| Allowance for Credit Losses | Allowance for Credit Losses Our provision for credit losses represents the periodic expense of maintaining an allowance sufficient to absorb lifetime expected credit losses in the held for investment loan portfolios. The evaluation of the allowance for credit losses is inherently subjective, as it requires material estimates that may be susceptible to significant changes. We believe the allowance for credit losses is appropriate to cover lifetime expected losses incurred in the loan portfolios. See Note 2, “Significant Accounting Policies — Allowance for Credit Losses, — Allowance for Private Education Loan Losses, — Allowance for FFELP Loan Losses, — Allowance for Credit Card Loans,” for a more detailed discussion. Allowance for Credit Losses Metrics Year Ended December 31, 2023 FFELP Private Education Total Allowance for Credit Losses Beginning balance $ 3,444 $ 1,353,631 $ 1,357,075 Transfer from unfunded commitment liability (1) — 320,237 320,237 Provisions: Provision for current period 2,224 240,347 242,571 Loan sale reduction to provision — (205,383) (205,383) Loans transferred to held-for-sale — — — Total provisions (2) 2,224 34,964 37,188 Net charge-offs: Charge-offs (1,001) (420,095) (421,096) Recoveries — 46,368 46,368 Net charge-offs (1,001) (373,727) (374,728) Ending Balance $ 4,667 $ 1,335,105 $ 1,339,772 Allowance (3) : Ending balance: collectively evaluated for impairment $ 4,667 $ 1,335,105 $ 1,339,772 Loans (3) : Ending balance: collectively evaluated for impairment $ 537,401 $ 21,025,844 $ 21,563,245 Accrued interest to be capitalized (3) : Ending balance: collectively evaluated for impairment $ — $ 1,203,357 $ 1,203,357 Net charge-offs as a percentage of average loans in repayment (4) 0.23 % 2.44 % Allowance as a percentage of the ending total loan balance and accrued interest to be capitalized (5) 0.87 % 6.01 % Allowance as a percentage of the ending loans in repayment and accrued interest to be capitalized on loans in repayment (4)(5) 1.15 % 8.43 % Allowance coverage of net charge-offs 4.66 3.57 Ending total loans, gross $ 537,401 $ 21,025,844 Average loans in repayment (4) $ 433,225 $ 15,310,934 Ending loans in repayment (4) $ 406,568 $ 15,409,814 Accrued interest to be capitalized on loans in repayment (6) $ — $ 435,807 (1) See Note 8, “Unfunded Loan Commitments,” for a summary of the activity in the allowance for and balance of unfunded loan commitments, respectively. (2) Below is a reconciliation of the provisions for credit losses reported in the consolidated statements of income. When a new loan commitment is made, we record the CECL allowance as a liability for unfunded loan commitments by recording a provision for credit losses. When the loan is funded, we transfer that liability to the allowance for credit losses. Consolidated Statements of Income Year Ended December 31, 2023 (dollars in thousands) Private Education Loan provisions for credit losses: Provisions for loan losses $ 34,964 Provisions for unfunded loan commitments 308,275 Total Private Education Loan provisions for credit losses 343,239 Other impacts to the provisions for credit losses: FFELP Loans 2,224 Total 2,224 Provisions for credit losses reported in consolidated statements of income $ 345,463 (3) For the year ended December 31, 2023, there were no allowance for credit losses, loans, or accrued interest to be capitalized balances that were individually evaluated for impairment. (4) Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period (but, for purposes of the table, do not include those loans while they are in forbearance). (5) Accrued interest to be capitalized on Private Education Loans only. (6) Accrued interest to be capitalized on loans in repayment includes interest on loans that are in repayment but have not yet entered into full principal and interest repayment status after any applicable grace period (but, for purposes of the table, does not include interest on those loans while they are in