Allowance for Credit Losses and Unfunded Loan Commitments (Tables)

9 Months Ended

Sep. 30, 2026

Schedule of Allowance for Credit Losses and Recorded Investments in Loans

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 nine months ended September 30, 2026 and 2025.


Three Months Ended September 30, 2026 (dollars in thousands)	Private Education Loans
Allowance for loan losses, beginning balance	$	1,354,014
Transfer from allowance for unfunded loan commitments	125,541
Provisions:
Provision for current period	103,063
Loan sale reduction to provision	(8,984)
Loans transferred to held for sale	(33,634)
Total provisions(1)	60,445
Net charge-offs:
Charge-offs(2)	(105,676)
Recoveries	15,290
Net charge-offs	(90,386)


Allowance for loan losses, ending balance	$	1,449,614
Allowance for unfunded loan commitments, beginning balance(3)	66,015
Provision(1)(4)	153,230
Transfer to allowance for loan losses	(125,541)
Allowance for unfunded loan commitments, ending balance(3)	93,704
Total allowance for credit losses, ending balance	$	1,543,318








Net charge-offs as a percentage of average loans in repayment (annualized)(2)(5)	2.32		%
Allowance for loan losses coverage of net charge-offs (annualized)(2)	4.01
Total Allowance Percentage of Private Education Loan Exposure(6)(7)	5.89		%


Ending total loans, gross	$	21,966,017
Average loans in repayment(5)	$	15,607,233
Ending loans in repayment(5)	$	16,043,441
Unfunded loan commitments for loans held for investment(7)	$	2,544,083
Total accrued interest receivable	$	1,674,856

(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 operations.

(2) The above table excludes the initial allowance and immediate charge-off of $19.1 million of loans previously charged off by unconsolidated Private Education Loan Securitizations that were purchased by the Company during the three months ended September 30, 2026 following the exercise of optional clean-up calls.

(3) 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.

(4) Includes incremental provision for new commitments and changes to provision for existing commitments.

(5) 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).

(6) 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.

(7) Unfunded loan commitments for loans held for investment and the calculation of the Total Allowance Percentage of Private Education Loan Exposure do not include $672 million of unfunded loan commitments associated with loans classified as held for sale at September 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 September 30, 2025 (dollars in thousands)	Private Education Loans
Allowance for loan losses, beginning balance	$	1,469,509
Transfer from allowance for unfunded loan commitments	109,422
Provisions:
Provision for current period	143,498
Loan sale reduction to provision	(118,794)

Total provisions(1)	24,704
Net charge-offs:
Charge-offs	(91,072)
Recoveries	13,541
Net charge-offs	(77,531)

Allowance for loan losses, ending balance	$	1,526,104
Allowance for unfunded loan commitments, beginning balance(2)	52,541
Provision(1)(3)	154,758
Transfer to allowance for loan losses	(109,422)
Allowance for unfunded loan commitments, ending balance(2)	97,877
Total allowance for credit losses, ending balance	$	1,623,981








Net charge-offs as a percentage of average loans in repayment (annualized)(4)	1.95		%
Allowance for loan losses coverage of net charge-offs (annualized)	4.92
Total Allowance Percentage of Private Education Loan Exposure(5)	5.93		%

Ending total loans, gross	$	23,029,999
Average loans in repayment(4)	$	15,870,798
Ending loans in repayment(4)	$	16,292,470
Unfunded loan commitments for loans held for investment	$	2,673,369
Total accrued interest receivable	$	1,693,268

(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 operations.

(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.


Nine Months Ended September 30, 2026 (dollars in thousands)	Private Education Loans
Allowance for loan losses, beginning balance	$	1,430,318
Transfer from allowance for unfunded loan commitments	253,044
Provisions:
Provision for current period	244,589
Loan sale reduction to provision	(139,896)
Loans transferred to held for sale	(46,437)
Total provisions(1)	58,256
Net charge-offs:
Charge-offs(2)	(330,725)
Recoveries	38,721
Net charge-offs	(292,004)

Allowance for loan losses, ending balance	$	1,449,614
Allowance for unfunded loan commitments, beginning balance(3)	77,132
Provision(1)(4)	269,616
Transfer to allowance for loan losses	(253,044)
Allowance for unfunded loan commitments, ending balance(3)	93,704
Total allowance for credit losses, ending balance	$	1,543,318








Net charge-offs as a percentage of average loans in repayment (annualized)(2)(5)	2.47		%
Allowance for loan losses coverage of net charge-offs (annualized)(2)	3.72
Total Allowance Percentage of Private Education Loan Exposure(6)(7)	5.89		%


Ending total loans, gross	$	21,966,017
Average loans in repayment(5)	$	15,756,540
Ending loans in repayment(5)	$	16,043,441
Unfunded loan commitments for loans held for investment(7)	$	2,544,083
Total accrued interest receivable	$	1,674,856

(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 operations.

