SLM (SLM) 10-Q 5 Nov 09 2009 Q3 Quarterly report Financial data

Document and Company Informatio

Document and Company Information (USD $)
In Billions, except Share data	9 Months Ended Sep. 30, 2009	Jun. 30, 2008
Document and Company Information [Abstract]
Entity Registrant Name	SLM CORP
Entity Central Index Key	0001032033
Document Type	10-Q
Document Period End Date	2009-09-30
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float		8.9
Entity Common Stock, Shares Outstanding (actual number)	474,590,764

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) (USD $)
In Thousands	Sep. 30, 2009	Dec. 31, 2008
Assets
FFELP Stafford and Other Student Loans (net of allowance for losses of $101,343 and $90,906, respectively)	$43,257,743	$44,025,361
FFELP Stafford Loans Held-for-Sale	23,846,566	8,450,976
FFELP Consolidation Loans (net of allowance for losses of $54,384 and $46,637, respectively)	69,246,231	71,743,435
Private Education Loans (net of allowance for losses of $1,401,496 and $1,308,043, respectively)	22,494,955	20,582,298
Other loans (net of allowance for losses of $74,057 and $58,395, respectively)	454,557	729,380
Investments:
Available-for-sale	984,669	861,008
Other	850,141	180,397
Total investments	1,834,810	1,041,405
Cash and cash equivalents	5,186,998	4,070,002
Restricted cash and investments	5,760,583	3,535,286
Retained Interest in off-balance sheet securitized loans	1,838,203	2,200,298
Goodwill and acquired intangible assets, net	1,224,272	1,249,219
Other assets	11,299,006	11,140,777
Total assets	186,443,924	168,768,437
Liabilities
Short-term borrowings	53,406,554	41,933,043
Long-term borrowings	124,647,818	118,224,794
Other liabilities	3,400,527	3,604,260
Total liabilities	181,454,899	163,762,097
Preferred stock, par value $.20 per share, 20,000 shares authorized:
Common stock, par value $.20 per share, 1,125,000 shares authorized: 541,849 and 534,411 shares issued, respectively	108,362	106,883
Additional paid-in capital	4,862,071	4,684,112
Accumulated other comprehensive loss (net of tax benefit of $25,176 and $43,202, respectively)	(44,143)	(76,476)
Retained earnings	346,347	426,175
Total SLM Corporation stockholders' equity before treasury stock	6,850,007	6,855,464
Common stock held in treasury at cost: 67,159 and 66,958 shares, respectively	1,860,989	1,856,394
Total SLM Corporation stockholders' equity	4,989,018	4,999,070
Noncontrolling interest	7	7,270
Total equity	4,989,025	5,006,340
Total liabilities and equity	186,443,924	168,768,437
Preferred Stock
Preferred stock, par value $.20 per share, 20,000 shares authorized:
Total equity	1,577,370	1,714,770
Preferred stock, series A
Preferred stock, par value $.20 per share, 20,000 shares authorized:
Preferred stock	165,000	165,000
Preferred stock, series B
Preferred stock, par value $.20 per share, 20,000 shares authorized:
Preferred stock	400,000	400,000
Preferred stock, series C
Preferred stock, par value $.20 per share, 20,000 shares authorized:
Preferred stock	$1,012,370	$1,149,770

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) (Unaudited) (USD $)
In Thousands	Sep. 30, 2009	Dec. 31, 2008
Assets
Allowance for other student loan losses	$101,343	$90,906
Allowance for consolidation loans losses	54,384	46,637
Allowance for private education loans losses	1,401,496	1,308,043
Allowance for other loans losses	74,057	58,395
Preferred stock, par value $.20 per share, 20,000 shares authorized:
Preferred stock, par value	0.2	0.2
Preferred stock, shares authorized	20,000	20,000
Common stock, par value	0.2	0.2
Common stock, shares authorized	1,125,000	1,125,000
Common stock, shares issued	541,849	534,411
Tax effect for accumulated other comprehensive income	$25,176	$43,202
Common stock held in treasury	67,159	66,958
Preferred stock, series A
Preferred stock, par value $.20 per share, 20,000 shares authorized:
Preferred stock, par value	50	50
Preferred stock, shares issued	3,300	3,300
Preferred stock, series B
Preferred stock, par value $.20 per share, 20,000 shares authorized:
Preferred stock, par value	100	100
Preferred stock, shares issued	4,000	4,000
Preferred stock, series C
Preferred stock, par value $.20 per share, 20,000 shares authorized:
Preferred stock Series C, par value	1,000	1,000
Preferred stock, shares issued	1,012	1,150

Consolidated Statements of Inco

Consolidated Statements of Income (Unaudited) (USD $)
In Thousands, except Per Share data	3 Months Ended Sep. 30, 2009	3 Months Ended Sep. 30, 2008	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Interest income:
FFELP Stafford and Other Student Loans	$303,192	$516,116	$969,947	$1,478,190
FFELP Consolidation Loans	481,592	830,566	1,431,644	2,436,886
Private Education Loans	396,339	445,572	1,176,399	1,298,417
Other loans	11,042	19,874	45,930	64,573
Cash and investments	6,881	57,154	19,896	251,491
Total interest income	1,199,046	1,869,282	3,643,816	5,529,557
Total interest expense	673,870	1,394,533	2,519,876	4,375,896
Net interest income	525,176	474,749	1,123,940	1,153,661
Less: provisions for loan losses	321,127	186,909	849,518	467,235
Net interest income after provisions for loan losses	204,049	287,840	274,422	686,426
Other income (loss)
Servicing and securitization revenue	155,065	64,990	147,248	174,262
Gains (losses) on sales of loans and securities, net	12,452	(43,899)	12,752	(122,148)
Gains (losses) on derivative and hedging activities, net	(111,556)	(241,757)	(569,326)	(152,510)
Contingency fee revenue	82,200	89,418	230,383	258,514
Collections revenue (loss)	15,580	(170,692)	16,318	(87,088)
Guarantor servicing fees	48,087	36,848	106,867	95,164
Other	150,006	93,096	741,229	295,357
Total other income (loss)	351,834	(171,996)	685,471	461,551
Expenses:
Salaries and benefits	142,435	157,408	418,775	504,925
Other operating expenses	176,185	209,744	516,513	571,563
Restructuring expenses	3,592	10,508	12,795	77,926
Total expenses	322,212	377,660	948,083	1,154,414
Net income (loss) before income tax benefit	233,671	(261,816)	11,810	(6,437)
Income tax expense (benefit)	74,363	(103,819)	(3,884)	(13,233)
Net income (loss)	159,308	(157,997)	15,694	6,796
Less: net income attributable to noncontrolling interest	198	544	690	3,405
Net income (loss) attributable to SLM Corporation	159,110	(158,541)	15,004	3,391
Preferred stock dividends	42,627	27,474	94,822	83,890
Net income (loss) attributable to SLM Corporation common stock	$116,483	($186,015)	($79,818)	($80,499)
Basic earnings (loss) per common share attributable to SLM Corporation common shareholders	0.25	-0.4	-0.17	-0.17
Average common shares outstanding	470,280	466,646	467,960	466,625
Diluted earnings (loss) per common share attributable to SLM Corporation common shareholders	0.25	-0.4	-0.17	-0.17
Average common and common equivalent shares outstanding	471,058	466,646	467,960	466,625
Dividends per common share attributable to SLM Corporation common shareholders	$0	$0	$0	$0