forbearance). Year Ended December 31, 2022 FFELP Private Education Credit Cards Total Allowance for Credit Losses Beginning balance $ 4,077 $ 1,158,977 $ 2,281 $ 1,165,335 Transfer from unfunded commitment liability (1) — 344,310 — 344,310 Provisions: Provision for current period (20) 410,254 3,301 413,535 Loan sale reduction to provision — (174,231) — (174,231) Loans transferred to held-for-sale — — (2,372) (2,372) Total provisions (2) (20) 236,023 929 236,932 Net charge-offs: Charge-offs (613) (427,416) (3,215) (431,244) Recoveries — 41,737 5 41,742 Net charge-offs (613) (385,679) (3,210) (389,502) Ending Balance $ 3,444 $ 1,353,631 $ — $ 1,357,075 Allowance (3) : Ending balance: collectively evaluated for impairment $ 3,444 $ 1,353,631 $ — $ 1,357,075 Loans (3) : Ending balance: collectively evaluated for impairment $ 609,050 $ 20,303,688 $ — $ 20,912,738 Accrued interest to be capitalized (3) : Ending balance: collectively evaluated for impairment $ — $ 936,837 $ — $ 936,837 Net charge-offs as a percentage of average loans in repayment (4) 0.12 % 2.55 % — % Allowance as a percentage of the ending total loan balance and accrued interest to be capitalized (5) 0.57 % 6.37 % — % Allowance as a percentage of the ending loans in repayment and accrued interest to be capitalized on loans in repayment (4)(5) 0.76 % 8.76 % — % Allowance coverage of net charge-offs 5.62 3.51 — Ending total loans, gross $ 609,050 $ 20,303,688 $ — Average loans in repayment (4) $ 517,139 $ 15,103,123 $ — Ending loans in repayment (4) $ 453,915 $ 15,129,550 $ — Accrued interest to be capitalized on loans in repayment (6) $ — $ 324,384 $ — (1) See Note 8, “Unfunded Loan Commitments,” for a summary of the activity in the allowance for and balance of unfunded loan commitments, respectively. (2) Below is a reconciliation of the provisions for credit losses reported in the consolidated statements of income. When a new loan commitment is made, we record the CECL allowance as a liability for unfunded loan commitments by recording a provision for credit losses. When the loan is funded, we transfer that liability to the allowance for credit losses. Consolidated Statements of Income Year Ended December 31, 2022 (dollars in thousands) Private Education Loan provisions for credit losses: Provisions for loan losses $ 236,023 Provisions for unfunded loan commitments 396,521 Total Private Education Loan provisions for credit losses 632,544 Other impacts to the provisions for credit losses: FFELP Loans (20) Credit Cards 929 Total 909 Provisions for credit losses reported in consolidated statements of income $ 633,453 (3) For the year ended December 31, 2022, there were no allowance for credit losses, loans, or accrued interest to be capitalized balances that were individually evaluated for impairment. (4) Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period (but, for purposes of the table, do not include those loans while they are in forbearance). (5) Accrued interest to be capitalized on Private Education Loans only. (6) Accrued interest to be capitalized on loans in repayment includes interest on loans that are in repayment but have not yet entered into full principal and interest repayment status after any applicable grace period (but, for purposes of the table, does not include interest on those loans while they are in forbearance). Year Ended December 31, 2021 FFELP Private Education Credit Total Allowance for Credit Losses Beginning balance $ 4,378 $ 1,355,844 $ 1,501 $ 1,361,723 Transfer from unfunded commitment liability (1) — 301,655 — 301,655 Provisions: Provision for current period 20 (233,852) 1,124 (232,708) Loan sale reduction to provision — (66,460) — (66,460) Loans transferred to held-for-sale — 1,887 — 1,887 Total provisions (2) 20 (298,425) 1,124 (297,281) Net charge-offs: Charge-offs (321) (229,591) (356) (230,268) Recoveries — 29,494 12 29,506 Net charge-offs (321) (200,097) (344) (200,762) Ending Balance $ 4,077 $ 1,158,977 $ 2,281 $ 1,165,335 