Allowance for Loan Losses - Education Loans (Tables)
|
9 Months Ended |
Sep. 30, 2026 |
|---|
| Financing Receivable Allowance For Credit Losses [Line Items] |
|
| Allowance for Credit Losses and Recorded Investments in Loans |
Allowance for Loan Losses Roll Forward
|
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|
Three Months Ended September 30, |
|
|
|
2026 |
|
|
2025 |
|
(Dollars in millions) |
|
Private
Education
Loans |
|
|
FFELP
Loans |
|
|
Total |
|
|
Private
Education
Loans |
|
|
FFELP
Loans |
|
|
Total |
|
Beginning balance |
|
$ |
263 |
|
|
$ |
163 |
|
|
$ |
426 |
|
|
$ |
348 |
|
|
$ |
182 |
|
|
$ |
530 |
|
Total provision |
|
|
210 |
|
|
|
13 |
|
|
|
223 |
|
|
|
155 |
|
|
|
13 |
|
|
|
168 |
|
Charge-offs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross charge-offs |
|
|
(68 |
) |
|
|
(11 |
) |
|
|
(79 |
) |
|
|
(112 |
) |
|
|
(9 |
) |
|
|
(121 |
) |
Expected future recoveries on current period
gross charge-offs |
|
|
9 |
|
|
|
— |
|
|
|
9 |
|
|
|
16 |
|
|
|
— |
|
|
|
16 |
|
Net charge-offs(1) |
|
|
(59 |
) |
|
|
(11 |
) |
|
|
(70 |
) |
|
|
(96 |
) |
|
|
(9 |
) |
|
|
(105 |
) |
Write off in connection with classification of loans
as held for sale(2) |
|
|
(121 |
) |
|
|
— |
|
|
|
(121 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Decrease in expected future recoveries on
previously fully charged-off loans(3) |
|
|
6 |
|
|
|
— |
|
|
|
6 |
|
|
|
(1 |
) |
|
|
— |
|
|
|
(1 |
) |
Allowance at end of period |
|
$ |
299 |
|
|
$ |
165 |
|
|
$ |
464 |
|
|
$ |
406 |
|
|
$ |
186 |
|
|
$ |
592 |
|
Net charge-offs as a percentage of average loans
in repayment(4) |
|
|
1.49 |
% |
|
|
.20 |
% |
|
|
|
|
|
2.50 |
% |
|
|
.15 |
% |
|
|
|
Ending total loans(4) |
|
$ |
12,979 |
|
|
$ |
26,063 |
|
|
|
|
|
$ |
15,862 |
|
|
$ |
29,138 |
|
|
|
|
Average loans in repayment(4) |
|
$ |
12,613 |
|
|
$ |
22,022 |
|
|
|
|
|
$ |
15,259 |
|
|
$ |
24,527 |
|
|
|
|
Ending loans in repayment (4) |
|
$ |
12,519 |
|
|
$ |
21,872 |
|
|
|
|
|
$ |
15,221 |
|
|
$ |
24,136 |
|
|
|
|
(1)Charge-offs are reported net of expected recoveries. For Private Education Loans, we charge off the estimated loss of a defaulted loan balance by charging off the entire defaulted loan balance and estimating recoveries on a pool basis. These estimated recoveries are referred to as "expected future recoveries on previously fully charged-off loans." For FFELP Loans, the recovery is received at the time of charge-off. (2)Three months ended September 30, 2026 includes $121 million of write-offs related to $1.4 billion of Legacy Private Education Loans that were classified as held for sale as of September 30, 2026. When loans are first classified as held for sale, if the fair value is lower than the carrying value then the expected losses related to credit are first recorded as provision for loan losses and the allowance for loan losses associated with those items is written off, establishing a new cost basis. (3)At the end of each month, for Private Education Loans that are 212 days past due, we charge off the estimated loss of a defaulted loan balance by charging off the entire loan balance and estimating recoveries on a pool basis. These estimated recoveries are referred to as “expected future recoveries on previously fully charged-off loans.” If actual periodic recoveries are less than expected, the difference is immediately reflected as a reduction to expected future recoveries on previously fully charged-off loans. If actual periodic recoveries are greater than expected, they will be reflected as a recovery through the allowance for Private Education Loan losses once the cumulative recovery amount exceeds the cumulative amount originally expected to be recovered. The following table summarizes the activity in the expected future recoveries on previously fully charged-off loans.
