Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2023 shares | |
Document Information [Line Items] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2023 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | Q2 |
Entity Registrant Name | Navient Corporation |
Entity Central Index Key | 0001593538 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Common Stock, Shares Outstanding | 121,601,864 |
Entity Current Reporting Status | Yes |
Entity Shell Company | false |
Entity File Number | 001-36228 |
Entity Tax Identification Number | 46-4054283 |
Entity Address, Address Line One | 13865 Sunrise Valley Drive |
Entity Address, City or Town | Herndon |
Entity Address, State or Province | VA |
Entity Address, Postal Zip Code | 20171 |
City Area Code | (703) |
Local Phone Number | 810-3000 |
Entity Interactive Data Current | Yes |
Entity Incorporation, State or Country Code | DE |
Document Quarterly Report | true |
Document Transition Report | false |
Former Address [Member] | |
Document Information [Line Items] | |
Entity Address, Address Line One | 123 Justison Street |
Entity Address, City or Town | Wilmington |
Entity Address, State or Province | DE |
Entity Address, Postal Zip Code | 19801 |
Common Stock Par Value. 01 Per Share [Member] | |
Document Information [Line Items] | |
Title of 12(b) Security | Common stock, par value $.01 per share |
Trading Symbol | NAVI |
Security Exchange Name | NASDAQ |
Senior Notes Due December 15, 2043 [Member] | |
Document Information [Line Items] | |
Title of 12(b) Security | 6% Senior Notes due December 15, 2043 |
Trading Symbol | JSM |
Security Exchange Name | NASDAQ |
Preferred Stock Purchase Rights [Member] | |
Document Information [Line Items] | |
Title of 12(b) Security | Preferred Stock Purchase Rights |
No Trading Symbol Flag | true |
Security Exchange Name | NASDAQ |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Investments | $ 158 | $ 167 |
Cash and cash equivalents | 1,317 | 1,535 |
Restricted cash and cash equivalents | 1,951 | 3,272 |
Goodwill and acquired intangible assets, net | 700 | 705 |
Other assets | 2,889 | 2,866 |
Total assets | 65,598 | 70,795 |
Liabilities | ||
Short-term borrowings | 4,838 | 5,870 |
Long-term borrowings | 56,936 | 61,026 |
Other liabilities | 894 | 922 |
Total liabilities | 62,668 | 67,818 |
Commitments and contingencies | ||
Equity | ||
Common stock, par value $0.01 per share, 1.125 billion shares authorized: 464 million and 461 million shares issued, respectively | 4 | 4 |
Additional paid-in capital | 3,343 | 3,313 |
Accumulated other comprehensive income (net of tax expense of $22 and $29, respectively) | 65 | 87 |
Retained earnings | 4,625 | 4,490 |
Total Navient Corporation stockholders’ equity before treasury stock | 8,037 | 7,894 |
Less: Common stock held in treasury at cost: 342 million and 331 million shares, respectively | (5,107) | (4,917) |
Total equity | 2,930 | 2,977 |
Total liabilities and equity | 65,598 | 70,795 |
Series A Junior Participating Preferred Stock [Member] | ||
Equity | ||
Series A Junior Participating Preferred Stock, par value $0.20 per share; 2 million shares authorized at December 31, 2021; no shares issued or outstanding | 0 | 0 |
FFELP Loans [Member] | ||
Assets | ||
Loans, net | 40,851 | 43,525 |
Private Education Loans [Member] | ||
Assets | ||
Loans, net | $ 17,732 | $ 18,725 |
Consolidated Balance Sheets - S
Consolidated Balance Sheets - Supplemental Information (Unaudited) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Short-term borrowings | $ 4,838 | $ 5,870 |
Long-term borrowings | 56,936 | 61,026 |
FFELP Loans [Member] | ||
Loans, net | 40,851 | 43,525 |
Private Education Loans [Member] | ||
Loans, net | 17,732 | 18,725 |
Assets and Liabilities of Consolidated Variable Interest Entities [Member] | ||
Loans, net | 57,179 | 60,672 |
Restricted cash | 1,924 | 3,233 |
Other assets, net | 1,560 | 1,356 |
Short-term borrowings | 3,602 | 4,458 |
Long-term borrowings | 51,804 | 55,598 |
Net assets of consolidated variable interest entities | 5,257 | 5,205 |
Assets and Liabilities of Consolidated Variable Interest Entities [Member] | FFELP Loans [Member] | ||
Loans, net | 40,782 | 43,465 |
Assets and Liabilities of Consolidated Variable Interest Entities [Member] | Private Education Loans [Member] | ||
Loans, net | $ 16,397 | $ 17,207 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Allowance for loans losses | $ 857 | $ 1,022 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,125,000,000 | 1,125,000,000 |
Common stock, shares issued | 464,000,000 | 461,000,000 |
Tax expense (benefit) for accumulated other comprehensive income (loss) | $ 22 | $ 29 |
Common stock held in treasury | 342,000,000 | 331,000,000 |
Series A Junior Participate [Member] | ||
Preferred stock, par value | $ 0.2 | $ 0.2 |
Preferred stock shares authorized | 2,000,000 | 2,000,000 |
Preferred stock shares issued | 0 | 0 |
Preferred stock shares outstanding | 0 | 0 |
FFELP Loans [Member] | ||
Allowance for loans losses | $ 200 | $ 222 |
Private Education Loans [Member] | ||
Allowance for loans losses | $ 657 | $ 800 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Interest income: | ||||
Cash and investments | $ 36 | $ 5 | $ 70 | $ 6 |
Total interest income | 1,097 | 692 | 2,169 | 1,318 |
Total interest expense | 919 | 371 | 1,756 | 660 |
Net interest income | 178 | 321 | 413 | 658 |
Less: provisions for loan losses | 11 | 18 | (3) | 34 |
Net interest income after provisions for loan losses | 167 | 303 | 416 | 624 |
Other income (loss): | ||||
Servicing revenue | 16 | 17 | 33 | 36 |
Asset recovery and business processing revenue | 83 | 88 | 155 | 185 |
Other revenue | 4 | 7 | 11 | 16 |
Gains (losses) on derivative and hedging activities, net | 26 | 22 | 17 | 120 |
Total other income | 129 | 134 | 216 | 357 |
Expenses: | ||||
Salaries and benefits | 98 | 110 | 203 | 231 |
Other operating expenses | 84 | 80 | 165 | 164 |
Total operating expenses | 182 | 190 | 368 | 395 |
Goodwill and acquired intangible asset impairment and amortization expense | 3 | 3 | 5 | 7 |
Restructuring/other reorganization expenses | 15 | 0 | 19 | 3 |
Total expenses | 200 | 193 | 392 | 405 |
Income before income tax expense | 96 | 244 | 240 | 576 |
Income tax expense | 30 | 64 | 63 | 141 |
Net income | $ 66 | $ 180 | $ 177 | $ 435 |
Basic earnings per common share | $ 0.53 | $ 1.23 | $ 1.4 | $ 2.93 |
Average common shares outstanding | 124 | 146 | 126 | 149 |
Diluted earnings per common share | $ 0.52 | $ 1.22 | $ 1.39 | $ 2.9 |
Average common and common equivalent shares outstanding | 125 | 147 | 128 | 150 |
Dividends per common share | $ 0.16 | $ 0.16 | $ 0.32 | $ 0.32 |
FFELP Loans [Member] | ||||
Interest income: | ||||
Total interest income | $ 720 | $ 410 | $ 1,413 | $ 759 |
Less: provisions for loan losses | 5 | 0 | 15 | 0 |
Private Education Loans [Member] | ||||
Interest income: | ||||
Total interest income | 341 | 277 | 686 | 553 |
Less: provisions for loan losses | $ (6) | $ 18 | $ 18 | $ 34 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income | $ 66 | $ 180 | $ 177 | $ 435 | |
Net changes in cash flow hedges, net of taxes | [1] | (1) | 49 | (22) | 163 |
Total comprehensive income | $ 65 | $ 229 | $ 155 | $ 598 | |
[1] See “Note 4 – Derivative Financial Instruments.” |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Millions | Total | Open Market Repurchases [Member] | Common Stock [Member] | Treasury Stock [Member] | Treasury Stock [Member] Open Market Repurchases [Member] | Common Stock Shares Outstanding [Member] | Common Stock Shares Outstanding [Member] Open Market Repurchases [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] | Total Stockholders' Equity [Member] | Total Stockholders' Equity [Member] Open Market Repurchases [Member] | Noncontrolling Interest [Member] |
Beginning Balance, Value at Dec. 31, 2021 | $ 2,608 | $ 4 | $ (4,495) | $ 3,282 | $ (133) | $ 3,939 | $ 2,597 | $ 11 | |||||
Beginning Balance, Shares at Dec. 31, 2021 | 458,629,384 | (304,886,613) | 153,742,771 | ||||||||||
Comprehensive income (loss): | |||||||||||||
Net income | 435 | 435 | 435 | ||||||||||
Other comprehensive income (loss), net of tax | 163 | 163 | 163 | ||||||||||
Total comprehensive income (loss) | 598 | 598 | |||||||||||
Cash dividends: | |||||||||||||
Common stock | (47) | (47) | (47) | ||||||||||
Dividend equivalent units related to employee stock-based compensation plans | (4) | (4) | (4) | ||||||||||
Issuance of common shares | $ 11 | 11 | 11 | ||||||||||
Issuance of common shares, Shares | 2,400,000 | 2,383,652 | 2,383,652 | ||||||||||
Stock-based compensation expense | $ 12 | 12 | 12 | ||||||||||
Common stock repurchased | $ (220) | $ 220 | $ (220) | $ 220 | |||||||||
Common stock repurchased, Shares | 13,133,241 | (13,100,000) | 13,133,241 | ||||||||||
Shares repurchased related to employee stock-based compensation plans | $ (20) | $ (20) | (20) | ||||||||||
Shares repurchased related to employee stock-based compensation plans, Shares | (1,100,000) | (1,114,479) | (1,114,479) | ||||||||||
Net activity in noncontrolling interest | $ (11) | (11) | |||||||||||
Ending Balance, Value at Jun. 30, 2022 | 2,927 | $ 4 | $ (4,735) | 3,305 | 30 | 4,323 | 2,927 | ||||||
Ending Balance, Shares at Jun. 30, 2022 | 461,013,036 | (319,134,333) | 141,878,703 | ||||||||||
Beginning Balance, Value at Mar. 31, 2022 | 2,830 | $ 4 | $ (4,630) | 3,302 | (19) | 4,167 | 2,824 | 6 | |||||
Beginning Balance, Shares at Mar. 31, 2022 | 460,989,285 | (312,244,634) | 148,744,651 | ||||||||||
Comprehensive income (loss): | |||||||||||||
Net income | 180 | 180 | 180 | ||||||||||
Other comprehensive income (loss), net of tax | 49 | 49 | 49 | ||||||||||
Total comprehensive income (loss) | 229 | 229 | |||||||||||
Cash dividends: | |||||||||||||
Common stock | (23) | (23) | (23) | ||||||||||
Dividend equivalent units related to employee stock-based compensation plans | $ (1) | (1) | (1) | ||||||||||
Issuance of common shares, Shares | 0 | 23,751 | 23,751 | ||||||||||
Stock-based compensation expense | $ 3 | 3 | 3 | ||||||||||
Common stock repurchased | (105) | $ 105 | $ (105) | 105 | |||||||||
Common stock repurchased, Shares | 6,885,804 | (6,900,000) | 6,885,804 | ||||||||||
Shares repurchased related to employee stock-based compensation plans, Shares | 0 | (3,895) | (3,895) | ||||||||||
Net activity in noncontrolling interest | $ (6) | $ (6) | |||||||||||
Ending Balance, Value at Jun. 30, 2022 | 2,927 | $ 4 | $ (4,735) | 3,305 | 30 | 4,323 | 2,927 | ||||||
Ending Balance, Shares at Jun. 30, 2022 | 461,013,036 | (319,134,333) | 141,878,703 | ||||||||||
Beginning Balance, Value at Dec. 31, 2022 | 2,977 | $ 4 | $ (4,917) | 3,313 | 87 | 4,490 | 2,977 | ||||||
Beginning Balance, Shares at Dec. 31, 2022 | 461,087,590 | (330,878,152) | 130,209,438 | ||||||||||
Comprehensive income (loss): | |||||||||||||
Net income | 177 | 177 | 177 | ||||||||||
Other comprehensive income (loss), net of tax | (22) | (22) | (22) | ||||||||||
Total comprehensive income (loss) | 155 | 155 | |||||||||||
Cash dividends: | |||||||||||||
Common stock | (40) | (40) | (40) | ||||||||||
Dividend equivalent units related to employee stock-based compensation plans | (2) | (2) | (2) | ||||||||||
Issuance of common shares | $ 13 | 13 | 13 | ||||||||||
Issuance of common shares, Shares | 2,400,000 | 2,447,191 | 2,447,191 | ||||||||||
Stock-based compensation expense | $ 17 | 17 | 17 | ||||||||||
Common stock repurchased | (165) | $ 165 | $ (165) | 165 | |||||||||
Common stock repurchased, Shares | 9,775,223 | (9,800,000) | 9,775,223 | ||||||||||
Shares repurchased related to employee stock-based compensation plans | $ (24) | $ (24) | (24) | ||||||||||
Shares repurchased related to employee stock-based compensation plans, Shares | (1,300,000) | (1,279,542) | (1,279,542) | ||||||||||
Other | $ (1) | $ (1) | (1) | ||||||||||
Ending Balance, Value at Jun. 30, 2023 | 2,930 | $ 4 | $ (5,107) | 3,343 | 65 | 4,625 | 2,930 | ||||||
Ending Balance, Shares at Jun. 30, 2023 | 463,534,781 | (341,932,917) | 121,601,864 | ||||||||||
Beginning Balance, Value at Mar. 31, 2023 | 2,958 | $ 4 | $ (5,026) | 3,335 | 66 | 4,579 | 2,958 | ||||||
Beginning Balance, Shares at Mar. 31, 2023 | 463,508,522 | (337,043,677) | 126,464,845 | ||||||||||
Comprehensive income (loss): | |||||||||||||
Net income | 66 | 66 | 66 | ||||||||||
Other comprehensive income (loss), net of tax | (1) | (1) | (1) | ||||||||||
Total comprehensive income (loss) | 65 | 65 | |||||||||||
Cash dividends: | |||||||||||||
Common stock | $ (20) | (20) | (20) | ||||||||||
Issuance of common shares, Shares | 0 | 26,259 | 26,259 | ||||||||||
Stock-based compensation expense | $ 8 | 8 | 8 | ||||||||||
Common stock repurchased | $ (80) | $ (80) | $ (80) | $ (80) | |||||||||
Common stock repurchased, Shares | (4,886,411) | (4,900,000) | (4,886,411) | ||||||||||
Shares repurchased related to employee stock-based compensation plans, Shares | 0 | (2,829) | (2,829) | ||||||||||
Other | $ (1) | $ (1) | (1) | ||||||||||
Ending Balance, Value at Jun. 30, 2023 | $ 2,930 | $ 4 | $ (5,107) | $ 3,343 | $ 65 | $ 4,625 | $ 2,930 | ||||||
Ending Balance, Shares at Jun. 30, 2023 | 463,534,781 | (341,932,917) | 121,601,864 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Dividends per common share | $ 0.16 | $ 0.16 | $ 0.32 | $ 0.32 |
Total Stockholders' Equity [Member] | ||||
Dividends per common share | $ 0.16 | $ 0.16 | $ 0.32 | $ 0.32 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities | ||
Net income | $ 177 | $ 435 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Goodwill and acquired intangible asset impairment and amortization expense | 5 | 7 |
Stock-based compensation expense | 17 | 12 |
Mark-to-market (gains) losses on derivative and hedging activities, net | 41 | (465) |
Provisions for loan losses | (3) | 34 |
(Increase) decrease in accrued interest receivable | (69) | 12 |
(Decrease) increase in accrued interest payable | (7) | 49 |
Decrease in other assets | 81 | 256 |
Increase (decrease) in other liabilities | 2 | (310) |
Total adjustments | 67 | (405) |
Net cash provided by operating activities | 244 | 30 |
Cash flows from investing activities | ||
Education loans originated and acquired | (438) | (1,516) |
Proceeds from payments on education loans | 4,111 | 5,416 |
Other investing activities, net | 1 | 56 |
Net cash provided by investing activities | 3,674 | 3,956 |
Cash flows from financing activities | ||
Borrowings collateralized by loans in trust - issued | 844 | 1,706 |
Borrowings collateralized by loans in trust - repaid | (5,837) | (6,090) |
Long-term unsecured notes issued | 495 | 0 |
Long-term unsecured notes repaid | (1,002) | (15) |
Other financing activities, net | (29) | 56 |
Common stock repurchased | (165) | (220) |
Common dividends paid | (40) | (47) |
Net cash used in financing activities | (5,457) | (4,128) |
Net decrease in cash, cash equivalents, restricted cash and restricted cash equivalents | (1,539) | (142) |
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 4,807 | 3,578 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | 3,268 | 3,436 |
Supplemental disclosure of cash flow information: | ||
Interest paid | 1,688 | 648 |
Income taxes paid | 9 | 27 |
Income taxes refunds received | (2) | (5) |
Reconciliation of the Consolidated Statements of Cash Flows to the Consolidated Balance Sheets: | ||
Cash and cash equivalents | 1,317 | 976 |
Restricted cash and cash equivalents | 1,951 | 2,460 |
Total cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | 3,268 | 3,436 |
Asset-backed Securities, Securitized Loans and Receivables [Member] | ||
Cash flows from financing activities | ||
Asset-backed commercial paper conduits, net | $ 277 | $ 482 |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 1. Significant Accounting Policies Basis of Presentation The accompanying unaudited, consolidated financial statements of Navient 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. The consolidated financial statements include the accounts of Navient and its majority-owned and controlled subsidiaries and those Variable Interest Entities (VIEs) for which we are the primary beneficiary, after eliminating the effects of intercompany accounts and transactions. 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 and six months ended June 30, 2023 are not necessarily indicative of the results for the year ending December 31, 2022 or for any other period. These unaudited financial statements should be read in conjunction with the audited financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2022 (the 2022 Form 10-K). Definitions for certain capitalized terms used but not otherwise defined in this Quarterly Report on Form 10-Q can be found in our 2022 Form 10-K. Recently Issued Accounting Pronouncements Effective in 2020 and Forward Rate Reform In March 2020 (and as amended in December 2022), the FASB issued ASU No. 2020-04, “Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting,” which provides optional temporary relief for companies who are preparing for the discontinuation of interest rates indexed to the London Interbank Offered Rate (LIBOR). The ASU provides companies with guidance in the form of expedients and exceptions related to contract modifications and hedge accounting to ease the burden of and simplify the accounting associated with transitioning away from LIBOR. Modifications of qualifying contracts are accounted for as the continuation of an existing contract rather than as a new contract. Modifications of qualifying hedging relationships will not require discontinuation of the existing hedge accounting relationships. One-month and three-month LIBOR have been discontinued as of June 30, 2023. Our hedging instruments that were indexed to one-month and three-month LIBOR are now indexed to SOFR. There is $ 12 billion of debt as of June 30, 2023, that is in either a fair value or cash flow hedge relationship using LIBOR swaps. We used the hedge accounting expedients in this ASU when those swaps transitioned to SOFR. As a result, these hedges did not result in the discontinuation of the existing hedge accounting relationships. Troubled Debt Restructurings In March 2022, the FASB issued ASU No. 2022-02, “Financial Instruments – Credit Losses: Troubled Debt Restructurings and Vintage Disclosures,” which eliminates the troubled debt restructurings (TDRs) recognition and measurement guidance and instead requires an entity to evaluate whether the modification represents a new loan or a continuation of an existing loan. The ASU also enhances the disclosure requirements for certain modifications of receivables made to borrowers experiencing financial difficulty. This guidance was effective on January 1, 2023. Prior to adopting this new guidance on January 1, 2023, as it relates to interest rate concessions granted as part of our Private Education Loan modification program, a discounted cash flow model was used to calculate the amount of interest forgiven for loans that were in the program and the present value of that interest rate concession was included as a part of the allowance for loan loss. This new guidance no longer allows the measurement and recognition of this element of our allowance for loan loss for new modifications that occur subsequent to January 1, 2023. As of December 31, 2022, the allowance for loan loss included $ 77 million related to this interest rate concession component of the allowance for loan loss. We elected to adopt this amendment using a prospective transition method which results in the $ 77 million releasing in 2023 and 2024 as the borrowers exit their current modification programs. $ 60 million of the $ 77 million was released in the six months ended June 30, 2023. |
Allowance for Loan Losses
Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Allowance for Loan Losses | 2. Allowance for Loan Losses Allowance for Loan Losses Roll Forward Three Months Ended June 30, 2023 (Dollars in millions) FFELP Private Total Allowance at beginning of period $ 214 $ 706 $ 920 Total provision 5 6 11 Charge-offs: Gross charge-offs ( 19 ) ( 73 ) ( 92 ) Expected future recoveries on current period gross charge-offs — 11 11 Net charge-offs (1) ( 19 ) ( 62 ) ( 81 ) Decrease in expected future recoveries on previously fully (2) — 7 7 Allowance at end of period $ 200 $ 657 $ 857 Net charge-offs as a percentage of average loans in repayment .22 % 1.39 % Ending total loans $ 41,051 $ 18,389 Average loans in repayment $ 33,790 $ 17,990 Ending loans in repayment $ 33,076 $ 17,720 (1) Charge-offs are reported net of expected recoveries. For Private Education Loans, we charge off the estimated loss of a defaulted loan balance by charging off the entire defaulted loan balance and estimating recoveries on a pool basis. These estimated recoveries are referred to as "expected future recoveries on previously fully charged-off loans." For FFELP Loans, the recovery is received at the time of charge-off. (2) At the end of each month, for Private Education Loans that are 212 days past due, we charge off the estimated loss of a defaulted loan balance by charging off the entire loan balance and estimating recoveries on a pool basis. These estimated recoveries are referred to as “expected future recoveries on previously fully charged-off loans.” If actual periodic recoveries are less than expected, the difference is immediately reflected as a reduction to expected future recoveries on previously fully charged-off loans. If actual periodic recoveries are greater than expected, they will be reflected as a recovery through the allowance for Private Education Loan losses once the cumulative recovery amount exceeds the cumulative amount originally expected to be recovered. The following table summarizes the activity in the expected future recoveries on previously fully charged-off loans: Three Months Ended June 30, (Dollars in millions) 2023 Beginning of period expected future recoveries on previously fully charged-off loans $ 268 Expected future recoveries of current period defaults 11 Recoveries (cash collected) ( 11 ) Charge-offs (as a result of lower recovery expectations) ( 6 ) End of period expected future recoveries on previously fully charged-off loans 262 Change in balance during period $ ( 7 ) 2. Allowance for Loan Losses (Continued) Three Months Ended June 30, 2022 (Dollars in millions) FFELP Loans Private Education Loans Total Allowance at beginning of period $ 255 $ 964 $ 1,219 Total provision — 18 18 Charge-offs: Gross charge-offs ( 10 ) ( 82 ) ( 92 ) Expected future recoveries on current period gross charge-offs — 12 12 Net charge-offs (1) ( 10 ) ( 70 ) ( 80 ) Decrease in expected future recoveries on previously fully (2) — 9 9 Allowance at end of period $ 245 $ 921 $ 1,166 Net charge-offs as a percentage of average loans in repayment .09 % 1.40 % Ending total loans $ 49,459 $ 20,589 Average loans in repayment $ 42,163 $ 20,162 Ending loans in repayment $ 41,168 $ 19,938 (1) Charge-offs are reported net of expected recoveries. For Private Education Loans, we charge off the estimated loss of a defaulted loan balance by charging off the entire defaulted loan balance and estimating recoveries on a pool basis. These estimated recoveries are referred to as "expected future recoveries on previously fully charged-off loans." For FFELP Loans, the recovery is received at the time of charge-off. (2) At the end of each month, for Private Education Loans that are 212 days past due, we charge off the estimated loss of a defaulted loan balance by charging off the entire loan balance and estimating recoveries on a pool basis. These estimated recoveries are referred to as “expected future recoveries on previously fully charged-off loans.” If actual periodic recoveries are less than expected, the difference is immediately reflected as a reduction to expected future recoveries on previously fully charged-off loans. If actual periodic recoveries are greater than expected, they will be reflected as a recovery through the allowance for Private Education Loan losses once the cumulative recovery amount exceeds the cumulative amount originally expected to be recovered. The following table summarizes the activity in the expected future recoveries on previously fully charged-off loans: Three Months Ended June 30, (Dollars in millions) 2022 Beginning of period expected future recoveries on previously fully charged-off loans $ 321 Expected future recoveries of current period defaults 12 Recoveries (cash collected) ( 15 ) Charge-offs (as a result of lower recovery expectations) ( 6 ) End of period expected future recoveries on previously fully charged-off loans $ 312 Change in balance during period $ ( 9 ) 2. Allowance for Loan Losses (Continued) Six Months Ended June 30, 2023 (Dollars in millions) FFELP Loans Private Education Loans Total Allowance at beginning of period $ 222 $ 800 $ 1,022 Total provision 15 ( 18 ) ( 3 ) Charge-offs: Gross charge-offs ( 37 ) ( 161 ) ( 198 ) Expected future recoveries on current period gross charge-offs — 24 24 Net charge-offs (1) ( 37 ) ( 137 ) ( 174 ) Decrease in expected future recoveries on previously fully (2) — 12 12 Allowance at end of period $ 200 $ 657 $ 857 Net charge-offs as a percentage of average loans in repayment .22 % 1.51 % Ending total loans $ 41,051 $ 18,389 Average loans in repayment $ 34,046 $ 18,270 Ending loans in repayment $ 33,076 $ 17,720 (1) Charge-offs are reported net of expected recoveries. For Private Education Loans, we charge off the estimated loss of a defaulted loan balance by charging off the entire defaulted loan balance and estimating recoveries on a pool basis. These estimated recoveries are referred to as "expected future recoveries on previously fully charged-off loans." For FFELP Loans, the recovery is received at the time of charge-off. (2) At the end of each month, for Private Education Loans that are 212 days past due, we charge off the estimated loss of a defaulted loan balance by charging off the entire loan balance and estimating recoveries on a pool basis. These estimated recoveries are referred to as “expected future recoveries on previously fully charged-off loans.” If actual periodic recoveries are less than expected, the difference is immediately reflected as a reduction to expected future recoveries on previously fully charged-off loans. If actual periodic recoveries are greater than expected, they will be reflected as a recovery through the allowance for Private Education Loan losses once the cumulative recovery amount exceeds the cumulative amount originally expected to be recovered. The following table summarizes the activity in the expected future recoveries on previously fully charged-off loans: Six Months Ended June 30, (Dollars in millions) 2023 Beginning of period expected future recoveries on previously fully charged-off loans $ 274 Expected future recoveries of current period defaults 24 Recoveries (cash collected) ( 24 ) Charge-offs (as a result of lower recovery expectations) ( 12 ) End of period expected future recoveries on previously fully charged-off loans $ 262 Change in balance during period $ ( 12 ) 2. Allowance for Loan Losses (Continued) Six Months Ended June 30, 2022 (Dollars in millions) FFELP Loans Private Education Loans Total Allowance at beginning of period $ 262 $ 1,009 $ 1,271 Total provision — 34 34 Charge-offs: Gross charge-offs ( 17 ) ( 164 ) ( 181 ) Expected future recoveries on current period gross charge-offs — 25 25 Net charge-offs (1) ( 17 ) ( 139 ) ( 156 ) Decrease in expected future recoveries on previously fully (2) — 17 17 Allowance at end of period $ 245 $ 921 $ 1,166 Net charge-offs as a percentage of average loans in repayment .08 % 1.39 % Ending total loans $ 49,459 $ 20,589 Average loans in repayment $ 42,922 $ 20,274 Ending loans in repayment $ 41,168 $ 19,938 (1) Charge-offs are reported net of expected recoveries. For Private Education Loans, we charge off the estimated loss of a defaulted loan balance by charging off the entire defaulted loan balance and estimating recoveries on a pool basis. These estimated recoveries are referred to as "expected future recoveries on previously fully charged-off loans." For FFELP Loans, the recovery is received at the time of charge-off. (2) At the end of each month, for Private Education Loans that are 212 days past due, we charge off the estimated loss of a defaulted loan balance by charging off the entire loan balance and estimating recoveries on a pool basis. These estimated recoveries are referred to as “expected future recoveries on previously fully charged-off loans.” If actual periodic recoveries are less than expected, the difference is immediately reflected as a reduction to expected future recoveries on previously fully charged-off loans. If actual periodic recoveries are greater than expected, they will be reflected as a recovery through the allowance for Private Education Loan losses once the cumulative recovery amount exceeds the cumulative amount originally expected to be recovered. The following table summarizes the activity in the expected future recoveries on previously fully charged-off loans: Six Months Ended June 30, (Dollars in millions) 2022 Beginning of period expected future recoveries on previously fully charged-off loans $ 329 Expected future recoveries of current period defaults 25 Recoveries (cash collected) ( 30 ) Charge-offs (as a result of lower recovery expectations) ( 12 ) End of period expected future recoveries on previously fully charged-off loans $ 312 Change in balance during period $ ( 17 ) 2. Allowance for Loan Losses (Continued) Key Credit Quality Indicators We assess and determine the collectability of our education loan portfolios by evaluating certain risk characteristics we refer to as key credit quality indicators. Key credit quality indicators are incorporated into the allowance for loan losses calculation. FFELP Loans FFELP Loans are substantially insured and guaranteed as to their principal and accrued interest in the event of default. The key credit quality indicators are loan status and loan type. FFELP Loan Delinquencies June 30, 2023 December 31, 2022 June 30, 2022 (Dollars in millions) Balance % Balance % Balance % Loans in-school/grace/deferment (1) $ 1,659 $ 1,772 $ 2,064 Loans in forbearance (2) 6,316 7,603 6,227 Loans in repayment and percentage of each status: Loans current 27,756 83.9 % 29,004 84.4 % 34,627 84.1 % Loans delinquent 31-60 days (3) 1,596 4.8 1,247 3.6 2,163 5.3 Loans delinquent 61-90 days (3) 1,013 3.1 833 2.4 1,323 3.2 Loans delinquent greater than 90 days (3) 2,711 8.2 3,288 9.6 3,055 7.4 Total FFELP Loans in repayment 33,076 100 % 34,372 100 % 41,168 100 % Total FFELP Loans 41,051 43,747 49,459 FFELP Loan allowance for losses ( 200 ) ( 222 ) ( 245 ) FFELP Loans, net $ 40,851 $ 43,525 $ 49,214 Percentage of FFELP Loans in repayment 80.6 % 78.6 % 83.2 % Delinquencies as a percentage of FFELP Loans in 16.1 % 15.6 % 15.9 % FFELP Loans in forbearance as a percentage of 16.0 % 18.1 % 13.1 % (1) Loans for customers who may still be attending school or engaging in other permitted educational activities and are not yet required to make payments on their loans, e.g., residency periods for medical students or a grace period for bar exam preparation, as well as loans for customers who have requested and qualify for other permitted program deferments such as military, unemployment, or economic hardships. (2) Loans for customers who have used their allowable deferment time or do not qualify for deferment, that need additional time to obtain employment or who have temporarily ceased making full payments due to hardship or other factors such as disaster relief, including COVID-19 relief programs, consistent with established loan program servicing policies and procedures. (3) The period of delinquency is based on the number of days scheduled payments are contractually past due. Loan type : (Dollars in millions) June 30, 2023 June 30, 2022 Change Stafford Loans $ 13,151 $ 15,538 $ ( 2,387 ) Consolidation Loans 23,956 29,396 ( 5,440 ) Rehab Loans 3,944 4,525 ( 581 ) Total loans, gross $ 41,051 $ 49,459 $ ( 8,408 ) 2. Allowance for Loan Losses (Continued) Private Education Loans The key credit quality indicators are credit scores (FICO scores), loan status, loan seasoning, certain loan modifications, the existence of a cosigner and school type. The FICO score is the higher of the borrower or co-borrower score and is updated at least every six months while school type is assessed at origination. The other Private Education Loan key quality indicators are updated quarterly. Private Education Loan Credit Quality Indicators by Origination Year June 30, 2023 (Dollars in millions) 2023 2022 2021 2020 2019 Prior Total % of Total Credit Quality FICO Scores: 640 and above $ 322 $ 1,698 $ 4,209 $ 1,367 $ 1,287 $ 7,851 $ 16,734 91 % Below 640 4 50 100 26 43 1,432 1,655 9 Total $ 326 $ 1,748 $ 4,309 $ 1,393 $ 1,330 $ 9,283 $ 18,389 100 % Loan Status: In-school/grace/ $ 15 $ 69 $ 82 $ 22 $ 27 $ 454 $ 669 4 % Current/90 days or 311 1,673 4,218 1,367 1,297 8,503 17,369 94 Greater than 90 days — 6 9 4 6 326 351 2 Total $ 326 $ 1,748 $ 4,309 $ 1,393 $ 1,330 $ 9,283 $ 18,389 100 % Seasoning (1) : 1-12 payments $ 312 $ 744 $ 49 $ 10 $ 6 $ 66 $ 1,187 6 % 13-24 payments — 950 3,021 23 18 77 4,089 22 25-36 payments — — 1,188 819 58 142 2,207 12 37-48 payments — — — 529 1,036 230 1,795 10 More than 48 — — — — 198 8,572 8,770 48 Loans in-school/ 14 54 51 12 14 196 341 2 Total $ 326 $ 1,748 $ 4,309 $ 1,393 $ 1,330 $ 9,283 $ 18,389 100 % Certain Loan (2) : Modified $ — $ 20 $ 102 $ 41 $ 75 $ 6,101 $ 6,339 34 % Non-Modified 326 1,728 4,207 1,352 1,255 3,182 12,050 66 Total $ 326 $ 1,748 $ 4,309 $ 1,393 $ 1,330 $ 9,283 $ 18,389 100 % Cosigners: With cosigner (3) $ 57 $ 187 $ 100 $ 25 $ 9 $ 5,647 $ 6,025 33 % Without cosigner 269 1,561 4,209 1,368 1,321 3,636 12,364 67 Total $ 326 $ 1,748 $ 4,309 $ 1,393 $ 1,330 $ 9,283 $ 18,389 100 % School Type: Not-for-profit $ 304 $ 1,654 $ 4,059 $ 1,331 $ 1,238 $ 7,809 $ 16,395 89 % For-profit 22 94 250 62 92 1,474 1,994 11 Total $ 326 $ 1,748 $ 4,309 $ 1,393 $ 1,330 $ 9,283 $ 18,389 100 % Allowance for loan ( 657 ) Total loans, net $ 17,732 Charge-Offs $ — $ ( 3 ) $ ( 5 ) $ ( 2 ) $ ( 4 ) $ ( 123 ) $ ( 137 ) 100 % (1) Number of months in active repayment for which a scheduled payment was received. (2) Loan Modifications represents the historical definition of a troubled debt restructuring (“TDR”) prior to the implementation of ASU 2022-02 on January 1, 2023. Any loan that meets the historical definition of a TDR retains that classification for the life of the loan (including loans that meet that definition in 2023). This includes loans given rate modifications, term extensions or forbearance greater than 3 months in the prior 24-month period. This classification is not intended to reconcile in any way to the new modification disclosures required under ASU 2022-02. (3) Excluding Private Education Refinance Loans, which do not have a cosigner, the cosigner rate was 65 % for total loans at June 30, 2023. 2. Allowance for Loan Losses (Continued) Private Education Loan Credit Quality Indicators by Origination Year June 30, 2022 (Dollars in millions) 2022 2021 2020 2019 2018 Prior Total % of Total Credit Quality FICO Scores: 640 and above $ 1,307 $ 4,875 $ 1,672 $ 1,583 $ 587 $ 8,925 $ 18,949 92 % Below 640 11 57 18 34 20 1,500 1,640 8 Total $ 1,318 $ 4,932 $ 1,690 $ 1,617 $ 607 $ 10,425 $ 20,589 100 % Loan Status: In-school/grace/ $ 18 $ 79 $ 29 $ 32 $ 13 $ 480 $ 651 3 % Current/90 days or 1,300 4,848 1,659 1,580 591 9,559 19,537 95 Greater than 90 days — 5 2 5 3 386 401 2 Total $ 1,318 $ 4,932 $ 1,690 $ 1,617 $ 607 $ 10,425 $ 20,589 100 % Seasoning (1) : 1-12 payments $ 1,304 $ 3,452 $ 17 $ 15 $ 3 $ 105 $ 4,896 24 % 13-24 payments — 1,433 981 52 9 119 2,594 12 25-36 payments — — 676 1,282 26 203 2,187 11 37-48 payments — — — 251 437 330 1,018 5 More than 48 — — — — 126 9,420 9,546 46 Loans in-school/ 14 47 16 17 6 248 348 2 Total $ 1,318 $ 4,932 $ 1,690 $ 1,617 $ 607 $ 10,425 $ 20,589 100 % Certain Loan (2) : Modified $ 1 $ 24 $ 22 $ 54 $ 32 $ 6,830 $ 6,963 34 % Non-Modified 1,317 4,908 1,668 1,563 575 3,595 13,626 66 Total $ 1,318 $ 4,932 $ 1,690 $ 1,617 $ 607 $ 10,425 $ 20,589 100 % Cosigners: With cosigner (3) $ 19 $ 112 $ 29 $ 11 $ — $ 6,710 $ 6,881 33 % Without cosigner 1,299 4,820 1,661 1,606 607 3,715 13,708 67 Total $ 1,318 $ 4,932 $ 1,690 $ 1,617 $ 607 $ 10,425 $ 20,589 100 % School Type: Not-for-profit $ 1,237 $ 4,647 $ 1,615 $ 1,507 $ 558 $ 8,701 $ 18,265 89 % For-profit 81 285 75 110 49 1,724 2,324 11 Total $ 1,318 $ 4,932 $ 1,690 $ 1,617 $ 607 $ 10,425 $ 20,589 100 % Allowance for loan ( 921 ) Total loans, net $ 19,668 (1) Number of months in active repayment for which a scheduled payment was received. (2) Loan Modifications represents the historical definition of a troubled debt restructuring (“TDR”) prior to the implementation of ASU 2022-02 on January 1, 2023. Any loan that meets the historical definition of a TDR retains that classification for the life of the loan (including loans that meet that definition in 2023). This includes loans given rate modifications, term extensions or forbearance greater than 3 months in the prior 24-month period. This classification is not intended to reconcile in any way to the new modification disclosures required under ASU 2022-02. (3) Excluding Private Education Refinance Loans, which do not have a cosigner, the cosigner rate was 65 % for total loans at June 30, 2022 . 2. Allowance for Loan Losses (Continued) Private Education Loan Delinquencies June 30, 2023 December 31, 2022 June 30, 2022 (Dollars in millions) Balance % Balance % Balance % Loans in-school/grace/deferment (1) $ 341 $ 354 $ 348 Loans in forbearance (2) 328 401 303 Loans in repayment and percentage of each status: Loans current 16,942 95.6 % 17,838 95.0 % 19,116 95.9 % Loans delinquent 31-60 days (3) 276 1.6 335 1.8 269 1.3 Loans delinquent 61-90 days (3) 151 .8 186 1.0 152 .8 Loans delinquent greater than 90 days (3) 351 2.0 411 2.2 401 2.0 Total loans in repayment 17,720 100 % 18,770 100 % 19,938 100 % Total loans 18,389 19,525 20,589 Allowance for losses ( 657 ) ( 800 ) ( 921 ) Loans, net $ 17,732 $ 18,725 $ 19,668 Percentage of loans in repayment 96.4 % 96.1 % 96.8 % Delinquencies as a percentage of loans in 4.4 % 5.0 % 4.1 % Loans in forbearance as a percentage of 1.8 % 2.1 % 1.5 % (1) Loans for customers who are attending school or are in other permitted educational activities and are not yet required to make payments on their loans, e.g., internship periods, as well as loans for customers who have requested and qualify for other permitted program deferments such as various military eligible deferments. (2) Loans for customers who have requested extension of grace period generally during employment transition or who have temporarily ceased making full payments due to hardship or other factors such as disaster relief, including COVID-19 relief programs, consistent with established loan program servicing policies and procedures. (3) The period of delinquency is based on the number of days scheduled payments are contractually past due . 2. Allowance for Loan Losses (Continued) Loan Modifications to Borrowers Experiencing Financial Difficulty We adjust the terms of Private Education Loans for certain borrowers when we believe such changes will help our customers better manage their student loan obligations, achieve better outcomes and increase the collectability of the loans. These changes generally take the form of a temporary interest rate reduction, a temporary forbearance of payments, a temporary interest only payment, and a temporary interest rate reduction with a permanent extension of the loan term. The effect of 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 model design predicts borrowers that will have financial difficulty in the future and require loan modification and increased life of loan default risk. Under our current forbearance practices, temporary hardship forbearance of payments generally cannot exceed 12 months over the life of the loan. However, exceptions can be made in cases where borrowers have shown the ability to make a substantial number of monthly principal and interest payments and in those cases borrowers can be granted up to 24 months of hardship forbearance over the life of the loan. We offer other administrative forbearances (e.g., death and disability, bankruptcy, military service, and disaster forbearance) that are either required by law (such as 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. 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. Further, FFELP loan modification events are either legal entitlements subject to regulatory-driven eligibility criteria or addressed in the promissory note terms, so we do not consider these events as a component of our loan modification programs. The following tables show the amortized cost basis as of June 30, 2023 of the loans to borrowers experiencing financial difficulty that were modified in the three and six months ended June 30, 2023. Loan Modifications Made to Borrowers Experiencing Financial Difficulty Three Months Ended June 30, 2023 (Dollars in millions) Interest Rate Reductions (1) More Than an Insignificant Payment Delay (2) Combination Rate Reduction and Term Extension Loan Type Amortized Cost % of Loan Type Amortized Cost % of Loan Type Amortized Cost % of Loan Type Private Education $ 548 3.0 % $ 274 1.5 % $ 45 .2 % Six Months Ended June 30, 2023 (Dollars in millions) Interest Rate Reductions (1) More Than an Insignificant Payment Delay (2) Combination Rate Reduction and Term Extension Loan Type Amortized Cost % of Loan Type Amortized Cost % of Loan Type Amortized Cost % of Loan Type Private Education $ 1,161 6.3 % $ 539 2.9 % $ 91 .5 % (1) As of June 30, 2023, there was $ 1.2 billion of loans in the interest rate reduction program. (2) More Than an Insignificant Payment Delay includes loans granted more than 3 months of short-term interest only payments or hardship forbearance. 2. Allowance for Loan Losses (Continued) For those loans modified in the three and six months ended June 30, 2023, the following tables show the impact of such modification. Three Months Ended June 30, 2023 Loan Type Interest Rate Reductions More Than an Insignificant Payment Delay Combination Rate Reduction and Term Extension Private Education Loans Reduced the weighted average contractual rate from 13.0 % to 5.3 % Added an average 5 months to the remaining life of the loans Added an average 8 years to the remaining life of the loans and reduced the weighted average contractual rate from 12.4 % to 5.3 %. Six Months Ended June 30, 2023 Loan Type Interest Rate Reductions More Than an Insignificant Payment Delay Combination Rate Reduction and Term Extension Private Education Loans Reduced the weighted average contractual rate from 12.9 % to 5.1 % Added an average 6 months to the remaining life of the loans Added an average 8 years to the remaining life of the loans and reduced the weighted average contractual rate from 12.4 % to 5.2 %. 2. Allowance for Loan Losses (Continued) The following table provides the amount of loans whose borrowers were experiencing financial difficulty, were modified during the three and six months ended June 30, 2023 and subsequently had a payment default in the three and six months ended June 30, 2023. We define payment default as 60 days past due for purposes of this disclosure. We closely monitor performance of the loans to borrowers experiencing financial difficulty that are modified to understand the effectiveness of the modification efforts. (Dollars in millions) Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 Loan Type Modified Loans Payment Default (Par) Modified Loans Payment Default (Par) Private Education Loans (1) $ 36 $ 37 $ 38 $ 39 (1) For the three months ended June 30, 2023, the modified loans include $ 22 million of Interest Rate Reduction, $ 2 million of Combination Rate Reduction and Term Extension, and $ 12 million of More Than Insignificant Payment Delay . For the six months ended June 30, 2023, the modified loans include $ 24 million of Interest Rate Reduction, $ 2 million of Combination Rate Reduction and Term Extension, and $ 13 million of More Than Insignificant Payment Delay. The following table provides the performance and related loan status as of June 30, 2023 of loans that were modified in the six months ended June 30, 2023. (Dollars in millions) Loan Type: Private Education Loans Status Payment status (Amortized Cost) Loans in School/Deferment $ 5 Loans in Forbearance 48 Loans current 1,646 Loans delinquent 31 - 60 days 51 Loans delinquent 61 - 90 days 21 Loans delinquent greater than 90 days 20 Total Modified Loans $ 1,791 (1) For the six months ended June 30, 2023, $ 2 million of loans modified during the period were charged off. 2. Allowance for Loan Losses (Continued) Prior to our adoption of ASU 2022-02 on January 1, 2023, we accounted for a modification to the contractual terms of a loan that resulted in granting a concession to a borrower experiencing financial difficulties as a TDR. Certain Private Education Loans for which we have granted either a forbearance of greater than three months, an interest rate reduction or an extended repayment plan were classified as TDRs. The following table provides the amount of loans modified in the period presented that resulted in a TDR. Additionally, the table summarizes charge-offs occurring in the TDR portfolio, as well as TDRs for which a payment default occurred in the current period within 12 months of the loan first being designated as a TDR. We define payment default as 60 days past due for this disclosure. Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2022 2022 Modified loans $ 62 $ 117 Charge-offs $ 59 $ 115 Payment default $ 9 $ 18 |