Allowance: Ending balance: individually evaluated for impairment $ — $ 47,712 $ — $ 47,712 Ending balance: collectively evaluated for impairment $ 4,077 $ 1,111,265 $ 2,281 $ 1,117,623 Loans: Ending balance: individually evaluated for impairment $ — $ 1,057,665 $ — $ 1,057,665 Ending balance: collectively evaluated for impairment $ 695,216 $ 19,659,198 $ 25,014 $ 20,379,428 Accrued interest to be capitalized: Ending balance: individually evaluated for impairment $ — $ — $ — $ — Ending balance: collectively evaluated for impairment $ — $ 947,391 $ — $ 947,391 Net charge-offs as a percentage of average loans in repayment (3) 0.06 % 1.33 % 2.24 % Allowance as a percentage of the ending total loan balance and accrued interest to be capitalized (4) 0.59 % 5.35 % 9.12 % Allowance as a percentage of the ending loans in repayment and accrued interest to be capitalized on loans in repayment (3)(4) 0.74 % 7.32 % 9.12 % Allowance coverage of net charge-offs 12.70 5.79 6.63 Ending total loans, gross $ 695,216 $ 20,716,863 $ 25,014 Average loans in repayment (3) $ 545,689 $ 15,019,869 $ 15,343 Ending loans in repayment (3) $ 553,980 $ 15,511,212 $ 25,014 Accrued interest to be capitalized on loans in repayment (5) $ — $ 312,537 $ — (1) See Note 8, “Unfunded Loan Commitments,” for a summary of the activity in the allowance for and balance of unfunded loan commitments, respectively. (2) Below is a reconciliation of the provisions for credit losses reported in the consolidated statements of income. When a new loan commitment is made, we record the CECL allowance as a liability for unfunded loan commitments by recording a provision for credit losses. When the loan is funded, we transfer that liability to the allowance for credit losses. Consolidated Statements of Income Year Ended December 31, 2021 (dollars in thousands) Private Education Loan provisions for credit losses: Provisions for loan losses $ (298,425) Provisions for unfunded loan commitments 264,324 Total Private Education Loan provisions for credit losses (34,101) Other impacts to the provisions for credit losses: FFELP Loans 20 Credit Cards 1,124 Total 1,144 Provisions for credit losses reported in consolidated statements of income $ (32,957) (3) Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period (but, for purposes of the table, do not include those loans while they are in forbearance). (4) Accrued interest to be capitalized on Private Education Loans only. (5) Accrued interest to be capitalized on loans in repayment includes interest on loans that are in repayment but have not yet entered into full principal and interest payment status after any applicable grace period (but, for purposes of the table, does not include interest on those loans while they are in forbearance). Private Education Loans Allowance for Credit Losses - Forecast Assumptions In the fourth quarter of 2022, we changed our loss model to include forecasts of college graduate unemployment, retail sales, and median family income in determining the adequacy of the allowance for credit losses. Prior to this change, we used forecasts of college graduate unemployment and the Consumer Price Index in our loss forecasting models. We obtain forecasts for these inputs from Moody’s Analytics. Moody’s Analytics provides a range of forecasts for each of these inputs with various likelihoods of occurring. We determine which forecasts we will include in our estimation of allowance for credit losses and the associated weightings for each of these inputs. At January 1, 2020 (the initial adoption date of CECL), December 31, 2023, December 31, 2022, and December 31, 2021, we used the Base (50th percentile likelihood of occurring)/S1 (stronger near-term growth scenario with 10 percent likelihood of occurring)/S3 (downside scenario with 10 percent likelihood of occurring) scenarios and weighted them 40 percent, 30 percent, and 30 percent, respectively. Management reviews both the scenarios and their respective weightings each quarter in