(2) The above table excludes the initial allowance and immediate charge-off of $19.1 million of loans previously charged off by unconsolidated Private Education Loan Securitizations that were purchased by the Company during the nine months ended September 30, 2026 following the exercise of optional clean-up calls.

(4) Includes incremental provision for new commitments and changes to provision for existing commitments.


Nine Months Ended September 30, 2025 (dollars in thousands)	Private Education Loans
Allowance for loan losses, beginning balance	$	1,435,920
Transfer from allowance for unfunded loan commitments	242,434
Provisions:
Provision for current period	330,976
Loan sale reduction to provision	(235,253)

Total provisions(1)	95,723
Net charge-offs:
Charge-offs	(284,841)
Recoveries	36,868
Net charge-offs	(247,973)

Allowance for loan losses, ending balance	$	1,526,104
Allowance for unfunded loan commitments, beginning balance(2)	84,568
Provision(1)(3)	255,743
Transfer to allowance for loan losses	(242,434)
Allowance for unfunded loan commitments, ending balance(2)	97,877
Total allowance for credit losses, ending balance	$	1,623,981








Net charge-offs as a percentage of average loans in repayment (annualized)(4)	2.06		%
Allowance for loan losses coverage of net charge-offs (annualized)	4.62
Total Allowance Percentage of Private Education Loan Exposure(5)(6)	5.93		%


Ending total loans, gross	$	23,029,999
Average loans in repayment(4)	$	16,027,567
Ending loans in repayment(4)	$	16,292,470
Unfunded loan commitments for loans held for investment	$	2,673,369
Total accrued interest receivable	$	1,693,268

(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 operations.

(3) Includes incremental provision for new commitments and changes to provision for existing commitments.

Provisions for Credit Losses

Below is a reconciliation of the provisions for credit losses reported in the consolidated statements of operations.


Consolidated Statements of Operations Provisions for Credit Losses Reconciliation
	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2026		2025		2026		2025
Provisions for credit losses:
Provisions for loan losses	$	60,445	$	24,704	$	58,256	$	95,723
Provisions for unfunded loan commitments	153,230		154,758		269,616		255,743
Provisions for credit losses reported in consolidated statements of operations	$	213,675	$	179,462	327,872		351,466

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.


	2026				2025
Three Months Ended September 30, (dollars in thousands)	Allowance		Unfunded Commitments		Allowance		Unfunded Commitments
Beginning Balance	$	66,015	$	1,728,478	$	52,541	$	1,358,163
Provision/New commitments - net(1)	153,230		4,850,608		154,758		4,251,598
Transfer - funded loans(2)	(125,541)		(3,335,053)		(109,422)		(2,936,392)
Unfunded loan commitments sold	—		(28,389)		—		—
Ending Balance(3)	$	93,704	$	3,215,644	$	97,877	$	2,673,369


	2026				2025
Nine Months Ended September 30, (dollars in thousands)	Allowance		Unfunded Commitments		Allowance		Unfunded Commitments
Beginning Balance	$	77,132	$	2,437,035	$	84,568	$	2,311,660
Provision/New commitments - net(1)	269,616		7,795,793		255,743		6,755,182
Transfer - funded loans(2)	(253,044)		(6,431,011)		(242,434)		(6,393,473)
Unfunded loan commitments sold	—		(586,173)		—		—
Ending Balance(3)	$	93,704	$	3,215,644	$	97,877	$	2,673,369

(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 $672 million of unfunded loan commitments associated with the loans classified as held for sale at September 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 Amortized Cost Basis of Financing Receivables

The following tables show the amortized cost basis at the end of the respective reporting periods of the loans to borrowers experiencing financial difficulty that were modified during the period, disaggregated by class of financing receivable and type of modification. When we approve a Private Education Loan at the beginning of an academic year, we do not always disburse the full amount of the loan at the time of approval, but instead have a commitment to fund a portion of the loan at a later date (usually at the start of the second semester or subsequent trimesters). We consider borrowers to be in financial difficulty after they have exited school and have difficulty making their scheduled principal and interest payments.