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
(Dollars in millions) |
|
2026 |
|
|
2025 |
|
Beginning of period expected future recoveries on
previously fully charged-off loans |
|
$ |
163 |
|
|
$ |
172 |
|
Expected future recoveries of current period defaults |
|
|
9 |
|
|
|
16 |
|
Recoveries (cash collected) |
|
|
(9 |
) |
|
|
(9 |
) |
Charge-offs (as a result of lower recovery expectations) |
|
|
(6 |
) |
|
|
(6 |
) |
End of period expected future recoveries on previously
fully charged-off loans |
|
$ |
157 |
|
|
$ |
173 |
|
Change in balance during period |
|
$ |
(6 |
) |
|
$ |
1 |
|
(4)Third-quarter 2026 excludes $2.4 billion of Private Education Loans that were classified as held for sale as of September 30, 2026 and $235 million of In-School Education Loans carried at fair value, and their corresponding charge-offs. 4. Allowance for Loan Losses – Education Loans (Continued) Allowance for Loan Losses Roll Forward
|
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|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, |
|
|
|
2026 |
|
|
2025 |
|
(Dollars in millions) |
|
Private
Education
Loans |
|
|
FFELP
Loans |
|
|
Total |
|
|
Private
Education
Loans |
|
|
FFELP
Loans |
|
|
Total |
|
Beginning balance |
|
$ |
364 |
|
|
$ |
173 |
|
|
$ |
537 |
|
|
$ |
441 |
|
|
$ |
180 |
|
|
$ |
621 |
|
Total provision |
|
|
245 |
|
|
|
30 |
|
|
|
275 |
|
|
|
207 |
|
|
|
29 |
|
|
|
236 |
|
Charge-offs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross charge-offs |
|
|
(233 |
) |
|
|
(38 |
) |
|
|
(271 |
) |
|
|
(287 |
) |
|
|
(23 |
) |
|
|
(310 |
) |
Expected future recoveries on current period
gross charge-offs |
|
|
31 |
|
|
|
— |
|
|
|
31 |
|
|
|
39 |
|
|
|
— |
|
|
|
39 |
|
Net charge-offs(1) |
|
|
(202 |
) |
|
|
(38 |
) |
|
|
(240 |
) |
|
|
(248 |
) |
|
|
(23 |
) |
|
|
(271 |
) |
Write off in connection with classification of loans
as held for sale(2) |
|
|
(121 |
) |
|
|
— |
|
|
|
(121 |
) |
|
|
|
|
|
|
|
|
|
Decrease in expected future recoveries on
previously fully charged-off loans(3) |
|
|
13 |
|
|
|
— |
|
|
|
13 |
|
|
|
6 |
|
|
|
— |
|
|
|
6 |
|
Allowance at end of period |
|
$ |
299 |
|
|
$ |
165 |
|
|
$ |
464 |
|
|
$ |
406 |
|
|
$ |
186 |
|
|
$ |
592 |
|
Net charge-offs as a percentage of average loans
in repayment(4) |
|
|
1.65 |
% |
|
|
.23 |
% |
|
|
|
|
|
2.16 |
% |
|
|
.13 |
% |
|
|
|
Ending total loans(4) |
|
$ |
12,979 |
|
|
$ |
26,063 |
|
|
|
|
|
$ |
15,862 |
|
|
$ |
29,138 |
|
|
|
|
Average loans in repayment(4) |
|
$ |
12,450 |
|
|
$ |
22,571 |
|
|
|
|
|
$ |
15,368 |
|
|
$ |
25,036 |
|
|
|
|
Ending loans in repayment (4) |
|
$ |
12,519 |
|
|
$ |
21,872 |
|
|
|
|
|
$ |
15,221 |
|
|
$ |
24,136 |
|
|
|
|
(1)Charge-offs are reported net of expected recoveries. For Private Education Loans, we charge off the estimated loss of a defaulted loan balance by charging off the entire defaulted loan balance and estimating recoveries on a pool basis. These estimated recoveries are referred to as "expected future recoveries on previously fully charged-off loans." For FFELP Loans, the recovery is received at the time of charge-off. (2)Nine months ended September 30, 2026 includes $121 million of write-offs related to $1.4 billion of Legacy Private Education Loans that were classified as held for sale as of September 30, 2026. When loans are first classified as held for sale, if the fair value is lower than the carrying value then the expected losses related to credit are first recorded as provision for loan losses and the allowance for loan losses associated with those items is written off, establishing a new cost basis. (3)At the end of each month, for Private Education Loans that are 212 days past due, we charge off the estimated loss of a defaulted loan balance by charging off the entire loan balance and estimating recoveries on a pool basis. These estimated recoveries are referred to as “expected future recoveries on previously fully charged-off loans.” If actual periodic recoveries are less than expected, the difference is immediately reflected as a reduction to expected future recoveries on previously fully charged-off loans. If actual periodic recoveries are greater than expected, they will be reflected as a recovery through the allowance for Private Education Loan losses once the cumulative recovery amount exceeds the cumulative amount originally expected to be recovered. The following table summarizes the activity in the expected future recoveries on previously fully charged-off loans.