determining the allowance for credit losses. Provision for credit losses for the year ended December 31, 2023 was $345 million, compared with $633 million in the year-ago period. During 2023, the provision for credit losses was primarily affected by new loan commitments, net of expired commitments, slower prepayment rates, management overlays, and changes in economic outlook, which were partially offset by $205 million in negative provisions recorded as a result of the approximately $3.15 billion in Private Education Loans sales during 2023 and an increase in recovery rates (as a result of the change in our defaulted loan recovery process). In the year-ago period, the provision for credit losses was primarily affected by new loan commitments made during the period, slower than expected prepayment rates, and additional management overlays, which were partially offset by negative provisions recorded related to $3.34 billion in Private Education Loans sold in 2022 and the adoption of a new loss model that included a reduction in the long-term estimate of losses after the reasonable and supportable period. Management overlays increased in 2022 due to several factors, including additional provisions for our expectation of higher future losses related to the previously announced credit administration practices changes we implemented in 2021, “gap year” loans, a shortage and lack of tenured collections staff, and other operational challenges we experienced in 2022. “Gap year” loans refer to loans to borrowers who took a “gap year” during the COVID-19 pandemic and entered full principal and interest repayment status starting in late 2021 and early 2022. Losses on these “gap year” loans were higher than expected and contributed to the higher provision expense recorded in 2022 to cover the higher-than-expected losses. As part of concluding on the adequacy of the allowance for credit losses, we review key allowance and loan metrics. The most significant of these metrics considered are the allowance coverage of net charge-offs ratio; the allowance as a percentage of ending total loans and accrued interest to be capitalized and of ending loans in repayment and accrued interest to be capitalized on loans in repayment; and delinquency and forbearance percentages. Loan Modifications to Borrowers Experiencing Financial Difficulty The allowance for credit losses incorporates an estimate of lifetime expected credit losses and is recorded on each asset upon asset origination or acquisition. The starting point for the estimate of the allowance for credit losses is historical information, which includes losses from modifications of receivables whose borrowers are experiencing financial difficulty. We use a discounted cash flow model to determine the allowance for credit losses. An assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification. The effect of most modifications of loans made to borrowers who are experiencing financial difficulty is already included in the allowance for credit losses because of the measurement methodologies used to estimate the allowance. The forecast of expected future cash flows is updated as the loan modifications occur. We adjust the terms of loans for certain borrowers when we believe such changes will help our customers manage their student loan obligations and achieve better student outcomes, and increase the collectability of the loans. These changes generally take the form of a temporary forbearance of payments, a temporary or permanent interest rate reduction, a temporary or permanent interest rate reduction with a permanent extension of the loan term, and/or a short-term extended repayment alternative. Forbearance is granted prospectively for borrowers who are current in their payments and may be granted retroactively for certain delinquent borrowers. When we give a borrower facing financial difficulty an interest rate reduction under our programs, we evaluate their ability to pay and provide customized repayment