	Loan Modifications Made to Borrowers Experiencing Financial Difficulty
Three Months Ended September 30, 2026 (dollars in thousands)	Interest Rate Reduction				Combination - Interest Rate Reduction and Term Extension
Loan Type:	Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable
Private Education Loans	$	9,767	0.04	%	$	232,982	0.98	%
Total	$	9,767	0.04	%	$	232,982	0.98	%


	Loan Modifications Made to Borrowers Experiencing Financial Difficulty
Three Months Ended September 30, 2025 (dollars in thousands)	Interest Rate Reduction				Combination - Interest Rate Reduction and Term Extension
Loan Type:	Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable
Private Education Loans	$	6,866	0.03	%	$	142,208	0.57	%
Total	$	6,866	0.03	%	$	142,208	0.57	%


	Loan Modifications Made to Borrowers Experiencing Financial Difficulty
Nine Months Ended September 30, 2026 (dollars in thousands)	Interest Rate Reduction				Combination - Interest Rate Reduction and Term Extension
Loan Type:	Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable
Private Education Loans	$	24,599	0.10	%	$	582,804	2.45	%
Total	$	24,599	0.10	%	$	582,804	2.45	%


	Loan Modifications Made to Borrowers Experiencing Financial Difficulty
Nine Months Ended September 30, 2025 (dollars in thousands)	Interest Rate Reduction				Combination - Interest Rate Reduction and Term Extension
Loan Type:	Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable
Private Education Loans	$	18,272	0.07	%	$	379,091	1.53	%
Total	$	18,272	0.07	%	$	379,091	1.53	%

The following tables summarize the financial effect of the modifications made to loans whose borrowers are experiencing financial difficulty:

Three Months Ended September 30,

2026

2025

Interest Rate Reduction

Combination -
Interest Rate Reduction and Term Extension

Interest Rate Reduction

Combination -
Interest Rate Reduction and Term Extension

Financial Effect:

Reduced average contractual rate from 12.96% to 4.53%

Added a weighted average 9.44 years to the life of loans

Reduced average contractual rate from 12.12% to 3.05%

Reduced average contractual rate from 12.44% to 4.46%

Added a weighted average 9.33 years to the life of loans

Reduced average contractual rate from 12.41% to 4.23%

Nine Months Ended September 30,

2026

2025

Interest Rate Reduction

Combination -
Interest Rate Reduction and Term Extension

Interest Rate Reduction

Combination -
Interest Rate Reduction and Term Extension

Financial Effect:

Reduced average contractual rate from 12.80% to 4.45%

Added a weighted average 9.52 years to the life of loans

Reduced average contractual rate from 12.05% to 2.97%

Reduced average contractual rate from 12.77% to 4.39%

Added a weighted average 9.39 years to the life of loans

Reduced average contractual rate from 12.32% to 4.08%

Financing Receivable, Modified, Subsequent Default

For the periods presented, the following table presents the defaulted amount and period-end amortized cost basis, by modification category, of loans that defaulted during the period and were modified for borrowers experiencing financial difficulty during the 12 months preceding default. Solely for the purpose of the below table, our definition of payment default is two missed consecutive post-modification payment obligations. As such, defaulted amount represents the principal amount of modified loans at the time the borrower missed two consecutive post-modification payment obligations during the period. Loans that were modified during the twelve months ended September 30, 2026 and subsequently charged-off during the three and nine months ended September 30, 2026 are not included in the period-end amortized cost basis and had an amortized cost basis of $18.0 million and $40.7 million at the time of charge-off, respectively.