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, |
|
(Dollars in millions) |
|
2026 |
|
|
2025 |
|
Beginning of period expected future recoveries on
previously fully charged-off loans |
|
$ |
170 |
|
|
$ |
179 |
|
Expected future recoveries of current period defaults |
|
|
31 |
|
|
|
39 |
|
Recoveries (cash collected) |
|
|
(29 |
) |
|
|
(30 |
) |
Charge-offs (as a result of lower recovery expectations) |
|
|
(15 |
) |
|
|
(15 |
) |
End of period expected future recoveries on previously
fully charged-off loans |
|
$ |
157 |
|
|
$ |
173 |
|
Change in balance during period |
|
$ |
(13 |
) |
|
$ |
(6 |
) |
(4)Nine months ended September 30, 2026 excludes $2.4 billion of Private Education Loans that were classified as held for sale as of September 30, 2026 and $235 million of In-School Education Loans carried at fair value, and their corresponding charge-offs. |
| Age Analysis of Past Due Loans Delinquencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Private Education Loan Delinquencies |
|
|
|
September 30, 2026 |
|
|
December 31, 2025 |
|
|
September 30, 2025 |
|
(Dollars in millions) |
|
Balance |
|
|
% |
|
|
Balance |
|
|
% |
|
|
Balance |
|
|
% |
|
Loans in-school/grace/deferment(1) |
|
$ |
216 |
|
|
|
|
|
$ |
395 |
|
|
|
|
|
$ |
402 |
|
|
|
|
Loans in forbearance(2) |
|
|
244 |
|
|
|
|
|
|
236 |
|
|
|
|
|
|
239 |
|
|
|
|
Loans in repayment and percentage of each status: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans current |
|
|
11,881 |
|
|
|
94.9 |
% |
|
|
14,230 |
|
|
|
93.7 |
% |
|
|
14,291 |
|
|
|
93.9 |
% |
Loans delinquent 31-60 days(3) |
|
|
233 |
|
|
|
1.9 |
|
|
|
326 |
|
|
|
2.1 |
|
|
|
315 |
|
|
|
2.1 |
|
Loans delinquent 61-90 days(3) |
|
|
131 |
|
|
|
1.0 |
|
|
|
194 |
|
|
|
1.3 |
|
|
|
182 |
|
|
|
1.2 |
|
Loans delinquent greater than 90 days(3) |
|
|
274 |
|
|
|
2.2 |
|
|
|
434 |
|
|
|
2.9 |
|
|
|
433 |
|
|
|
2.8 |
|
Total loans in repayment |
|
|
12,519 |
|
|
|
100 |
% |
|
|
15,184 |
|
|
|
100 |
% |
|
|
15,221 |
|
|
|
100 |
% |
Total loans(4) |
|
|
12,979 |
|
|
|
|
|
|
15,815 |
|
|
|
|
|
|
15,862 |
|
|
|
|
Allowance for losses |
|
|
(299 |
) |
|
|
|
|
|
(364 |
) |
|
|
|
|
|
(406 |
) |
|
|
|
Loans, net |
|
$ |
12,680 |
|
|
|
|
|
$ |
15,451 |
|
|
|
|
|
$ |
15,456 |
|
|
|
|
Percentage of loans in repayment |
|
|
|
|
|
96.5 |
% |
|
|
|
|
|
96.0 |
% |
|
|
|
|
|
96.0 |
% |
Delinquencies as a percentage of loans in
repayment |
|
|
|
|
|
5.1 |
% |
|
|
|
|
|
6.3 |
% |
|
|
|
|
|
6.1 |
% |
Loans in forbearance as a percentage of
loans in repayment and forbearance |
|
|
|
|
|
1.9 |
% |
|
|
|
|
|
1.5 |
% |
|
|
|
|
|
1.5 |
% |
(1)Loans for customers who are attending school or are in other permitted educational activities and are not yet required to make payments on their loans, e.g., loans for customers who have requested and qualify for other permitted program deferments such as various military eligible deferments. (2)Loans for customers who have requested an extension of the grace period generally during employment transition or who have temporarily ceased making full payments due to hardship or other factors such as disaster relief 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. (4)September 30, 2026 excludes $2.4 billion of Private Education Loans that were classified as held for sale as of September 30, 2026 and $235 million of In-School Education Loans carried at fair value. 4. Allowance for Loan Losses – Education Loans (Continued) FFELP Loans FFELP Loans are substantially insured and guaranteed as to their principal and accrued interest in the event of default. The key credit quality indicators are loan status and loan type.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFELP Loan Delinquencies |
|
|
|
September 30, 2026 |
|
|
December 31, 2025 |
|
|
September 30, 2025 |
|
(Dollars in millions) |
|
Balance |
|
|
% |
|
|
Balance |
|
|
% |
|
|
Balance |
|
|
% |
|
Loans in-school/grace/deferment(1) |
|
$ |
1,097 |
|
|
|
|
|
$ |
1,210 |
|
|
|
|
|
$ |
1,276 |
|
|
|
|
Loans in forbearance(2) |
|
|
3,094 |
|
|
|
|
|
|
3,532 |
|
|
|
|
|
|
3,726 |
|
|
|
|
Loans in repayment and percentage of each status: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans current |
|
|
18,485 |
|
|
|
84.6 |
% |
|
|
19,441 |
|
|
|
82.4 |
% |
|
|
19,766 |
|
|
|
81.9 |
% |
Loans delinquent 31-60 days(3) |
|
|
1,015 |
|
|
|
4.6 |
|
|
|
1,075 |
|
|
|
4.6 |
|
|
|
1,062 |
|
|
|
4.4 |
|
Loans delinquent 61-90 days(3) |
|
|
623 |
|
|
|
2.8 |
|
|
|
706 |
|
|
|
3.0 |
|
|
|
769 |
|
|
|
3.2 |
|
Loans delinquent greater than 90 days(3) |
|
|
1,749 |
|
|
|
8.0 |
|
|
|
2,350 |
|
|
|
10.0 |
|
|
|
2,539 |
|
|
|
10.5 |
|
Total FFELP Loans in repayment |
