v3.26.3
Fair Value Measurements
 9 Months Ended
Sep. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
We use estimates of fair value in applying various accounting standards for our consolidated financial statements.

We categorize our fair value estimates based on a hierarchical framework associated with three levels of price transparency utilized in measuring financial instruments at fair value. For additional information regarding our policies for determining fair value and the hierarchical framework, see Note 2, “Significant Accounting Policies - Fair Value Measurement” in our 2025 Form 10-K.

During the nine months ended September 30, 2026, there were no significant transfers of financial instruments between levels or changes in our methodology or assumptions used to value our financial instruments.

The following table summarizes the valuation of our financial instruments that are marked-to-fair value on a recurring basis.

Fair Value Measurements on a Recurring Basis
September 30, 2026December 31, 2025
(Dollars in thousands)Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total 
Assets:
Trading investments$— $— $41,308 $41,308 $— $— $49,250 $49,250 
Available-for-sale investments— 2,845,845 1,264 2,847,109 — 1,756,178 1,892 1,758,070 
Derivative instruments— 1 — 1 — — — — 
Total$— $2,845,846 $42,572 $2,888,418 $— $1,756,178 $51,142 $1,807,320 
Liabilities:
Derivative instruments$— $— $— $— $— $(8)$— $(8)
Total$— $— $— $— $— $(8)$— $(8)
The following table summarizes the change in balance sheet carrying value associated with Level 3 financial instruments carried at fair value on a recurring basis.

Nine Months Ended September 30,
20262025
InvestmentsInvestments
(Dollars in thousands)Available-For-Sale -
Debt Securities		Trading -
Residual Interests		TotalAvailable-For-Sale -
Debt Securities		Trading -
Residual Interests		Total
Balance, beginning of period$1,892 $49,250 $51,142 $2,689 $53,262 $55,951 
Total gains/(losses):
Included in earnings (or changes in net assets)(1)
(15)(7,662)(7,677)16 1,748 1,764 
Included in other comprehensive income(6)— (6)(3)— (3)
Settlements(607)(280)(887)(638)(3,047)(3,685)
Transfers into Level 3— — — — — — 
Transfers out of Level 3— — — — — — 
Balance, end of period$1,264 $41,308 $42,572 $2,064 $51,963 $54,027 
Change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period$(6)$— $(6)$(3)$— $(3)
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets held at the end of the reporting period(2)
$— $(7,662)$(7,662)$— $1,748 $1,748 

(1) Included in earnings (or changes in net assets) is comprised of the amounts recorded in the specified line item in the consolidated statements of operations:

Nine Months Ended September 30,
(Dollars in thousands)20262025
Interest Income - Investments$(15)$16 
Losses on securities, net(7,662)1,748 
Total$(7,677)$1,764 

(2) Recorded in "losses on securities, net" in the consolidated statements of operations.


The following table presents the significant unobservable inputs used in the recurring valuations of the Level 3 financial instruments detailed above.

As of September 30, 2026
(dollars in thousands)		Fair ValueValuation TechniqueUnobservable InputRange (Average)
Debt Securities$1,264 Discounted cash flowConstant Prepayment Rate
  7.0%-10.9% (8.3%)
Probability of default
     2.9%-17.9% (10.3%)
Residual Interests41,308 Discounted cash flowConstant Prepayment Rate
  7.0%-10.9% (8.3%)
Probability of default
    2.9%-17.9% (10.3%)
Total$42,572 
The significant inputs detailed in the above table would be expected to have the following impacts to the valuations:
•A decrease in constant prepayment rate (“CPR”) would result in a longer weighted average life of the trust, resulting in a decrease to the valuation due to the delay in residual cash flows with the increased term. The opposite is true for an increase in the CPR.
•A decrease in the probability of defaults means increased principal receipts, resulting in an increase to the valuation due to the increase in residual cash flow.
•Conversely, an increase in the probability of defaults means decreased principal receipts, resulting in a decrease to the valuation due to the decrease in residual cash flow.

The following table summarizes the fair values of our financial assets and liabilities, including derivative financial instruments.

September 30, 2026December 31, 2025
(Dollars in thousands)Fair
Value		Carrying
Value		DifferenceFair
Value		Carrying
Value		Difference
Earning assets:
Loans held for investment, net:
Private Education Loans$22,736,469 $20,626,170 $2,110,299 $23,198,134 $20,332,124 $2,866,010 
Loans held for sale1,455,605 1,442,105 13,500 947,078 933,256 13,822 
Cash and cash equivalents2,165,175 2,165,175 — 4,241,265 4,241,265 — 
Trading investments41,308 41,308 — 49,250 49,250 — 
Available-for-sale investments2,847,109 2,847,109 — 1,758,070 1,758,070 — 
Accrued interest receivable1,733,869 1,680,595 53,274 1,662,640 1,562,811 99,829 
Derivative instruments1 1 — — — — 
Total earning assets$30,979,536 $28,802,463 $2,177,073 $31,856,437 $28,876,776 $2,979,661 
Interest-bearing liabilities:
Money-market and savings accounts$10,290,813 $10,346,208 $55,395 $11,187,471 $11,182,022 $(5,449)
Certificates of deposit10,281,049 10,413,512 132,463 9,830,811 9,877,945 47,134 
Short-term borrowings898,729 898,729 — 489,802 498,415 8,613 
Long-term borrowings5,447,200 5,535,923 88,723 5,376,909 5,362,494 (14,415)
Accrued interest payable85,358 85,358 — 97,524 97,524 — 
Derivative instruments— — — 8 8 — 
Total interest-bearing liabilities$27,003,149 $27,279,730 $276,581 $26,982,525 $27,018,408 $35,883 
Excess of net asset fair value over carrying value$2,453,654 $3,015,544 
Please refer to Note 16, “Fair Value Measurements” in our 2025 Form 10-K for a full discussion of the methods and assumptions used to estimate the fair value of each class of financial instruments.