	Three Months Ended September 30,
	2026				2025
(Dollars in thousands)	Defaulted Amount		Period-end Amortized Cost Basis		Defaulted Amount		Period-end Amortized Cost Basis
Loan Type:
Private Education Loans
Interest Rate Reduction	$	3,167	$	2,779	$	2,839	$	2,702
Combination - Interest Rate Reduction and Term Extension	53,107		47,719		44,355		40,766
Total	$	56,274	$	50,498	$	47,194	$	43,468



	Nine Months Ended September 30,
	2026				2025
(Dollars in thousands)	Defaulted Amount		Period-end Amortized Cost Basis		Defaulted Amount		Period-end Amortized Cost Basis
Loan Type:
Private Education Loans
Interest Rate Reduction	$	6,141	$	4,430	$	5,664	$	4,615
Combination - Interest Rate Reduction and Term Extension	98,539		76,787		104,031		82,439
Total	$	104,680	$	81,217	$	109,695	$	87,054

Age Analysis of Past Due Loans Delinquencies

The following table depicts the performance of loans that were modified within the nine months prior to September 30, 2026, the 12 months prior to September 30, 2026, and the 12 months prior to December 31, 2025, respectively.


	Nine Months Ended September 30, 2026				Twelve Months Ended September 30, 2026				Twelve Months Ended December 31, 2025
(Dollars in thousands)	Balance		%		Balance		%		Balance		%
Payment Status (Amortized Cost Basis at September 30, 2026)(1):
Loan modifications in deferment(2)	$	18,959			$	24,965			$	14,680
Loan modifications in repayment:
Loans current(3)(4)	430,181		74	%	539,819		75	%	358,054		70	%
Loans delinquent 30-59 days(3)(4)	77,875		13	%	86,317		12	%	68,823		13	%
Loans delinquent 60-89 days(3)(4)	42,636		7	%	47,916		7	%	41,592		8	%
Loans 90 days or greater past due(3)(4)	37,752		6	%	42,928		6	%	46,485		9	%
Total loan modifications in repayment	588,444		100	%	716,980		100	%	514,954		100	%
Total Private Education Loan modifications	$	607,403			$	741,945			$	529,634

(1) Loans that were modified during the twelve months ended September 30, 2026 and subsequently charged-off during the nine months ended September 30, 2026 are excluded from the table and had an amortized cost basis of $40.7 million. Loans that were both modified and subsequently charged-off during the twelve months ended September 30, 2026 are excluded from the table and had an amortized cost basis of $45.2 million. Loans that were both modified and subsequently charged-off during the twelve months ended December 31, 2025 are excluded from the table and had an amortized cost basis of $39.1 million.

(2) Deferment includes customers who have returned to school or are engaged in other permitted educational activities and are not yet required to make full principal and interest payments on the loans (e.g., residency periods for medical students or a grace period for bar exam preparation). Deferment also includes loans that have entered a forbearance after the loan modification was granted.

(3) Represents loans in repayment, which include 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).

(4) The period of delinquency is based on the number of days scheduled payments are contractually past due.

The following tables provide information regarding the loan status of our Private Education Loans held for investment, by year of origination approval/first disbursement. 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 following tables, do not include loans in the “loans in forbearance” metric).


	Private Education Loans Held for Investment - Delinquencies by Origination Approval Vintage
As of September 30, 2026 (dollars in thousands)	2026			2025			2024			2023			2022			2021 and Prior			Total

Loans in-school/grace/deferment(1)	$	1,336,907		$	1,877,763		$	1,037,590		$	458,955		$	315,874		$	526,055		$	5,553,144
Loans in forbearance(2)	4,456			62,470			81,420			51,708			47,435			121,943			369,432
Loans in repayment:
Loans current	2,076,858			3,119,754			2,263,785			1,475,033			1,471,230			4,962,369			15,369,029
Loans delinquent 30-59 days(3)	3,082			23,998			46,900			43,645			46,944			186,533			351,102
Loans delinquent 60-89 days(3)	809			9,920			23,447			25,206			25,450			88,923			173,755
Loans 90 days or greater past due(3)	344			5,696			18,676			18,780			21,647			84,412			149,555
Total Private Education Loans in repayment	2,081,093			3,159,368			2,352,808			1,562,664			1,565,271			5,322,237			16,043,441
Total Private Education Loans, gross	3,422,456			5,099,601			3,471,818			2,073,327			1,928,580			5,970,235			21,966,017
Private Education Loans deferred origination costs and unamortized premium/(discount)	34,498			28,578			19,817			9,776			5,731			11,367			109,767
Total Private Education Loans	3,456,954			5,128,179			3,491,635			2,083,103			1,934,311			5,981,602			22,075,784
Private Education Loans allowance for losses	(165,954)			(283,596)			(237,228)			(175,879)			(161,762)			(425,195)			(1,449,614)
Private Education Loans, net	$	3,291,000		$	4,844,583		$	3,254,407		$	1,907,224		$	1,772,549		$	5,556,407		$	20,626,170