|
|
21,872 |
|
|
|
100 |
% |
|
|
23,572 |
|
|
|
100 |
% |
|
|
24,136 |
|
|
|
100 |
% |
Total FFELP Loans |
|
|
26,063 |
|
|
|
|
|
|
28,314 |
|
|
|
|
|
|
29,138 |
|
|
|
|
FFELP Loan allowance for losses |
|
|
(165 |
) |
|
|
|
|
|
(173 |
) |
|
|
|
|
|
(186 |
) |
|
|
|
FFELP Loans, net |
|
$ |
25,898 |
|
|
|
|
|
$ |
28,141 |
|
|
|
|
|
$ |
28,952 |
|
|
|
|
Percentage of FFELP Loans in repayment |
|
|
|
|
|
83.9 |
% |
|
|
|
|
|
83.3 |
% |
|
|
|
|
|
82.8 |
% |
Delinquencies as a percentage of FFELP Loans in
repayment |
|
|
|
|
|
15.5 |
% |
|
|
|
|
|
17.5 |
% |
|
|
|
|
|
18.1 |
% |
FFELP Loans in forbearance as a percentage of
loans in repayment and forbearance |
|
|
|
|
|
12.4 |
% |
|
|
|
|
|
13.0 |
% |
|
|
|
|
|
13.4 |
% |
(1)Loans for customers who may still be attending school or engaging in other permitted educational activities and are not yet required to make payments on their loans, e.g., residency periods for medical students or a grace period for bar exam preparation, as well as loans for customers who have requested and qualify for other permitted program deferments such as military, unemployment, or economic hardships. (2)Loans for customers who have used their allowable deferment time or do not qualify for deferment, who need additional time to obtain employment or who have temporarily ceased making full payments due to hardship or other factors such as disaster relief 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. |
| Loans Type |
Loan type:
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in millions) |
|
September 30, 2026 |
|
|
September 30, 2025 |
|
|
Change |
|
Stafford Loans |
|
$ |
8,615 |
|
|
$ |
9,528 |
|
|
$ |
(913 |
) |
Consolidation Loans |
|
|
14,796 |
|
|
|
16,649 |
|
|
|
(1,853 |
) |
Rehab Loans |
|
|
2,652 |
|
|
|
2,961 |
|
|
|
(309 |
) |
Total loans, gross |
|
$ |
26,063 |
|
|
$ |
29,138 |
|
|
$ |
(3,075 |
) |
|
| Summary of Amortized Cost Basis of Loans to Borrowers |
The following tables show the amortized cost basis as of September 30, 2026 and 2025 of the loans to borrowers experiencing financial difficulty that were modified during the respective period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2026 |
|
|
|
Loan Modifications Made to Borrowers Experiencing Financial Difficulty |
|
(Dollars in millions) |
|
Interest Rate Reductions(1) |
|
|
More Than an Insignificant Payment Delay (2) |
|
|
Combination Rate Reduction and Term Extension |
|
Loan Type |
|
Amortized Cost |
|
|
% of Loan Type |
|
|
Amortized Cost |
|
|
% of Loan Type |
|
|
Amortized Cost |
|
|
% of Loan Type |
|
Private Education
Loans |
|
$ |
388 |
|
|
|
3.0 |
% |
|
$ |
198 |
|
|
|
1.5 |
% |
|
$ |
18 |
|
|
|
.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2025 |
|
|
|
Loan Modifications Made to Borrowers Experiencing Financial Difficulty |
|
(Dollars in millions) |
|
Interest Rate Reductions(1) |
|
|
More Than an Insignificant Payment Delay (2) |
|
|
Combination Rate Reduction and Term Extension |
|
Loan Type |
|
Amortized Cost |
|
|
% of Loan Type |
|
|
Amortized Cost |
|
|
% of Loan Type |
|
|
Amortized Cost |
|
|
% of Loan Type |
|
Private Education
Loans |
|
$ |
599 |
|
|
|
3.8 |
% |
|
$ |
298 |
|
|
|
1.9 |
% |
|
$ |
33 |
|
|
|
.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2026 |
|
(Dollars in millions) |
|
Interest Rate Reductions(1) |
|
|
More Than an Insignificant Payment Delay (2) |
|
|
Combination Rate Reduction and Term Extension |
|
Loan Type |
|
Amortized Cost |
|
|
% of Loan Type |
|
|
Amortized Cost |
|
|
% of Loan Type |
|
|
Amortized Cost |
|
|
% of Loan Type |
|
Private Education
Loans |
|
$ |
1,082 |
|
|
|
8.3 |
% |
|
$ |
489 |
|
|
|
3.8 |
% |
|
$ |
62 |
|
|
|
.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2025 |
|
(Dollars in millions) |
|
Interest Rate Reductions(1) |
|
|
More Than an Insignificant Payment Delay (2) |
|
|
Combination Rate Reduction and Term Extension |
|
Loan Type |
|
Amortized Cost |
|
|
% of Loan Type |
|
|
Amortized Cost |
|
|
% of Loan Type |
|
|
Amortized Cost |
|
|
% of Loan Type |
|
Private Education
Loans |
|
$ |
1,554 |
|
|
|
9.8 |
% |
|
$ |
734 |
|
|
|
4.6 |
% |
|
$ |
87 |
|
|
|
.5 |
% |
(1)As of September 30, 2026 and 2025, there was $0.9 billion and $1.0 billion, respectively, of loans in the interest rate reduction program. (2)More Than an Insignificant Payment Delay includes loans granted more than 3 months of short-term interest only payments or hardship forbearance. 4. Allowance for Loan Losses – Education Loans (Continued) For those loans modified in the three and nine months ended September 30, 2026 and 2025, the following tables show the impact of such modification.
