| Allowance for Credit Losses and Unfunded Loan Commitments | Allowance for Credit Losses and Unfunded Loan Commitments 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. 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. The allowance is recorded in “Other Liabilities” on the consolidated balance sheet. When the loan is funded, we transfer that liability to the allowance for loan losses. The majority of the total accrued interest receivable on our Private Education Loan portfolio represents accrued interest on deferred loans where no payments are due while the borrower is in school and on fixed-pay loans where the borrower makes a $25 monthly payment that is smaller than the interest accrued on the loan in that month. The allowance for credit losses considers the collectability of both principal and accrued interest. The allowance for uncollectible interest estimates the additional uncollectible interest that is not captured in the allowance for credit losses. See “— Accrued Interest Receivable” in this Note 6 for further discussion. For the years ended December 31, 2024, 2023, and 2022, the allowance for loan losses, ending total loans, and accrued interest balances were all collectively evaluated for impairment, none of the balances were individually evaluated for impairment. See Note 2, “Significant Accounting Policies — Allowance for Credit Losses” for a more detailed discussion on our allowance for credit losses accounting policies. Allowance for Credit Losses Metrics The following tables provide a summary of the activity in the allowance for loan losses and the allowance for unfunded loan commitments during the years ended December 31, 2024, 2023, and 2022. Year Ended December 31, 2024 FFELP Private Education Total Allowance for loan losses, beginning balance $ 4,667 $ 1,335,105 $ 1,339,772 Transfer from allowance for unfunded loan commitments — 311,787 311,787 Provisions: Provision for current period 4,010 357,067 361,077 Loan sale reduction to provision — (235,955) (235,955) Total provisions (1) 4,010 121,112 125,122 Net charge-offs: Charge-offs (380) (376,840) (377,220) Recoveries — 44,756 44,756 Net charge-offs (380) (332,084) (332,464) Write-downs arising from transfer of loans to held for sale (2) (8,297) — (8,297) Allowance for loan losses, ending balance — 1,435,920 1,435,920 Allowance for unfunded loan commitments, beginning balance (3) — 112,962 112,962 Provision (1)(4) — 283,393 283,393 Transfer to allowance for loan losses — (311,787) (311,787) Allowance for unfunded loan commitments, ending balance (3) — 84,568 84,568 Total allowance for credit losses, ending balance $ — $ 1,520,488 $ 1,520,488 Net charge-offs as a percentage of average loans in repayment (5) — % 2.19 % Allowance for loan losses coverage of net charge-offs — 4.32 Total allowance for credit losses as a percentage of the ending total loan balance, plus unfunded loan commitments and total accrued interest receivable — % 5.83 % Ending total loans, gross $ — $ 22,235,008 Average loans in repayment (5) $ — $ 15,139,184 Ending loans in repayment (5) $ — $ 16,106,751 Unfunded loan commitments $ — $ 2,311,660 Total accrued interest receivable $ — $ 1,549,415 (1) See “— Provisions for Credit Losses” below in this Note 6 for a reconciliation of the provisions for credit losses reported in the consolidated statements of income. (2) Represents fair value adjustments on loans transferred to held for sale. (3) When a new loan commitment is made, we record an allowance to cover lifetime expected credit losses on the unfunded commitments, which is recorded in “Other Liabilities” on the consolidated balance sheet. See “— Unfunded Loan Commitments” in this Note 6 for further discussion. (4) Includes incremental provision for new commitments and changes to provision for existing commitments. (5) 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). Year Ended December 31, 2023 FFELP Private Education Total Allowance for loan losses, beginning balance $ 3,444 $ 1,353,631 $ 1,357,075 Transfer from allowance for unfunded loan commitments — 320,237 320,237 Provisions: Provision for current period 2,224 240,347 242,571 Loan sale reduction to provision — (205,383) (205,383) Total provisions (1) 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) Allowance for loan losses, ending