Percentage of Private Education Loans in repayment	60.8		%	62.0		%	67.8		%	75.4		%	81.2		%	89.1		%	73.0		%
Delinquent Private Education Loans in repayment as a percentage of Private Education Loans in repayment	0.2		%	1.3		%	3.8		%	5.6		%	6.0		%	6.8		%	4.2		%
Loans in forbearance as a percentage of loans in repayment and forbearance	0.2		%	1.9		%	3.3		%	3.2		%	2.9		%	2.2		%	2.3		%

(1)Deferment includes customers who have returned to school or are engaged in other permitted educational activities and are not yet required to make payments on the loans (e.g., residency periods for medical students or a grace period for bar exam preparation).

(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 (other than delinquent loans in disaster forbearance), 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.


	Private Education Loans Held for Investment - Delinquencies by Origination Vintage
As of December 31, 2025 (dollars in thousands)	2025			2024			2023			2022			2021			2020 and Prior			Total

Loans in-school/grace/deferment(1)	$	1,747,456		$	1,855,164		$	658,750		$	402,546		$	215,115		$	453,501		$	5,332,532
Loans in forbearance(2)	22,479			127,393			83,962			67,034			44,673			87,534			433,075
Loans in repayment:
Loans current	2,545,734			3,404,837			1,863,481			1,723,538			1,284,830			4,436,303			15,258,723
Loans delinquent 30-59 days(3)	10,981			29,336			41,888			44,106			33,983			170,013			330,307
Loans delinquent 60-89 days(3)	3,267			13,265			22,287			22,729			17,118			76,017			154,683
Loans 90 days or greater past due(3)	1,457			10,726			22,652			22,265			17,873			76,141			151,114
Total Private Education Loans in repayment	2,561,439			3,458,164			1,950,308			1,812,638			1,353,804			4,758,474			15,894,827
Total Private Education Loans, gross	4,331,374			5,440,721			2,693,020			2,282,218			1,613,592			5,299,509			21,660,434
Private Education Loans deferred origination costs and unamortized premium/(discount)	37,495			30,562			12,936			7,122			4,388			9,505			102,008
Total Private Education Loans	4,368,869			5,471,283			2,705,956			2,289,340			1,617,980			5,309,014			21,762,442
Private Education Loans allowance for losses	(231,497)			(312,665)			(211,732)			(182,408)			(122,163)			(369,853)			(1,430,318)
Private Education Loans, net	$	4,137,372		$	5,158,618		$	2,494,224		$	2,106,932		$	1,495,817		$	4,939,161		$	20,332,124

Percentage of Private Education Loans in repayment	59.1		%	63.6		%	72.4		%	79.4		%	83.9		%	89.8		%	73.4		%
Delinquent Private Education Loans in repayment as a percentage of Private Education Loans in repayment	0.6		%	1.5		%	4.5		%	4.9		%	5.1		%	6.8		%	4.0		%
Loans in forbearance as a percentage of loans in repayment and forbearance	0.9		%	3.6		%	4.1		%	3.6		%	3.2		%	1.8		%	2.7		%

(3)The period of delinquency is based on the number of days scheduled payments are contractually past due.

Schedule of Private Education Loan Portfolio Stratified by Key Credit Quality Indicators

The following tables highlight the gross principal balance of our Private Education Loan portfolio (held for investment), by year of origination approval/first disbursement, stratified by key credit quality indicators.