|
|
|
|
Three Months Ended September 30, 2026 |
Loan Type |
Interest Rate Reductions |
More Than an Insignificant Payment Delay |
Combination Rate Reduction and Term Extension |
Private Education Loans |
Reduced the weighted average contractual rate from 11.9% to 5.1% |
Added an average 5 months to the remaining life of the loans |
Added an average 6 years to the remaining life of the loans and reduced the weighted average contractual rate from
10.7% to 4.7%. |
|
|
|
|
Three Months Ended September 30, 2025 |
Loan Type |
Interest Rate Reductions |
More Than an Insignificant Payment Delay |
Combination Rate Reduction and Term Extension |
Private Education Loans |
Reduced the weighted average contractual rate from 12.3% to 5.4% |
Added an average 5 months to the remaining life of the loans |
Added an average 6 years to the remaining life of the loans and reduced the weighted average contractual rate from
12% to 5.2%. |
|
|
|
|
Nine Months Ended September 30, 2026 |
Loan Type |
Interest Rate Reductions |
More Than an Insignificant Payment Delay |
Combination Rate Reduction and Term Extension |
Private Education Loans |
Reduced the weighted average contractual rate from 11.9% to 5.2% |
Added an average 6 months to the remaining life of the loans |
Added an average 6 years to the remaining life of the loans and reduced the weighted average contractual rate from
11.2% to 4.7%. |
|
|
|
|
Nine Months Ended September 30, 2025 |
Loan Type |
Interest Rate Reductions |
More Than an Insignificant Payment Delay |
Combination Rate Reduction and Term Extension |
Private Education Loans |
Reduced the weighted average contractual rate from 12.3% to 5.4% |
Added an average 7 months to the remaining life of the loans |
Added an average 7 years to the remaining life of the loans and reduced the weighted average contractual rate from
12.1% to 5.4%. |
|
| Schedule of Amount of Loans Modified and Payment Default |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
(Dollars in millions) |
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
Modified loans (amortized cost) (1) |
|
$ |
187 |
|
|
$ |
142 |
|
|
$ |
241 |
|
|
$ |
345 |
|
Payment default (par) |
|
$ |
189 |
|
|
$ |
145 |
|
|
$ |
244 |
|
|
$ |
353 |
|
Charge-offs (par) |
|
$ |
16 |
|
|
$ |
19 |
|
|
$ |
53 |
|
|
$ |
44 |
|
(1)For the three months ended September 30, 2026 and 2025, the modified loans include $145 million and $95 million, respectively, of Interest Rate Reduction, $7 million and $7 million, respectively, of Combination Rate Reduction and Term Extension, and $35 million and $40 million, respectively, of More Than Insignificant Payment Delay. For the nine months ended September 30, 2026 and 2025, the modified loans include $177 million and $242 million, respectively, of Interest Rate Reduction, $10 million and $15 million, respectively, of Combination Rate Reduction and Term Extension, and $54 million and $88 million, respectively, of More Than Insignificant Payment Delay.
|
| Summary of Performance and Related Loan Status of Loans Modified |
The following table provides the performance and related loan status of Private Education Loans that have been modified within the 12 months prior to September 30, 2026 and the 12 months prior to December 31, 2025, respectively.