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders Equity (Unaudited) (USD $)
In Thousands, except Share data		Total Stockholders' Equity	Common Stock	Additional Paid-In Capital	Treasury Stock	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Noncontrolling Interest	Preferred Stock	Total
Beginning Balance, Shares Issued at Dec. 31, 2007	466,541,687		532,493,081		(65,951,394)				8,300,000
Beginning Balance at Dec. 31, 2007		$5,223,535	$106,499	$4,590,174	($1,831,706)	$557,204	$236,364	$11,360	$1,565,000	$5,234,895
Comprehensive income:
Net income (loss)		3,391				3,391		3,405		6,796
Noncontrolling interest - other								(1,869)		(1,869)
Acquisition of noncontrolling interest in Purchased Paper business								(4,355)		(4,355)
Other comprehensive income, net of tax:
Change in unrealized gains (losses) on investments, net of tax		(26,199)					(26,199)			(26,199)
Change in unrealized gains (losses) on derivatives, net of tax		31,932					31,932			31,932
Defined benefit pension plans adjustment		(755)					(755)			(755)
Comprehensive income		8,369						(2,819)		5,550
Cash dividends:
Preferred stock		(83,403)				(83,403)				(83,403)
Restricted stock dividend		(1,851)				(1,851)				(1,851)
Issuance of common shares		30,820	383	30,358	79					30,820
Issuance of common shares, shares	1,920,668		1,917,001		3,667
Issuance of preferred shares		145,345		(4,168)		(487)			150,000	145,345
Issuance of preferred shares, shares									150,000
Conversion of preferred shares		0	2	228					(230)	0
Conversion of preferred shares, shares	9,595		9,595						(230)
Tax benefit related to employee stock option and purchase plans		(13,358)		(13,358)						(13,358)
Stock-based compensation cost		62,380		62,380						62,380
Cumulative effect of accounting change						194,655	(194,655)
Repurchase of common shares:
Benefit plans		(24,713)			(24,713)					(24,713)
Benefit plans, shares	(1,004,264)				(1,004,264)
Ending Balance at Sep. 30, 2008		5,347,124	106,884	4,665,614	(1,856,340)	669,509	46,687	8,541	1,714,770	5,355,665
Ending Balance, Shares Issued at Sep. 30, 2008	467,467,686		534,419,677		(66,951,991)				8,449,770
Beginning Balance, Shares Issued at Jun. 30, 2008	467,565,393		534,010,178		(66,444,785)				8,450,000
Beginning Balance at Jun. 30, 2008		5,535,004	106,802	4,637,731	(1,842,050)	855,527	61,994	9,480	1,715,000	5,544,484
Comprehensive income:
Net income (loss)		(158,541)				(158,541)		544		(157,997)
Noncontrolling interest - other								(1,483)		(1,483)
Other comprehensive income, net of tax:
Change in unrealized gains (losses) on investments, net of tax		(4,686)					(4,686)			(4,686)
Change in unrealized gains (losses) on derivatives, net of tax		(10,338)					(10,338)			(10,338)
Defined benefit pension plans adjustment		(283)					(283)			(283)
Comprehensive income		(173,848)						(939)		(174,787)
Cash dividends:
Preferred stock		(27,310)				(27,310)				(27,310)
Restricted stock dividend		(3)				(3)				(3)
Issuance of common shares		11,743	80	11,654	9					11,743
Issuance of common shares, shares	400,429		399,904		525
Issuance of preferred shares		0		164		(164)				0
Conversion of preferred shares			2	228					(230)
Conversion of preferred shares, shares	9,595		9,595						(230)
Tax benefit related to employee stock option and purchase plans		(3,342)		(3,342)						(3,342)
Stock-based compensation cost		19,179		19,179						19,179
Repurchase of common shares:
Benefit plans		(14,299)			(14,299)					(14,299)
Benefit plans, shares	(507,731)				(507,731)
Beginning Balance, Shares Issued at Dec. 31, 2008	467,452,871		534,411,271		(66,958,400)				8,449,770
Beginning Balance at Dec. 31, 2008		4,999,070	106,883	4,684,112	(1,856,394)	426,175	(76,476)	7,270	1,714,770	5,006,340
Comprehensive income:
Net income (loss)		15,004				15,004		690		15,694
Noncontrolling interest - other								(696)		(696)
Sale of international Purchased Paper - Non-Mortgage business								(7,257)		(7,257)
Other comprehensive income, net of tax:
Change in unrealized gains (losses) on investments, net of tax		3,689					3,689			3,689
Change in unrealized gains (losses) on derivatives, net of tax		29,361					29,361			29,361
Defined benefit pension plans adjustment		(717)					(717)			(717)
Comprehensive income		47,337						(7,263)		40,074
Cash dividends:
Preferred stock		(73,953)				(73,953)				(73,953)
Restricted stock dividend		(10)				(10)				(10)
Issuance of common shares		2,591	81	2,505	5					2,591
Issuance of common shares, shares	445,754		445,656		98
Issuance of preferred shares				486		(486)
Conversion of preferred shares		(9,962)	1,398	146,423		(20,383)			(137,400)	(9,962)
Conversion of preferred shares, shares	6,992,368		6,992,368						(137,400)
Tax benefit related to employee stock option and purchase plans		(8,662)		(8,662)						(8,662)
Stock-based compensation cost		37,207		37,207						37,207
Repurchase of common shares:
Benefit plans		(4,600)			(4,600)					(4,600)
Benefit plans, shares	(200,773)				(200,773)
Ending Balance at Sep. 30, 2009		4,989,018	108,362	4,862,071	(1,860,989)	346,347	(44,143)	7	1,577,370	4,989,025
Ending Balance, Shares Issued at Sep. 30, 2009	474,690,220		541,849,295		(67,159,075)				8,312,370
Beginning Balance, Shares Issued at Jun. 30, 2009	467,713,680		534,841,879		(67,128,199)				8,449,770
Beginning Balance at Jun. 30, 2009		$4,851,534	$106,969	$4,709,053	($1,860,440)	$229,865	($48,683)	$5	$1,714,770	$4,851,539