Borrowings
Borrowings | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Borrowings | 3. Borrowings The following table summarizes our borrowings. June 30, 2023 December 31, 2022 (Dollars in millions) Short Long Total Short Long Total Unsecured borrowings: Senior unsecured debt (1) $ 1,156 $ 5,353 $ 6,509 $ 1,301 $ 5,711 $ 7,012 Total unsecured borrowings 1,156 5,353 6,509 1,301 5,711 7,012 Secured borrowings: FFELP Loan securitizations (2)(3) 64 38,293 38,357 76 42,675 42,751 Private Education Loan securitizations (4) 574 12,316 12,890 725 12,744 13,469 FFELP Loan ABCP facilities 1,548 455 2,003 923 386 1,309 Private Education Loan ABCP facilities 1,416 901 2,317 2,734 — 2,734 Other (5) 98 40 138 121 — 121 Total secured borrowings 3,700 52,005 55,705 4,579 55,805 60,384 Total before hedge accounting adjustments 4,856 57,358 62,214 5,880 61,516 67,396 Hedge accounting adjustments ( 18 ) ( 422 ) ( 440 ) ( 10 ) ( 490 ) ( 500 ) Total $ 4,838 $ 56,936 $ 61,774 $ 5,870 $ 61,026 $ 66,896 (1) Includes principal amount of $ 1.1 billion and $ 1.3 billion of short-term debt as of June 30, 2023 and December 31, 2022, respectively. Includes principal amount of $ 5.4 billion and $ 5.7 billion of long-term debt as of June 30, 2023 and December 31, 2022, respectively. (2) Includes $ 64 million and $ 76 million of short-term debt related to the FFELP Loan ABS repurchase facilities (FFELP Loan Repurchase Facilities) and as of June 30, 2023 and December 31, 2022, respectively. Includes $ 129 million and $ 0 million of long-term debt related to the FFELP Loan ABS repurchase facilities (FFELP Loan Repurchase Facilities) as of June 30, 2023 and December 31, 2022, respectively. (3) Includes defaulted FFELP secured debt tranches with a remaining principal amount of $ 825 million as of June 30, 2023 as a result of not maturing by their respective contractual maturity dates. Notices were delivered to the trustee, rating agencies and bondholders alerting them to these maturity date defaults. At this time, it is expected the bonds will be paid in full between 2030 and 2035. There is no impact to the principal amount owed or the coupon at which the bonds accrue, and there is no revised contractual maturity date. (4) Includes $ 574 million and $ 725 million of short-term debt related to the Private Education Loan ABS repurchase facilities (Private Education Loan Repurchase Facilities) as of June 30, 2023 and December 31, 2022, respectively. (5) “Other” primarily includes the obligation to return cash collateral held related to derivative exposure. 3. Borrowings (Continued) Variable Interest Entities We consolidated the following financing VIEs as of June 30, 2023 and December 31, 2022, as we are the primary beneficiary. As a result, these VIEs are accounted for as secured borrowings. June 30, 2023 Debt Outstanding Carrying Amount of Assets Securing (Dollars in millions) Short Long Total Loans Cash Other Total Secured Borrowings — VIEs: FFELP Loan securitizations $ 64 $ 38,293 $ 38,357 $ 38,757 $ 1,445 $ 1,579 $ 41,781 Private Education Loan securitizations 574 12,316 12,890 13,833 365 98 14,296 FFELP Loan ABCP facilities 1,548 455 2,003 2,025 37 75 2,137 Private Education Loan ABCP facilities 1,416 901 2,317 2,564 77 44 2,685 Total before hedge accounting 3,602 51,965 55,567 57,179 1,924 1,796 60,899 Hedge accounting adjustments — ( 161 ) ( 161 ) — — ( 236 ) ( 236 ) Total $ 3,602 $ 51,804 $ 55,406 $ 57,179 $ 1,924 $ 1,560 $ 60,663 December 31, 2022 Debt Outstanding Carrying Amount of Assets Securing (Dollars in millions) Short Long Total Loans Cash Other Total Secured Borrowings — VIEs: FFELP Loan securitizations $ 76 $ 42,675 $ 42,751 $ 42,148 $ 2,705 $ 1,544 $ 46,397 Private Education Loan securitizations 725 12,744 13,469 14,168 367 105 14,640 FFELP Loan ABCP facilities 923 386 1,309 1,317 39 44 1,400 Private Education Loan ABCP facilities 2,734 — 2,734 3,039 122 ( 81 ) 3,080 Total before hedge accounting 4,458 55,805 60,263 60,672 3,233 1,612 65,517 Hedge accounting adjustments — ( 207 ) ( 207 ) — — ( 256 ) ( 256 ) Total $ 4,458 $ 55,598 $ 60,056 $ 60,672 $ 3,233 $ 1,356 $ 65,261 |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 4. Derivative Financial Instruments Summary of Derivative Financial Statement Impact The following tables summarize the fair values and notional amounts of all derivative instruments and their impact on net income and other comprehensive income. Impact of Derivatives on Balance Sheet Cash Flow Fair Value (3) Trading Total (Dollars in millions) Hedged Risk Jun 30, 2023 Dec 31, 2022 Jun 30, 2023 Dec 31, 2022 Jun 30, 2023 Dec 31, 2022 Jun 30, 2023 Dec 31, 2022 Fair Values (1) Derivative Assets: Interest rate swaps Interest rate $ — $ — $ 53 $ 55 $ — $ 1 $ 53 $ 56 Cross-currency interest rate Foreign currency and — — — — — — — — Total derivative assets (2) — — 53 55 — 1 53 56 Derivative Liabilities: Interest rate swaps Interest rate — — — ( 2 ) ( 2 ) ( 3 ) ( 2 ) ( 5 ) Floor Income Contracts Interest rate — — — — — — — — Cross-currency interest rate Foreign currency and — — ( 234 ) ( 253 ) — — ( 234 ) ( 253 ) Total derivative liabilities (2) — — ( 234 ) ( 255 ) ( 2 ) ( 3 ) ( 236 ) ( 258 ) Net total derivatives $ — $ — $ ( 181 ) $ ( 200 ) $ ( 2 ) $ ( 2 ) $ ( 183 ) $ ( 202 ) (1) Fair values reported are exclusive of collateral held and pledged and accrued interest. Assets and liabilities are presented without consideration of master netting agreements. Derivatives are carried on the balance sheet based on net position by counterparty under master netting agreements and classified in other assets or other liabilities depending on whether in a net positive or negative position. (2) The following table reconciles gross positions without the impact of master netting agreements to the balance sheet classification: Other Assets Other Liabilities (Dollar in millions) June 30, 2023 December 31, 2022 June 30, 2023 December 31, 2022 Gross position $ 53 $ 56 $ ( 236 ) $ ( 258 ) Impact of master netting agreements — — — — Derivative values with impact of master netting 53 56 ( 236 ) ( 258 ) Cash collateral (held) pledged ( 60 ) ( 80 ) 61 62 Net position $ ( 7 ) $ ( 24 ) $ ( 175 ) $ ( 196 ) (3) The following table shows the carrying value of liabilities in fair value hedges and the related fair value hedging adjustments to these liabilities: As of June 30, 2023 As of December 31, 2022 (Dollar in millions) Carrying Hedge Basis Adjustments Carrying Hedge Basis Adjustments Short-term borrowings $ 1,131 $ ( 18 ) $ 1,289 $ ( 10 ) Long-term borrowings $ 5,772 $ ( 426 ) $ 6,188 $ ( 494 ) 4. Derivative Financial Instruments (Continued) The above fair values include adjustments when necessary for counterparty credit risk for both when we are exposed to the counterparty, net of collateral postings, and when the counterparty is exposed to us, net of collateral postings. The net adjustments decreased the asset position at June 30, 2023 and December 31, 2022 by $ 4 million and $ 6 million, respectively. In addition, the above fair values reflect adjustments for illiquid derivatives as indicated by a wide bid/ask spread in the interest rate indices to which the derivatives are indexed. These adjustments decreased the overall net asset positions at June 30, 2023 and December 31, 2022 by $ 1 million and $ 1 million, respectively. Cash Flow Fair Value Trading Total (Dollars in billions) Jun 30, 2023 Dec 31, 2022 Jun 30, 2023 Dec 31, 2022 Jun 30, 2023 Dec 31, 2022 Jun 30, 2023 Dec 31, 2022 Notional Values: Interest rate swaps $ 4.8 $ 8.3 $ 5.7 $ 6.2 $ 1.7 $ 17.4 $ 12.2 $ 31.9 Floor Income Contracts — — — — 3.0 6.0 3.0 6.0 Cross-currency interest rate swaps — — 1.7 1.8 — — 1.7 1.8 Total derivatives $ 4.8 $ 8.3 $ 7.4 $ 8.0 $ 4.7 $ 23.4 $ 16.9 $ 39.7 Mark-to-Market Impact of Derivatives on Statements of Income Total Gains (Losses) Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2023 2022 2023 2022 Fair Value Hedges: Interest Rate Swaps Gains (losses) recognized in net income on derivatives $ ( 80 ) $ ( 148 ) $ ( 1 ) $ ( 437 ) Gains (losses) recognized in net income on hedged items 67 158 ( 15 ) 471 Net fair value hedge ineffectiveness gains (losses) ( 13 ) 10 ( 16 ) 34 Cross currency interest rate swaps Gains (losses) recognized in net income on derivatives ( 10 ) ( 54 ) 19 ( 89 ) Gains (losses) recognized in net income on hedged items ( 14 ) 94 ( 45 ) 146 Net fair value hedge ineffectiveness gains (losses) ( 24 ) 40 ( 26 ) 57 Total fair value hedges (1)(2) ( 37 ) 50 ( 42 ) 91 Cash Flow Hedges: Total cash flow hedges (2) — — — — Trading: Interest rate swaps 26 17 17 80 Floor income contracts — 5 — 40 Cross currency interest rate swaps — — — — Other — — — — Total trading derivatives (3) 26 22 17 120 Mark-to-market gains (losses) recognized $ ( 11 ) $ 72 $ ( 25 ) $ 211 (1) Recorded in interest expense in the consolidated statements of income. (2) The accrued interest income (expense) on fair value hedges and cash flow hedges is recorded in interest expense and is excluded from this table. (3) Recorded in “gains (losses) on derivative and hedging activities, net” in the consolidated statements of income. 4. Derivative Financial Instruments (Continued) Impact of Derivatives on Other Comprehensive Income (Equity) Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2023 2022 2023 2022 Total gains (losses) on cash flow hedges $ 18 $ 34 $ 15 $ 127 Reclassification adjustments for derivative (gains) losses (1) ( 19 ) 15 ( 37 ) 36 Net changes in cash flow hedges, net of tax $ ( 1 ) $ 49 $ ( 22 ) $ 163 (1) Includes net settlement income/expense. Collateral The following table details collateral held and pledged related to derivative exposure between us and our derivative counterparties: (Dollars in millions) June 30, 2023 December 31, 2022 Collateral held: Cash (obligation to return cash collateral is recorded in short-term borrowings) $ 60 $ 80 Securities at fair value — corporate derivatives (not recorded in financial (1) — — Securities at fair value — on-balance sheet securitization derivatives (not (2) — — Total collateral held $ 60 $ 80 Derivative asset at fair value including accrued interest $ 60 $ 85 Collateral pledged to others: Cash (right to receive return of cash collateral is recorded in investments) $ 61 $ 62 Total collateral pledged $ 61 $ 62 Derivative liability at fair value including accrued interest and premium $ 243 $ 266 (1) The Company has the ability to sell or re-pledge securities it holds as collateral. (2) The trusts do not have the ability to sell or re-pledge securities they hold as collateral. Our corporate derivatives contain credit contingent features. At our current unsecured credit rating, we have fully collateralized our corporate derivative liability position (including accrued interest and net of premiums receivable) of $ 0 with our counterparties. Downgrades in our unsecured credit rating would not result in any additional collateral requirements. Trust related derivatives do not contain credit contingent features related to our or the trusts’ credit ratings. The table below highlights credit exposure related to our derivative counterparties at June 30, 2023. (Dollars in millions) Corporate Securitization Exposure, net of collateral $ 5 $ — Percent of exposure to counterparties with credit ratings 100 % — % Percent of exposure to counterparties with credit ratings — % — % |
Other Assets
Other Assets | 6 Months Ended |
Jun. 30, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | 5. Other Assets The following table provides the detail of our other assets. (Dollars in millions) June 30, 2023 December 31, 2022 Accrued interest receivable $ 2,100 $ 2,031 Benefit and insurance-related investments 456 452 Income tax asset, net 84 132 Derivatives at fair value 53 56 Accounts receivable 94 83 Fixed assets 68 74 Other 34 38 Total $ 2,889 $ 2,866 |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | 6. Stockholders’ Equity The following table summarizes common share repurchases, issuances and dividends paid. Three Months Ended June 30, Six Months Ended June 30, (Dollars and shares in millions, except per share amounts) 2023 2022 2023 2022 Common stock repurchased (1) 4.9 6.9 9.8 13.1 Common stock repurchased (in dollars) (1) $ 80 $ 105 $ 165 $ 220 Average purchase price per share (1) $ 16.38 $ 15.26 $ 16.89 $ 16.76 Remaining common stock repurchase authority (1) $ 435 $ 780 $ 435 $ 780 Shares repurchased related to employee stock- (2) — — 1.3 1.1 Average purchase price per share (2) $ — $ — $ 18.43 $ 17.92 Common shares issued (3) — — 2.4 2.4 Dividends paid $ 20 $ 23 $ 40 $ 47 Dividends per share $ .16 $ .16 $ .32 $ .32 (1) Common shares purchased under our share repurchase program. Our board of directors authorized a $ 1 billion multi-year share repurchase program in December 2021. (2) Comprises 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. (3) Common shares issued under our various compensation and benefit plans. The closing price of our common stock on June 30, 2023 was $ 18.58 . |
Earnings (Loss) per Common Shar
Earnings (Loss) per Common Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) per Common Share | 7. 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 on a GAAP basis follows. Three Months Ended June 30, Six Months Ended June 30, (In millions, except per share data) 2023 2022 2023 2022 Numerator: Net income $ 66 $ 180 $ 177 $ 435 Denominator: Weighted average shares used to compute basic EPS 124 146 126 149 Effect of dilutive securities: Dilutive effect of stock options, restricted stock, (1) 1 1 2 1 Dilutive potential common shares (2) 1 1 2 1 Weighted average shares used to compute 125 147 128 150 Basic earnings per common share $ .53 $ 1.23 $ 1.40 $ 2.93 Diluted earnings per common share $ .52 $ 1.22 $ 1.39 $ 2.90 (1) Includes the potential dilutive effect of additional common shares that are issuable upon exercise of outstanding stock options, restricted stock, restricted stock units, performance stock units and the outstanding commitment to issue shares under applicable ESPPs, determined by the treasury stock method. (2) For the three months ended June 30, 2023 and 2022 , securities covering approximately 0 million and 0 million shares, respectively, were outstanding but not included in the computation of diluted earnings per share because they were anti-dilutive. For the six months ended June 30, 2023 and 2022 , securities covering approximately 0 million and 0 million shares, respectively, were outstanding but not included in the computation of diluted earnings per share because they were anti-dilutive |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 8. Fair Value Measurements We use estimates of fair value in applying various accounting standards in our financial statements. We categorize our fair value estimates based on a hierarchical framework associated with three levels of price transparency utilized in measuring financial instruments at fair value. The fair value of the items discussed below are separately disclosed in this footnote. During the three and six months ended June 30, 2023, there were no significant transfers of financial instruments between levels, or changes in our methodology used to value our financial instruments. The following table summarizes the valuation of our financial instruments that are marked-to-market on a recurring basis. During the second quarters of 2023 and 2022, there were no significant transfers of financial instruments between levels. Fair Value Measurements on a Recurring Basis June 30, 2023 December 31, 2022 (Dollars in millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Derivative instruments: (1) Interest rate swaps — 53 — 53 — 55 1 56 Cross-currency interest rate swaps — — — — — — — — Total derivative assets (2) — 53 — 53 — 55 1 56 Total $ — $ 53 $ — $ 53 $ — $ 55 $ 1 $ 56 Liabilities (3) Derivative instruments (1) Interest rate swaps $ — $ — $ ( 2 ) $ ( 2 ) $ — $ ( 2 ) $ ( 3 ) $ ( 5 ) Floor Income Contracts — — — — — — — — Cross-currency interest rate swaps — — ( 234 ) ( 234 ) — — ( 253 ) ( 253 ) Total derivative liabilities (2) — — ( 236 ) ( 236 ) — ( 2 ) ( 256 ) ( 258 ) Total $ — $ — $ ( 236 ) $ ( 236 ) $ — $ ( 2 ) $ ( 256 ) $ ( 258 ) (1) Fair value of derivative instruments excludes accrued interest and the value of collateral. (2) See "Note 4 – Derivative Financial Instruments" for a reconciliation of gross positions without the impact of master netting agreements to the balance sheet classification. (3) Borrowings which are the hedged item in a fair value hedge relationship and which are adjusted for changes in value due to benchmark interest rates only are not carried at full fair value and not reflected in this table. 8. Fair Value Measurements (Continued) The following tables summarize the change in balance sheet carrying value associated with level 3 financial instruments carried at fair value on a recurring basis. Three Months Ended June 30, 2023 2022 Derivative instruments Derivative instruments (Dollars in millions) Interest Cross Other Total Interest Cross Other Total Balance, beginning of $ ( 2 ) $ ( 224 ) $ — $ ( 226 ) $ ( 3 ) $ ( 226 ) $ — $ ( 229 ) Total gains/(losses): Included in earnings (1) — ( 22 ) — ( 22 ) — ( 62 ) — ( 62 ) Included in other — — — — — — — — Settlements — 12 — 12 — 9 — 9 Transfers in and/or out — — — — — — — — Balance, end of period $ ( 2 ) $ ( 234 ) $ — $ ( 236 ) $ ( 3 ) $ ( 279 ) $ — $ ( 282 ) Change in mark-to- (2) $ — $ ( 10 ) $ — $ ( 10 ) $ — $ ( 53 ) $ — $ ( 53 ) Six Months Ended June 30, 2023 2022 Derivative instruments Derivative instruments (Dollars in millions) Interest Swaps Cross Other Total Interest Cross Other Total Balance, beginning of $ ( 2 ) $ ( 253 ) $ — $ ( 255 ) $ ( 4 ) $ ( 190 ) $ — $ ( 194 ) Total gains/(losses): Included in earnings (1) — ( 6 ) — ( 6 ) 1 ( 103 ) — ( 102 ) Included in other — — — — — — — — Settlements — 25 — 25 — 14 — 14 Transfers in and/or out — — — — — — — — Balance, end of $ ( 2 ) $ ( 234 ) $ — $ ( 236 ) $ ( 3 ) $ ( 279 ) $ — $ ( 282 ) Change in mark-to- (2) $ — $ 19 $ — $ 19 $ 1 $ ( 89 ) $ — $ ( 88 ) (1) “Included in earnings” is comprised of the following amounts recorded in the specified line item in the consolidated statements of income: Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2023 2022 2023 2022 Gains (losses) on derivative and hedging activities, net $ — $ — $ — $ 1 Interest expense ( 22 ) ( 62 ) ( 6 ) ( 103 ) Total $ ( 22 ) $ ( 62 ) $ ( 6 ) $ ( 102 ) (2) Recorded in “gains (losses) on derivative and hedging activities, net” in the consolidated statements of income. 8. Fair Value Measurements (Continued) The following table presents the significant inputs that are unobservable or from inactive markets used in the recurring valuations of the level 3 financial instruments detailed above. (Dollars in millions) Fair Value at June 30, 2023 Valuation Input Range and Derivatives Prime/LIBOR basis swaps $ ( 2 ) Discounted cash flow Constant Prepayment Rate 10 % Bid/ask adjustment to .08 % Cross-currency interest rate swaps ( 234 ) Discounted cash flow Constant Prepayment Rate 5 % Other — Total $ ( 236 ) The following table summarizes the fair values of our financial assets and liabilities, including derivative financial instruments. June 30, 2023 December 31, 2022 (Dollars in millions) Fair Carrying Difference Fair Carrying Difference Earning assets FFELP Loans $ 39,250 $ 40,851 $ ( 1,601 ) $ 41,426 $ 43,525 $ ( 2,099 ) Private Education Loans 16,935 17,732 ( 797 ) 17,880 18,725 ( 845 ) Cash and investments 3,426 3,426 — 4,974 4,974 — Total earning assets 59,611 62,009 ( 2,398 ) 64,280 67,224 ( 2,944 ) Interest-bearing liabilities Short-term borrowings 4,853 4,838 ( 15 ) 5,879 5,870 ( 9 ) Long-term borrowings 54,082 56,936 2,854 57,652 61,026 3,374 Total interest-bearing liabilities 58,935 61,774 2,839 63,531 66,896 3,365 Derivative financial instruments Floor Income Contracts — — — — — — Interest rate swaps 51 51 — 51 51 — Cross-currency interest rate swaps ( 234 ) ( 234 ) — ( 253 ) ( 253 ) — Other — — — — — — Excess of net asset fair value over carrying value $ 441 $ 421 |
Commitment, Contingencies and G