|
|
|
|
|
|
|
|
|
|
|
Payment Status (Amortized Cost) |
|
(Dollars in millions) |
|
Twelve Months Ended |
|
Loan Status |
|
September 30, 2026 |
|
|
December 31, 2025 |
|
Loans in school/deferment |
|
$ |
18 |
|
|
$ |
24 |
|
Loans in forbearance |
|
|
81 |
|
|
|
73 |
|
Loans current |
|
|
1,390 |
|
|
|
2,056 |
|
Loans delinquent 31 - 60 days |
|
|
144 |
|
|
|
191 |
|
Loans delinquent 61 - 90 days |
|
|
89 |
|
|
|
125 |
|
Loans delinquent greater than 90 days |
|
|
143 |
|
|
|
211 |
|
Total modified loans |
|
$ |
1,865 |
|
|
$ |
2,680 |
|
|
|
|
|
|
|
|
|
| Private Education Loans [Member] |
|
| Financing Receivable Allowance For Credit Losses [Line Items] |
|
| Private Education Loan Portfolio Stratified by Key Credit Quality Indicators |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Private Education Loan Credit Quality Indicators by Origination Year |
|
|
|
September 30, 2026 |
|
(Dollars in millions) |
|
2026 |
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|
2022 |
|
|
Prior |
|
|
Total |
|
|
% of Total |
|
Credit Quality
Indicators |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FICO Scores: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
640 and above |
|
$ |
2,249 |
|
|
$ |
1,481 |
|
|
$ |
586 |
|
|
$ |
295 |
|
|
$ |
762 |
|
|
$ |
6,253 |
|
|
$ |
11,626 |
|
|
|
90 |
% |
Below 640 |
|
|
14 |
|
|
|
34 |
|
|
|
45 |
|
|
|
32 |
|
|
|
87 |
|
|
|
1,141 |
|
|
|
1,353 |
|
|
|
10 |
|
Total |
|
$ |
2,263 |
|
|
$ |
1,515 |
|
|
$ |
631 |
|
|
$ |
327 |
|
|
$ |
849 |
|
|
$ |
7,394 |
|
|
$ |
12,979 |
|
|
|
100 |
% |
Loan Status: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In-school/grace/
deferment/forbearance |
|
$ |
60 |
|
|
$ |
51 |
|
|
$ |
35 |
|
|
$ |
18 |
|
|
$ |
33 |
|
|
$ |
263 |
|
|
$ |
460 |
|
|
|
4 |
% |
Current/90 days or
less delinquent |
|
|
2,201 |
|
|
|
1,458 |
|
|
|
590 |
|
|
|
302 |
|
|
|
804 |
|
|
|
6,890 |
|
|
|
12,245 |
|
|
|
94 |
|
Greater than 90 days
delinquent |
|
|
2 |
|
|
|
6 |
|
|
|
6 |
|
|
|
7 |
|
|
|
12 |
|
|
|
241 |
|
|
|
274 |
|
|
|
2 |
|
Total |
|
$ |
2,263 |
|
|
$ |
1,515 |
|
|
$ |
631 |
|
|
$ |
327 |
|
|
$ |
849 |
|
|
$ |
7,394 |
|
|
$ |
12,979 |
|
|
|
100 |
% |
Seasoning(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-12 payments |
|
$ |
2,224 |
|
|
$ |
756 |
|
|
$ |
14 |
|
|
$ |
4 |
|
|
$ |
3 |
|
|
$ |
17 |
|
|
$ |
3,018 |
|
|
|
23 |
% |
13-24 payments |
|
|
— |
|
|
|
735 |
|
|
|
328 |
|
|
|
17 |
|
|
|
12 |
|
|
|
31 |
|
|
|
1,123 |
|
|
|
8 |
|
25-36 payments |
|
|
— |
|
|
|
— |
|
|
|
271 |
|
|
|
162 |
|
|
|
36 |
|
|
|
69 |
|
|
|
538 |
|
|
|
4 |
|
37-48 payments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
135 |
|
|
|
194 |
|
|
|
154 |
|
|
|
483 |
|
|
|
4 |
|
More than 48
payments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
591 |
|
|
|
7,011 |
|
|
|
7,602 |
|
|
|
59 |
|
Loans in-school/
grace/deferment |
|
|
39 |
|
|
|
24 |
|
|
|
18 |
|
|
|
9 |
|
|
|
13 |
|
|
|
112 |
|
|
|
215 |
|
|
|
2 |
|
Total |
|
$ |
2,263 |
|
|
$ |
1,515 |
|
|
$ |
631 |
|
|
$ |
327 |
|
|
$ |
849 |
|
|
$ |
7,394 |
|
|
$ |
12,979 |
|
|
|
100 |
% |
Certain Loan
Modifications(2): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Modified |
|
$ |
— |
|
|
$ |
23 |
|
|
$ |
45 |
|
|
$ |
43 |
|
|
$ |
119 |
|
|
$ |
3,221 |
|
|
$ |
3,451 |
|
|
|
27 |
% |
Non-Modified |
|
|
2,263 |
|
|
|
1,492 |
|
|
|
586 |
|
|
|
284 |
|
|
|
730 |
|
|
|
4,173 |
|
|
|
9,528 |
|
|
|
73 |
|
Total |
|
$ |
2,263 |
|
|
$ |
1,515 |
|
|
$ |
631 |
|
|
$ |
327 |
|
|
$ |
849 |
|
|
$ |
7,394 |
|
|
$ |
12,979 |
|
|
|
100 |