As of September 30, 2026 (dollars in thousands)	Private Education Loans Held for Investment - Credit Quality Indicators
Year of Origination Approval	2026(1)		2025(1)		2024(1)		2023(1)		2022(1)		2021 and Prior(1)		Total(1)		% of Balance
Cosigners:
With cosigner	$	3,057,884	$	4,735,821	$	3,139,934	$	1,782,652	$	1,647,057	$	5,176,349	$	19,539,697	89	%
Without cosigner	364,572		363,780		331,884		290,675		281,523		793,886		2,426,320		11
Total	$	3,422,456	$	5,099,601	$	3,471,818	$	2,073,327	$	1,928,580	$	5,970,235	$	21,966,017	100	%

FICO at Origination Approval(2):
Less than 670	$	226,754	$	329,970	$	210,230	$	172,307	$	172,787	$	520,862	$	1,632,910	7	%
670-699	373,581		606,467		419,104		305,661		280,964		972,408		2,958,185		13
700-749	900,323		1,450,478		1,051,145		644,028		604,827		1,995,334		6,646,135		30
Greater than or equal to 750	1,921,798		2,712,686		1,791,339		951,331		870,002		2,481,631		10,728,787		50
Total	$	3,422,456	$	5,099,601	$	3,471,818	$	2,073,327	$	1,928,580	$	5,970,235	$	21,966,017	100	%

FICO Refreshed(2)(3):
Less than 670	$	292,898	$	516,637	$	435,554	$	386,047	$	382,842	$	1,146,464	$	3,160,442	14	%
670-699	392,874		617,328		411,320		256,802		217,033		641,606		2,536,963		12
700-749	899,471		1,359,063		925,674		520,991		477,563		1,481,192		5,663,954		26
Greater than or equal to 750	1,837,213		2,606,573		1,699,270		909,487		851,142		2,700,973		10,604,658		48
Total	$	3,422,456	$	5,099,601	$	3,471,818	$	2,073,327	$	1,928,580	$	5,970,235	$	21,966,017	100	%

Seasoning(4):
1-12 payments	$	2,085,549	$	2,015,876	$	428,938	$	286,120	$	223,729	$	341,768	$	5,381,980	25	%
13-24 payments	—		1,205,962		1,407,710		192,252		162,208		306,182		3,274,314		15
25-36 payments	—		—		597,580		733,035		158,813		380,901		1,870,329		9
37-48 payments	—		—		—		402,965		746,039		439,526		1,588,530		7
More than 48 payments	—		—		—		—		321,917		3,975,803		4,297,720		20
Not yet in repayment	1,336,907		1,877,763		1,037,590		458,955		315,874		526,055		5,553,144		24
Total	$	3,422,456	$	5,099,601	$	3,471,818	$	2,073,327	$	1,928,580	$	5,970,235	$	21,966,017	100	%

2026 Current period(5)(6) gross charge-offs	$	(656)	$	(12,594)	$	(43,392)	$	(55,891)	$	(53,109)	$	(165,083)	$	(330,725)
2026 Current period(5) recoveries	110		622		1,859		4,037		4,091		28,002		38,721
2026 Current period(5) net charge-offs	$	(546)	$	(11,972)	$	(41,533)	$	(51,854)	$	(49,018)	$	(137,081)	$	(292,004)

Total accrued interest by origination approval vintage	$	72,624	$	407,129	$	424,457	$	262,192	$	201,305	$	307,149	$	1,674,856
(1)Balance represents gross Private Education Loans held for investment. (2)Represents the higher credit score of the cosigner or the borrower. (3)Represents the FICO score updated as of the third quarter 2026. (4)Number of months in active repayment (whether interest only payment, fixed payment, or full principal and interest payment status) for which a scheduled payment was due. (5)Current period refers to period from January 1, 2026 through September 30, 2026. (6)Charge-offs exclude $19.1 million of loans previously charged off by unconsolidated Private Education Loan Securitizations that were purchased by the Company during the nine months ended September 30, 2026 following the exercise of optional clean-up calls.


As of December 31, 2025 (dollars in thousands)	Private Education Loans Held for Investment - Credit Quality Indicators
Year of Origination Approval	2025(1)		2024(1)		2023(1)		2022(1)		2021(1)		2020 and Prior(1)		Total(1)		% of Balance
Cosigners:
With cosigner	$	3,983,409	$	4,968,667	$	2,324,100	$	1,950,843	$	1,366,905	$	4,621,467	$	19,215,391	89	%
Without cosigner	347,965		472,054		368,920		331,375		246,687		678,042		2,445,043		11
Total	$	4,331,374	$	5,440,721	$	2,693,020	$	2,282,218	$	1,613,592	$	5,299,509	$	21,660,434	100	%