terms based upon their financial condition. As part of demonstrating the ability and willingness to pay, the customer must make three consecutive monthly payments at the reduced payment to qualify for the program. We believe by tailoring the modification programs to the borrower’s current financial condition and not having a one size fits all approach, we increase the likelihood the borrower will be able to make the modified payments and avoid default. This approach of giving different interest rate reductions to different borrowers experiencing more severe hardship also helps us better manage the overall assistance we provide to borrowers. We currently limit the granting of a permanent extension of the final maturity date of a loan under our loan modification programs to one time over the life of the loan. We also currently permit two consecutive rate reductions so long as the borrower qualifies and makes three consecutive monthly payments at the reduced payment in connection with each rate reduction. We also now limit the number of interest rate reductions to twice over the life of the loan. Within the Private Education Loan portfolio, we deem loans greater than 90 days past due as nonperforming. FFELP Loans are at least 97 percent guaranteed as to their principal and accrued interest by the federal government in the event of default and, therefore, we do not deem FFELP Loans as nonperforming from a credit risk perspective at any point in their life cycle prior to claim payment and continue to accrue interest on those loans through the date of claim. For additional information, see Note 2, “Significant Accounting Policies —Allowance for Credit Losses” in this Form 10-K. Under our current forbearance practices, temporary forbearance of payments is generally granted in one The limitations on granting of forbearances described above apply to hardship forbearances. We offer other administrative forbearances (e.g., death and disability, bankruptcy, military service, disaster forbearance, and in school assistance) that are either required by law (such as by the Servicemembers Civil Relief Act) or are considered separate from our active loss mitigation programs and therefore are not considered to be loan modifications requiring disclosure under ASU No. 2022-02. In addition, we may offer on a limited basis term extensions or rate reductions or a combination of both to borrowers to reduce consolidation activities. For purposes of this disclosure, we do not consider them modifications of loans to borrowers experiencing financial difficulty and they therefore are not included in the tables below. The following tables show the amortized cost basis at the end of the respective reporting period of the loans to borrowers experiencing financial difficulty that were modified during the period, disaggregated by class of financing receivable and type of modification. When we approve a Private Education Loan at the beginning of an academic year, we do not always disburse the full amount of the loan at the time of approval, but instead have a commitment to fund a portion of the loan at a later date (usually at the start of the second semester or subsequent trimesters). We consider borrowers to be in financial difficulty after they have exited school and have difficulty making their scheduled principal and interest payments. Loan Modifications Made to Borrowers Experiencing Financial Difficulty Year Ended December 31, 2023 Interest Rate Reduction Combination - Interest Rate Reduction and Term Extension Loan Type: Amortized Cost Basis % of Total Class of Financing Receivable Amortized Cost Basis % of Total Class of Financing Receivable Private Education Loans $ 48,637 0.22 % $ 331,889 1.48 % Total $ 48,637 0.22 % $ 331,889 1.48 % Loan Modifications Made to Borrowers Experiencing Financial Difficulty Year Ended December 31, 2022 Interest Rate Reduction Combination - Interest Rate Reduction and Term Extension Loan Type: Amortized Cost Basis % of Total