% |
Cosigners: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
With cosigner(3) |
|
$ |
273 |
|
|
$ |
197 |
|
|
$ |
80 |
|
|
$ |
31 |
|
|
$ |
1 |
|
|
$ |
2,110 |
|
|
$ |
2,692 |
|
|
|
21 |
% |
Without cosigner |
|
|
1,990 |
|
|
|
1,318 |
|
|
|
551 |
|
|
|
296 |
|
|
|
848 |
|
|
|
5,284 |
|
|
|
10,287 |
|
|
|
79 |
|
Total |
|
$ |
2,263 |
|
|
$ |
1,515 |
|
|
$ |
631 |
|
|
$ |
327 |
|
|
$ |
849 |
|
|
$ |
7,394 |
|
|
$ |
12,979 |
|
|
|
100 |
% |
School Type: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Not-for-profit |
|
$ |
2,262 |
|
|
$ |
1,515 |
|
|
$ |
622 |
|
|
$ |
315 |
|
|
$ |
831 |
|
|
$ |
6,812 |
|
|
$ |
12,357 |
|
|
|
95 |
% |
For-profit |
|
|
1 |
|
|
|
— |
|
|
|
9 |
|
|
|
12 |
|
|
|
18 |
|
|
|
582 |
|
|
|
622 |
|
|
|
5 |
|
Total |
|
$ |
2,263 |
|
|
$ |
1,515 |
|
|
$ |
631 |
|
|
$ |
327 |
|
|
$ |
849 |
|
|
$ |
7,394 |
|
|
$ |
12,979 |
|
|
|
100 |
% |
Allowance for loan
losses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(299 |
) |
|
|
|
Total loans, net(4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
12,680 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge-Offs |
|
$ |
— |
|
|
$ |
(5 |
) |
|
$ |
(6 |
) |
|
$ |
(7 |
) |
|
$ |
(9 |
) |
|
$ |
(175 |
) |
|
$ |
(202 |
) |
|
|
|
(1)Number of months in active repayment for which a scheduled payment was received. (2)Loan Modifications represents the historical definition of a troubled debt restructuring (TDR) prior to the implementation of ASU No. 2022-02 on January 1, 2023. Any loan that meets the historical definition of a TDR retains that classification for the life of the loan (including loans that meet that definition subsequent to January 1, 2023). This includes loans given rate modifications, term extensions or forbearance greater than 3 months in the prior 24-month period. This classification is not intended to reconcile in any way to the modification disclosures required under ASU No. 2022-02. (3)Excluding Refinance Education Loans, the cosigner rate was 65% for total loans at September 30, 2026. (4)Excludes $2.4 billion of Private Education Loans that were classified as held for sale as of September 30, 2026 and $235 million of In-School Education Loans carried at fair value, and their corresponding charge-offs. 4. Allowance for Loan Losses – Education Loans (Continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Private Education Loan Credit Quality Indicators by Origination Year |
|
|
|
September 30, 2025 |
|
(Dollars in millions) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
Prior |
|
|
Total |
|
|
% of Total |
|
Credit Quality
Indicators |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FICO Scores: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
640 and above |
|
$ |
1,566 |
|
|
$ |
1,082 |
|
|
$ |
592 |
|
|
$ |
1,109 |
|
|
$ |
2,853 |
|
|
$ |
6,688 |
|
|
$ |
13,890 |
|
|
|
88 |
% |
Below 640 |
|
|
25 |
|
|
|
50 |
|
|
|
48 |
|
|
|
104 |
|
|
|
166 |
|
|
|
1,579 |
|
|
|
1,972 |
|
|
|
12 |
|
Total |
|
$ |
1,591 |
|
|
$ |
1,132 |
|
|
$ |
640 |
|
|
$ |
1,213 |
|
|
$ |
3,019 |
|
|
$ |
8,267 |
|
|
$ |
15,862 |
|
|
|
100 |
% |
Loan Status: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In-school/grace/
deferment/forbearance |
|
$ |
73 |
|
|
$ |
94 |
|
|
$ |
53 |
|
|
$ |
46 |
|
|
$ |
75 |
|
|
$ |
300 |
|
|
$ |
641 |
|
|
|
4 |
% |
Current/90 days or
less delinquent |
|
|
1,517 |
|
|
|
1,032 |
|
|
|
577 |
|
|
|
1,150 |
|
|
|
2,919 |
|
|
|
7,593 |
|
|
|
14,788 |
|
|
|
93 |
|
Greater than 90 days
delinquent |
|
|
1 |
|
|
|
6 |
|