Commitment, Contingencies and Guarantees | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitment, Contingencies and Guarantees | 9. Commitments, Contingencies and Guarantees L egal Proceedings We and our subsidiaries and affiliates are subject to various claims, lawsuits and other actions that arise in the normal course of business. We believe that these claims, lawsuits and other actions will not, individually or in the aggregate, have a material adverse effect on our business, financial condition or results of operations, except as otherwise disclosed. Most of these matters are claims including individual and class action lawsuits against our servicing or business processing subsidiaries alleging the violation of state or federal laws in connection with servicing or collection activities on their education loans and other debts. In the ordinary course of our business, the Company and our subsidiaries and affiliates receive information and document requests and investigative demands from various entities including State Attorneys General, U.S. Attorneys, legislative committees, individual members of Congress and administrative agencies. These requests may be informational, regulatory or enforcement in nature and may relate to our business practices, the industries in which we operate, or companies with whom we conduct business. Generally, our practice has been and continues to be to cooperate with these bodies and to be responsive to any such requests. The number of these inquiries and the volume of related information demands have normalized at elevated levels and therefore the Company must continue to expend time and resources to timely respond to these requests which may, depending on their outcome, result in payments of restitution, fines and penalties. Certain Cases In January 2017, the Consumer Financial Protection Bureau (the CFPB) and Attorneys General for the State of Illinois and the State of Washington initiated civil actions naming Navient Corporation and several of its subsidiaries as defendants alleging violations of certain Federal and State consumer protection statutes, including the CFPA, FCRA, FDCPA and various state consumer protection laws. The Attorneys General for the States of Pennsylvania, California, Mississippi, and New Jersey also initiated actions against the Company and certain subsidiaries alleging violations of various state and federal consumer protection laws based upon similar alleged acts or failures to act. In addition to these matters, a number of lawsuits have been filed by nongovernmental parties or, in the future, may be filed by additional governmental or nongovernmental parties seeking damages or other remedies related to similar issues raised by the CFPB and the State Attorneys General. In January 2022, we entered into a series of Consent Judgment and Orders (the “Agreements”) with 40 State Attorneys General to resolve all matters in dispute related to the State Attorneys General cases as well as the related investigations, subpoenas, civil investigative demands and inquiries from various other state regulators. These Agreements do not resolve the litigation involving the Company and the CFPB. As the Company has previously stated, we believe the allegations in the CFPB suit are false and that they improperly seek to impose penalties on Navient based on new, previously unannounced servicing standards applied retroactively against only one servicer. We therefore have denied these allegations and are vigorously defending against the allegations in that case. At this point in time, it is reasonably possible that a loss contingency exists; however, the Company is unable to anticipate the timing of a resolution or the impact that an adverse ruling in the CFPB case may have on the Company’s consolidated financial position, liquidity, results of operation or cash flows. As a result, it is not possible at this time to estimate a range of potential exposure, if any, for amounts that may be payable in connection with this matter and reserves have not been established. It is possible that an adverse ruling or rulings may have a material adverse impact on the Company. On April 12, 2023, the Company reached an agreement in principle (“Settlement”) with certain plaintiffs for a nationwide settlement of claims raised in the following bankruptcy adversary actions: Coyle v. Navient Solutions, LLC, No. 22-80018 (Bankr. W.D. Mich.); Homaidan v. SLM Corp., No. 1:17-ap-01085 (Bankr. E.D.N.Y.); Mazloom v. Navient Solutions, LLC, No. 20-80033-6 (Bankr. N.D.N.Y.); and Woodard v. Navient Solutions, LLC, No. 08-81442 (Bankr. D. Neb.) collectively referred to as the “Bankruptcy Cases.” This settlement in principle is subject, among other things, to final documentation and final court approval. Under the Settlement, Navient will forego the collection of defined balances for borrowers or co-borrowers of certain private loans — all of which were originated prior to our company separation — who have received a discharge in bankruptcy during the periods covered by the agreements. As a result, we recorded $ 23 million additional private loan provision for loan losses in the first quarter of 2023 related to the estimated future charge offs that are expected to occur. The Company has also agreed to fund settlement funds. It anticipates that any cash contribution it will be required to make to these funds will not exceed $ 44 million in the aggregate and will be fully covered by insurance. The net impact to operating expense for this element of the settlement for the first quarter of 2023 was $ 0 due to the accrual of the offsetting insurance reimbursements. 9. Commitments, Contingencies and Guarantees (Continued) Regulatory Matters The Company has been named as defendant in a number of putative class action cases alleging violations of various state and federal consumer protection laws including the Telephone Consumer Protection Act (TCPA), the Consumer Financial Protection Act of 2010 (CFPA), the Fair Credit Reporting Act (FCRA), the Fair Debt Collection Practices Act (FDCPA), in adversarial proceedings under the U.S. Bankruptcy Code, and various state consumer protection laws. At this point in time, the Company is unable to anticipate the timing of a resolution or the impact that these legal proceedings may have on the Company’s consolidated financial position, liquidity, results of operation or cash flows. As a result, it is not possible at this time to estimate a range of potential exposure, if any, for amounts that may be payable in connection with these matters and reserves have not been established. It is possible that an adverse ruling or rulings may have a material adverse impact on the Company. In addition, Navient and its subsidiaries are subject to examination or regulation by various federal regulatory, state licensing or other regulatory agencies as part of its ordinary course of business including the SEC, CFPB, FFIEC and ED. Items or matters similar to or different from those described above may arise during the course of those examinations. We also routinely receive inquiries or requests from various regulatory entities or bodies or government agencies concerning our business or our assets. Generally, the Company endeavors to cooperate with each such inquiry or request. The Company has received separate CIDs or subpoenas from multiple State Attorneys General that are similar to the CIDs or subpoenas that preceded the lawsuits referenced above. Those CIDs and subpoenas have been resolved as part of the Company’s settlement with the State Attorneys General. Nevertheless, we have and, in the future, may receive additional CIDs or subpoenas and other inquiries from these or other Attorneys General with respect to similar or different matters. Under the terms of the Separation and Distribution Agreement between the Company and SLM BankCo, Navient agreed to indemnify SLM BankCo for claims, actions, damages, losses or expenses that may arise from the conduct of activities of pre-Spin-Off SLM BankCo occurring prior to the Spin-Off other than those specifically excluded in that agreement. Also, as part of the Separation and Distribution Agreement, SLM BankCo agreed to indemnify Navient for certain claims, actions, damages, losses or expenses subject to the terms, conditions and limitations set forth in that agreement. As a result, subject to the terms, conditions and limitations set forth in that agreement, Navient agreed to indemnify and hold harmless Sallie Mae and its subsidiaries, including Sallie Mae Bank from liabilities arising out of the regulatory matters and CFPB and State Attorneys General lawsuits mentioned above. In addition, we asserted various claims for indemnification against Sallie Mae and Sallie Mae Bank for such specifically excluded items arising out of the CFPB and the State Attorneys General lawsuits if and to the extent any indemnified liabilities exist now or in the future. Navient has no reserves related to indemnification matters with SLM BankCo as of June 30, 2023. Contingencies In the ordinary course of business, we and our 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 and other laws. In certain of these actions and proceedings, claims for substantial monetary damage are asserted against us and our subsidiaries. We and our subsidiaries are also subject to potential unasserted claims by third parties. In the ordinary course of business, we and our subsidiaries are subject to regulatory examinations, information gathering requests, inquiries and investigations. In connection with formal and informal inquiries in these cases, we and our subsidiaries receive requests, subpoenas and orders for documents, testimony and information in connection with various aspects of our regulated activities. We are required to establish reserves for litigation and regulatory matters where those matters present loss contingencies that are both probable and estimable. When loss contingencies are not both probable and estimable, we do not establish reserves. In view of the inherent difficulty of predicting the outcome of litigation and regulatory matters, we may not be able to 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, if any, related to each pending matter may be. Based on current knowledge, reserves have been established for certain litigation, regulatory matters, and unasserted contract claims where the loss is both probable and estimable. Based on current knowledge, management does not believe that loss contingencies, if any, arising from pending investigations, litigation or regulatory matters will have a material adverse effect on our consolidated financial position, liquidity, results of operations or cash flows, except as otherwise disclosed . |
Revenue from Contracts with Cus
Revenue from Contracts with Customers Accounted for in Accordance with ASC 606 | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers Accounted for in Accordance with ASC 606 | 10. Revenue from Contracts with Customers Accounted for in Accordance with ASC 606 The following tables illustrate the disaggregation of revenue from contracts accounted for under ASC 606 with customers according to service type and client type by reportable operating segment. Revenue by Service Type Three Months Ended June 30, 2023 2022 (Dollars in millions) Federal Education Loans Business Processing Total Revenue Federal Education Loans Business Processing Total Revenue Federal Education Loan $ — $ — $ — $ — $ — $ — Government services — 52 52 — 53 53 Healthcare services — 31 31 — 34 34 Total $ — $ 83 $ 83 $ — $ 87 $ 87 Six Months Ended June 30, 2023 2022 (Dollars in millions) Federal Education Loans Business Processing Total Revenue Federal Education Loans Business Processing Total Revenue Federal Education Loan $ — $ — $ — $ 1 $ — $ 1 Government services — 92 92 — 102 102 Healthcare services — 63 63 — 79 79 Total $ — $ 155 $ 155 $ 1 $ 181 $ 182 10. Revenue from Contracts with Customers Accounted for in Accordance with ASC 606 (Continued) Revenue by Client Type Three Months Ended June 30, 2023 2022 (Dollars in millions) Federal Education Loans Business Processing Total Revenue Federal Education Loans Business Processing Total Revenue Federal government $ — $ 17 $ 17 $ — $ 2 $ 2 Guarantor agencies — — — — — — State and local government — 17 17 — 35 35 Tolling authorities — 18 18 — 16 16 Hospitals and other — 31 31 — 34 34 Total $ — $ 83 $ 83 $ — $ 87 $ 87 Six Months Ended June 30, 2023 2022 (Dollars in millions) Federal Education Loans Business Processing Total Revenue Federal Education Loans Business Processing Total Revenue Federal government $ — $ 23 $ 23 $ — $ 4 $ 4 Guarantor agencies — — — 1 — 1 State and local government — 35 35 — 68 68 Tolling authorities — 34 34 — 30 30 Hospitals and other — 63 63 — 79 79 Total $ — $ 155 $ 155 $ 1 $ 181 $ 182 As of June 30, 2023 and June 30, 2022 , there was $ 82 million and $ 94 million respectively, of net accounts receivable related to these contracts. Navient had no material contract assets or contract liabilities. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting | 11. Segment Reporting We monitor and assess our ongoing operations and results based on the following four reportable operating segments: Federal Education Loans, Consumer Lending, Business Processing and Other. These segments meet the quantitative thresholds for reportable operating segments. Accordingly, the results of operations of these reportable operating segments are presented separately. The underlying operating segments are used by the Company’s chief operating decision maker to manage the business, review operating performance and allocate resources, and qualify to be aggregated as part of the primary reportable operating segments. As discussed further below, we measure the profitability of our operating segments based on Core Earnings net income. Accordingly, information regarding our reportable operating segments net income is provided on a Core Earnings basis. Federal Education Loans Segment Navient owns FFELP Loans and performs servicing on this portfolio. We also service FFELP Loans owned by other institutions. Our servicing quality, data-driven strategies and omnichannel education about federal repayment options translate into positive results for the millions of borrowers we serve. We generate revenue primarily through net interest income on our FFELP Loans and servicing-related fee income. The following table includes asset information for our Federal Education Loans segment. (Dollars in millions) June 30, 2023 December 31, 2022 FFELP Loans, net $ 40,851 $ 43,525 Cash and investments (1) 1,484 2,746 Other 2,147 2,229 Total assets $ 44,482 $ 48,500 (1) Includes restricted cash and investments. Consumer Lending Segment Navient owns, originates and services in-school and refinance Private Education Loans. "In-school" Private Education Loans are loans originally made to borrowers while they are attending school whereas "Refinance" Private Education Loans are loans where a borrower has refinanced their education loans. We generate revenue primarily through net interest income on our Private Education Loan portfolio. Navient helps students and families through the going-to and paying-for-college journey. Our digital tools empower people to find grants and scholarships, compare financial aid offers and complete the FAFSA. Our Private Education Loans offer easy-to-understand payment options. After graduation, we offer student loan refinancing to help people simplify their repayment and earn a better rate. We believe our 50 years of experience, product design, digital marketing strategies, and origination and servicing platform provide a unique competitive advantage. The following table includes asset information for our Consumer Lending segment. (Dollars in millions) June 30, 2023 December 31, 2022 Private Education Loans, net $ 17,732 $ 18,725 Cash and investments (1) 512 617 Other 556 453 Total assets $ 18,800 $ 19,795 (1) Includes restricted cash and investments. 11. Segment Reporting (Continued) Business Processing Segment Navient provides business processing solutions such as omnichannel contact center services, workflow processing, and revenue cycle optimization. We leverage the same expertise and intelligent tools we use to deliver successful results for portfolios we own. Our support enables our clients to ensure better constituent outcomes, meet rapidly changing needs, improve technology, reduce operating expenses, manage risk and optimize revenue opportunities. Our clients include: • Government: We offer our solutions to federal agencies, state governments, tolling and parking authorities, and other public sector clients. • Healthcare: Our clients include hospitals, hospital systems, medical centers, large physician groups, other healthcare providers and public health departments. At June 30, 2023 and December 31, 2022 , the Business Processing segment had total assets of $ 388 million and $ 390 million, respectively. Other Segment This segment consists of our corporate liquidity portfolio, gains and losses incurred on the repurchase of debt, unallocated expenses of shared services (which includes regulatory expenses) and restructuring/other reorganization expenses. Unallocated shared services expenses are comprised of costs primarily related to information technology costs related to infrastructure and operations, stock-based compensation expense, accounting, finance, legal, compliance and risk management, regulatory-related expenses, human resources, certain executive management and the board of directors. Regulatory-related expenses include actual settlement amounts as well as third-party professional fees we incur in connection with such regulatory matters and are presented net of any insurance reimbursements for covered costs related to such matters. At June 30, 2023 and December 31, 2022 , the Other segment had total assets of $ 1.9 billion and $ 2.1 billion, respectively. 11. Segment Reporting (Continued) Measure of Profitability We prepare financial statements and present financial results in accordance with GAAP. However, we also evaluate our business segments and present financial results on a basis that differs from GAAP. We refer to this different basis of presentation as Core Earnings. We provide this Core Earnings basis of presentation on a consolidated basis and for each business segment because this is what we review internally when making management decisions regarding our performance and how we allocate resources. We also refer to this information in our presentations with credit rating agencies, lenders and investors. Because our Core Earnings basis of presentation corresponds to our segment financial presentations, we are required by GAAP to provide Core Earnings disclosure in the notes to our consolidated financial statements for our business segments. Core Earnings are not a substitute for reported results under GAAP. We use Core Earnings to manage our business segments because Core Earnings reflect adjustments to GAAP financial results for two items, discussed below, that can create significant volatility mostly due to timing factors generally beyond the control of management. Accordingly, we believe that Core Earnings provide management with a useful basis from which to better evaluate results from ongoing operations against the business plan or against results from prior periods. Consequently, we disclose this information because we believe it provides investors with additional information regarding the operational and performance indicators that are most closely assessed by management. When compared to GAAP results, the two items we remove to result in our Core Earnings presentations are: 1. Mark-to-market gains/losses resulting from our use of derivative instruments to hedge our economic risks that do not qualify for hedge accounting treatment or do qualify for hedge accounting treatment but result in ineffectiveness; and 2. The accounting for goodwill and acquired intangible assets. While GAAP provides a uniform, comprehensive basis of accounting, for the reasons described above, our Core Earnings basis of presentation does not. Core Earnings are subject to certain general and specific limitations that investors should carefully consider. For example, there is no comprehensive, authoritative guidance for management reporting. Our Core Earnings are not defined terms within GAAP and may not be comparable to similarly titled measures reported by other companies. Accordingly, our Core Earnings presentation does not represent a comprehensive basis of accounting. Investors, therefore, may not be able to compare our performance with that of other financial services companies based upon Core Earnings. Core Earnings results are only meant to supplement GAAP results by providing additional information regarding the operational and performance indicators that are most closely used by management, our board of directors, credit rating agencies, lenders and investors to assess performance. 11. Segment Reporting (Continued) Segment Results and Reconciliations to GAAP Three Months Ended June 30, 2023 Adjustments Reportable Segments (Dollars in millions) Total Reclassi- Additions/ Total (1) Total Federal Education Loans Consumer Lending Business Processing Other Interest income: Education loans $ 1,061 $ 721 $ 341 $ — $ — Cash and investments 36 18 7 — 11 Total interest income 1,097 739 348 — 11 Total interest expense 919 633 205 — 39 Net interest income 178 $ 4 $ 39 $ 43 $ 221 106 143 — ( 28 ) Less: provisions for loan 11 11 5 6 — — Net interest income 167 101 137 — ( 28 ) Other income (loss): Servicing revenue 16 13 3 — — Asset recovery and 83 — — 83 — Other revenue 30 2 2 — — Total other income 129 ( 4 ) ( 22 ) ( 26 ) 103 15 5 83 — Expenses: Direct operating 135 18 42 75 — Unallocated shared 47 — — — 47 Operating expenses 182 — — — 182 18 42 75 47 Goodwill and acquired 3 — ( 3 ) ( 3 ) — — — — — Restructuring/other 15 — — — 15 — — — 15 Total expenses 200 — ( 3 ) ( 3 ) 197 18 42 75 62 Income (loss) before 96 — 20 20 116 98 100 8 ( 90 ) Income tax expense (2) 30 — ( 2 ) ( 2 ) 28 22 25 2 ( 21 ) Net income (loss) $ 66 $ — $ 22 $ 22 $ 88 $ 76 $ 75 $ 6 $ ( 69 ) (1) Core Earnings adjustments to GAAP: Three Months Ended June 30, 2023 (Dollars in millions) Net Impact of Net Impact of Total Net interest income (loss) after provisions for loan losses $ 43 $ — $ 43 Total other income (loss) ( 26 ) — ( 26 ) Goodwill and acquired intangible asset impairment and amortization — ( 3 ) ( 3 ) Total Core Earnings adjustments to GAAP $ 17 $ 3 20 Income tax expense (benefit) ( 2 ) Net income (loss) $ 22 (2) Income taxes are based on a percentage of net income before tax for the individual reportable segment. 