Class of Financing Receivable Amortized Cost Basis % of Total Class of Financing Receivable Private Education Loans $ 30,569 0.14 % $ 295,547 1.37 % Total $ 30,569 0.14 % $ 295,547 1.37 % The following tables describe the financial effect of the modifications made to loans whose borrowers are experiencing financial difficulty: Year Ended December 31, 2023 Interest Rate Reduction Combination - Interest Rate Loan Type Financial Effect Loan Type Financial Effect Private Education Loans Reduced average contractual rate from 13.37% to 4.00% Private Education Loans Added a weighted average 10.20 years to the life of loans Reduced average contractual rate from 12.92% to 4.00% Year Ended December 31, 2022 Interest Rate Reduction Combination - Interest Rate Loan Type Financial Effect Loan Type Financial Effect Private Education Loans Reduced average contractual rate from 11.12% to 4.00% Private Education Loans Added a weighted average 10.40 years to the life of loans Reduced average contractual rate from 10.57% to 4.00% Private Education Loans are charged off at the end of the month in which they reach 120 days delinquent or otherwise when the loans are classified as a loss by us or our regulator. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount. See Note 2, “Significant Accounting Policies — Allowance for Credit Losses — Allowance for Private Education Loan Losses, and — Allowance for FFELP Loan Losses” in this Form 10-K for a more detailed discussion. For the current period presented, the following table provides loan modifications for which a payment default occurred in the relevant period presented and within 12 months of the loan receiving a loan modification. Additionally, for the current period presented, the table summarizes charge-offs occurring in the relevant period presented and within 12 months of the loan receiving a loan modification. We define payment default as 60 days past due for purposes of this disclosure. Year Ended December 31, 2023 Year Ended December 31, 2022 (Dollars in thousands) Modified Loans (1)(2) Payment Default (3) Charge-Offs (4) Modified Loans (1)(2) Payment Default (3) Charge-Offs (4) Loan Type: Private Education Loans $ 28,972 $ 30,862 $ 8,070 $ 22,925 $ 22,621 $ 6,331 Total $ 28,972 $ 30,862 $ 8,070 $ 22,925 $ 22,621 $ 6,331 (1) Represents period-end amortized cost basis of loans that have been modified and for which a payment default occurred in the relevant period presented and within 12 months of receiving a modification (or within the reporting period, for the loans shown in in the year-ago period, as the case may be). (2) For the year ended December 31, 2023, the modified loans include $24.8 million of interest rate reduction and term extension loan modifications and $4.2 million of interest rate reduction only loan modifications. For the year ended December 31, 2022, the modified loans include $20.6 million of interest rate reduction and term extension loan modifications and $2.3 million of interest rate reduction only loan modifications. (3) Represents the unpaid principal balance at the time of payment default. (4) Represents the unpaid principal balance at the time of charge off. We closely monitor performance of the loans to borrowers experiencing financial difficulty that are modified to understand the effectiveness of the modification efforts. The following table depicts the performance of loans that have been modified during the respective reporting periods (the full years 2023 and 2022, respectively). Payment Status (Amortized Cost Basis) At December 31, 2023 Deferment (1) Current (2)(3) 30-59 Days Past Due (2)(3) 60-89 Days Past Due (2)(3) 90 Days or Greater Past Due (2)(3) Total Loan Type: Private Education Loans $ 6,843 $ 334,967 $ 17,205 $ 7,689 $ 13,822 $ 380,526 Total $ 6,843 $ 334,967 $ 17,205 $ 7,689 $ 13,822 $ 380,526 Payment Status (Amortized Cost Basis) At December 31, 2022 Deferment (1) Current (2)(3) 30-59 Days Past Due (2)(3) 60-89 Days Past Due (2)(3) 90 Days or Greater