1_Consolidated Statements of Ch

Consolidated Statements of Changes in Stockholders Equity (Parenthetical) (Unaudited) (USD $)
	Total Stockholders' Equity Preferred stock, series A	Total Stockholders' Equity Preferred stock, series B	Total Stockholders' Equity Preferred stock, series C	Retained Earnings Preferred stock, series A	Retained Earnings Preferred stock, series B	Retained Earnings Preferred stock, series C	Preferred stock, series A	Preferred stock, series B	Preferred stock, series C
Cash dividends:
Dividends per preferred share	2.61	3.2	51.36	2.61	3.2	51.36	2.61	3.2	51.36
Cash dividends:
Dividends per preferred share	0.87	0.89	18.13	0.87	0.89	18.13	0.87	0.89	18.13
Cash dividends:
Dividends per preferred share	2.61	1.51	54.38	2.61	1.51	54.38	2.61	1.51	54.38
Cash dividends:
Dividends per preferred share	0.87	0.34	18.13	0.87	0.34	18.13	0.87	0.34	18.13

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) (USD $)
In Thousands	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Operating activities
Net income	$15,694	$6,796
Adjustments to reconcile net income to net cash used in operating activities:
(Gains) losses on sales of loans and securities, net	(12,752)	122,148
Stock-based compensation cost	40,073	69,937
Unrealized (gains)/losses on derivative and hedging activities	491,644	125,457
Provisions for loan losses	849,518	467,235
Decrease in purchased paper mortgages, net	233,130	200,098
Student loans originated for sale, net	(15,846,043)	(4,102,691)
Decrease in restricted cash - other	44,201	61,131
Decrease (increase) in accrued interest receivable	241,377	(240,906)
(Decrease) in accrued interest payable	(439,920)	(192,335)
Adjustment for non-cash loss related to Retained Interest	333,951	361,141
Decrease in other assets, goodwill and acquired intangible assets, net	91,405	361,804
Increase (decrease) in other liabilities	40,870	(149,966)
Total adjustments	(13,932,546)	(2,916,947)
Net cash used in operating activities	(13,916,852)	(2,910,151)
Investing activities
Student loans acquired	(7,211,675)	(20,527,609)
Loans purchased from securitized trusts	(5,030)	(1,201,058)
Reduction of student loans:
Installment payments, claims and other	7,997,484	7,997,789
Proceeds from sales of student loans	515,140	25,844
Other loans - originated	(2,818)	(1,097,231)
Other loans - repaid	237,980	1,470,040
Other investing activities, net	(676,612)	(67,006)
Purchases of available-for-sale securities	(104,663,811)	(93,787,195)
Proceeds from sales of available-for-sale securities	100,056	0
Proceeds from maturities of available-for-sale securities	104,417,273	95,830,890
Purchase of held-to-maturity and other securities	0	(500,255)
Proceeds from maturities of held-to-maturity securities and other securities	68,991	12,502
(Increase) decrease in restricted cash - on-balance sheet trusts	(1,318,410)	629,001
Return of investment from Retained Interest	16,361	352,633
Purchase of subsidiaries, net of cash acquired	0	(37,868)
Net cash used in investing activities	(525,071)	(10,899,523)
Financing activities
Borrowings collateralized by loans in trust - issued	11,572,592	17,986,955
Borrowings collateralized by loans in trust - repaid	(4,196,889)	(4,819,485)
Asset-backed commercial paper conduits, net	(15,504,025)	(1,733,537)
ED Participation Program, net	15,499,015	3,554,618
ED Conduit Program facility, net	14,189,923	0
Other short-term borrowings issued	298,294	2,001,875
Other short-term borrowings repaid	(1,198,661)	(1,067,281)
Other long-term borrowings issued	4,333,173	2,437,226
Other long-term borrowings repaid	(8,335,181)	(8,495,343)
Other financing activities, net	(1,006,261)	195,843
Excess tax benefit from the exercise of stock-based awards	0	281
Common stock issued	6	5,983
Preferred stock issued	0	145,345
Preferred dividends paid	(83,915)	(83,403)
Noncontrolling interest, net	(9,152)	(5,581)
Net cash provided by financing activities	15,558,919	10,123,496
Net increase (decrease) in cash and cash equivalents	1,116,996	(3,686,178)
Cash and cash equivalents at beginning of period	4,070,002	7,582,031
Cash and cash equivalents at end of period	5,186,998	3,895,853
Cash disbursements made for:
Interest	3,070,349	4,801,466
Income taxes	$292,115	$697,146

Significant Accounting Policies

Significant Accounting Policies
	9 Months Ended Sep. 30, 2009 USD / shares
Significant Accounting Policies [Abstract]
Significant Accounting Policies	1. Significant Accounting Policies Basis of Presentation The accompanying unaudited, consolidated financial statements of SLM Corporation (the Company or Sallie Mae) have been prepared in accordance with generally accepted accounting principles in the United States of America (GAAP) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete consolidated financial statements. In the opinion of management, all adjustments considered necessary for a fair statement of the results for the interim periods have been included. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Operating results for the three months ended September30, 2009 are not necessarily indicative of the results for the year ending December31, 2009. These unaudited financial statements should be read in conjunction with the audited financial statements and related notes included in the Companys 2008 Annual Report on Form10-K. Management has evaluated subsequent events, and the impact on the reported results and disclosures, through November4, 2009, which is the date these financial statements were issued. Reclassifications Certain reclassifications have been made to the balances as of and for the three and nine months ended September30, 2008 to be consistent with classifications adopted for 2009, and had no effect on net income, total assets, or total liabilities. Recently Issued Accounting Pronouncements FASB Accounting Standards Codification The Company adopted, as of July1, 2009, the Financial Accounting Standards Boards (FASBs) Accounting Standards Codification (ASC) as the source of authoritative accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of financial statements in conformity with GAAP. The ASC does not change authoritative guidance. Accordingly, implementing the ASC did not change any of the Companys accounting, and therefore, did not have an impact on the consolidated results of the Company. References to authoritative GAAP literature have been updated accordingly. Transfers of Financial Assets and the Variable Interest Entity (VIE) Consolidation Model In June 2009, the FASB issued topic updates to ASC 860, Transfers and Servicing, and to ASC 810, Consolidation. The topic update to ASC 860, among other things, (1)eliminates the concept of a Qualifying Special Purpose Entity (QSPE), (2)changes the requirements for derecognizing financial assets, (3)changes the amount of the recognized gain/loss on a transfer accounted for as a sale when beneficial interests are received by the transferor, and (4)requires additional disclosure. The topic update to ASC 860 is effective for fiscal years beginning after November15, 2009. The topic update to ASC 810 significantly changes the consolidation model for Variable Interest Entities (VIEs). The topic update amends ASC 810