11. Segment Reporting (Continued) Three Months Ended June 30, 2022 Adjustments Reportable Segments (Dollars in millions) Total Reclassi- Additions/ Total (1) Total Federal Education Loans Consumer Lending Business Processing Other Interest income: Education loans $ 687 $ 409 $ 277 $ — $ — Cash and investments 5 3 1 — 1 Total interest income 692 412 278 — 1 Total interest expense 371 266 136 — 18 Net interest income (loss) 321 $ — $ ( 50 ) $ ( 50 ) $ 271 146 142 — ( 17 ) Less: provisions for loan 18 18 — 18 — — Net interest income (loss) 303 146 124 — ( 17 ) Other income (loss): Servicing revenue 17 14 3 — — Asset recovery and 88 1 — 87 — Other revenue 29 8 1 — ( 2 ) Total other income (loss) 134 — ( 22 ) ( 22 ) 112 23 4 87 ( 2 ) Expenses: Direct operating 134 25 35 74 — Unallocated shared 56 — — — 56 Operating expenses 190 — — — 190 25 35 74 56 Goodwill and acquired 3 — ( 3 ) ( 3 ) — — — — — Restructuring/other — — — — — — — — — Total expenses 193 — ( 3 ) ( 3 ) 190 25 35 74 56 Income (loss) before 244 — ( 69 ) ( 69 ) 175 144 93 13 ( 75 ) Income tax expense (2) 64 — ( 23 ) ( 23 ) 41 34 22 3 ( 18 ) Net income (loss) $ 180 $ — $ ( 46 ) $ ( 46 ) $ 134 $ 110 $ 71 $ 10 $ ( 57 ) (1) Core Earnings adjustments to GAAP: Three Months Ended June 30, 2022 (Dollars in millions) Net Impact of Net Impact of Total Net interest income (loss) after provisions for loan losses $ ( 50 ) $ — $ ( 50 ) Total other income (loss) ( 22 ) — ( 22 ) Goodwill and acquired intangible asset impairment and amortization — ( 3 ) ( 3 ) Total Core Earnings adjustments to GAAP $ ( 72 ) $ 3 ( 69 ) Income tax expense (benefit) ( 23 ) Net income (loss) $ ( 46 ) (2) Income taxes are based on a percentage of net income before tax for the individual reportable segment. 11. Segment Reporting (Continued) Six Months Ended June 30, 2023 Adjustments Reportable Segments (Dollars in millions) Total Reclassi- Additions/ Total (1) Total Federal Education Loans Consumer Lending Business Processing Other Interest income: Education loans $ 2,099 $ 1,416 $ 686 $ — $ — Cash and investments 70 38 13 — 19 Total interest income 2,169 1,454 699 — 19 Total interest expense 1,756 1,223 402 — 73 Net interest income 413 $ 16 $ 45 $ 61 $ 474 231 297 — ( 54 ) Less: provisions for loan ( 3 ) ( 3 ) 15 ( 18 ) — — Net interest income 416 216 315 — ( 54 ) Other income (loss): Servicing revenue 33 27 6 — — Asset recovery and 155 — — 155 — Other revenue 28 7 1 — 3 Total other income 216 ( 16 ) ( 1 ) ( 17 ) 199 34 7 155 3 Expenses: Direct operating 259 38 79 142 — Unallocated shared 109 — — — 109 Operating expenses 368 — — — 368 38 79 142 109 Goodwill and acquired 5 — ( 5 ) ( 5 ) — — — — — Restructuring/other 19 — — — 19 — — — 19 Total expenses 392 — ( 5 ) ( 5 ) 387 38 79 142 128 Income (loss) before 240 — 49 49 289 212 243 13 ( 179 ) Income tax expense (2) 63 — 5 5 68 50 58 3 ( 43 ) Net income (loss) $ 177 $ — $ 44 $ 44 $ 221 $ 162 $ 185 $ 10 $ ( 136 ) (1) Core Earnings adjustments to GAAP: Six Months Ended June 30, 2023 (Dollars in millions) Net Impact of Net Impact of Total Net interest income (loss) after provisions for loan losses $ 61 $ — $ 61 Total other income (loss) ( 17 ) — ( 17 ) Goodwill and acquired intangible asset impairment and amortization — ( 5 ) ( 5 ) Total Core Earnings adjustments to GAAP $ 44 $ 5 49 Income tax expense (benefit) 5 Net income (loss) $ 44 (2) Income taxes are based on a percentage of net income before tax for the individual reportable segment. 11. Segment Reporting (Continued) Six Months Ended June 30, 2022 Adjustments Reportable Segments (Dollars in millions) Total Reclassi- Additions/ Total (1) Total Federal Education Loans Consumer Lending Business Processing Other Interest income: Education loans $ 1,312 $ 743 $ 553 $ — $ — Cash and investments 6 3 2 — 1 Total interest income 1,318 746 555 — 1 Total interest expense 660 461 262 — 32 Net interest income 658 $ ( 19 ) $ ( 92 ) $ ( 111 ) $ 547 285 293 — ( 31 ) Less: provisions for loan 34 34 — 34 — — Net interest income 624 285 259 — ( 31 ) Other income (loss): Servicing revenue 36 30 6 — — Asset recovery and 185 4 — 181 — Other revenue 136 18 1 — ( 3 ) Total other income 357 19 ( 139 ) ( 120 ) 237 52 7 181 ( 3 ) Expenses: Direct operating 273 54 69 150 — Unallocated shared 122 — — — 122 Operating expenses 395 — — — 395 54 69 150 122 Goodwill and acquired 7 — ( 7 ) ( 7 ) — — — — — Restructuring/other 3 — — — 3 — — — 3 Total expenses 405 — ( 7 ) ( 7 ) 398 54 69 150 125 Income (loss) before 576 — ( 224 ) ( 224 ) 352 283 197 31 ( 159 ) Income tax expense (2) 141 — ( 58 ) ( 58 ) 83 67 47 7 ( 38 ) Net income (loss) $ 435 $ — $ ( 166 ) $ ( 166 ) $ 269 $ 216 $ 150 $ 24 $ ( 121 ) (1) Core Earnings adjustments to GAAP: Six Months Ended June 30, 2022 (Dollars in millions) Net Impact of Net Impact of Total Net interest income (loss) after provisions for loan losses $ ( 111 ) $ — $ ( 111 ) Total other income (loss) ( 120 ) — ( 120 ) Goodwill and acquired intangible asset impairment and amortization — ( 7 ) ( 7 ) Total Core Earnings adjustments to GAAP $ ( 231 ) $ 7 ( 224 ) Income tax expense (benefit) ( 58 ) Net income (loss) $ ( 166 ) (2) Income taxes are based on a percentage of net income before tax for the individual reportable segment. 11. Segment Reporting (Continued) Su mmary of Core Earnings Adjustments to GAAP Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2023 2022 2023 2022 GAAP net income $ 66 $ 180 $ 177 $ 435 Core Earnings adjustments to GAAP: Net impact of derivative accounting (1) 17 ( 72 ) 44 ( 231 ) Net impact of goodwill and acquired (2) 3 3 5 7 Net tax effect (3) 2 23 ( 5 ) 58 Total Core Earnings adjustments to GAAP 22 ( 46 ) 44 ( 166 ) Core Earnings net income $ 88 $ 134 $ 221 $ 269 (1) Derivative accounting: Core Earnings exclude periodic gains and losses that are caused by the mark-to-market valuations on derivatives that do not qualify for hedge accounting treatment under GAAP as well as the periodic mark-to-market gains and losses that are a result of ineffectiveness recognized related to effective hedges under GAAP. Under GAAP, for our derivatives that are held to maturity, the mark-to-market gain or loss over the life of the contract will equal $ 0 except for Floor Income Contracts where the mark-to-market gain will equal the amount for which we sold the contract. In our Core Earnings presentation, we recognize the economic effect of these hedges, which generally results in any net settlement cash paid or received being recognized ratably as an interest expense or revenue over the hedged item’s life. (2) Goodwill and acquired intangible assets: Our Core Earnings exclude goodwill and intangible asset impairment and amortization of acquired intangible assets. Net tax effect: Such tax effect is based upon our Core Earnings effective tax rate for the ye ar. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited, consolidated financial statements of Navient 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. The consolidated financial statements include the accounts of Navient and its majority-owned and controlled subsidiaries and those Variable Interest Entities (VIEs) for which we are the primary beneficiary, after eliminating the effects of intercompany accounts and transactions. 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 and six months ended June 30, 2023 are not necessarily indicative of the results for the year ending December 31, 2022 or for any other period. These unaudited financial statements should be read in conjunction with the audited financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2022 (the 2022 Form 10-K). Definitions for certain capitalized terms used but not otherwise defined in this Quarterly Report on Form 10-Q can be found in our 2022 Form 10-K. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Effective in 2020 and Forward Rate Reform In March 2020 (and as amended in December 2022), the FASB issued ASU No. 2020-04, “Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting,” which provides optional temporary relief for companies who are preparing for the discontinuation of interest rates indexed to the London Interbank Offered Rate (LIBOR). The ASU provides companies with guidance in the form of expedients and exceptions related to contract modifications and hedge accounting to ease the burden of and simplify the accounting associated with transitioning away from LIBOR. Modifications of qualifying contracts are accounted for as the continuation of an existing contract rather than as a new contract. Modifications of qualifying hedging relationships will not require discontinuation of the existing hedge accounting relationships. One-month and three-month LIBOR have been discontinued as of June 30, 2023. Our hedging instruments that were indexed to one-month and three-month LIBOR are now indexed to SOFR. There is $ 12 billion of debt as of June 30, 2023, that is in either a fair value or cash flow hedge relationship using LIBOR swaps. We used the hedge accounting expedients in this ASU when those swaps transitioned to SOFR. As a result, these hedges did not result in the discontinuation of the existing hedge accounting relationships. Troubled Debt Restructurings In March 2022, the FASB issued ASU No. 2022-02, “Financial Instruments – Credit Losses: Troubled Debt Restructurings and Vintage Disclosures,” which eliminates the troubled debt restructurings (TDRs) recognition and measurement guidance and instead requires an entity to evaluate whether the modification represents a new loan or a continuation of an existing loan. The ASU also enhances the disclosure requirements for certain modifications of receivables made to borrowers experiencing financial difficulty. This guidance was effective on January 1, 2023. Prior to adopting this new guidance on January 1, 2023, as it relates to interest rate concessions granted as part of our Private Education Loan modification program, a discounted cash flow model was used to calculate the amount of interest forgiven for loans that were in the program and the present value of that interest rate concession was included as a part of the allowance for loan loss. This new guidance no longer allows the measurement and recognition of this element of our allowance for loan loss for new modifications that occur subsequent to January 1, 2023. As of December 31, 2022, the allowance for loan loss included $ 77 million related to this interest rate concession component of the allowance for loan loss. We elected to adopt this amendment using a prospective transition method which results in the $ 77 million releasing in 2023 and 2024 as the borrowers exit their current modification programs. $ 60 million of the $ 77 million was released in the six months ended June 30, 2023. |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Allowance for Credit Losses and Recorded Investments in Loans | Allowance for Loan Losses Roll Forward Three Months Ended June 30, 2023 (Dollars in millions) FFELP Private Total Allowance at beginning of period $ 214 $ 706 $ 920 Total provision 5 6 11 Charge-offs: Gross charge-offs ( 19 ) ( 73 ) ( 92 ) Expected future recoveries on current period gross charge-offs — 11 11 Net charge-offs (1) ( 19 ) ( 62 ) ( 81 ) Decrease in expected future recoveries on previously fully (2) — 7 7 Allowance at end of period $ 200 $ 657 $ 857 Net charge-offs as a percentage of average loans in repayment .22 % 1.39 % Ending total loans $ 41,051 $ 18,389 Average loans in repayment $ 33,790 $ 17,990 Ending loans in repayment $ 33,076 $ 17,720 (1) Charge-offs are reported net of expected recoveries. For Private Education Loans, we charge off the estimated loss of a defaulted loan balance by charging off the entire defaulted loan balance and estimating recoveries on a pool basis. These estimated recoveries are referred to as "expected future recoveries on previously fully charged-off loans." For FFELP Loans, the recovery is received at the time of charge-off. (2) At the end of each month, for Private Education Loans that are 212 days past due, we charge off the estimated loss of a defaulted loan balance by charging off the entire loan balance and estimating recoveries on a pool basis. These estimated recoveries are referred to as “expected future recoveries on previously fully charged-off loans.” If actual periodic recoveries are less than expected, the difference is immediately reflected as a reduction to expected future recoveries on previously fully charged-off loans. If actual periodic recoveries are greater than expected, they will be reflected as a recovery through the allowance for Private Education Loan losses once the cumulative recovery amount exceeds the cumulative amount originally expected to be recovered. The following table summarizes the activity in the expected future recoveries on previously fully charged-off loans: Three Months Ended June 30, (Dollars in millions) 2023 Beginning of period expected future recoveries on previously fully charged-off loans $ 268 Expected future recoveries of current period defaults 11 Recoveries (cash collected) ( 11 ) Charge-offs (as a result of lower recovery expectations) ( 6 ) End of period expected future recoveries on previously fully charged-off loans 262 Change in balance during period $ ( 7 ) 2. Allowance for Loan Losses (Continued) Three Months Ended June 30, 2022 (Dollars in millions) FFELP Loans Private Education Loans Total Allowance at beginning of period $ 255 $ 964 $ 1,219 Total provision — 18 18 Charge-offs: Gross charge-offs ( 10 ) ( 82 ) ( 92 ) Expected future recoveries on current period gross charge-offs — 12 12 Net charge-offs (1) ( 10 ) ( 70 ) ( 80 ) Decrease in expected future recoveries on previously fully (2) — 9 9 Allowance at end of period $ 245 $ 921 $ 1,166 Net charge-offs as a percentage of average loans in repayment .09 % 1.40 % Ending total loans $ 49,459 $ 20,589 Average loans in repayment $ 42,163 $ 20,162 Ending loans in repayment $ 41,168 $ 19,938 (1) Charge-offs are reported net of expected recoveries. For Private Education Loans, we charge off the estimated loss of a defaulted loan balance by charging off the entire defaulted loan balance and estimating recoveries on a pool basis. These estimated recoveries are referred to as "expected future recoveries on previously fully charged-off loans." For FFELP Loans, the recovery is received at the time of charge-off. (2) At the end of each month, for Private Education Loans that are 212 days past due, we charge off the estimated loss of a defaulted loan balance by charging off the entire loan balance and estimating recoveries on a pool basis. These estimated recoveries are referred to as “expected future recoveries on previously fully charged-off loans.” If actual periodic recoveries are less than expected, the difference is immediately reflected as a reduction to expected future recoveries on previously fully charged-off loans. If actual periodic recoveries are greater than expected, they will be reflected as a recovery through the allowance for Private Education Loan losses once the cumulative recovery amount exceeds the cumulative amount originally expected to be recovered. The following table summarizes the activity in the expected future recoveries on previously fully charged-off loans: Three Months Ended June 30, (Dollars in millions) 2022 Beginning of period expected future recoveries on previously fully charged-off loans $ 321 Expected future recoveries of current period defaults 12 Recoveries (cash collected) ( 15 ) Charge-offs (as a result of lower recovery expectations) ( 6 ) End of period expected future recoveries on previously fully charged-off loans $ 312 Change in balance during period $ ( 9 ) 2. Allowance for Loan Losses (Continued) Six Months Ended June 30, 2023 (Dollars in millions) FFELP Loans Private Education Loans Total Allowance at beginning of period $ 222 $ 800 $ 1,022 Total provision 15 ( 18 ) ( 3 ) Charge-offs: Gross charge-offs ( 37 ) ( 161 ) ( 198 ) Expected future recoveries on current period gross charge-offs — 24 24 Net charge-offs (1) ( 37 ) ( 137 ) ( 174 ) Decrease in expected future recoveries on previously fully (2) — 12 12 Allowance at end of period $ 200 $ 657 $ 857 Net charge-offs as a percentage of average loans in repayment .22 % 1.51 % Ending total loans $ 41,051 $ 18,389 Average loans in repayment $ 34,046 $ 18,270 Ending loans in repayment $ 33,076 $ 17,720 (1) Charge-offs are reported net of expected recoveries. For Private Education Loans, we charge off the estimated loss of a defaulted loan balance by charging off the entire defaulted loan balance and estimating recoveries on a pool basis. These estimated recoveries are referred to as "expected future recoveries on previously fully charged-off loans." For FFELP Loans, the recovery is received at the time of charge-off. (2) At the end of each month, for Private Education Loans that are 212 days past due, we charge off the estimated loss of a defaulted loan balance by charging off the entire loan balance and estimating recoveries on a pool basis. These estimated recoveries are referred to as “expected future recoveries on previously fully charged-off loans.” If actual periodic recoveries are less than expected, the difference is immediately reflected as a reduction to expected future recoveries on previously fully charged-off loans. If actual periodic recoveries are greater than expected, they will be reflected as a recovery through the allowance for Private Education Loan losses once the cumulative recovery amount exceeds the cumulative amount originally expected to be recovered. The following table summarizes the activity in the expected future recoveries on previously fully charged-off loans: Six Months Ended June 30, (Dollars in millions) 2023 Beginning of period expected future recoveries on previously fully charged-off loans $ 274 Expected future recoveries of current period defaults 24 Recoveries (cash collected) ( 24 ) Charge-offs (as a result of lower recovery expectations) ( 12 ) End of period expected future recoveries on previously fully charged-off loans $ 262 Change in balance during period $ ( 12 ) 2. Allowance for Loan Losses (Continued) Six Months Ended June 30, 2022 (Dollars in millions) FFELP Loans Private Education Loans Total Allowance at beginning of period $ 262 $ 1,009 $ 1,271 Total provision — 34 34 Charge-offs: Gross charge-offs ( 17 ) ( 164 ) ( 181 ) Expected future recoveries on current period gross charge-offs — 25 25 Net charge-offs (1) ( 17 ) ( 139 ) ( 156 ) Decrease in expected future recoveries on previously fully (2) — 17 17 Allowance at end of period $ 245 $ 921 $ 1,166 Net charge-offs as a percentage of average loans in repayment .08 % 1.39 % Ending total loans $ 49,459 $ 20,589 Average loans in repayment $ 42,922 $ 20,274 Ending loans in repayment $ 41,168 $ 19,938 (1) Charge-offs are reported net of expected recoveries. For Private Education Loans, we charge off the estimated loss of a defaulted loan balance by charging off the entire defaulted loan balance and estimating recoveries on a pool basis. These estimated recoveries are referred to as "expected future recoveries on previously fully charged-off loans." For FFELP Loans, the recovery is received at the time of charge-off. (2) At the end of each month, for Private Education Loans that are 212 days past due, we charge off the estimated loss of a defaulted loan balance by charging off the entire loan balance and estimating recoveries on a pool basis. These estimated recoveries are referred to as “expected future recoveries on previously fully charged-off loans.” If actual periodic recoveries are less than expected, the difference is immediately reflected as a reduction to expected future recoveries on previously fully charged-off loans. If actual periodic recoveries are greater than expected, they will be reflected as a recovery through the allowance for Private Education Loan losses once the cumulative recovery amount exceeds the cumulative amount originally expected to be recovered. The following table summarizes the activity in the expected future recoveries on previously fully charged-off loans: Six Months Ended June 30, (Dollars in millions) 2022 Beginning of period expected future recoveries on previously fully charged-off loans $ 329 Expected future recoveries of current period defaults 25 Recoveries (cash collected) ( 30 ) Charge-offs (as a result of lower recovery expectations) ( 12 ) End of period expected future recoveries on previously fully charged-off loans $ 312 Change in balance during period $ ( 17 ) |