Past Due (2)(3) Total Loan Type: Private Education Loans $ 7,698 $ 289,134 $ 13,859 $ 8,809 $ 6,616 $ 326,116 Total $ 7,698 $ 289,134 $ 13,859 $ 8,809 $ 6,616 $ 326,116 (1) Deferment includes customers who have returned to school or are engaged in other permitted educational activities and are not yet required to make full principal and interest payments on the loans (e.g., residency periods for medical students or a grace period for bar exam preparation). Deferment also includes loans that have entered a forbearance after the loan modification was granted. (2) For purposes of this table, loans in repayment only include loans on which borrowers are making full principal and interest payments after any applicable grace period (but, for purposes of the table, do not include those loans while they are in forbearance). (3) The period of delinquency is based on the number of days scheduled payments are contractually past due. Private Education Loans Held for Investment - Key Credit Quality Indicators FFELP Loans are at least 97 percent guaranteed as to their principal and accrued interest in the event of default; therefore, there are no key credit quality indicators associated with FFELP Loans. For Private Education Loans, the key credit quality indicators are FICO scores, the existence of a cosigner, the loan status, and loan seasoning. The FICO scores are assessed at original approval and periodically refreshed/updated through the loan’s term. The following tables highlight the gross principal balance of our Private Education Loan portfolio (held for investment), by year of origination approval, stratified by key credit quality indicators. As of December 31, 2023 Private Education Loans Held for Investment - Credit Quality Indicators Year of Origination 2023 (1) 2022 (1) 2021 (1) 2020 (1) 2019 (1) 2018 and Prior (1) Total (1) % of Balance Cosigners: With cosigner $ 3,903,676 $ 4,428,163 $ 2,516,380 $ 1,535,308 $ 1,378,699 $ 4,529,768 $ 18,291,994 87 % Without cosigner 586,443 660,576 421,042 283,781 253,601 528,407 2,733,850 13 Total $ 4,490,119 $ 5,088,739 $ 2,937,422 $ 1,819,089 $ 1,632,300 $ 5,058,175 $ 21,025,844 100 % FICO at Origination Approval (2) : Less than 670 $ 328,199 $ 395,526 $ 208,696 $ 118,935 $ 137,494 $ 451,613 $ 1,640,463 8 % 670-699 635,642 704,642 400,744 254,762 257,840 868,777 3,122,407 15 700-749 1,383,779 1,586,783 934,033 590,401 545,333 1,709,299 6,749,628 32 Greater than or equal to 750 2,142,499 2,401,788 1,393,949 854,991 691,633 2,028,486 9,513,346 45 Total $ 4,490,119 $ 5,088,739 $ 2,937,422 $ 1,819,089 $ 1,632,300 $ 5,058,175 $ 21,025,844 100 % FICO Refreshed (2)(3) : Less than 670 $ 495,451 $ 638,381 $ 379,738 $ 217,956 $ 214,665 $ 791,875 $ 2,738,066 13 % 670-699 616,684 672,777 365,674 193,462 176,963 564,245 2,589,805 12 700-749 1,347,094 1,477,310 836,747 498,414 445,244 1,361,073 5,965,882 28 Greater than or equal to 750 2,030,890 2,300,271 1,355,263 909,257 795,428 2,340,982 9,732,091 47 Total $ 4,490,119 $ 5,088,739 $ 2,937,422 $ 1,819,089 $ 1,632,300 $ 5,058,175 $ 21,025,844 100 % Seasoning (4) : 1-12 payments $ 2,514,079 $ 740,450 $ 440,293 $ 245,631 $ 208,941 $ 332,608 $ 4,482,002 21 % 13-24 payments — 2,675,956 303,045 167,532 165,577 384,760 3,696,870 18 25-36 payments — — 1,524,834 195,091 129,571 456,448 2,305,944 11 37-48 payments — — — 902,938 208,521 446,350 1,557,809 7 More than 48 payments — — — 116 706,097 2,985,015 3,691,228 18 Not yet in repayment 1,976,040 1,672,333 669,250 307,781 213,593 452,994 5,291,991 25 Total $ 4,490,119 $ 5,088,739 $ 2,937,422 $ 1,819,089 $ 1,632,300 $ 5,058,175 $ 21,025,844 100 % 2023 Current period (5) gross charge-offs $ (1,812) $ (31,032) $ (70,331) $ (49,624) $ (50,585) $ (216,711) $ (420,095) 2023 Current period (5) recoveries 172 2,342 6,496 4,923 5,260 27,175 46,368 2023 Current period (5) net charge-offs $ (1,640) $ (28,690) $ (63,835) $ (44,701) $ (45,325) $ (189,536) $ (373,727) Total accrued interest by origination vintage $ 177,959 $ 408,800 $ 