Allowance for Loan Losses

Allowance for Loan Losses
	9 Months Ended Sep. 30, 2009 USD / shares
Allowance for Loan Losses [Abstract]
Allowance for Loan Losses	2. Allowance for Loan Losses The Companys provisions for loan losses represent the periodic expense of maintaining an allowance sufficient to absorb incurred losses, net of recoveries, in the held-for-investment loan portfolios. The evaluation of the provisions for loan losses is inherently subjective as it requires material estimates that may be susceptible to significant changes. The Company believes that the allowance for loan losses is appropriate to cover probable losses incurred in the loan portfolios. The following table summarizes the total loan provisions for the three and nine months ended September30, 2009 and 2008. Three Months Ended Nine Months Ended September30, September30, 2009 2008 2009 2008 Private Education Loans $ 287,315 $ 135,813 $ 732,619 $ 374,262 FFELP Stafford and Other Student Loans 20,918 40,407 80,911 75,805 Mortgage and consumer loans 12,894 10,689 35,988 17,168 Total provisions for loan losses $ 321,127 $ 186,909 $ 849,518 $ 467,235 Allowance for Private Education Loan Losses The following table summarizes changes in the allowance for loan losses for Private Education Loans for the three and nine months ended September30, 2009 and 2008. Three Months Ended Nine Months Ended September30, September30, 2009 2008 2009 2008 Allowance at beginning of period $ 1,396,707 $ 1,129,000 $ 1,308,043 $ 1,003,964 Provision for Private Education Loan losses 287,315 135,813 732,619 374,262 Charge-offs (292,845 ) (76,312 ) (670,603 ) (205,913 ) Reclassification of interest reserve(1) 10,319 8,393 31,437 24,581 Allowance at end of period $ 1,401,496 $ 1,196,894 $ 1,401,496 $ 1,196,894 Charge-offs as a percentage of average loans in repayment (annualized) 9.6 % 3.5 % 7.7 % 3.5 % Charge-offs as a percentage of average loans in repayment and forbearance (annualized) 8.9 % 3.1 % 7.1 % 3.0 % Allowance as a percentage of the ending total loan balance 5.7 % 5.6 % 5.7 % 5.6 % Allowance as a percentage of ending loans in repayment 11.4 % 13.3 % 11.4 % 13.3 % Allowance coverage of charge-offs (annualized) 1.2 3.9 1.6 4.4 Ending total loans(2) $ 24,439,749 $ 21,548,294 $ 24,43

Investments

Investments
	9 Months Ended Sep. 30, 2009 USD / shares
Investments [Abstract]
Investments	3. Investments A summary of investments and restricted investments as of September30, 2009 and December31, 2008 follows: September30, 2009 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Investments Available-for-sale U.S. Treasury securities and other U.S. government agency obligations $ 7,029 $ 8 $ $ 7,037 Other securities: Asset-backed securities 113,096 689 (56 ) 113,729 Commercial paper and asset-backed commercial paper 849,985 849,985 Municipal bonds 10,298 2,255 12,553 Other 1,547 (182 ) 1,365 Total investment securities available-for-sale $ 981,955 $ 2,952 $ (238 ) $ 984,669 Restricted Investments Available-for sale U.S. Treasury securities and other U.S. government agency obligations $ 27,366 $ 2 $ $ 27,368 Guaranteed investment contracts 34,619 34,619 Total restricted investments available-for-sale $ 61,985 $ 2 $ $ 61,987 Held-to-maturity Guaranteed investment contracts $ 3,963 $ $ $ 3,963 Other 215 215 Total restricted investments held-to-maturity $ 4,178 $ $ $ 4,178 December31, 2008 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Investments Available-for-sale U.S. Treasury securities and other U.S. government agency obligations $ 8,908 $ 195 $ $ 9,103 Other securities: Asset-backed securities 40,907 13 (4,299 ) 36,621 Commercial paper and asset-backed commercial paper 801,169 801,169 Municipal bonds 10,883 1,924 12,807 Other 1,673 (365 ) 1,308 Total investment securities availabl

Goodwill and Acquired Intangibl

Goodwill and Acquired Intangible Assets
	9 Months Ended Sep. 30, 2009 USD / shares
Goodwill and Acquired Intangible Assets [Abstract]
Goodwill and Acquired Intangible Assets	4. Goodwill and Acquired Intangible Assets Goodwill All acquisitions must be assigned to a reporting unit or units. A reporting unit is the same as or one level below an operating segment. The following table summarizes the Companys allocation of goodwill to its reporting units. As of September30, (Dollars in millions) 2009 2008 Lending $ 388 $ 388 Asset Performance Group 401 401 Guarantor services 62 62 Upromise 140 140 Total $ 991 $ 991 Impairment Testing The Company performs goodwill impairment testing annually in the fourth quarter as of a September 30 valuation date or more frequently if an event occurs or circumstances change such that there is a potential that the fair value of a reporting unit or reporting units may be below their respective carrying values. On February26, 2009, the Obama Administration (the Administration) issued its 2010 budget request to Congress, which included provisions that could significantly impact the FFELP. In light of the potential implications of the Administrations 2010 budget proposal to the Companys business model, as well as continued uncertainty in the economy, the tight credit markets and the Companys decline in market capitalization during the first quarter of 2009, the Company assessed goodwill impairment as of March31, 2009. This assessment resulted in estimated fair values of the Companys reporting units in excess of their carrying values. Accordingly, no goodwill impairment was recorded in the first quarter. On September17, 2009, the House of Representatives passed H.R. 3221, The Student Aid and Fiscal Responsibility Act (SAFRA), which was consistent with the Administrations 2010 budget request to Congress. SAFRA would eliminate the FFELP and require that, after July1, 2010, all new federal student loans be made through the Direct Student Loan Program. The Senate has yet to take up the legislation. In addition to reform included in the House-passed legislation, there are several other reforms that may be considered as the legislation moves forward. These include a possible extension of The Ensuring Continued Access to Student Loans Act of 2008 (ECASLA), which expires on July1, 2010, and the Student Loan Community Proposal, an alternative student loan proposal endorsed by a cross-section of FFELP service providers (including Sallie Mae). During the third quarter, no new unfavorable events or changes in circumstances occurred to warrant an impairment assessment as of September30, 2009, as SAFRA was consistent with the Administrations 2010 budget request which was submitted to Congress in the first quarter of 2009. Nevertheless, in light of ongoing uncertainties associated with the Administrations proposed budget and the economic conditions described above, the Company continues to monitor the fair value of goodwill for each of its reporting units on a quarterly basis. Based on the Companys assessment that there have been no change

