v3.26.3
Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Millions
 9 Months Ended
Sep. 30, 2026
Sep. 30, 2025
Cash flows from operating activities    
Net income (loss) $ 56 $ (75)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:    
(Gains) on sales of loans (162) 0
Goodwill and acquired intangible asset impairment and amortization expense 5 2
Stock-based compensation expense 7 16
Mark-to-market (gains) losses on derivative and hedging activities, net (100) 109
Provisions for loan losses 281 236
(Increase) decrease in accrued interest receivable (22) 76
(Decrease) in accrued interest payable (76) (41)
Decrease (increase) in other assets 31 (13)
(Decrease) in other liabilities (13) (43)
Total adjustments (49) 342
Net cash provided by operating activities 7 267
Cash flows from investing activities    
Education loans originated and acquired (2,856) (1,790)
Proceeds from payments on education loans 4,390 3,721
Proceeds from sales of loans 552 0
Other investing activities, net (16) 9
Disposal of subsidiaries, net of cash and restricted cash disposed of 0 25
Net cash provided by investing activities 2,070 1,965
Cash flows from financing activities    
Borrowings collateralized by loans in trust - issued 1,949 1,622
Borrowings collateralized by loans in trust - repaid (4,917) (3,967)
Long-term unsecured notes issued 496 495
Long-term unsecured notes repaid (506) (554)
Other financing activities, net 101 39
Common stock repurchased (36) (85)
Common dividends paid (45) (48)
Net cash used in financing activities (2,194) (2,463)
Net (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents (117) (231)
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period 2,104 2,103
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period 1,987 1,872
Supplemental disclosure of cash flow information:    
Interest paid 1,719 1,979
Income taxes paid [1] 30 25
Income taxes refunded (6) (5)
Reconciliation of the Consolidated Statements of Cash Flows to the Consolidated Balance Sheets:    
Cash and cash equivalents 701 571
Restricted cash and restricted cash equivalents 1,286 1,301
Total cash, cash equivalents, restricted cash and restricted cash equivalents at end of period 1,987 1,872
Noncash activity:    
Investing activity - Education loans deconsolidated related to sale of Residual Interest in variable interest entities (150) 0
Investing activity - Asset-backed securities retained related to the sale of loans receivable 31 0
Financing Activity Borrowings deconsolidated related to sale of Residual Interest in variable interest entities (228) 0
Asset-backed Securities, Securitized Loans and Receivables [Member]    
Cash flows from financing activities    
Asset-backed commercial paper conduits, net $ 764 $ 35
[1] For the nine months ended September 30, 2026 and 2025, the income taxes paid include $29 million and $23 million, respectively, for transferable tax credits purchased, net of discount. In the current period, the $29 million paid was for $31 million of transferable credits at a $2 million discount. The credit was used to reduce income tax liabilities from prior tax years in the current year provision.