185 100,985 2,503,584 
Transfer - funded loans(2)
(127,503)(3,095,958)(133,012)(3,457,081)
Unfunded loan commitments sold— (557,784)— — 
Ending Balance(3)
$66,015 $1,728,478 $52,541 $1,358,163 
(1)     Net of expirations of commitments unused. Also includes incremental provision for new commitments and changes to provision for existing commitments.
(2)     When a loan commitment is funded, its related liability for credit losses (which originally was recorded as a provision for unfunded commitments) is transferred to the allowance for credit losses.
(3)     The ending balance of unfunded loan commitments includes $28 million of unfunded loan commitments associated with the loans classified as held for sale at June 30, 2026. Due to the near-term timing of the loan sale and credit quality of the loans, we believe there is no risk of credit loss and are not recording an allowance for the unfunded loan commitments related to the loans classified as held for sale.
Schedule of Loans Held for Investment
Loans held for investment are summarized as follows:
June 30,December 31,
(Dollars in thousands)20262025
Loans Held for Investment, net:
Fixed-rate$16,205,940 $16,952,620 
Variable-rate4,585,557 4,707,814 
Total Private Education Loans, gross20,791,497 21,660,434 
Deferred origination costs and unamortized premium/(discount)94,010 102,008 
Allowance for credit losses(1,354,014)(1,430,318)
Loans held for investment, net$19,531,493 $20,332,124 
The average balance (net of unamortized premium/(discount)) and the respective weighted average interest rates of loans held for investment in our portfolio are summarized as follows:

20262025
Three Months Ended June 30,
(dollars in thousands)
Average BalanceWeighted Average Interest RateAverage BalanceWeighted Average Interest Rate
Private Education Loans$21,119,086 10.25 %$22,561,636 10.62 %
Total portfolio$21,119,086 $22,561,636 


20262025
Six Months Ended June 30,
(dollars in thousands)
Average BalanceWeighted Average Interest RateAverage BalanceWeighted Average Interest Rate
Private Education Loans$22,226,216 10.36 %$22,738,295 10.61 %
Total portfolio$22,226,216 $22,738,295