Borrowings

Borrowings
	9 Months Ended Sep. 30, 2009 USD / shares
Borrowings [Abstract]
Borrowings	5. Borrowings The following table summarizes the Companys borrowings as of September30, 2009 and December31, 2008. September30, 2009 December31, 2008 Short Long Short Long (Dollars in millions) Term Term Total Term Term Total Unsecured borrowings $ 4,330 $ 24,869 $ 29,199 $ 6,794 $ 31,182 $ 37,976 Unsecured term bank deposits 762 5,129 5,891 1,148 1,108 2,256 ED Participation Program facility 22,864 22,864 7,365 7,365 ED Conduit Program facility 14,190 14,190 2008 Asset-Backed Financing Facilities 9,434 9,434 24,768 24,768 On-balance sheet securitizations 88,961 88,961 80,601 80,601 Indentured trusts 66 1,629 1,695 31 1,972 2,003 Other 1,732 1,732 1,827 1,827 Total before fair value adjustments 53,378 120,588 173,966 41,933 114,863 156,796 ASC 815 fair value adjustments 28 4,060 4,088 3,362 3,362 Total $ 53,406 $ 124,648 $ 178,054 $ 41,933 $ 118,225 $ 160,158 As of September30, 2009, the Company had $3.5billion in unsecured revolving credit facilities which provide liquidity support for general corporate purposes. The Company has never drawn on these facilities. These facilities include a $1.9billion revolving credit facility maturing in October 2010 and a $1.6billion revolving credit facility maturing in October 2011. These figures do not include a $215million commitment from Aurora Bank, FSB, formerly known as Lehman Brothers Bank, a subsidiary of Lehman Brothers Holdings Inc, which declared bankruptcy on September15, 2008. The Company is operating under the assumption that the lending commitment of Aurora Bank, FSB, will not be honored if drawn upon. While the Company continues to explore various options, it does not anticipate replacing its commitment from Aurora Bank, FSB. On April24, 2009, in conjunction with the extension of the 2008 ABCP Facilities, a $1.4billion revolving credit facility maturing in October 2009 was retired and a $1.9billion revolving credit facility maturing in October 2011 was reduced to $1.6billion. In connection with the early termination of the unsecured revolving credit facilities, interest on these facilities, if drawn, increases to LIBOR plus 450basis points. The

Student Loan Securitization

Student Loan Securitization
	9 Months Ended Sep. 30, 2009 USD / shares
Student Loan Securitization [Abstract]
Student Loan Securitization	6. Student Loan Securitization The Company securitizes its FFELP Stafford loans, FFELP Consolidation Loans and Private Education Loan assets and, for transactions qualifying as sales, retains a Residual Interest and servicing rights (as the Company retains the servicing responsibilities), all of which are referred to as the Companys Retained Interest in off-balance sheet securitized loans. The Residual Interest is the right to receive cash flows from the student loans and reserve accounts in excess of the amounts needed to pay servicing, derivative costs (if any), other fees, and the principal and interest on the bonds backed by the student loans. Securitization Activity The following table summarizes the Companys securitization activity for the three and nine months ended September30, 2009 and 2008. Those securitizations listed as sales are off-balance sheet transactions and those listed as financings remain on-balance sheet. Three Months Ended September30, 2009 2008 Loan Pre- Loan Pre- No. of Amount Tax No. of Amount Tax (Dollars in millions) Transactions Securitized Gain Gain % Transactions Securitized Gain Gain % Securitizations sales: FFELP Stafford/PLUS loans $ $ % $ $ % FFELP Consolidation Loans Private Education Loans Total securitizations sales $ % $ % Securitizations financings: FFELP Stafford/PLUS Loans(1) 3 6,721 FFELP Consolidation Loans(1) Private Education Loans(1) 2 3,766 Total securitizations financings 2 3,766 3 6,721 Total securitizations 2 $ 3,766 3 $ 6,721 Nine

Derivative Financial Instrument

Derivative Financial Instruments
	9 Months Ended Sep. 30, 2009 USD / shares
Derivative Financial Instruments [Abstract]
Derivative Financial Instruments	7. Derivative Financial Instruments Derivative instruments that are used as part of the Companys interest rate and foreign currency risk management strategy include interest rate swaps, basis swaps, cross-currency interest rate swaps, interest rate futures contracts, and interest rate floor and cap contracts with indices that relate to the pricing of specific balance sheet assets and liabilities including the Residual Interests from off-balance sheet securitizations. (For a full discussion of the Companys risk management strategy and use of derivatives, please see the Companys 2008 Form10-K, Note9, Derivative Financial Instruments, to the consolidated financial statements.) The accounting of the Companys derivatives requires that every derivative instrument, including certain derivative instruments embedded in other contracts, be recorded in the balance sheet as either an asset or liability measured at its fair value. The Companys derivative instruments are classified and accounted for by the Company as fair value hedges, cash flow hedges or trading activities. Fair Value Hedges Fair value hedges are generally used by the Company to hedge the exposure to changes in fair value of a recognized fixed rate asset or liability. The Company enters into interest rate swaps to convert fixed rate assets into variable rate assets and fixed rate debt into variable rate debt. The Company also enters into cross-currency interest rate swaps to convert foreign currency denominated fixed and floating debt to U.S.dollar denominated variable debt. Changes in value for both the hedge and the hedged item are recorded to earnings. These amounts offset each other with the net amount representing the ineffectiveness of the relationship. Cash Flow Hedges Cash flow hedges are used by the Company to hedge the exposure to variability in cash flows for a forecasted debt issuance and for exposure to variability in cash flows of floating rate debt. This strategy is used primarily to minimize the exposure to volatility from future changes in interest rates. Gains and losses on the effective portion of a qualifying hedge are accumulated in other comprehensive income and ineffectiveness is recorded immediately to earnings. Trading Activities When instruments do not qualify as hedges, they are accounted for as trading where all changes in fair value of the derivatives are recorded through earnings. In general, derivative instruments included in trading activities include Floor Income Contracts, basis swaps and various other derivatives that do not qualify for hedge accounting under ASC 815. Summary of Derivative Financial Statement Impact The following tables summarize the fair values and notional amounts of all derivative instruments at September30, 2009 and December31, 2008, and their impact on other comprehensive income and earnings for the three and nine months ended September30, 2009 and 2008. Impact of Derivatives on Consolidated Balance Sheet Cash Flow Fair Value Trading Total Hedged Risk Sept.30,