|
|
10 |
|
|
|
17 |
|
|
|
25 |
|
|
|
374 |
|
|
|
433 |
|
|
|
3 |
|
Total |
|
$ |
1,591 |
|
|
$ |
1,132 |
|
|
$ |
640 |
|
|
$ |
1,213 |
|
|
$ |
3,019 |
|
|
$ |
8,267 |
|
|
$ |
15,862 |
|
|
|
100 |
% |
Seasoning(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-12 payments |
|
$ |
1,527 |
|
|
$ |
595 |
|
|
$ |
25 |
|
|
$ |
19 |
|
|
$ |
9 |
|
|
$ |
26 |
|
|
$ |
2,201 |
|
|
|
14 |
% |
13-24 payments |
|
|
— |
|
|
|
458 |
|
|
|
330 |
|
|
|
37 |
|
|
|
33 |
|
|
|
36 |
|
|
|
894 |
|
|
|
6 |
|
25-36 payments |
|
|
— |
|
|
|
— |
|
|
|
243 |
|
|
|
336 |
|
|
|
80 |
|
|
|
75 |
|
|
|
734 |
|
|
|
5 |
|
37-48 payments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
791 |
|
|
|
1,443 |
|
|
|
131 |
|
|
|
2,365 |
|
|
|
15 |
|
More than 48
payments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,418 |
|
|
|
7,848 |
|
|
|
9,266 |
|
|
|
58 |
|
Loans in-school/
grace/deferment |
|
|
64 |
|
|
|
79 |
|
|
|
42 |
|
|
|
30 |
|
|
|
36 |
|
|
|
151 |
|
|
|
402 |
|
|
|
2 |
|
Total |
|
$ |
1,591 |
|
|
$ |
1,132 |
|
|
$ |
640 |
|
|
$ |
1,213 |
|
|
$ |
3,019 |
|
|
$ |
8,267 |
|
|
$ |
15,862 |
|
|
|
100 |
% |
Certain Loan
Modifications(2): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Modified |
|
$ |
— |
|
|
$ |
14 |
|
|
$ |
32 |
|
|
$ |
104 |
|
|
$ |
213 |
|
|
$ |
4,933 |
|
|
$ |
5,296 |
|
|
|
33 |
% |
Non-Modified |
|
|
1,591 |
|
|
|
1,118 |
|
|
|
608 |
|
|
|
1,109 |
|
|
|
2,806 |
|
|
|
3,334 |
|
|
|
10,566 |
|
|
|
67 |
|
Total |
|
$ |
1,591 |
|
|
$ |
1,132 |
|
|
$ |
640 |
|
|
$ |
1,213 |
|
|
$ |
3,019 |
|
|
$ |
8,267 |
|
|
$ |
15,862 |
|
|
|
100 |
% |
Cosigners: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
With cosigner(3) |
|
$ |
318 |
|
|
$ |
329 |
|
|
$ |
212 |
|
|
$ |
129 |
|
|
$ |
66 |
|
|
$ |
4,017 |
|
|
$ |
5,071 |
|
|
|
32 |
% |
Without cosigner |
|
|
1,273 |
|
|
|
803 |
|
|
|
428 |
|
|
|
1,084 |
|
|
|
2,953 |
|
|
|
4,250 |
|
|
|
10,791 |
|
|
|
68 |
|
Total |
|
$ |
1,591 |
|
|
$ |
1,132 |
|
|
$ |
640 |
|
|
$ |
1,213 |
|
|
$ |
3,019 |
|
|
$ |
8,267 |
|
|
$ |
15,862 |
|
|
|
100 |
% |
School Type: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Not-for-profit |
|
$ |
1,500 |
|
|
$ |
1,069 |
|
|
$ |
604 |
|
|
$ |
1,148 |
|
|
$ |
2,842 |
|
|
$ |
7,185 |
|
|
$ |
14,348 |
|
|
|
90 |
% |
For-profit |
|
|
91 |
|
|
|
63 |
|
|
|
36 |
|
|
|
65 |
|
|
|
177 |
|
|
|
1,082 |
|
|
|
1,514 |
|
|
|
10 |
|
Total |
|
$ |
1,591 |
|
|
$ |
1,132 |
|
|
$ |
640 |
|
|
$ |
1,213 |
|
|
$ |
3,019 |
|
|
$ |
8,267 |
|
|
$ |
15,862 |
|
|
|
100 |
% |
Allowance for loan
losses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(406 |
) |
|
|
|
Total loans, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
15,456 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge-Offs |
|
$ |
— |
|
|
$ |
(4 |
) |
|
$ |
(4 |
) |
|
$ |
(10 |
) |
|
$ |
(19 |
) |
|
$ |
(211 |
) |
|
$ |
(248 |
) |
|
|
|
(1)Number of months in active repayment for which a scheduled payment was received. (2)Loan Modifications represents the historical definition of a troubled debt restructuring (TDR) prior to the implementation of ASU No. 2022-02 on January 1, 2023. Any loan that meets the historical definition of a TDR retains that classification for the life of the loan (including loans that meet that definition subsequent to January 1, 2023). This includes loans given rate modifications, term extensions or forbearance greater than 3 months in the prior 24-month period. This classification is not intended to reconcile in any way to the modification disclosures required under ASU No. 2022-02. |