balance 4,667 1,335,105 1,339,772 Allowance for unfunded loan commitments, beginning balance (2) — 124,924 124,924 Provision (1)(3) — 308,275 308,275 Transfer to allowance for loan losses — (320,237) (320,237) Allowance for unfunded loan commitments, ending balance (2) — 112,962 112,962 Total allowance for credit losses, ending balance $ 4,667 $ 1,448,067 $ 1,452,734 Net charge-offs as a percentage of average loans in repayment (4) 0.23 % 2.44 % Allowance for loan losses coverage of net charge-offs 4.66 3.57 Total allowance for credit losses as a percentage of the ending total loan balance, plus unfunded loan commitments and total accrued interest receivable 0.87 % 5.89 % 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 Unfunded loan commitments $ — $ 2,221,077 Total accrued interest receivable $ — $ 1,354,565 (1) See “— Provisions for Credit Losses” below in this Note 6 for a reconciliation of the provisions for credit losses reported in the consolidated statements of income. (2) When a new loan commitment is made, we record an allowance to cover lifetime expected credit losses on the unfunded commitments, which is recorded in “Other Liabilities” on the consolidated balance sheet. See “— Unfunded Loan Commitments” in this Note 6 for further discussion. (3) Includes incremental provision for new commitments and changes to provision for existing commitments. (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). Year Ended December 31, 2022 FFELP Private Education Credit Total Allowance for loan losses, beginning balance $ 4,077 $ 1,158,977 $ 2,281 $ 1,165,335 Transfer from allowance for unfunded loan commitments — 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 (1) (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) Allowance for loan losses, ending balance 3,444 1,353,631 — 1,357,075 Allowance for unfunded loan commitments, beginning balance (2) — 72,713 — 72,713 Provision (1)(3) — 396,521 — 396,521 Transfer to allowance for loan losses — (344,310) — (344,310) Allowance for unfunded loan commitments, ending balance (2) — 124,924 — 124,924 Total allowance for credit losses, ending balance $ 3,444 $ 1,478,555 $ — $ 1,481,999 Net charge-offs as a percentage of average loans in repayment (4) 0.12 % 2.55 % — % Allowance for loan losses coverage of net charge-offs 5.62 3.51 — Total allowance for credit losses as a percentage of the ending total loan balance, plus unfunded loan commitments and total accrued interest receivable 0.57 % 6.30 % — % 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 $ — Unfunded loan commitments $ — $ 1,995,808 $ — Total accrued interest receivable $ — $ 1,177,562 $ — (1) See “— Provisions for Credit Losses” below in this Note 6 for a reconciliation of the provisions for credit losses reported in the consolidated statements of income. (2) When a new loan commitment is made, we record an allowance to cover lifetime expected credit losses on the unfunded commitments, which is recorded in “Other Liabilities” on the consolidated balance sheet. See “— Unfunded Loan Commitments” in this Note 6 for further discussion. ( (3) Includes incremental provision for new commitments and changes to provision for existing commitments. (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). Provisions for Credit Losses Below is a reconciliation of the provisions for credit losses reported in the consolidated statements of income. Consolidated Statements of Income Years Ended December 31, (dollars in thousands) 2024 2023 2022 Private Education Loan provisions for credit losses: Provisions for loan losses $ 121,112 $ 34,964 $ 236,023 Provisions for unfunded loan commitments 283,393 308,275 396,521 Total Private Education Loan provisions for credit losses 404,505 343,239 632,544 Other impacts to the provisions for credit losses: FFELP Loans 4,010 2,224 (20) Credit Cards — — 929 Total 4,010 2,224 909 Provisions for credit losses reported in consolidated statements of income $ 408,515 $ 345,463 $ 633,453 The provision for credit losses for the year ended December 31, 2024 was $409 million, compared with $345 million in the year-ago period. During 2024, the provision for credit losses was primarily affected by new loan commitments, net of expired commitments, and changes in recovery rates, which were partially offset by $236 million