Other Assets

Other Assets
	9 Months Ended Sep. 30, 2009 USD / shares
Other Assets [Abstract]
Other Assets	8. Other Assets The following table provides detail on the Companys other assets at September30, 2009 and December31, 2008. September30, 2009 December31, 2008 Ending % of Ending % of Balance Balance Balance Balance Accrued interest receivable $ 3,234,017 29 % $ 3,466,404 31 % Derivatives at fair value 3,279,255 29 3,013,644 27 Income tax asset 1,929,868 17 1,661,039 15 APG purchased paper receivables and real estate owned 749,858 7 1,222,345 11 Benefit and insurance-related investments 479,517 4 472,899 4 Fixed assets, net 312,401 3 313,059 3 Accounts receivable general 852,530 8 712,854 6 Other 461,560 3 278,533 3 Total $ 11,299,006 100 % $ 11,140,777 100 % The Derivatives at fair value line in the above table includes the fair value of the Companys derivatives in a gain position by counterparty exclusive of accrued interest and collateral. At September30, 2009 and December31, 2008, these balances included cross-currency interest rate swaps and interest rate swaps designated as fair value hedges that were offset by an increase in interest-bearing liabilities related to the hedged debt. As of September30, 2009 and December31, 2008, the cumulative mark-to-market adjustment to the hedged debt was $(4.0)billion and $(3.4)billion, respectively.

Stockholders Equity

Stockholders Equity
	1/1/2009 - 9/30/2009 USD / shares
Stockholders' Equity [Abstract]
Stockholders' Equity	9. Stockholders Equity The following table summarizes the Companys common share repurchases and issuances for the three and nine months ended September30, 2009 and 2008. Three Months Ended Nine Months Ended September30, September30, (Shares in millions) 2009 2008 2009 2008 Common shares repurchased: Benefit plans(1) .1 .5 .2 1.0 Total shares repurchased .1 .5 .2 1.0 Average purchase price per share $ 17.81 $ 28.20 $ 22.91 $ 24.60 Common shares issued 7.0 .4 7.4 1.9 Authority remaining at end of period for repurchases 38.8 38.8 38.8 38.8 (1) Includes shares withheld from stock option exercises and vesting of restricted stock for employees tax withholding obligations and shares tendered by employees to satisfy option exercise costs. The closing price of the Companys common stock on September30, 2009 was $8.72. During the third quarter of 2009, the Company converted approximately $137million of its SeriesC Preferred Stock to common stock. As part of this conversion, the Company delivered to the holders of the preferred stock: (1)approximately 7million shares (the number of common shares they would most likely receive if the preferred stock they held mandatorily converted to common shares in the fourth quarter of 2010) plus (2)a discounted amount of the preferred stock dividends the holders of the preferred stock would have received if they held the preferred stock through the mandatory conversion date. The accounting treatment for this conversion resulted in a loss recorded in preferred stock dividends for the period of approximately $20million. Accumulated Other Comprehensive Income (Loss) Accumulated other comprehensive income (loss) includes the after-tax change in unrealized gains and losses on available-for-sale investments, unrealized gains and losses on derivatives, and the defined benefit pension plans adjustment. The following table presents the cumulative balances of the components of other comprehensive income (loss) as of September30, 2009, December31, 2008 and September30, 2008. September30, December31, September30, 2009 2008 2008 Net unrealized gains (losses) on investments(1) $ 2,446 $ (1,243 ) $ 17,918 Net unrealized gains (losses) on derivatives(2) (64,625 ) (93,986 ) 9,358 Defined benefit pension plans: Net prior service cost Net gain 18,036 18,753 19,411

Earnings

Earnings (Loss) per Common Share
	9 Months Ended Sep. 30, 2009 USD / shares
Earnings (Loss) per Common Share [Abstract]
Earnings (Loss) per Common Share	10. Earnings (Loss) per Common Share Basic earnings (loss) per common share (EPS) are calculated using the weighted average number of shares of common stock outstanding during each period. A reconciliation of the numerators and denominators of the basic and diluted EPS calculations follows for the three and nine months ended September30, 2009 and 2008. Three Months Ended Nine Months Ended September30, September30, 2009 2008 2009 2008 Numerator: Net income (loss) attributable to common stock $ 116,483 $ (186,015 ) $ (79,818 ) $ (80,499 ) Adjusted for dividends of convertible preferred stock seriesC(1) Net income (loss) attributable to common stock, adjusted $ 116,483 $ (186,015 ) $ (79,818 ) $ (80,499 ) Denominator (shares in thousands): Weighted average shares used to compute basic EPS 470,280 466,646 467,960 466,625 Effect of dilutive securities: Dilutive effect of convertible preferred stock seriesC(1) Dilutive effect of stock options, nonvested deferred compensation, nonvested restricted stock, restricted stock units and Employee Stock Purchase Plan (ESPP)(2) 778 Dilutive potential common shares(3) 778 Weighted average shares used to compute diluted EPS 471,058 466,646 467,960 466,625 Net earnings (loss) per share: Basic earnings (loss) per common share $ .25 $ (.40 ) $ (.17 ) $ (.17 ) Dilutive effect of convertible preferred stock seriesC(1) Dilutive effect of stock options, nonvested deferred compensation, nonvested restricted stock, restricted stock units, and ESPP(2) Diluted earnings (loss) per common share $ .25 $ (.40 ) $ (.17 ) $ (.17 ) (1) The Companys 7.25percent mandatory convertible preferred stock SeriesC was issued on December31, 2007. The mandatory convertible preferred stock will automatically convert on December15, 2010, into between approximately 42million shares and 52million shares of common stock, depending upon the Companys stock price at that time. Depending upon the amount of the mandatory convertible preferred stock outstanding as of that date, the actual number of shares of common stock issued may be les