269,978 $ 152,094 $ 116,618 $ 229,116 $ 1,354,565 (1) Balance represents gross Private Education Loans held for investment. (2) Represents the higher credit score of the cosigner or the borrower. (3) Represents the FICO score updated as of the fourth-quarter 2023. (4) Number of months in active repayment (whether interest only payment, fixed payment, or full principal and interest payment status) for which a scheduled payment was due. (5) Current period refers to period from January 1, 2023 through December 31, 2023. As of December 31, 2022 Private Education Loans Held for Investment - Credit Quality Indicators Year of Origination 2022 (1) 2021 (1) 2020 (1) 2019 (1) 2018 (1) 2017 and Prior (1) Total (1) % of Balance Cosigners: With cosigner $ 3,656,111 $ 3,941,921 $ 2,208,033 $ 1,853,619 $ 1,402,828 $ 4,626,491 $ 17,689,003 87 % Without cosigner 620,422 605,238 376,589 319,041 213,014 480,381 2,614,685 13 Total $ 4,276,533 $ 4,547,159 $ 2,584,622 $ 2,172,660 $ 1,615,842 $ 5,106,872 $ 20,303,688 100 % FICO at Origination Approval (2) : Less than 670 $ 326,991 $ 307,646 $ 158,606 $ 177,098 $ 143,674 $ 439,587 $ 1,553,602 8 % 670-699 593,216 611,649 356,541 339,685 259,142 878,426 3,038,659 15 700-749 1,336,765 1,440,510 834,819 719,777 537,680 1,722,068 6,591,619 32 Greater than or equal to 750 2,019,561 2,187,354 1,234,656 936,100 675,346 2,066,791 9,119,808 45 Total $ 4,276,533 $ 4,547,159 $ 2,584,622 $ 2,172,660 $ 1,615,842 $ 5,106,872 $ 20,303,688 100 % FICO Refreshed (2)(3) : Less than 670 $ 443,868 $ 461,589 $ 242,310 $ 237,105 $ 204,894 $ 773,324 $ 2,363,090 12 % 670-699 594,118 579,784 284,244 240,999 173,754 564,344 2,437,243 12 700-749 1,322,558 1,378,910 748,368 628,060 449,701 1,388,090 5,915,687 29 Greater than or equal to 750 1,915,989 2,126,876 1,309,700 1,066,496 787,493 2,381,114 9,587,668 47 Total $ 4,276,533 $ 4,547,159 $ 2,584,622 $ 2,172,660 $ 1,615,842 $ 5,106,872 $ 20,303,688 100 % Seasoning (4) : 1-12 payments $ 2,448,884 $ 636,073 $ 384,334 $ 330,316 $ 235,878 $ 424,636 $ 4,460,121 22 % 13-24 payments — 2,477,764 255,510 195,753 166,045 455,782 3,550,854 18 25-36 payments — — 1,366,398 257,534 126,223 489,157 2,239,312 11 37-48 payments — — 127 1,008,418 224,805 451,102 1,684,452 8 More than 48 payments — — — — 643,611 2,830,285 3,473,896 17 Not yet in repayment 1,827,649 1,433,322 578,253 380,639 219,280 455,910 4,895,053 24 Total $ 4,276,533 $ 4,547,159 $ 2,584,622 $ 2,172,660 $ 1,615,842 $ 5,106,872 $ 20,303,688 100 % 2022 Current period (5) gross charge-offs $ (2,224) $ (25,698) $ (48,271) $ (62,071) $ (57,505) $ (231,647) $ (427,416) 2022 Current period (5) recoveries 124 1,841 4,170 5,556 5,407 24,639 41,737 2022 Current period (5) net charge-offs $ (2,100) $ (23,857) $ (44,101) $ (56,515) $ (52,098) $ (207,008) $ (385,679) Total accrued interest by origination vintage $ 142,915 $ 315,308 $ 207,858 $ 184,832 $ 116,211 $ 210,438 $ 1,177,562 (1) Balance represents gross Private Education Loans held for investment. (2) Represents the higher credit score of the cosigner or the borrower. (3) Represents the FICO score updated as of the fourth-quarter 2022. (4) Number of months in active repayment (whether interest only payment, fixed payment, or full principal and interest payment status) for which a scheduled payment was due. (5) Current period refers to period from January 1, 2022 through December 31, 2022. Delinquencies - Private Education Loans Held for Investment The following tables provide information regarding the loan status of our Private Education Loans held for investment, by year of origination approval. Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period (but, for purposes of the following tables, do not include those loans while they are in forbearance). Private Education Loans Held for Investment - Delinquencies by Origination Vintage As of December 31, 2023 2023 2022 2021 2020 2019 2018 and Prior Total Loans in-school/grace/deferment (1) $ 1,976,040 $ 1,672,333 $ 669,250 $ 307,781 $ 2 |