FICO at Origination Approval(2):
Less than 670	$	263,280	$	321,462	$	214,219	$	199,017	$	127,109	$	464,693	$	1,589,780	7	%
670-699	520,721		654,923		390,691		326,675		227,358		886,853		3,007,221		14
700-749	1,254,937		1,645,649		834,804		716,088		516,516		1,794,886		6,762,880		31
Greater than or equal to 750	2,292,436		2,818,687		1,253,306		1,040,438		742,609		2,153,077		10,300,553		48
Total	$	4,331,374	$	5,440,721	$	2,693,020	$	2,282,218	$	1,613,592	$	5,299,509	$	21,660,434	100	%

FICO Refreshed(2)(3):
Less than 670	$	417,630	$	581,932	$	454,260	$	407,158	$	295,176	$	971,004	$	3,127,160	14	%
670-699	532,758		671,447		343,793		279,168		183,279		569,616		2,580,061		12
700-749	1,204,125		1,512,026		706,188		590,061		407,777		1,330,695		5,750,872		27
Greater than or equal to 750	2,176,861		2,675,316		1,188,779		1,005,831		727,360		2,428,194		10,202,341		47
Total	$	4,331,374	$	5,440,721	$	2,693,020	$	2,282,218	$	1,613,592	$	5,299,509	$	21,660,434	100	%

Seasoning(4):
1-12 payments	$	2,583,918	$	725,720	$	453,904	$	331,804	$	194,121	$	284,210	$	4,573,677	21	%
13-24 payments	—		2,859,837		319,450		205,689		132,671		299,208		3,816,855		18
25-36 payments	—		—		1,260,916		302,417		132,813		371,012		2,067,158		10
37-48 payments	—		—		—		1,039,762		232,301		420,441		1,692,504		8
More than 48 payments	—		—		—		—		706,571		3,471,137		4,177,708		19
Not yet in repayment	1,747,456		1,855,164		658,750		402,546		215,115		453,501		5,332,532		24
Total	$	4,331,374	$	5,440,721	$	2,693,020	$	2,282,218	$	1,613,592	$	5,299,509	$	21,660,434	100	%

2025 Current period(5) gross charge-offs	$	(1,579)	$	(21,763)	$	(73,247)	$	(69,089)	$	(51,038)	$	(182,920)	$	(399,636)
2025 Current period(5) recoveries	101		1,647		6,969		7,858		6,440		30,896		53,911
2025 Current period(5) net charge-offs	$	(1,478)	$	(20,116)	$	(66,278)	$	(61,231)	$	(44,598)	$	(152,024)	$	(345,725)

Total accrued interest by origination approval vintage	$	169,560	$	486,685	$	304,418	$	230,680	$	134,777	$	243,949	$	1,570,069

(1)Balance represents gross Private Education Loans held for investment.

(2)Represents the higher credit score of the cosigner or the borrower.

(3)Represents the FICO score updated as of the fourth quarter 2025.

(4)Number of months in active repayment (whether interest only payment, fixed payment, or full principal and interest payment status) for which a scheduled payment was due.

(5)Current period refers to January 1, 2025 through December 31, 2025.

Schedule of Accrued Interest Receivable

The following table provides information regarding accrued interest receivable on our Private Education Loans. The table also discloses the amount of accrued interest on loans 90 days or greater past due as compared to our allowance for uncollectible interest. The majority of the total accrued interest receivable represents accrued interest on deferred loans where no payments are due while the borrower is in school and fixed-pay loans where the borrower makes a $25 monthly payment that is smaller than the interest accruing on the loan in that month. The accrued interest on these loans will be capitalized to the balance of the loans when the borrower exits the grace period after separation from school. The allowance for credit losses considers the collectibility of both principal and accrued interest. The allowance for uncollectible interest estimates the additional uncollectible interest that is not captured in the allowance for credit losses.


	Private Education Loans
	Accrued Interest Receivable
(Dollars in thousands)	Total Interest Receivable		90 Days or Greater Past Due		Allowance for Uncollectible Interest(1)

September 30, 2026	$	1,674,856	$	6,073	$	13,025
December 31, 2025	$	1,570,069	$	6,548	$	14,511

(1)At September 30, 2026 and December 31, 2025, $156 million and $164 million, respectively, of accrued interest receivable was not expected to be capitalized and $1.5 billion and $1.4 billion of accrued interest receivable was expected to be capitalized.