Other Income

Other Income
	9 Months Ended Sep. 30, 2009 USD / shares
Other Income [Abstract]
Other Income	11. Other Income The following table summarizes the components of Other income in the consolidated statements of income for the three and nine months ended September30, 2009 and 2008. Three Months Ended Nine Months Ended September30, September30, 2009 2008 2009 2008 Gains on debt repurchases $ 74,367 $ 15,911 $ 463,416 $ 37,195 Late fees and forbearance fees 38,588 35,528 107,351 106,713 Asset servicing and other transaction fees 27,872 28,026 79,318 79,961 Loan servicing fees 16,677 6,414 35,410 18,682 Foreign currency translation gains (losses), net (23,164 ) (12,989 ) 10,828 (8,863 ) Other 15,666 20,206 44,906 61,669 Total $ 150,006 $ 93,096 $ 741,229 $ 295,357 The change in other income over all periods presented is primarily the result of the gains on debt repurchases. The Company began repurchasing its outstanding debt in the second quarter of 2008. The Company repurchased $1.4billion and $580million face amount of its senior unsecured notes for the three months ended September30, 2009 and 2008, respectively, and repurchased $2.7billion and $1.8billion face amount of its senior unsecured notes for the nine months ended September30, 2009 and 2008, respectively. The increase in the gain on debt repurchases between 2009 and 2008 was the result of differences in the characteristics of debt repurchased and larger unsecured credit spreads in 2009. Since the second quarter of 2008, the Company repurchased $4.6billion face amount of its senior unsecured notes in the aggregate, with maturity dates ranging from 2008 to 2014.

Restructuring Activities

Restructuring Activities
	9 Months Ended Sep. 30, 2009 USD / shares
Restructuring Activities [Abstract]
Restructuring Activities	12. Restructuring Activities In response to the College Cost Reduction and Access Act of 2007 (CCRAA) and challenges in the capital markets, the Company initiated a restructuring plan in the fourth quarter of 2007. The plan focused on conforming the Companys lending activities to the economic environment, exiting certain customer relationships and product lines, winding down the Companys debt purchased paper businesses, and significantly reducing its operating expenses. The restructuring plan is essentially completed and the Companys objectives have been met. During 2008, the Company reduced the run-rate of its operating expenses by 20percent versus the end of 2007, after adjusting for restructuring costs, growth and other investments. As part of the Companys cost reduction efforts, restructuring expenses of $4million were recognized in both the current quarter and prior quarter. Restructuring expenses from the fourth quarter of 2007 through the third quarter of 2009 totaled $119million. The majority of these restructuring expenses were severance costs related to the completed and planned elimination of approximately 2,800 positions, or approximately 25percent of the workforce. The Company estimates approximately $7million of additional restructuring expenses associated with its current cost reduction efforts will be incurred. These estimated additional restructuring costs relate primarily to position eliminations and resulting employee terminations, as well as lease termination costs in the Companys Asset Performance Group (APG) business segment. On September17, 2009 the House passed the SAFRA which would eliminate FFELP and require that, after July1, 2010, all new federal loans be made through the Direct Lending program. The Senate has yet to take up the legislation. If this legislation is signed into law, the Company will undertake another significant restructuring to conform its infrastructure to the elimination of the FFELP and achieve additional expense reduction. The following table summarizes the restructuring expenses incurred during the quarters ended September30, 2009 and 2008 and cumulative restructuring expenses incurred through September30, 2009. Cumulative Expense as of Three Months Ended September30, Nine Months Ended September30, September30, 2009 2008 2009 2008 2009 Severance costs $ 3,472 $ 9,917 $ 10,429 $ 59,000 $ 95,792 Lease and other contract termination costs (12 ) (86 ) 730 8,983 10,247 Exit and other costs 132 677 1,636 9,943 13,036 Total(1) $ 3,592 $ 10,508 $ 12,795 $ 77,926 $ 119,075 (1) Aggregate restructuring expenses incurred across the Companys reportable segments during the three months ended Septemb

Fair Value Measurements

Fair Value Measurements
	9 Months Ended Sep. 30, 2009 USD / shares
Fair Value Measurements [Abstract]
Fair Value Measurements	13. Fair Value Measurements The Company uses estimates of fair value in applying various accounting standards for its financial statements. Under GAAP, fair value measurements are used in one of four ways: In the consolidated balance sheet with changes in fair value recorded in the consolidated statement of income; In the consolidated balance sheet with changes in fair value recorded in the accumulated other comprehensive income section of the consolidated statement of changes in stockholders equity; In the consolidated balance sheet for instruments carried at lower of cost or fair value with impairment charges recorded in the consolidated statement of income;and In the notes to the financial statements. Fair value is defined as the price to sell an asset or transfer a liability in an orderly transaction between willing and able market participants. In general, the Companys policy in estimating fair values is to first look at observable market prices for identical assets and liabilities in active markets, where available. When these are not available, other inputs are used to model fair value such as prices of similar instruments, yield curves, volatilities, prepayment speeds, default rates and credit spreads (including for the Companys liabilities), relying first on observable data from active markets. Additional adjustments may be made for factors including liquidity, credit, bid/offer spreads, etc., depending on current market conditions. Transaction costs are not included in the determination of fair value. When possible, the Company seeks to validate the models output to market transactions. Depending on the availability of observable inputs and prices, different valuation models could produce materially different fair value estimates. The values presented may not represent future fair values and may not be realizable. The Company categorizes its fair value estimates based on a hierarchical framework associated with three levels of price transparency utilized in measuring financial instruments at fair value. Classification is based on the lowest level of input that is significant to the fair value of the instrument. The three levels are as follows: Level1 Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. The types of financial instruments included in level1 are highly liquid instruments with quoted prices; Level2 Inputs from active markets, other than quoted prices for identical instruments, are used to model fair value. Significant inputs are directly observable from active markets for substantially the full term of the asset or liability being valued;and Level3 Pricing inputs significant to the valuation are unobservable. Inputs are developed based on the best information available; however, significant judgment is required by management in developing the inputs. Student Loans The Companys FFELP loans and Private Education Loans are accounted for at cost or at the lower of cost or market if th