Age Analysis of Past Due Loans Delinquencies | FFELP Loan Delinquencies June 30, 2023 December 31, 2022 June 30, 2022 (Dollars in millions) Balance % Balance % Balance % Loans in-school/grace/deferment (1) $ 1,659 $ 1,772 $ 2,064 Loans in forbearance (2) 6,316 7,603 6,227 Loans in repayment and percentage of each status: Loans current 27,756 83.9 % 29,004 84.4 % 34,627 84.1 % Loans delinquent 31-60 days (3) 1,596 4.8 1,247 3.6 2,163 5.3 Loans delinquent 61-90 days (3) 1,013 3.1 833 2.4 1,323 3.2 Loans delinquent greater than 90 days (3) 2,711 8.2 3,288 9.6 3,055 7.4 Total FFELP Loans in repayment 33,076 100 % 34,372 100 % 41,168 100 % Total FFELP Loans 41,051 43,747 49,459 FFELP Loan allowance for losses ( 200 ) ( 222 ) ( 245 ) FFELP Loans, net $ 40,851 $ 43,525 $ 49,214 Percentage of FFELP Loans in repayment 80.6 % 78.6 % 83.2 % Delinquencies as a percentage of FFELP Loans in 16.1 % 15.6 % 15.9 % FFELP Loans in forbearance as a percentage of 16.0 % 18.1 % 13.1 % (1) Loans for customers who may still be attending school or engaging in other permitted educational activities and are not yet required to make payments on their loans, e.g., residency periods for medical students or a grace period for bar exam preparation, as well as loans for customers who have requested and qualify for other permitted program deferments such as military, unemployment, or economic hardships. (2) Loans for customers who have used their allowable deferment time or do not qualify for deferment, that need additional time to obtain employment or who have temporarily ceased making full payments due to hardship or other factors such as disaster relief, including COVID-19 relief programs, consistent with established loan program servicing policies and procedures. (3) The period of delinquency is based on the number of days scheduled payments are contractually past due. Private Education Loan Delinquencies June 30, 2023 December 31, 2022 June 30, 2022 (Dollars in millions) Balance % Balance % Balance % Loans in-school/grace/deferment (1) $ 341 $ 354 $ 348 Loans in forbearance (2) 328 401 303 Loans in repayment and percentage of each status: Loans current 16,942 95.6 % 17,838 95.0 % 19,116 95.9 % Loans delinquent 31-60 days (3) 276 1.6 335 1.8 269 1.3 Loans delinquent 61-90 days (3) 151 .8 186 1.0 152 .8 Loans delinquent greater than 90 days (3) 351 2.0 411 2.2 401 2.0 Total loans in repayment 17,720 100 % 18,770 100 % 19,938 100 % Total loans 18,389 19,525 20,589 Allowance for losses ( 657 ) ( 800 ) ( 921 ) Loans, net $ 17,732 $ 18,725 $ 19,668 Percentage of loans in repayment 96.4 % 96.1 % 96.8 % Delinquencies as a percentage of loans in 4.4 % 5.0 % 4.1 % Loans in forbearance as a percentage of 1.8 % 2.1 % 1.5 % (1) Loans for customers who are attending school or are in other permitted educational activities and are not yet required to make payments on their loans, e.g., internship periods, as well as loans for customers who have requested and qualify for other permitted program deferments such as various military eligible deferments. (2) Loans for customers who have requested extension of grace period generally during employment transition or who have temporarily ceased making full payments due to hardship or other factors such as disaster relief, including COVID-19 relief programs, consistent with established loan program servicing policies and procedures. (3) The period of delinquency is based on the number of days scheduled payments are contractually past due . |
Loans Type | Loan type : (Dollars in millions) June 30, 2023 June 30, 2022 Change Stafford Loans $ 13,151 $ 15,538 $ ( 2,387 ) Consolidation Loans 23,956 29,396 ( 5,440 ) Rehab Loans 3,944 4,525 ( 581 ) Total loans, gross $ 41,051 $ 49,459 $ ( 8,408 ) |
Summary of Amortized Cost Basis of Loans to Borrowers | The following tables show the amortized cost basis as of June 30, 2023 of the loans to borrowers experiencing financial difficulty that were modified in the three and six months ended June 30, 2023. Loan Modifications Made to Borrowers Experiencing Financial Difficulty Three Months Ended June 30, 2023 (Dollars in millions) Interest Rate Reductions (1) More Than an Insignificant Payment Delay (2) Combination Rate Reduction and Term Extension Loan Type Amortized Cost % of Loan Type Amortized Cost % of Loan Type Amortized Cost % of Loan Type Private Education $ 548 3.0 % $ 274 1.5 % $ 45 .2 % Six Months Ended June 30, 2023 (Dollars in millions) Interest Rate Reductions (1) More Than an Insignificant Payment Delay (2) Combination Rate Reduction and Term Extension Loan Type Amortized Cost % of Loan Type Amortized Cost % of Loan Type Amortized Cost % of Loan Type Private Education $ 1,161 6.3 % $ 539 2.9 % $ 91 .5 % (1) As of June 30, 2023, there was $ 1.2 billion of loans in the interest rate reduction program. (2) More Than an Insignificant Payment Delay includes loans granted more than 3 months of short-term interest only payments or hardship forbearance. 2. Allowance for Loan Losses (Continued) For those loans modified in the three and six months ended June 30, 2023, the following tables show the impact of such modification. Three Months Ended June 30, 2023 Loan Type Interest Rate Reductions More Than an Insignificant Payment Delay Combination Rate Reduction and Term Extension Private Education Loans Reduced the weighted average contractual rate from 13.0 % to 5.3 % Added an average 5 months to the remaining life of the loans Added an average 8 years to the remaining life of the loans and reduced the weighted average contractual rate from 12.4 % to 5.3 %. Six Months Ended June 30, 2023 Loan Type Interest Rate Reductions More Than an Insignificant Payment Delay Combination Rate Reduction and Term Extension Private Education Loans Reduced the weighted average contractual rate from 12.9 % to 5.1 % Added an average 6 months to the remaining life of the loans Added an average 8 years to the remaining life of the loans and reduced the weighted average contractual rate from 12.4 % to 5.2 %. |
Schedule of Amount of Loans Modified and Payment Default | The following table provides the amount of loans whose borrowers were experiencing financial difficulty, were modified during the three and six months ended June 30, 2023 and subsequently had a payment default in the three and six months ended June 30, 2023. We define payment default as 60 days past due for purposes of this disclosure. We closely monitor performance of the loans to borrowers experiencing financial difficulty that are modified to understand the effectiveness of the modification efforts. (Dollars in millions) Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 Loan Type Modified Loans Payment Default (Par) Modified Loans Payment Default (Par) Private Education Loans (1) $ 36 $ 37 $ 38 $ 39 (1) For the three months ended June 30, 2023, the modified loans include $ 22 million of Interest Rate Reduction, $ 2 million of Combination Rate Reduction and Term Extension, and $ 12 million of More Than Insignificant Payment Delay . For the six months ended June 30, 2023, the modified loans include $ 24 million of Interest Rate Reduction, $ 2 million of Combination Rate Reduction and Term Extension, and $ 13 million of More Than Insignificant Payment Delay. |
Summary of Performance and Related Loan Status of Loans Modified | The following table provides the performance and related loan status as of June 30, 2023 of loans that were modified in the six months ended June 30, 2023. (Dollars in millions) Loan Type: Private Education Loans Status Payment status (Amortized Cost) Loans in School/Deferment $ 5 Loans in Forbearance 48 Loans current 1,646 Loans delinquent 31 - 60 days 51 Loans delinquent 61 - 90 days 21 Loans delinquent greater than 90 days 20 Total Modified Loans $ 1,791 (1) For the six months ended June 30, 2023, $ 2 million of loans modified during the period were charged off. |
Loans Modified Accounts for TDR | The following table provides the amount of loans modified in the period presented that resulted in a TDR. Additionally, the table summarizes charge-offs occurring in the TDR portfolio, as well as TDRs for which a payment default occurred in the current period within 12 months of the loan first being designated as a TDR. We define payment default as 60 days past due for this disclosure. Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2022 2022 Modified loans $ 62 $ 117 Charge-offs $ 59 $ 115 Payment default $ 9 $ 18 |
Private Education Loans [Member] | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Private Education Loan Portfolio Stratified by Key Credit Quality Indicators | Private Education Loan Credit Quality Indicators by Origination Year June 30, 2023 (Dollars in millions) 2023 2022 2021 2020 2019 Prior Total % of Total Credit Quality FICO Scores: 640 and above $ 322 $ 1,698 $ 4,209 $ 1,367 $ 1,287 $ 7,851 $ 16,734 91 % Below 640 4 50 100 26 43 1,432 1,655 9 Total $ 326 $ 1,748 $ 4,309 $ 1,393 $ 1,330 $ 9,283 $ 18,389 100 % Loan Status: In-school/grace/ $ 15 $ 69 $ 82 $ 22 $ 27 $ 454 $ 669 4 % Current/90 days or 311 1,673 4,218 1,367 1,297 8,503 17,369 94 Greater than 90 days — 6 9 4 6 326 351 2 Total $ 326 $ 1,748 $ 4,309 $ 1,393 $ 1,330 $ 9,283 $ 18,389 100 % Seasoning (1) : 1-12 payments $ 312 $ 744 $ 49 $ 10 $ 6 $ 66 $ 1,187 6 % 13-24 payments — 950 3,021 23 18 77 4,089 22 25-36 payments — — 1,188 819 58 142 2,207 12 37-48 payments — — — 529 1,036 230 1,795 10 More than 48 — — — — 198 8,572 8,770 48 Loans in-school/ 14 54 51 12 14 196 341 2 Total $ 326 $ 1,748 $ 4,309 $ 1,393 $ 1,330 $ 9,283 $ 18,389 100 % Certain Loan (2) : Modified $ — $ 20 $ 102 $ 41 $ 75 $ 6,101 $ 6,339 34 % Non-Modified 326 1,728 4,207 1,352 1,255 3,182 12,050 66 Total $ 326 $ 1,748 $ 4,309 $ 1,393 $ 1,330 $ 9,283 $ 18,389 100 % Cosigners: With cosigner (3) $ 57 $ 187 $ 100 $ 25 $ 9 $ 5,647 $ 6,025 33 % Without cosigner 269 1,561 4,209 1,368 1,321 3,636 12,364 67 Total $ 326 $ 1,748 $ 4,309 $ 1,393 $ 1,330 $ 9,283 $ 18,389 100 % School Type: Not-for-profit $ 304 $ 1,654 $ 4,059 $ 1,331 $ 1,238 $ 7,809 $ 16,395 89 % For-profit 22 94 250 62 92 1,474 1,994 11 Total $ 326 $ 1,748 $ 4,309 $ 1,393 $ 1,330 $ 9,283 $ 18,389 100 % Allowance for loan ( 657 ) Total loans, net $ 17,732 Charge-Offs $ — $ ( 3 ) $ ( 5 ) $ ( 2 ) $ ( 4 ) $ ( 123 ) $ ( 137 ) 100 % (1) Number of months in active repayment for which a scheduled payment was received. (2) Loan Modifications represents the historical definition of a troubled debt restructuring (“TDR”) prior to the implementation of ASU 2022-02 on January 1, 2023. Any loan that meets the historical definition of a TDR retains that classification for the life of the loan (including loans that meet that definition in 2023). This includes loans given rate modifications, term extensions or forbearance greater than 3 months in the prior 24-month period. This classification is not intended to reconcile in any way to the new modification disclosures required under ASU 2022-02. (3) Excluding Private Education Refinance Loans, which do not have a cosigner, the cosigner rate was 65 % for total loans at June 30, 2023. 2. Allowance for Loan Losses (Continued) Private Education Loan Credit Quality Indicators by Origination Year June 30, 2022 (Dollars in millions) 2022 2021 2020 2019 2018 Prior Total % of Total Credit Quality FICO Scores: 640 and above $ 1,307 $ 4,875 $ 1,672 $ 1,583 $ 587 $ 8,925 $ 18,949 92 % Below 640 11 57 18 34 20 1,500 1,640 8 Total $ 1,318 $ 4,932 $ 1,690 $ 1,617 $ 607 $ 10,425 $ 20,589 100 % Loan Status: In-school/grace/ $ 18 $ 79 $ 29 $ 32 $ 13 $ 480 $ 651 3 % Current/90 days or 1,300 4,848 1,659 1,580 591 9,559 19,537 95 Greater than 90 days — 5 2 5 3 386 401 2 Total $ 1,318 $ 4,932 $ 1,690 $ 1,617 $ 607 $ 10,425 $ 20,589 100 % Seasoning (1) : 1-12 payments $ 1,304 $ 3,452 $ 17 $ 15 $ 3 $ 105 $ 4,896 24 % 13-24 payments — 1,433 981 52 9 119 2,594 12 25-36 payments — — 676 1,282 26 203 2,187 11 37-48 payments — — — 251 437 330 1,018 5 More than 48 — — — — 126 9,420 9,546 46 Loans in-school/ 14 47 16 17 6 248 348 2 Total $ 1,318 $ 4,932 $ 1,690 $ 1,617 $ 607 $ 10,425 $ 20,589 100 % Certain Loan (2) : Modified $ 1 $ 24 $ 22 $ 54 $ 32 $ 6,830 $ 6,963 34 % Non-Modified 1,317 4,908 1,668 1,563 575 3,595 13,626 66 Total $ 1,318 $ 4,932 $ 1,690 $ 1,617 $ 607 $ 10,425 $ 20,589 100 % Cosigners: With cosigner (3) $ 19 $ 112 $ 29 $ 11 $ — $ 6,710 $ 6,881 33 % Without cosigner 1,299 4,820 1,661 1,606 607 3,715 13,708 67 Total $ 1,318 $ 4,932 $ 1,690 $ 1,617 $ 607 $ 10,425 $ 20,589 100 % School Type: Not-for-profit $ 1,237 $ 4,647 $ 1,615 $ 1,507 $ 558 $ 8,701 $ 18,265 89 % For-profit 81 285 75 110 49 1,724 2,324 11 Total $ 1,318 $ 4,932 $ 1,690 $ 1,617 $ 607 $ 10,425 $ 20,589 100 % Allowance for loan ( 921 ) Total loans, net $ 19,668 (1) Number of months in active repayment for which a scheduled payment was received. (2) Loan Modifications represents the historical definition of a troubled debt restructuring (“TDR”) prior to the implementation of ASU 2022-02 on January 1, 2023. Any loan that meets the historical definition of a TDR retains that classification for the life of the loan (including loans that meet that definition in 2023). This includes loans given rate modifications, term extensions or forbearance greater than 3 months in the prior 24-month period. This classification is not intended to reconcile in any way to the new modification disclosures required under ASU 2022-02. (3) Excluding Private Education Refinance Loans, which do not have a cosigner, the cosigner rate was 65 % for total loans at June 30, 2022 . |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Company's Borrowings | The following table summarizes our borrowings. June 30, 2023 December 31, 2022 (Dollars in millions) Short Long Total Short Long Total Unsecured borrowings: Senior unsecured debt (1) $ 1,156 $ 5,353 $ 6,509 $ 1,301 $ 5,711 $ 7,012 Total unsecured borrowings 1,156 5,353 6,509 1,301 5,711 7,012 Secured borrowings: FFELP Loan securitizations (2)(3) 64 38,293 38,357 76 42,675 42,751 Private Education Loan securitizations (4) 574 12,316 12,890 725 12,744 13,469 FFELP Loan ABCP facilities 1,548 455 2,003 923 386 1,309 Private Education Loan ABCP facilities 1,416 901 2,317 2,734 — 2,734 Other (5) 98 40 138 121 — 121 Total secured borrowings 3,700 52,005 55,705 4,579 55,805 60,384 Total before hedge accounting adjustments 4,856 57,358 62,214 5,880 61,516 67,396 Hedge accounting adjustments ( 18 ) ( 422 ) ( 440 ) ( 10 ) ( 490 ) ( 500 ) Total $ 4,838 $ 56,936 $ 61,774 $ 5,870 $ 61,026 $ 66,896 (1) Includes principal amount of $ 1.1 billion and $ 1.3 billion of short-term debt as of June 30, 2023 and December 31, 2022, respectively. Includes principal amount of $ 5.4 billion and $ 5.7 billion of long-term debt as of June 30, 2023 and December 31, 2022, respectively. (2) Includes $ 64 million and $ 76 million of short-term debt related to the FFELP Loan ABS repurchase facilities (FFELP Loan Repurchase Facilities) and as of June 30, 2023 and December 31, 2022, respectively. Includes $ 129 million and $ 0 million of long-term debt related to the FFELP Loan ABS repurchase facilities (FFELP Loan Repurchase Facilities) as of June 30, 2023 and December 31, 2022, respectively. (3) Includes defaulted FFELP secured debt tranches with a remaining principal amount of $ 825 million as of June 30, 2023 as a result of not maturing by their respective contractual maturity dates. Notices were delivered to the trustee, rating agencies and bondholders alerting them to these maturity date defaults. At this time, it is expected the bonds will be paid in full between 2030 and 2035. There is no impact to the principal amount owed or the coupon at which the bonds accrue, and there is no revised contractual maturity date. (4) Includes $ 574 million and $ 725 million of short-term debt related to the Private Education Loan ABS repurchase facilities (Private Education Loan Repurchase Facilities) as of June 30, 2023 and December 31, 2022, respectively. (5) “Other” primarily includes the obligation to return cash collateral held related to derivative exposure. |
Financing VIEs | We consolidated the following financing VIEs as of June 30, 2023 and December 31, 2022, as we are the primary beneficiary. As a result, these VIEs are accounted for as secured borrowings. June 30, 2023 Debt Outstanding Carrying Amount of Assets Securing (Dollars in millions) Short Long Total Loans Cash Other Total Secured Borrowings — VIEs: FFELP Loan securitizations $ 64 $ 38,293 $ 38,357 $ 38,757 $ 1,445 $ 1,579 $ 41,781 Private Education Loan securitizations 574 12,316 12,890 13,833 365 98 14,296 FFELP Loan ABCP facilities 1,548 455 2,003 2,025 37 75 2,137 Private Education Loan ABCP facilities 1,416 901 2,317 2,564 77 44 2,685 Total before hedge accounting 3,602 51,965 55,567 57,179 1,924 1,796 60,899 Hedge accounting adjustments — ( 161 ) ( 161 ) — — ( 236 ) ( 236 ) Total $ 3,602 $ 51,804 $ 55,406 $ 57,179 $ 1,924 $ 1,560 $ 60,663 December 31, 2022 Debt Outstanding Carrying Amount of Assets Securing (Dollars in millions) Short Long Total Loans Cash Other Total Secured Borrowings — VIEs: FFELP Loan securitizations $ 76 $ 42,675 $ 42,751 $ 42,148 $ 2,705 $ 1,544 $ 46,397 Private Education Loan securitizations 725 12,744 13,469 14,168 367 105 14,640 FFELP Loan ABCP facilities 923 386 1,309 1,317 39 44 1,400 Private Education Loan ABCP facilities 2,734 — 2,734 3,039 122 ( 81 ) 3,080 Total before hedge accounting 4,458 55,805 60,263 60,672 3,233 1,612 65,517 Hedge accounting adjustments — ( 207 ) ( 207 ) — — ( 256 ) ( 256 ) Total $ 4,458 $ 55,598 $ 60,056 $ 60,672 $ 3,233 $ 1,356 $ 65,261 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Impact of Derivatives on Balance Sheet | The following tables summarize the fair values and notional amounts of all derivative instruments and their impact on net income and other comprehensive income. Impact of Derivatives on Balance Sheet Cash Flow Fair Value (3) Trading Total (Dollars in millions) Hedged Risk Jun 30, 2023 Dec 31, 2022 Jun 30, 2023 Dec 31, 2022 Jun 30, 2023 Dec 31, 2022 Jun 30, 2023 Dec 31, 2022 Fair Values (1) Derivative Assets: Interest rate swaps Interest rate $ — $ — $ 53 $ 55 $ — $ 1 $ 53 $ 56 Cross-currency interest rate Foreign currency and — — — — — — — — Total derivative assets (2) — — 53 55 — 1 53 56 Derivative Liabilities: Interest rate swaps Interest rate — — — ( 2 ) ( 2 ) ( 3 ) ( 2 ) ( 5 ) Floor Income Contracts Interest rate — — — — — — — — Cross-currency interest rate Foreign currency and — — ( 234 ) ( 253 ) — — ( 234 ) ( 253 ) Total derivative liabilities (2) — — ( 234 ) ( 255 ) ( 2 ) ( 3 ) ( 236 ) ( 258 ) Net total derivatives $ — $ — $ ( 181 ) $ ( 200 ) $ ( 2 ) $ ( 2 ) $ ( 183 ) $ ( 202 ) (1) Fair values reported are exclusive of collateral held and pledged and accrued interest. Assets and liabilities are presented without consideration of master netting agreements. Derivatives are carried on the balance sheet based on net position by counterparty under master netting agreements and classified in other assets or other liabilities depending on whether in a net positive or negative position. (2) The following table reconciles gross positions without the impact of master netting agreements to the balance sheet classification: Other Assets Other Liabilities (Dollar in millions) June 30, 2023 December 31, 2022 June 30, 2023 December 31, 2022 Gross position $ 53 $ 56 $ ( 236 ) $ ( 258 ) Impact of master netting agreements — — — — Derivative values with impact of master netting 53 56 ( 236 ) ( 258 ) Cash collateral (held) pledged ( 60 ) ( 80 ) 61 62 Net position $ ( 7 ) $ ( 24 ) $ ( 175 ) $ ( 196 ) (3) The following table shows the carrying value of liabilities in fair value hedges and the related fair value hedging adjustments to these liabilities: As of June 30, 2023 As of December 31, 2022 (Dollar in millions) Carrying Hedge Basis Adjustments Carrying Hedge Basis Adjustments Short-term borrowings $ 1,131 $ ( 18 ) $ 1,289 $ ( 10 ) Long-term borrowings $ 5,772 $ ( 426 ) $ 6,188 $ ( 494 ) |
Gross Positions with Impact of Master Netting Agreements | (2) The following table reconciles gross positions without the impact of master netting agreements to the balance sheet classification: Other Assets Other Liabilities (Dollar in millions) June 30, 2023 December 31, 2022 June 30, 2023 December 31, 2022 Gross position $ 53 $ 56 $ ( 236 ) $ ( 258 ) Impact of master netting agreements — — — — Derivative values with impact of master netting 53 56 ( 236 ) ( 258 ) Cash collateral (held) pledged ( 60 ) ( 80 ) 61 62 Net position $ ( 7 ) $ ( 24 ) $ ( 175 ) $ ( 196 ) |
Carrying Value and Related Fair Value Hedging Adjustments of Liabilities | (3) The following table shows the carrying value of liabilities in fair value hedges and the related fair value hedging adjustments to these liabilities: As of June 30, 2023 As of December 31, 2022 (Dollar in millions) Carrying Hedge Basis Adjustments Carrying Hedge Basis Adjustments Short-term borrowings $ 1,131 $ ( 18 ) $ 1,289 $ ( 10 ) Long-term borrowings $ 5,772 $ ( 426 ) $ 6,188 $ ( 494 ) |
Derivative Notional Values | Cash Flow Fair Value Trading Total (Dollars in billions) Jun 30, 2023 Dec 31, 2022 Jun 30, 2023 Dec 31, 2022 Jun 30, 2023 Dec 31, 2022 Jun 30, 2023 Dec 31, 2022 Notional Values: Interest rate swaps $ 4.8 $ 8.3 $ 5.7 $ 6.2 $ 1.7 $ 17.4 $ 12.2 $ 31.9 Floor Income Contracts — — — — 3.0 6.0 3.0 6.0 Cross-currency interest rate swaps — — 1.7 1.8 — — 1.7 1.8 Total derivatives $ 4.8 $ 8.3 $ 7.4 $ 8.0 $ 4.7 $ 23.4 $ 16.9 $ 39.7 |
Mark-to-Market Impact of Derivatives on Statements of Income | Mark-to-Market Impact of Derivatives on Statements of Income Total Gains (Losses) Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2023 2022 2023 2022 Fair Value Hedges: Interest Rate Swaps Gains (losses) recognized in net income on derivatives $ ( 80 ) $ ( 148 ) $ ( 1 ) $ ( 437 ) Gains (losses) recognized in net income on hedged items 67 158 ( 15 ) 471 Net fair value hedge ineffectiveness gains (losses) ( 13 ) 10 ( 16 ) 34 Cross currency interest rate swaps Gains (losses) recognized in net income on derivatives ( 10 ) ( 54 ) 19 ( 89 ) Gains (losses) recognized in net income on hedged items ( 14 ) 94 ( 45 ) 146 Net fair value hedge ineffectiveness gains (losses) ( 24 ) 40 ( 26 ) 57 Total fair value hedges (1)(2) ( 37 ) 50 ( 42 ) 91 Cash Flow Hedges: Total cash flow hedges (2) — — — — Trading: Interest rate swaps 26 17 17 80 Floor income contracts — 5 — 40 Cross currency interest rate swaps — — — — Other — — — — Total trading derivatives (3) 26 22 17 120 Mark-to-market gains (losses) recognized $ ( 11 ) $ 72 $ ( 25 ) $ 211 (1) Recorded in interest expense in the consolidated statements of income. (2) The accrued interest income (expense) on fair value hedges and cash flow hedges is recorded in interest expense and is excluded from this table. (3) Recorded in “gains (losses) on derivative and hedging activities, net” in the consolidated statements of income. |
Impact of Derivatives on Other Comprehensive Income (Equity) | Impact of Derivatives on Other Comprehensive Income (Equity) Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2023 2022 2023 2022 Total gains (losses) on cash flow hedges $ 18 $ 34 $ 15 $ 127 Reclassification adjustments for derivative (gains) losses (1) ( 19 ) 15 ( 37 ) 36 Net changes in cash flow hedges, net of tax $ ( 1 ) $ 49 $ ( 22 ) $ 163 Includes net settlement income/expense. |