in negative provisions recorded as a result of the approximately $3.69 billion in Private Education Loan sales during 2024, an improved economic outlook, and changes in management overlays. In 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 Loan sales during 2023 and an increase in recovery rates (as the result of a change in our defaulted loan recovery process). During 2022, 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 approximately $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 arising from 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 those “gap year” loans were higher than expected and contributed to the higher provision expense recorded in 2022 to cover the higher-than-expected losses. Private Education Loans Allowance for Credit Losses - Forecast Assumptions See Note 2, “Significant Accounting Policies — Allowance for Credit Losses” for a more detailed discussion on the forecast assumptions used in calculating the allowance for credit losses. 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. 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 did not deem FFELP Loans as nonperforming from a credit risk perspective at any point in their life cycle prior to claim payment and continued 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 We offer certain administrative forbearances (e.g., death and disability, bankruptcy, military service, disaster forbearance, and in school assistance) that are required by law (such as by the Servicemembers Civil Relief Act), are considered separate from our active loss mitigation programs, or do not exceed the significance threshold 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. For additional information on our forbearance and modification programs, see Note 5, “Loans Held for Investment —Certain Collection Tools — Private Education Loans” in this Form 10-K. As part of the additional modification programs that were launched in the fourth quarter of 2023, we also offered for a short period of time a permanent term extension with no interest rate reduction program. This program ended in the fourth quarter of 2023. The amortized cost of this program totaled $7.3 million as of December 31, 2024, representing 0.03 percent of the total Private Education Loan portfolio. This program added a weighted average of 6.7 years to the life of loans in the program. As of December 31, 2024, $6.0 million of these loans were in a current or deferred status, $0.6 million of these loans were 30-59 days past due, $0.4 million of these loans were 60-89 days past due, and $0.3 million of these loans were 90 days or greater past due. As of December 31, 2024, the defaulted amount and amortized cost basis of loans that received a permanent term extension and no interest rate reduction and defaulted during the year ended December 31, 2024 and were modified for borrowers experiencing financial difficulty during the twelve months prior to default were $2.5 million and $2.0 million, respectively. Additionally, loans that received a permanent term extension with no interest rate reduction in the fourth quarter of 2023 that were both modified and subsequently charged-off during the twelve months ended December 31, 2024 are not included in the amortized cost basis and had an amortized cost basis of $0.6 million. The following tables show the amortized cost basis at the end of the respective reporting periods 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. The increase in loan modifications during the year ended December 31, 2024 compared to the year-ago period is primarily due to additional modification programs implemented in the fourth quarter of 2023 and subsequent refinements to those programs. Loan Modifications Made to Borrowers Experiencing Financial Difficulty Year Ended December 31, 2024 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 $ 31,966 0.13 % $ 1,003,089 4.20 % Total $ 31,966 0.13 % $ 1,003,089 4.20 % 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 % The following tables describe the financial effect of the modifications made to loans whose borrowers are experiencing financial difficulty: Year Ended December 31, 2024 Interest Rate Reduction Combination - Interest Rate Loan Type Financial Effect Loan Type Financial Effect Private Education Loans Reduced average contractual