Commitments and Contingencies

Commitments and Contingencies
	9 Months Ended Sep. 30, 2009 USD / shares
Commitments and Contingencies [Abstract]
Commitments and Contingencies	14. Commitments and Contingencies On August3, 2009, the Company received the final audit report of EDs Office of the Inspector General (OIG) related to the Companys billing practices for special allowance payments. Among other things, the OIG recommended that ED instruct the Company to return approximately $22million in alleged special allowance overpayments. The Company continues to believe that its practices were consistent with longstanding ED guidance and all applicable rules and regulations and intends to continue disputing these findings. The OIG has audited other industry participants with regard to special allowance payments for loans funded by tax exempt obligations and in certain cases the Secretary of ED has disagreed with the OIGs recommendations. In the ordinary course of business, the Company and its subsidiaries are defendants in or parties to pending and threatened legal actions and proceedings including actions brought on behalf of various classes of claimants. These actions and proceedings may be based on alleged violations of consumer protection, securities, employment or other laws. In certain of these actions and proceedings, claims for substantial monetary damage are asserted against the Company and its subsidiaries. In the ordinary course of business, the Company and its subsidiaries also are subject to regulatory examinations, information gathering requests, inquiries and investigations. In connection with formal and informal inquiries in these cases, the Company and its subsidiaries receive numerous requests, subpoenas and orders for documents, testimony and information in connection with various aspects of the Companys regulated activities. In view of the inherent difficulty of predicting the outcome of such litigation and regulatory matters, the Company cannot predict what the eventual outcome of the pending matters will be, what the timing or the ultimate resolution of these matters will be, or what the eventual loss, fines or penalties related to each pending matter may be. The Company is required to establish reserves for litigation and regulatory matters when those matters present loss contingencies that are both probable and estimable. When loss contingencies are not both probable and estimable, the Company does not establish reserves. Based on current knowledge, no reserves have been established for any pending litigation or regulatory matters. Based on current knowledge, management does not believe that loss contingencies, if any, arising from pending litigation or regulatory matters will have a material adverse effect on the consolidated financial position or liquidity of the Company.

Income Taxes

Income Taxes
	9 Months Ended Sep. 30, 2009 USD / shares
Income Taxes [Abstract]
Income Taxes	15. Income Taxes For the nine months ended September30, 2009 and 2008, the Company reported an income tax benefit of $4million and $13million, respectively, representing effective tax rates of (33)percent and 206percent, respectively. The movement in the effective tax rate was primarily driven by the reduction of tax and interest on U.S.federal and state uncertain tax positions in both periods, as well as the permanent tax impact of deducting Proposed Merger-related transaction costs in the nine months ended September30, 2008. Accounting for Uncertainty in Income Taxes The unrecognized tax benefits changed from $86million at December31, 2008 to $83million at September30, 2009, and accrued interest and penalties changed from $10million at December31, 2008 to $7million at September30, 2009. Included in the $83million are $18million of unrecognized tax benefits that if recognized, would favorably impact the effective tax rate. These changes result primarily from adding a new issue that was identified during the first quarter of 2009 while completing the 2008 U.S.federal income tax return, as well as adjusting the 2003-2007 unrecognized tax benefits to incorporate the net impact of IRS and state tax authority examinations of several of the Companys income tax returns. New information was received from the IRS during the first quarter as part of the IRS examination of Companys 2005 and 2006 U.S.federal income tax returns and the examination was ultimately concluded during the second quarter. During the third quarter of 2009, the IRS concluded the examination of the 2003 and 2004 U.S.federal income tax returns of an entity in which the company is an investor, and the Virginia tax authority concluded the examination of the Companys 2005 through 2007 income tax returns. Several other less significant amounts of uncertain tax benefits were also added during the quarter.

Segment Reporting

Segment Reporting
	9 Months Ended Sep. 30, 2009 USD / shares
Segment Reporting [Abstract]
Segment Reporting	16. Segment Reporting The Company has two primary operating segments the Lending operating segment and the APG, formerly known as DMO, operating segment. The Lending and APG operating segments meet the quantitative thresholds for reportable segments. Accordingly, the results of operations of the Companys Lending and APG segments are presented below. The Company has smaller operating segments including the Guarantor Servicing, Loan Servicing, and Upromise operating segments, as well as certain other products and services provided to colleges and universities which do not meet the required quantitative thresholds. Therefore, the results of operations for these operating segments and the revenues and expenses associated with these other products and services are combined with corporate overhead and other corporate activities within the Corporate and Other reportable segment. The management reporting process measures the performance of the Companys operating segments based on the management structure of the Company, as well as the methodology used by management to evaluate performance and allocate resources. Management, including the Companys chief operating decision makers, evaluates the performance of the Companys operating segments based on their profitability. As discussed further below, management measures the profitability of the Companys operating segments based on Core Earnings net income. Accordingly, information regarding the Companys reportable segments is provided based on a Core Earnings basis. The Companys Core Earnings performance measures are not defined terms within GAAP and may not be comparable to similarly titled measures reported by other companies. Core Earnings net income reflects only current period adjustments to GAAP net income as described below. Unlike financial accounting, there is no comprehensive, authoritative guidance for management reporting. The management reporting process measures the performance of the operating segments based on the management structure of the Company and is not necessarily comparable with similar information for any other financial institution. The Companys operating segments are defined by the products and services they offer or the types of customers they serve, and they reflect the manner in which financial information is currently evaluated by management. Intersegment revenues and expenses are netted within the appropriate financial statement line items consistent with the income statement presentation provided to management. Changes in management structure or allocation methodologies and procedures may result in changes in reported segment financial information. The Companys principal operations are located in the United States, and its results of operations and long-lived assets in geographic regions outside of the United States are not significant. In the Lending segment, no individual customer accounted for more than 10percent of its total revenue during the three months ended September30, 2009 and 2008. United Student Aid Funds, Inc. (USA Funds) is the Companys largest customer in both the APG and Corporate and Other segments. During the nine months ende

Subsequent Event

Subsequent Event
	9 Months Ended Sep. 30, 2009 USD / shares
Subsequent Event [Abstract]
Subsequent Event	17. Subsequent Event On October22, 2009, GRP Loan, LLC and GRP Strategies, LLC, wholly-owned subsidiaries of the Company, entered into a definitive sale agreement to sell $367million in assets, which is substantially all of the mortgage loan and real estate assets of the Purchased Paper Mortgage/Properties business, for $279million. The transaction closed on October26, 2009. In connection with this transaction, the Company will recognize an after tax loss of approximately $85million to $95million in the fourth quarter of 2009.