Collateral Held and Pledged | The following table details collateral held and pledged related to derivative exposure between us and our derivative counterparties: (Dollars in millions) June 30, 2023 December 31, 2022 Collateral held: Cash (obligation to return cash collateral is recorded in short-term borrowings) $ 60 $ 80 Securities at fair value — corporate derivatives (not recorded in financial (1) — — Securities at fair value — on-balance sheet securitization derivatives (not (2) — — Total collateral held $ 60 $ 80 Derivative asset at fair value including accrued interest $ 60 $ 85 Collateral pledged to others: Cash (right to receive return of cash collateral is recorded in investments) $ 61 $ 62 Total collateral pledged $ 61 $ 62 Derivative liability at fair value including accrued interest and premium $ 243 $ 266 (1) The Company has the ability to sell or re-pledge securities it holds as collateral. (2) The trusts do not have the ability to sell or re-pledge securities they hold as collateral. |
Schedule of Credit Exposure Related to Our Derivative Counterparties | The table below highlights credit exposure related to our derivative counterparties at June 30, 2023. (Dollars in millions) Corporate Securitization Exposure, net of collateral $ 5 $ — Percent of exposure to counterparties with credit ratings 100 % — % Percent of exposure to counterparties with credit ratings — % — % |
Other Assets (Tables)
Other Assets (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | The following table provides the detail of our other assets. (Dollars in millions) June 30, 2023 December 31, 2022 Accrued interest receivable $ 2,100 $ 2,031 Benefit and insurance-related investments 456 452 Income tax asset, net 84 132 Derivatives at fair value 53 56 Accounts receivable 94 83 Fixed assets 68 74 Other 34 38 Total $ 2,889 $ 2,866 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Common Share Repurchases, Issuances and Dividends Paid | The following table summarizes common share repurchases, issuances and dividends paid. Three Months Ended June 30, Six Months Ended June 30, (Dollars and shares in millions, except per share amounts) 2023 2022 2023 2022 Common stock repurchased (1) 4.9 6.9 9.8 13.1 Common stock repurchased (in dollars) (1) $ 80 $ 105 $ 165 $ 220 Average purchase price per share (1) $ 16.38 $ 15.26 $ 16.89 $ 16.76 Remaining common stock repurchase authority (1) $ 435 $ 780 $ 435 $ 780 Shares repurchased related to employee stock- (2) — — 1.3 1.1 Average purchase price per share (2) $ — $ — $ 18.43 $ 17.92 Common shares issued (3) — — 2.4 2.4 Dividends paid $ 20 $ 23 $ 40 $ 47 Dividends per share $ .16 $ .16 $ .32 $ .32 (1) Common shares purchased under our share repurchase program. Our board of directors authorized a $ 1 billion multi-year share repurchase program in December 2021. (2) Comprises 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. (3) Common shares issued under our various compensation and benefit plans. |
Earnings (Loss) per Common Sh_2
Earnings (Loss) per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of 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 on a GAAP basis follows. Three Months Ended June 30, Six Months Ended June 30, (In millions, except per share data) 2023 2022 2023 2022 Numerator: Net income $ 66 $ 180 $ 177 $ 435 Denominator: Weighted average shares used to compute basic EPS 124 146 126 149 Effect of dilutive securities: Dilutive effect of stock options, restricted stock, (1) 1 1 2 1 Dilutive potential common shares (2) 1 1 2 1 Weighted average shares used to compute 125 147 128 150 Basic earnings per common share $ .53 $ 1.23 $ 1.40 $ 2.93 Diluted earnings per common share $ .52 $ 1.22 $ 1.39 $ 2.90 (1) Includes the potential dilutive effect of additional common shares that are issuable upon exercise of outstanding stock options, restricted stock, restricted stock units, performance stock units and the outstanding commitment to issue shares under applicable ESPPs, determined by the treasury stock method. (2) For the three months ended June 30, 2023 and 2022 , securities covering approximately 0 million and 0 million shares, respectively, were outstanding but not included in the computation of diluted earnings per share because they were anti-dilutive. For the six months ended June 30, 2023 and 2022 , securities covering approximately 0 million and 0 million shares, respectively, were outstanding but not included in the computation of diluted earnings per share because they were anti-dilutive |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Valuation of Financial Instruments that are Marked-to-Market on Recurring Basis | The following table summarizes the valuation of our financial instruments that are marked-to-market on a recurring basis. During the second quarters of 2023 and 2022, there were no significant transfers of financial instruments between levels. Fair Value Measurements on a Recurring Basis June 30, 2023 December 31, 2022 (Dollars in millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Derivative instruments: (1) Interest rate swaps — 53 — 53 — 55 1 56 Cross-currency interest rate swaps — — — — — — — — Total derivative assets (2) — 53 — 53 — 55 1 56 Total $ — $ 53 $ — $ 53 $ — $ 55 $ 1 $ 56 Liabilities (3) Derivative instruments (1) Interest rate swaps $ — $ — $ ( 2 ) $ ( 2 ) $ — $ ( 2 ) $ ( 3 ) $ ( 5 ) Floor Income Contracts — — — — — — — — Cross-currency interest rate swaps — — ( 234 ) ( 234 ) — — ( 253 ) ( 253 ) Total derivative liabilities (2) — — ( 236 ) ( 236 ) — ( 2 ) ( 256 ) ( 258 ) Total $ — $ — $ ( 236 ) $ ( 236 ) $ — $ ( 2 ) $ ( 256 ) $ ( 258 ) (1) Fair value of derivative instruments excludes accrued interest and the value of collateral. (2) See "Note 4 – Derivative Financial Instruments" for a reconciliation of gross positions without the impact of master netting agreements to the balance sheet classification. Borrowings which are the hedged item in a fair value hedge relationship and which are adjusted for changes in value due to benchmark interest rates only are not carried at full fair value and not reflected in this table. |
Change in Balance Sheet Carrying Value Associated with Level 3 Financial Instruments Carried at Fair Value on Recurring Basis | The following tables summarize the change in balance sheet carrying value associated with level 3 financial instruments carried at fair value on a recurring basis. Three Months Ended June 30, 2023 2022 Derivative instruments Derivative instruments (Dollars in millions) Interest Cross Other Total Interest Cross Other Total Balance, beginning of $ ( 2 ) $ ( 224 ) $ — $ ( 226 ) $ ( 3 ) $ ( 226 ) $ — $ ( 229 ) Total gains/(losses): Included in earnings (1) — ( 22 ) — ( 22 ) — ( 62 ) — ( 62 ) Included in other — — — — — — — — Settlements — 12 — 12 — 9 — 9 Transfers in and/or out — — — — — — — — Balance, end of period $ ( 2 ) $ ( 234 ) $ — $ ( 236 ) $ ( 3 ) $ ( 279 ) $ — $ ( 282 ) Change in mark-to- (2) $ — $ ( 10 ) $ — $ ( 10 ) $ — $ ( 53 ) $ — $ ( 53 ) Six Months Ended June 30, 2023 2022 Derivative instruments Derivative instruments (Dollars in millions) Interest Swaps Cross Other Total Interest Cross Other Total Balance, beginning of $ ( 2 ) $ ( 253 ) $ — $ ( 255 ) $ ( 4 ) $ ( 190 ) $ — $ ( 194 ) Total gains/(losses): Included in earnings (1) — ( 6 ) — ( 6 ) 1 ( 103 ) — ( 102 ) Included in other — — — — — — — — Settlements — 25 — 25 — 14 — 14 Transfers in and/or out — — — — — — — — Balance, end of $ ( 2 ) $ ( 234 ) $ — $ ( 236 ) $ ( 3 ) $ ( 279 ) $ — $ ( 282 ) Change in mark-to- (2) $ — $ 19 $ — $ 19 $ 1 $ ( 89 ) $ — $ ( 88 ) (1) “Included in earnings” is comprised of the following amounts recorded in the specified line item in the consolidated statements of income: Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2023 2022 2023 2022 Gains (losses) on derivative and hedging activities, net $ — $ — $ — $ 1 Interest expense ( 22 ) ( 62 ) ( 6 ) ( 103 ) Total $ ( 22 ) $ ( 62 ) $ ( 6 ) $ ( 102 ) Recorded in “gains (losses) on derivative and hedging activities, net” in the consolidated statements of income. |
Included in Earnings | (1) “Included in earnings” is comprised of the following amounts recorded in the specified line item in the consolidated statements of income: Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2023 2022 2023 2022 Gains (losses) on derivative and hedging activities, net $ — $ — $ — $ 1 Interest expense ( 22 ) ( 62 ) ( 6 ) ( 103 ) Total $ ( 22 ) $ ( 62 ) $ ( 6 ) $ ( 102 ) |
Unobservable Data Used in Recurring Valuations of Level 3 | The following table presents the significant inputs that are unobservable or from inactive markets used in the recurring valuations of the level 3 financial instruments detailed above. (Dollars in millions) Fair Value at June 30, 2023 Valuation Input Range and Derivatives Prime/LIBOR basis swaps $ ( 2 ) Discounted cash flow Constant Prepayment Rate 10 % Bid/ask adjustment to .08 % Cross-currency interest rate swaps ( 234 ) Discounted cash flow Constant Prepayment Rate 5 % Other — Total $ ( 236 ) |
Fair Values of Financial Assets and Liabilities, Including Derivative Financial Instruments | The following table summarizes the fair values of our financial assets and liabilities, including derivative financial instruments. June 30, 2023 December 31, 2022 (Dollars in millions) Fair Carrying Difference Fair Carrying Difference Earning assets FFELP Loans $ 39,250 $ 40,851 $ ( 1,601 ) $ 41,426 $ 43,525 $ ( 2,099 ) Private Education Loans 16,935 17,732 ( 797 ) 17,880 18,725 ( 845 ) Cash and investments 3,426 3,426 — 4,974 4,974 — Total earning assets 59,611 62,009 ( 2,398 ) 64,280 67,224 ( 2,944 ) Interest-bearing liabilities Short-term borrowings 4,853 4,838 ( 15 ) 5,879 5,870 ( 9 ) Long-term borrowings 54,082 56,936 2,854 57,652 61,026 3,374 Total interest-bearing liabilities 58,935 61,774 2,839 63,531 66,896 3,365 Derivative financial instruments Floor Income Contracts — — — — — — Interest rate swaps 51 51 — 51 51 — Cross-currency interest rate swaps ( 234 ) ( 234 ) — ( 253 ) ( 253 ) — Other — — — — — — Excess of net asset fair value over carrying value $ 441 $ 421 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers Accounted for in Accordance with ASC 606 (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Disaggregation of Revenue from Contracts with Customers Accounted Under ASC 606 | The following tables illustrate the disaggregation of revenue from contracts accounted for under ASC 606 with customers according to service type and client type by reportable operating segment. Revenue by Service Type Three Months Ended June 30, 2023 2022 (Dollars in millions) Federal Education Loans Business Processing Total Revenue Federal Education Loans Business Processing Total Revenue Federal Education Loan $ — $ — $ — $ — $ — $ — Government services — 52 52 — 53 53 Healthcare services — 31 31 — 34 34 Total $ — $ 83 $ 83 $ — $ 87 $ 87 Six Months Ended June 30, 2023 2022 (Dollars in millions) Federal Education Loans Business Processing Total Revenue Federal Education Loans Business Processing Total Revenue Federal Education Loan $ — $ — $ — $ 1 $ — $ 1 Government services — 92 92 — 102 102 Healthcare services — 63 63 — 79 79 Total $ — $ 155 $ 155 $ 1 $ 181 $ 182 10. Revenue from Contracts with Customers Accounted for in Accordance with ASC 606 (Continued) Revenue by Client Type Three Months Ended June 30, 2023 2022 (Dollars in millions) Federal Education Loans Business Processing Total Revenue Federal Education Loans Business Processing Total Revenue Federal government $ — $ 17 $ 17 $ — $ 2 $ 2 Guarantor agencies — — — — — — State and local government — 17 17 — 35 35 Tolling authorities — 18 18 — 16 16 Hospitals and other — 31 31 — 34 34 Total $ — $ 83 $ 83 $ — $ 87 $ 87 Six Months Ended June 30, 2023 2022 (Dollars in millions) Federal Education Loans Business Processing Total Revenue Federal Education Loans Business Processing Total Revenue Federal government $ — $ 23 $ 23 $ — $ 4 $ 4 Guarantor agencies — — — 1 — 1 State and local government — 35 35 — 68 68 Tolling authorities — 34 34 — 30 30 Hospitals and other — 63 63 — 79 79 Total $ — $ 155 $ 155 $ 1 $ 181 $ 182 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Results and Reconciliations to GAAP | Segment Results and Reconciliations to GAAP Three Months Ended June 30, 2023 Adjustments Reportable Segments (Dollars in millions) Total Reclassi- Additions/ Total (1) Total Federal Education Loans Consumer Lending Business Processing Other Interest income: Education loans $ 1,061 $ 721 $ 341 $ — $ — Cash and investments 36 18 7 — 11 Total interest income 1,097 739 348 — 11 Total interest expense 919 633 205 — 39 Net interest income 178 $ 4 $ 39 $ 43 $ 221 106 143 — ( 28 ) Less: provisions for loan 11 11 5 6 — — Net interest income 167 101 137 — ( 28 ) Other income (loss): Servicing revenue 16 13 3 — — Asset recovery and 83 — — 83 — Other revenue 30 2 2 — — Total other income 129 ( 4 ) ( 22 ) ( 26 ) 103 15 5 83 — Expenses: Direct operating 135 18 42 75 — Unallocated shared 47 — — — 47 Operating expenses 182 — — — 182 18 42 75 47 Goodwill and acquired 3 — ( 3 ) ( 3 ) — — — — — Restructuring/other 15 — — — 15 — — — 15 Total expenses 200 — ( 3 ) ( 3 ) 197 18 42 75 62 Income (loss) before 96 — 20 20 116 98 100 8 ( 90 ) Income tax expense (2) 30 — ( 2 ) ( 2 ) 28 22 25 2 ( 21 ) Net income (loss) $ 66 $ — $ 22 $ 22 $ 88 $ 76 $ 75 $ 6 $ ( 69 ) (1) Core Earnings adjustments to GAAP: Three Months Ended June 30, 2023 (Dollars in millions) Net Impact of Net Impact of Total Net interest income (loss) after provisions for loan losses $ 43 $ — $ 43 Total other income (loss) ( 26 ) — ( 26 ) Goodwill and acquired intangible asset impairment and amortization — ( 3 ) ( 3 ) Total Core Earnings adjustments to GAAP $ 17 $ 3 20 Income tax expense (benefit) ( 2 ) Net income (loss) $ 22 (2) Income taxes are based on a percentage of net income before tax for the individual reportable segment. 11. Segment Reporting (Continued) Three Months Ended June 30, 2022 Adjustments Reportable Segments (Dollars in millions) Total Reclassi- Additions/ Total (1) Total Federal Education Loans Consumer Lending Business Processing Other Interest income: Education loans $ 687 $ 409 $ 277 $ — $ — Cash and investments 5 3 1 — 1 Total interest income 692 412 278 — 1 Total interest expense 371 266 136 — 18 Net interest income (loss) 321 $ — $ ( 50 ) $ ( 50 ) $ 271 146 142 — ( 17 ) Less: provisions for loan 18 18 — 18 — — Net interest income (loss) 303 146 124 — ( 17 ) Other income (loss): Servicing revenue 17 14 3 — — Asset recovery and 88 1 — 87 — Other revenue 29 8 1 — ( 2 ) Total other income (loss) 134 — ( 22 ) ( 22 ) 112 23 4 87 ( 2 ) Expenses: Direct operating 134 25 35 74 — Unallocated shared 56 — — — 56 Operating expenses 190 — — — 190 25 35 74 56 Goodwill and acquired 3 — ( 3 ) ( 3 ) — — — — — Restructuring/other — — — — — — — — — Total expenses 193 — ( 3 ) ( 3 ) 190 25 35 74 56 Income (loss) before 244 — ( 69 ) ( 69 ) 175 144 93 13 ( 75 ) Income tax expense (2) 64 — ( 23 ) ( 23 ) 41 34 22 3 ( 18 ) Net income (loss) $ 180 $ — $ ( 46 ) $ ( 46 ) $ 134 $ 110 $ 71 $ 10 $ ( 57 ) (1) Core Earnings adjustments to GAAP: Three Months Ended June 30, 2022 (Dollars in millions) Net Impact of Net Impact of Total Net interest income (loss) after provisions for loan losses $ ( 50 ) $ — $ ( 50 ) Total other income (loss) ( 22 ) — ( 22 ) Goodwill and acquired intangible asset impairment and amortization — ( 3 ) ( 3 ) Total Core Earnings adjustments to GAAP $ ( 72 ) $ 3 ( 69 ) Income tax expense (benefit) ( 23 ) Net income (loss) $ ( 46 ) (2) Income taxes are based on a percentage of net income before tax for the individual reportable segment. 11. Segment Reporting (Continued) Six Months Ended June 30, 2023 Adjustments Reportable Segments (Dollars in millions) Total Reclassi- Additions/ Total (1) Total Federal Education Loans Consumer Lending Business Processing Other Interest income: Education loans $ 2,099 $ 1,416 $ 686 $ — $ — Cash and investments 70 38 13 — 19 Total interest income 2,169 1,454 699 — 19 Total interest expense 1,756 1,223 402 — 73 Net interest income 413 $ 16 $ 45 $ 61 $ 474 231 297 — ( 54 ) Less: provisions for loan ( 3 ) ( 3 ) 15 ( 18 ) — — Net interest income 416 216 315 — ( 54 ) Other income (loss): Servicing revenue 33 27 6 — — Asset recovery and 155 — — 155 — Other revenue 28 7 1 — 3 Total other income 216 ( 16 ) ( 1 ) ( 17 ) 199 34 7 155 3 Expenses: Direct operating 259 38 79 142 — Unallocated shared 109 — — — 109 Operating expenses 368 — — — 368 38 79 142 109 Goodwill and acquired 5 — ( 5 ) ( 5 ) — — — — — Restructuring/other 19 — — — 19 — — — 19 Total expenses 392 — ( 5 ) ( 5 ) 387 38 79 142 128 Income (loss) before 240 — 49 49 289 212 243 13 ( 179 ) Income tax expense (2) 63 — 5 5 68 50 58 3 ( 43 ) Net income (loss) $ 177 $ — $ 44 $ 44 $ 221 $ 162 $ 185 $ 10 $ ( 136 ) (1) Core Earnings adjustments to GAAP: Six Months Ended June 30, 2023 (Dollars in millions) Net Impact of Net Impact of Total Net interest income (loss) after provisions for loan losses $ 61 $ — $ 61 Total other income (loss) ( 17 ) — ( 17 ) Goodwill and acquired intangible asset impairment and amortization — ( 5 ) ( 5 ) Total Core Earnings adjustments to GAAP $ 44 $ 5 49 Income tax expense (benefit) 5 Net income (loss) $ 44 (2) Income taxes are based on a percentage of net income before tax for the individual reportable segment. 11. Segment Reporting (Continued) Six Months Ended June 30, 2022 Adjustments Reportable Segments (Dollars in millions) Total Reclassi- Additions/ Total (1) Total Federal Education Loans Consumer Lending Business Processing Other Interest income: Education loans $ 1,312 $ 743 $ 553 $ — $ — Cash and investments 6 3 2 — 1 Total interest income 1,318 746 555 — 1 Total interest expense 660 461 262 — 32 Net interest income 658 $ ( 19 ) $ ( 92 ) $ ( 111 ) $ 547 285 293 — ( 31 ) Less: provisions for loan 34 34 — 34 — — Net interest income 624 285 259 — ( 31 ) Other income (loss): Servicing revenue 36 30 6 — — Asset recovery and 185 4 — 181 — Other revenue 136 18 1 — ( 3 ) Total other income 357 19 ( 139 ) ( 120 ) 237 52 7 181 ( 3 ) Expenses: Direct operating 273 54 69 150 — Unallocated shared 122 — — — 122 Operating expenses 395 — — — 395 54 69 150 122 Goodwill and acquired 7 — ( 7 ) ( 7 ) — — — — — Restructuring/other 3 — — — 3 — — — 3 Total expenses 405 — ( 7 ) ( 7 ) 398 54 69 150 125 Income (loss) before 576 — ( 224 ) ( 224 ) 352 283 197 31 ( 159 ) Income tax expense (2) 141 — ( 58 ) ( 58 ) 83 67 47 7 ( 38 ) Net income (loss) $ 435 $ — $ ( 166 ) $ ( 166 ) $ 269 $ 216 $ 150 $ 24 $ ( 121 ) (1) Core Earnings adjustments to GAAP: Six Months Ended June 30, 2022 (Dollars in millions) Net Impact of Net Impact of Total Net interest income (loss) after provisions for loan losses $ ( 111 ) $ — $ ( 111 ) Total other income (loss) ( 120 ) — ( 120 ) Goodwill and acquired intangible asset impairment and amortization — ( 7 ) ( 7 ) Total Core Earnings adjustments to GAAP $ ( 231 ) $ 7 ( 224 ) Income tax expense (benefit) ( 58 ) Net income (loss) $ ( 166 ) (2) Income taxes are based on a percentage of net income before tax for the individual reportable segment. |
Core Earnings Adjustments to GAAP | Su mmary of Core Earnings Adjustments to GAAP Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2023 2022 2023 2022 GAAP net income $ 66 $ 180 $ 177 $ 435 Core Earnings adjustments to GAAP: Net impact of derivative accounting (1) 17 ( 72 ) 44 ( 231 ) Net impact of goodwill and acquired (2) 3 3 5 7 Net tax effect (3) 2 23 ( 5 ) 58 Total Core Earnings adjustments to GAAP 22 ( 46 ) 44 ( 166 ) Core Earnings net income $ 88 $ 134 $ 221 $ 269 (1) Derivative accounting: Core Earnings exclude periodic gains and losses that are caused by the mark-to-market valuations on derivatives that do not qualify for hedge accounting treatment under GAAP as well as the periodic mark-to-market gains and losses that are a result of ineffectiveness recognized related to effective hedges under GAAP. Under GAAP, for our derivatives that are held to maturity, the mark-to-market gain or loss over the life of the contract will equal $ 0 except for Floor Income Contracts where the mark-to-market gain will equal the amount for which we sold the contract. In our Core Earnings presentation, we recognize the economic effect of these hedges, which generally results in any net settlement cash paid or received being recognized ratably as an interest expense or revenue over the hedged item’s life. (2) Goodwill and acquired intangible assets: Our Core Earnings exclude goodwill and intangible asset impairment and amortization of acquired intangible assets. Net tax effect: Such tax effect is based upon our Core Earnings effective tax rate for the ye ar. |
Federal Education Loans [Member] | |
Asset Information for Loans Segment | The following table includes asset information for our Federal Education Loans segment. (Dollars in millions) June 30, 2023 December 31, 2022 FFELP Loans, net $ 40,851 $ 43,525 Cash and investments (1) 1,484 2,746 Other 2,147 2,229 Total assets $ 44,482 $ 48,500 (1) Includes restricted cash and investments. |
Consumer Lending [Member] | |
Asset Information for Loans Segment | The following table includes asset information for our Consumer Lending segment. (Dollars in millions) June 30, 2023 December 31, 2022 Private Education Loans, net $ 17,732 $ 18,725 Cash and investments (1) 512 617 Other 556 453 Total assets $ 18,800 $ 19,795 Includes restricted cash and investments. |
Significant Accounting Polici_3
Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | |||||
Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |
Summary Of Significant Accounting Policies [Line Items] | ||||||
Allowance for loans losses | $ 857 | $ 920 | $ 1,022 | $ 1,166 | $ 1,219 | $ 1,271 |
ASU 2020-04 [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Debt | 12,000 | |||||