rate from 13.22% to 3.79% Private Education Loans Added a weighted average 9.23 years to the life of loans Reduced average contractual rate from 12.71% to 3.66% 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% 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 “Significant Accounting Policies — Allowance for Credit Losses — Allowance for FFELP Loan Losses” in this Form 10-K for a more detailed discussion. For the periods presented, the following table presents the defaulted amount and period-end amortized cost basis, by modification category, of loans that defaulted during the period and were modified for borrowers experiencing financial difficulty during the 12 months preceding default. Solely for the purpose of the below table, starting in the quarter ended December 31, 2024, we changed our definition of payment default to be two missed consecutive post-modification payment obligations. As such, as reflected for the year ended December 31, 2024 below, defaulted amount represents the principal amount of modified loans at the time the borrower missed two consecutive post-modification payment obligations during the period. Previously, as reflected for the year ended December 31, 2023 in the table below, defaulted amount represented the principal amount of modified loans at the time they became 60 days or more past due in the relevant period. Loans that were both modified and subsequently charged-off during the twelve months ended December 31, 2024 are not included in the period-end amortized cost basis and had an amortized cost basis of $40.4 million at the time of charge-off. The increase in loan modifications during the year ended December 31, 2024 compared to the year-ago period is primarily due to the additional modification programs implemented in the fourth quarter of 2023 and subsequent refinements to those programs. The following two tables do not include loans that received a permanent term extension with no interest rate reduction during the fourth quarter of 2023, which are described earlier in this Note 6. Year Ended December 31, 2024 Year Ended December 31, 2023 (Dollars in thousands) Defaulted Amount Period-end Amortized Cost Basis Defaulted Amount Period-end Amortized Cost Basis Loan Type: Private Education Loans Interest Rate Reduction $ 6,460 $ 4,621 $ 4,521 $ 4,174 Combination - Interest Rate Reduction and Term Extension 143,300 114,307 26,341 24,798 Total $ 149,760 $ 118,928 $ 30,862 $ 28,972 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 twelve months ended December 31, 2024 and 2023, respectively). Twelve Months Ended Twelve Months Ended (Dollars in thousands) Balance % Balance % Payment Status (Amortized Cost Basis) (1) : Loan modifications in deferment (2) $ 33,645 $ 6,843 Loan modifications in repayment: Loans current (3)(4) 826,007 83 % 334,967 90 % Loans delinquent 30-59 days (3)(4) 77,446 8 % 17,205 4 % Loans delinquent 60-89 days (3)(4) 43,484 4 % 7,689 2 % Loans 90 days or greater past due (3)(4) 54,473 5 % 13,822 4 % Total loan modifications in repayment 1,001,410 100 % 373,683 100 % Total Private Education Loan modifications $ 1,035,055 $ 380,526 (1) Loans that were both modified and subsequently charged-off during the twelve months ended December 31, 2024 and 2023 are excluded from the table and had an amortized cost basis of $40.4 million and $8.4 million, respectively. Additionally, loans that received a permanent term extension with no interest rate reduction during the fourth quarter of 2023 are excluded from the table. (2) 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. (3) Represents loans in repayment, which include 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) 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 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/first disbursement, stratified by key credit quality indicators. As of December 31, 2024 Private Education Loans Held for Investment - Credit Quality Indicators Year of Origination Approval 2024 (1) 2023 (1) 2022 (1) 2021 (1) 2020 (1) 2019 and Prior (1) Total (1) % of Balance Cosigners: With cosigner $ 4,519,952 $ 4,707,685 $ 2,741,871 $ 1,759,261 $ 1,151,751 $ 4,642,019 $ 19,522,539 88 % Without cosigner 504,640 613,825 443,376 310,175 222,245 618,208 2,712,469 12 Total $ 5,024,592 $ 5,321,510 $ 3,185,247 $ 2,069,436 $ 1,373,996 $ 5,260,227 $ 22,235,008 100 % FICO at Origination Approval (2) : Less than 670 $ 293,025 $ 394,962 $ 261,589 $ 155,661 $ 94,355 $ 475,186 $ 1,674,778 8 % 670-699 615,617 753,548 449,214 285,181 197,205 898,535 3,199,300 14 700-749 1,525,547 1,641,641 998,834 660,373 451,695 1,782,121 7,060,211 32 Greater than or equal to 750 2,590,403 2,531,359 1,475,610 968,221 630,741 2,104,385 10,300,719 46 Total $ 5,024,592 $ 5,321,510 $ 3,185,247 $ 2,069,436 $ 1,373,996 $ 5,260,227 $ 22,235,008 100 % FICO Refreshed (2)(3) : Less than 670 $ 453,705 $ 666,049 $ 467,562 $ 301,367 $ 194,124 $ 831,053 $ 2,913,860 13 % 670-699 633,749 710,546 409,808 248,325 138,730 578,639 2,719,797 12 700-749 1,485,771 1,512,643 879,450 563,941 362,715 1,398,737 6,203,257 28 Greater than or equal to 750 2,451,367 2,432,272 1,428,427 955,803 678,427 2,451,798 10,398,094 47 Total $ 5,024,592 $ 5,321,510 $ 3,185,247 $ 2,069,436 $ 1,373,996 $ 5,260,227 $ 22,235,008 100 % Seasoning (4) : 1-12 payments $ 2,860,113 $ 774,471 $ 499,812 $ 280,154 $ 159,762 $ 324,506 $ 4,898,818 22 % 13-24 payments — 2,729,334 372,496 191,989 122,938 340,556 3,757,313 17 25-36 payments — — 1,564,157 254,068 110,952 429,127 2,358,304 11 37-48 payments — — — 987,977 170,051 451,494 1,609,522 7 More than 48 payments — — — — 625,916 3,262,308 3,888,224 17 Not yet in repayment 2,164,479 1,817,705 748,782 355,248 184,377 452,236 5,722,827 26 Total $ 5,024,592 $ 5,321,510 $ 3,185,247 $ 2,069,436 $ 1,373,996 $ 5,260,227 $ 22,235,008 100 % 2024 Current period (5) gross charge-offs $ (1,826) $ (29,094) $ (68,454) $ (53,697) $ (37,318) $ (186,451) $ (376,840) 2024 Current period (5) recoveries 117 2,191 6,487 5,771 3,840 26,350 44,756 2024 Current period (5) net charge-offs $ (1,709) $ (26,903) $ (61,967) $ (47,926) $ (33,478) $ (160,101) $ (332,084) Total accrued interest by origination approval vintage $ 195,291 $ 484,531 $ 325,962 $ 197,504 $ 106,565 $ 239,562 $ 1,549,415 (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 2024. (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, 2024 through December 31, 2024. As of December 31, 2023 Private Education Loans Held for Investment - Credit Quality Indicators Year of Origination Approval 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 approval 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. 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/first disbursement. 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 Approval Vintage As of December 31, 2024 2024 2023 2022 2021 2020 2019 and Prior Total Loans in-school/grace/deferment (1) $ 2,164,479 $ 1,817,705 $ 748,782 $ 355,248 $ 184,377 $ 452,236 $ 5,722,827 Loans in forbearance (2) 19,984 124,728 87,961 52,686 31,575 88,496 405,430 Loans in repayment: Loans current 2,820,940 3,312,916 2,259,455 1,590,812 1,107,189 4,422,021 15,513,333 Loans delinquent 30-59 days (3) 13,533 36,441 45,543 35,245 27,302 152,684 310,748 Loans delinquent 60-89 days (3) 3,973 15,239 23,359 18,365 10,921 68,878 140,735 Loans 90 days or greater past due (3) 1,683 14,481 20,147 17,080 12,632 75,912 141,935 Total Private Education Loans in repayment 2,840,129 3,379,077 2,348,504 1,661,502 1,158,044 4,719,495 16,106,751 Total Private Education Loans, gross 5,024,592 5,321,510 3,185,247 2,069,436 1,373,996 5,260,227 22,235,008 Private Education Loans deferred origination costs and unamortized premium/(discount) 47,659 25,599 10,788 6,142 4,057 8,825 103,070 Total Private Education Loans 5,072,251 5,347,109 3,196,035 2,075,578 1,378,053 5,269,052 22,338,078 Private Education Loans allowance for losses (258,235) (326,207) (234,532) (150,324) (90,600) (376,022) (1,435,920) Private Education Loans, net $ 4,814,016 $ 5,020,902 $ 2,961,503 $ 1,925,254 $ 1,287,453 $ 4,893,030 $ 20,902,158 Percentage of Private Education Loans in repayment 56.5 % 63.5 % 73.7 % 80.3 % 84.3 % 89.7 % 72.4 % Delinquent Private Education Loans in repayment as a percentage of Private Education Loans in repayment 0.7 % 2.0 % 3.8 % 4.3 % 4.4 % 6.3 % 3.7 % Loans in forbearance as a percentage of loans in repayment and forbearance 0.7 % 3.6 % 3.6 % 3.1 % 2.7 % 1.8 % 2.5 % (1) Deferment includes customers who have returned to school or are engaged in other permitted educational activities and are not yet required to make payments on the loans (e. |
