| Borrowings |
4. Borrowings The following table summarizes our borrowings.
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June 30, 2026 |
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December 31, 2025 |
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(Dollars in millions) |
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Short
Term |
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Long
Term |
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Total |
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Short
Term |
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Long
Term |
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Total |
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Unsecured borrowings: |
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Senior unsecured debt |
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$ |
720 |
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$ |
4,580 |
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$ |
5,300 |
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$ |
525 |
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$ |
4,782 |
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$ |
5,307 |
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Total unsecured borrowings |
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720 |
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4,580 |
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5,300 |
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525 |
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4,782 |
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5,307 |
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Secured borrowings: |
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Private Education Loan securitizations(1) |
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408 |
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10,847 |
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11,255 |
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469 |
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10,250 |
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10,719 |
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FFELP Loan securitizations(2)(3) |
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— |
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23,670 |
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23,670 |
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109 |
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25,302 |
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25,411 |
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Private Education Loan ABCP facilities(4) |
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1,159 |
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574 |
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1,733 |
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1,942 |
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— |
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1,942 |
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FFELP Loan ABCP facilities(4) |
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1,752 |
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499 |
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2,251 |
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1,869 |
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299 |
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2,168 |
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Other(5) |
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186 |
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38 |
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224 |
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160 |
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39 |
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|
199 |
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Total secured borrowings |
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3,505 |
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35,628 |
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39,133 |
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4,549 |
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35,890 |
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40,439 |
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Total before hedge accounting adjustments |
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4,225 |
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40,208 |
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44,433 |
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5,074 |
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40,672 |
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45,746 |
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Hedge accounting adjustments |
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(11 |
) |
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(85 |
) |
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(96 |
) |
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(1 |
) |
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(39 |
) |
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(40 |
) |
Total |
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$ |
4,214 |
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$ |
40,123 |
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$ |
44,337 |
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$ |
5,073 |
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$ |
40,633 |
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$ |
45,706 |
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(1)Includes $408 million and $469 million of short-term debt related to the Private Education Loan ABS repurchase facilities (Private Education Loan Repurchase Facilities) as of June 30, 2026 and December 31, 2025, respectively. (2)Includes $0 million and $109 million of short-term debt and $118 million and $0 million of long-term debt related to the FFELP Loan ABS repurchase facilities (FFELP Loan Repurchase Facilities) as of June 30, 2026 and December 31, 2025, respectively. (3)Includes defaulted FFELP secured debt tranches with a remaining principal amount of $1.4 billion as of June 30, 2026 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 2026 and 2040. 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. (4)ABCP facilities include $806 million and $432 million of gross issuances in the three months ended June 30, 2026 and 2025, respectively, and $1.1 billion and $587 million of gross paydowns in the three months ended June 30, 2026 and 2025, respectively. ABCP facilities include $1.5 billion and $964 million of gross issuances in the six months ended June 30, 2026 and 2025, respectively, and $1.7 billion and $1.1 billion of gross paydowns in the six months ended June 30, 2026 and 2025, respectively. (5)“Other” primarily includes short-term repurchase obligation funding. 4. Borrowings (Continued) Variable Interest Entities We consolidated the following financing VIEs as of June 30, 2026 and December 31, 2025, as we are the primary beneficiary. As a result, these VIEs are accounted for as secured borrowings.
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June 30, 2026 |
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Debt Outstanding |
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Carrying Amount of Assets Securing
Debt Outstanding |
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(Dollars in millions) |
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Short
Term |
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Long
Term |
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Total |
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Loans |
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Cash |
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Other
Assets |
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Total |
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Secured Borrowings — VIEs: |
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Private Education Loan securitizations |
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$ |
408 |
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$ |
10,847 |
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$ |
11,255 |
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$ |
12,655 |
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$ |
415 |
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$ |
154 |
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$ |
13,224 |
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FFELP Loan securitizations |
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— |
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23,670 |
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23,670 |
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24,309 |
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|
784 |
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1,052 |
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26,145 |
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Private Education Loan ABCP facilities |
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1,159 |
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|
574 |
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1,733 |
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1,967 |
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98 |
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23 |
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2,088 |
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FFELP Loan ABCP facilities |
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1,752 |
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499 |
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2,251 |
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2,223 |
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70 |
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114 |
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2,407 |
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Total before hedge accounting
adjustments |
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3,319 |
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35,590 |
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38,909 |
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41,154 |
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1,367 |
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1,343 |
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43,864 |
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Hedge accounting adjustments |
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— |
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(40 |
) |
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(40 |
) |
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— |
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— |
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(91 |
) |
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(91 |
) |
Total |
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$ |
3,319 |
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$ |
35,550 |
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$ |
38,869 |
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$ |
41,154 |
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$ |
1,367 |
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$ |
1,252 |
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$ |
43,773 |
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December 31, 2025 |
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Debt Outstanding |
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Carrying Amount of Assets Securing
Debt Outstanding |
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(Dollars in millions) |
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Short
Term |
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Long
Term |
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Total |
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Loans |
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Cash |
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Other
Assets |
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Total |
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Secured Borrowings — VIEs: |
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Private Education Loan securitizations |
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$ |
469 |
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$ |
10,250 |
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$ |
10,719 |
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$ |
11,960 |
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$ |
364 |
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$ |
127 |
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$ |
12,451 |
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FFELP Loan securitizations |
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|
109 |
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25,302 |
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25,411 |
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25,942 |
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|
950 |
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1,096 |
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27,988 |
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Private Education Loan ABCP facilities |
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1,942 |
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— |
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1,942 |
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2,173 |
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68 |
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44 |
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2,285 |
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FFELP Loan ABCP facilities |
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1,869 |
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|
299 |
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2,168 |
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2,115 |
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84 |
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108 |
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2,307 |
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Total before hedge accounting
adjustments |
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4,389 |
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35,851 |
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40,240 |
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42,190 |
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1,466 |
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1,375 |
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45,031 |
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Hedge accounting adjustments |
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— |
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(16 |
) |
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(16 |
) |
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— |
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— |
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(75 |
) |
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(75 |
) |
Total |
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$ |
4,389 |
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$ |
35,835 |
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$ |
40,224 |
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$ |
42,190 |
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$ |
1,466 |
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$ |
1,300 |
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$ |
44,956 |
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