Borrowings (Tables)

9 Months Ended

Sep. 30, 2026

The following table summarizes our borrowings.


	September 30, 2026									December 31, 2025
(Dollars in millions)	Short Term			Long Term			Total			Short Term			Long Term			Total
Unsecured borrowings:
Senior unsecured debt	$	721		$	4,581		$	5,302		$	525		$	4,782		$	5,307
Total unsecured borrowings		721			4,581			5,302			525			4,782			5,307
Secured borrowings:
Private Education Loan securitizations(1)		384			9,953			10,337			469			10,250			10,719
FFELP Loan securitizations(2)(3)		—			22,637			22,637			109			25,302			25,411
Private Education Loan ABCP facilities(4)		2,109			—			2,109			1,942			—			1,942
FFELP Loan ABCP facilities(4)		2,349			376			2,725			1,869			299			2,168
Other(5)		196			79			275			160			39			199
Total secured borrowings		5,038			33,045			38,083			4,549			35,890			40,439
Total before hedge accounting adjustments		5,759			37,626			43,385			5,074			40,672			45,746
Hedge accounting adjustments		(8	)		(197	)		(205	)		(1	)		(39	)		(40	)
Total	$	5,751		$	37,429		$	43,180		$	5,073		$	40,633		$	45,706

(1)

Includes $384 million and $469 million of short-term debt related to the Private Education Loan ABS repurchase facilities (Private Education Loan Repurchase Facilities) as of September 30, 2026 and December 31, 2025, respectively.

(2)

Includes $0 million and $109 million of short-term debt and $115 million and $0 million of long-term debt related to the FFELP Loan ABS repurchase facilities (FFELP Loan Repurchase Facilities) as of September 30, 2026 and December 31, 2025, respectively.

(3)

Includes defaulted FFELP secured debt tranches with a remaining principal amount of $948 million as of September 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 2027 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 $1.7 billion and $870 million of gross issuances in the three months ended September 30, 2026 and 2025, respectively, and $853 million and $675 million of gross paydowns in the three months ended September 30, 2026 and 2025, respectively. ABCP facilities include $3.3 billion and $1.8 billion of gross issuances in the nine months ended September 30, 2026 and 2025, respectively, and $2.5 billion and $1.8 billion of gross paydowns in the nine months ended September 30, 2026 and 2025, respectively.

(5)

“Other” primarily includes short-term repurchase obligation funding.

Financing VIEs

We consolidated the following financing VIEs as of September 30, 2026 and December 31, 2025, as we are the primary beneficiary. As a result, these VIEs are accounted for as secured borrowings.


	September 30, 2026
	Debt Outstanding								Carrying Amount of Assets Securing Debt Outstanding
(Dollars in millions)	Short Term		Long Term			Total			Loans		Cash		Other Assets			Total
Secured Borrowings — VIEs:
Private Education Loan securitizations	$	384	$	9,953		$	10,337		$	11,735	$	352	$	152		$	12,239
FFELP Loan securitizations		—		22,637			22,637			23,198		762		1,092			25,052
Private Education Loan ABCP facilities		2,109		—			2,109			2,557		93		31			2,681
FFELP Loan ABCP facilities		2,349		376			2,725			2,657		77		142			2,876
Personal Loan ABCP facilities		—		40			40			47		—		—			47
Total before hedge accounting adjustments		4,842		33,006			37,848			40,194		1,284		1,417			42,895
Hedge accounting adjustments		—		(46	)		(46	)		—		—		(95	)		(95	)
Total	$	4,842	$	32,960		$	37,802		$	40,194	$	1,284	$	1,322		$	42,800


	December 31, 2025
	Debt Outstanding								Carrying Amount of Assets Securing Debt Outstanding
(Dollars in millions)	Short Term		Long Term			Total			Loans		Cash		Other Assets			Total
Secured Borrowings — VIEs:
Private Education Loan securitizations	$	469	$	10,250		$	10,719		$	11,960	$	364	$	127		$	12,451
FFELP Loan securitizations		109		25,302			25,411			25,942		950		1,096			27,988
Private Education Loan ABCP facilities		1,942		—			1,942			2,173		68		44			2,285
FFELP Loan ABCP facilities		1,869		299			2,168			2,115		84		108			2,307
Total before hedge accounting adjustments		4,389		35,851			40,240			42,190		1,466		1,375			45,031
Hedge accounting adjustments		—		(16	)		(16	)		—		—		(75	)		(75	)
Total	$	4,389	$	35,835		$	40,224		$	42,190	$	1,466	$	1,300		$	44,956

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details