ASU 2022-02 [Member] | Interest Rate Reduction [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Allowance for loans losses | 77 | $ 77 | ||||
Allowance for loans losses released | $ 60 |
Allowance for Loan Losses - All
Allowance for Loan Losses - Allowance for Credit Losses and Recorded Investments in Loans (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Allowance for Loan Losses | ||||
Allowance at beginning of period | $ 920 | $ 1,219 | $ 1,022 | $ 1,271 |
Provision: | ||||
Total provision | 11 | 18 | (3) | 34 |
Charge-offs: | ||||
Gross charge-offs | (92) | (92) | 198 | (181) |
Expected future recoveries on current period gross charge-offs | 11 | 12 | 24 | 25 |
Net charge-offs | (81) | (80) | (174) | (156) |
Decrease in expected future recoveries on previously fully charged-off loans | 7 | 9 | 12 | 17 |
Allowance at end of period | 857 | 1,166 | 857 | 1,166 |
FFELP Loans [Member] | ||||
Allowance for Loan Losses | ||||
Allowance at beginning of period | 214 | 255 | 222 | 262 |
Provision: | ||||
Total provision | 5 | 0 | 15 | 0 |
Charge-offs: | ||||
Gross charge-offs | (19) | (10) | 37 | (17) |
Expected future recoveries on current period gross charge-offs | 0 | 0 | 0 | 0 |
Net charge-offs | (19) | (10) | (37) | (17) |
Decrease in expected future recoveries on previously fully charged-off loans | 0 | 0 | 0 | 0 |
Allowance at end of period | $ 200 | $ 245 | $ 200 | $ 245 |
Net charge-offs as a percentage of average loans in repayment (annualized) | 0.22% | 0.09% | 0.22% | 0.08% |
Ending total loans | $ 41,051 | $ 49,459 | $ 41,051 | $ 49,459 |
Average loans in repayment | 33,790 | 42,163 | 34,046 | 42,922 |
Ending loans in repayment | 33,076 | 41,168 | 33,076 | 41,168 |
Private Education Loans [Member] | ||||
Allowance for Loan Losses | ||||
Allowance at beginning of period | 706 | 964 | 800 | 1,009 |
Provision: | ||||
Total provision | (6) | 18 | 18 | 34 |
Charge-offs: | ||||
Gross charge-offs | (73) | (82) | 161 | (164) |
Expected future recoveries on current period gross charge-offs | 11 | 12 | 24 | 25 |
Net charge-offs | (62) | (70) | (137) | (139) |
Decrease in expected future recoveries on previously fully charged-off loans | 7 | 9 | 12 | 17 |
Allowance at end of period | $ 657 | $ 921 | $ 657 | $ 921 |
Net charge-offs as a percentage of average loans in repayment (annualized) | 1.39% | 1.40% | 1.51% | 1.39% |
Ending total loans | $ 18,389 | $ 20,589 | $ 18,389 | $ 20,589 |
Average loans in repayment | 17,990 | 20,162 | 18,270 | 20,274 |
Ending loans in repayment | $ 17,720 | $ 19,938 | $ 17,720 | $ 19,938 |
Allowance for Loan Losses - A_2
Allowance for Loan Losses - Allowance for Credit Losses and Recorded Investments in Loans (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Accounts Notes And Loans Receivable [Line Items] | ||||
Expected future recoveries of current period defaults | $ 11 | $ 12 | $ 24 | $ 25 |
Change in balance during period | (7) | (9) | (12) | (17) |
Private Education Loans [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Beginning of period expected future recoveries on previously fully charged-off loans | 268 | 321 | 274 | 329 |
Expected future recoveries of current period defaults | 11 | 12 | 24 | 25 |
Recoveries (cash collected) | (11) | (15) | (24) | (30) |
Charge-offs (as a result of lower recovery expectations) | (6) | (6) | (12) | (12) |
End of period expected future recoveries on previously fully charged-off loans | 262 | 312 | 262 | 312 |
Change in balance during period | $ (7) | $ (9) | $ (12) | $ (17) |
Allowance for Loan Losses - Add
Allowance for Loan Losses - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Period of hardship forbearance of payments | 12 months |
Period of hardship forbearance of payments for borrowers of substantial payments | 24 months |
Percentage guaranteed as to principal and accrued interest by federal goverment in event of default | 97% |
Allowance for Loan Losses - Age
Allowance for Loan Losses - Age Analysis of Past Due Loans Delinquencies (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2021 | |
Loans in repayment and percentage of each status: | |||||||
Loan allowance for losses | $ (857) | $ (857) | $ (1,166) | $ (1,022) | $ (920) | $ (1,219) | $ (1,271) |
FFELP Loans [Member] | |||||||
Loans in repayment and percentage of each status: | |||||||
Total Loans, gross | 41,051 | 41,051 | 49,459 | ||||
Loan allowance for losses | (200) | (200) | (245) | (222) | (214) | (255) | (262) |
Loans, net | 40,851 | 40,851 | 43,525 | ||||
Credit Concentration Risk [Member] | Accounts Receivable [Member] | FFELP Loans [Member] | |||||||
Loans in repayment and percentage of each status: | |||||||
Total Loans, gross | 41,051 | 41,051 | 49,459 | 43,747 | |||
Loan allowance for losses | (200) | (200) | (245) | (222) | |||
Loans, net | $ 40,851 | $ 40,851 | $ 49,214 | $ 43,525 | |||
Dimensions of concentration risk | 100% | 100% | 100% | ||||
Credit Concentration Risk [Member] | Financing Receivables, Current [Member] | Accounts Receivable [Member] | FFELP Loans [Member] | |||||||
Loans in repayment and percentage of each status: | |||||||
Dimensions of concentration risk | 83.90% | 84.10% | 84.40% | ||||
Credit Concentration Risk [Member] | Financing Receivables, 31 to 60 Days Past Due [Member] | Accounts Receivable [Member] | FFELP Loans [Member] | |||||||
Loans in repayment and percentage of each status: | |||||||
Loans delinquent, percentage | 4.80% | 4.80% | 5.30% | 3.60% | |||
Credit Concentration Risk [Member] | Financing Receivables, 61 to 90 Days Past Due [Member] | Accounts Receivable [Member] | FFELP Loans [Member] | |||||||
Loans in repayment and percentage of each status: | |||||||
Loans delinquent, percentage | 3.10% | 3.10% | 3.20% | 2.40% | |||
Credit Concentration Risk [Member] | Financing Receivables, 90 Days Past Due [Member] | Accounts Receivable [Member] | FFELP Loans [Member] | |||||||
Loans in repayment and percentage of each status: | |||||||
Loans delinquent, percentage | 8.20% | 8.20% | 7.40% | 9.60% | |||
Credit Concentration Risk [Member] | Financing Receivables, Loans In Repayment [Member] | Accounts Receivable [Member] | FFELP Loans [Member] | |||||||
Loans in repayment and percentage of each status: | |||||||
Dimensions of concentration risk | 80.60% | 83.20% | 78.60% | ||||
Credit Concentration Risk [Member] | Financing Receivables, Delinquent Loans in Repayment [Member] | Accounts Receivable [Member] | FFELP Loans [Member] | |||||||
Loans in repayment and percentage of each status: | |||||||
Dimensions of concentration risk | 16.10% | 15.90% | 15.60% | ||||
Credit Concentration Risk [Member] | Financing Receivables, Forbearance, Loans In Repayment [Member] | Accounts Receivable [Member] | FFELP Loans [Member] | |||||||
Loans in repayment and percentage of each status: | |||||||
Dimensions of concentration risk | 16% | 13.10% | 18.10% | ||||
School/Grace/Deferment [Member] | Credit Concentration Risk [Member] | Accounts Receivable [Member] | FFELP Loans [Member] | |||||||
Loans in repayment and percentage of each status: | |||||||
Total Loans, gross | $ 1,659 | $ 1,659 | $ 2,064 | $ 1,772 | |||
Forbearance [Member] | Credit Concentration Risk [Member] | Accounts Receivable [Member] | FFELP Loans [Member] | |||||||
Loans in repayment and percentage of each status: | |||||||
Total Loans, gross | 6,316 | 6,316 | 6,227 | 7,603 | |||
Repayment [Member] | Credit Concentration Risk [Member] | Accounts Receivable [Member] | FFELP Loans [Member] | |||||||
Loans in repayment and percentage of each status: | |||||||
Total Loans, gross | 33,076 | 33,076 | 41,168 | 34,372 | |||
Repayment [Member] | Credit Concentration Risk [Member] | Financing Asset, Not Past Due [Member] | Accounts Receivable [Member] | FFELP Loans [Member] | |||||||
Loans in repayment and percentage of each status: | |||||||
Total Loans, gross | 27,756 | 27,756 | 34,627 | 29,004 | |||
Repayment [Member] | Credit Concentration Risk [Member] | Financial Asset, 31 to 60 Days Past Due [Member] | Accounts Receivable [Member] | FFELP Loans [Member] | |||||||
Loans in repayment and percentage of each status: | |||||||
Total Loans, gross | 1,596 | 1,596 | 2,163 | 1,247 | |||
Repayment [Member] | Credit Concentration Risk [Member] | Financial Asset, 61 to 90 Days Past Due [Member] | Accounts Receivable [Member] | FFELP Loans [Member] | |||||||
Loans in repayment and percentage of each status: | |||||||
Total Loans, gross | 1,013 | 1,013 | 1,323 | 833 | |||
Repayment [Member] | Credit Concentration Risk [Member] | Financial Asset, 90 Days Past Due [Member] | Accounts Receivable [Member] | FFELP Loans [Member] | |||||||
Loans in repayment and percentage of each status: | |||||||
Total Loans, gross | 2,711 | 2,711 | 3,055 | 3,288 | |||
Private Education Loans [Member] | |||||||
Loans in repayment and percentage of each status: | |||||||
Total Loans, gross | 18,389 | 18,389 | 20,589 | ||||
Loan allowance for losses | (657) | (657) | (921) | (800) | $ (706) | $ (964) | $ (1,009) |
Loans, net | 17,732 | 17,732 | 19,668 | 18,725 | |||
Private Education Loans [Member] | Credit Concentration Risk [Member] | Accounts Receivable [Member] | |||||||
Loans in repayment and percentage of each status: | |||||||
Total Loans, gross | 18,389 | 18,389 | 20,589 | 19,525 | |||
Loan allowance for losses | (657) | (657) | (921) | (800) | |||
Loans, net | $ 17,732 | $ 17,732 | $ 19,668 | $ 18,725 | |||
Dimensions of concentration risk | 100% | 100% | 100% | ||||
Private Education Loans [Member] | Credit Concentration Risk [Member] | Financing Receivables, Current [Member] | Accounts Receivable [Member] | |||||||
Loans in repayment and percentage of each status: | |||||||
Dimensions of concentration risk | 95.60% | 95.90% | 95% | ||||
Private Education Loans [Member] | Credit Concentration Risk [Member] | Financing Receivables, 31 to 60 Days Past Due [Member] | Accounts Receivable [Member] | |||||||
Loans in repayment and percentage of each status: | |||||||
Loans delinquent, percentage | 0% | 0% | 1.30% | 1.80% | |||
Private Education Loans [Member] | Credit Concentration Risk [Member] | Financing Receivables, 61 to 90 Days Past Due [Member] | Accounts Receivable [Member] | |||||||
Loans in repayment and percentage of each status: | |||||||
Loans delinquent, percentage | 0% | 0% | 0.80% | 1% | |||
Private Education Loans [Member] | Credit Concentration Risk [Member] | Financing Receivables, 90 Days Past Due [Member] | Accounts Receivable [Member] | |||||||
Loans in repayment and percentage of each status: | |||||||
Loans delinquent, percentage | 0% | 0% | 2% | 2.20% | |||
Private Education Loans [Member] | Credit Concentration Risk [Member] | Financing Receivables, Loans In Repayment [Member] | Accounts Receivable [Member] | |||||||
Loans in repayment and percentage of each status: | |||||||
Dimensions of concentration risk | 96.40% | 96.80% | 96.10% | ||||
Private Education Loans [Member] | Credit Concentration Risk [Member] | Financing Receivables, Delinquent Loans in Repayment [Member] | Accounts Receivable [Member] | |||||||
Loans in repayment and percentage of each status: | |||||||
Dimensions of concentration risk | 4.40% | 4.10% | 5% | ||||
Private Education Loans [Member] | Credit Concentration Risk [Member] | Financing Receivables, Forbearance, Loans In Repayment [Member] | Accounts Receivable [Member] | |||||||
Loans in repayment and percentage of each status: | |||||||
Dimensions of concentration risk | 1.80% | 1.50% | 2.10% | ||||
Private Education Loans [Member] | School/Grace/Deferment [Member] | Credit Concentration Risk [Member] | Accounts Receivable [Member] | |||||||
Loans in repayment and percentage of each status: | |||||||
Total Loans, gross | $ 341 | $ 341 | $ 348 | $ 354 | |||
Private Education Loans [Member] | Forbearance [Member] | Credit Concentration Risk [Member] | Accounts Receivable [Member] | |||||||
Loans in repayment and percentage of each status: | |||||||
Total Loans, gross | 328 | 328 | 303 | 401 | |||
Private Education Loans [Member] | Repayment [Member] | Credit Concentration Risk [Member] | Accounts Receivable [Member] | |||||||
Loans in repayment and percentage of each status: | |||||||
Total Loans, gross | 17,720 | 17,720 | 19,938 | 18,770 | |||
Private Education Loans [Member] | Repayment [Member] | Credit Concentration Risk [Member] | Financing Asset, Not Past Due [Member] | Accounts Receivable [Member] | |||||||
Loans in repayment and percentage of each status: | |||||||
Total Loans, gross | 16,942 | 16,942 | 19,116 | 17,838 | |||
Private Education Loans [Member] | Repayment [Member] | Credit Concentration Risk [Member] | Financial Asset, 31 to 60 Days Past Due [Member] | Accounts Receivable [Member] | |||||||
Loans in repayment and percentage of each status: | |||||||
Total Loans, gross | 276 | 276 | 269 | 335 | |||
Private Education Loans [Member] | Repayment [Member] | Credit Concentration Risk [Member] | Financial Asset, 61 to 90 Days Past Due [Member] | Accounts Receivable [Member] | |||||||
Loans in repayment and percentage of each status: | |||||||
Total Loans, gross | 151 | 151 | 152 | 186 | |||
Private Education Loans [Member] | Repayment [Member] | Credit Concentration Risk [Member] | Financial Asset, 90 Days Past Due [Member] | Accounts Receivable [Member] | |||||||
Loans in repayment and percentage of each status: | |||||||
Total Loans, gross | $ 351 | $ 351 | $ 401 | $ 411 |
Allowance for Loan Losses - Loa
Allowance for Loan Losses - Loan Type (Detail) - FFELP Loans [Member] - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans, gross | $ 41,051 | $ 49,459 |
Change | (8,408) | |
Stafford Loans [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans, gross | 13,151 | 15,538 |
Change | (2,387) | |
Consolidation Loans [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans, gross | 23,956 | 29,396 |
Change | (5,440) | |
Rehab Loans [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans, gross | 3,944 | $ 4,525 |
Change | $ (581) |
Allowance for Loan Losses - Pri
Allowance for Loan Losses - Private Education Loan Portfolio Stratified by Key Credit Quality Indicators (Detail) - USD ($) $ in Millions | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Accounts Notes And Loans Receivable [Line Items] | ||||||
Loan allowance for losses | $ (857) | $ (920) | $ (1,022) | $ (1,166) | $ (1,219) | $ (1,271) |
Private Education Loans [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Loans, gross | 18,389 | 20,589 | ||||
Loan allowance for losses | (657) | $ (706) | (800) | (921) | $ (964) | $ (1,009) |
Loans, net | 17,732 | $ 18,725 | 19,668 | |||
Loan, Net Charge-Offs in Year One | 0 | |||||
Loan, Net Charge-Offs in Year Two | (3) | |||||
Loan, Net Charge-Offs in Year Three | (5) | |||||
Loan, Net Charge-Offs in Year Four | (2) | |||||
Loan, Net Charge-Offs in Year Five | (4) | |||||
Loan, Net Charge-Offs in Year Prior | (123) | |||||
Total Net Charge-Offs | $ (137) | |||||
Percentage of Loan, Net Charge-Offs | 100% | |||||
FICO Scores [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Private Education Loan Credit Quality Indicators by Origination Year One | $ 326 | 1,318 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Two | 1,748 | 4,932 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Three | 4,309 | 1,690 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Four | 1,393 | 1,617 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Five | 1,330 | 607 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Prior | 9,283 | 10,425 | ||||
Total Loans, gross | $ 18,389 | $ 20,589 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year, Percent | 100% | 100% | ||||
FICO Scores [Member] | 640 and Above [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Private Education Loan Credit Quality Indicators by Origination Year One | $ 322 | $ 1,307 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Two | 1,698 | 4,875 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Three | 4,209 | 1,672 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Four | 1,367 | 1,583 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Five | 1,287 | 587 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Prior | 7,851 | 8,925 | ||||
Total Loans, gross | $ 16,734 | $ 18,949 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year, Percent | 91% | 92% | ||||
FICO Scores [Member] | Below 640 [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Private Education Loan Credit Quality Indicators by Origination Year One | $ 4 | $ 11 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Two | 50 | 57 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Three | 100 | 18 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Four | 26 | 34 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Five | 43 | 20 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Prior | 1,432 | 1,500 | ||||
Total Loans, gross | $ 1,655 | $ 1,640 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year, Percent | 9% | 8% | ||||
Loan Status [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Private Education Loan Credit Quality Indicators by Origination Year One | $ 326 | $ 1,318 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Two | 1,748 | 4,932 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Three | 4,309 | 1,690 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Four | 1,393 | 1,617 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Five | 1,330 | 607 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Prior | 9,283 | 10,425 | ||||
Total Loans, gross | $ 18,389 | $ 20,589 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year, Percent | 100% | 100% | ||||
Loan Status [Member] | School/Grace/Deferment [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Private Education Loan Credit Quality Indicators by Origination Year One | $ 15 | $ 18 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Two | 69 | 79 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Three | 82 | 29 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Four | 22 | 32 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Five | 27 | 13 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Prior | 454 | 480 | ||||
Total Loans, gross | $ 669 | $ 651 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year, Percent | 4% | 3% | ||||
Loan Status [Member] | Current/90 Days or Less Delinquent [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Private Education Loan Credit Quality Indicators by Origination Year One | $ 311 | $ 1,300 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Two | 1,673 | 4,848 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Three | 4,218 | 1,659 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Four | 1,367 | 1,580 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Five | 1,297 | 591 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Prior | 8,503 | 9,559 | ||||
Total Loans, gross | $ 17,369 | $ 19,537 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year, Percent | 94% | 95% | ||||
Loan Status [Member] | Greater than 90 days Delinquent [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Private Education Loan Credit Quality Indicators by Origination Year One | $ 0 | $ 0 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Two | 6 | 5 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Three | 9 | 2 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Four | 4 | 5 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Five | 6 | 3 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Prior | 326 | 386 | ||||
Total Loans, gross | $ 351 | $ 401 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year, Percent | 2% | 2% | ||||
Seasoning [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Private Education Loan Credit Quality Indicators by Origination Year One | $ 326 | $ 1,318 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Two | 1,748 | 4,932 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Three | 4,309 | 1,690 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Four | 1,393 | 1,617 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Five | 1,330 | 607 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Prior | 9,283 | 10,425 | ||||
Total Loans, gross | 18,389 | $ 20,589 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year, Percent | 100% | |||||
Seasoning [Member] | 1-12 Payments [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Private Education Loan Credit Quality Indicators by Origination Year One | 312 | $ 1,304 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Two | 744 | 3,452 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Three | 49 | 17 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Four | 10 | 15 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Five | 6 | 3 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Prior | 66 | 105 | ||||
Total Loans, gross | $ 1,187 | $ 4,896 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year, Percent | 6% | 24% | ||||
Seasoning [Member] | 13-24 Payments [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Private Education Loan Credit Quality Indicators by Origination Year One | $ 0 | $ 0 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Two | 950 | 1,433 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Three | 3,021 | 981 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Four | 23 | 52 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Five | 18 | 9 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Prior | 77 | 119 | ||||
Total Loans, gross | $ 4,089 | $ 2,594 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year, Percent | 22% | 12% | ||||
Seasoning [Member] | 25-36 Payments [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Private Education Loan Credit Quality Indicators by Origination Year One | $ 0 | $ 0 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Two | 0 | 0 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Three | 1,188 | 676 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Four | 819 | 1,282 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Five | 58 | 26 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Prior | 142 | 203 | ||||
Total Loans, gross | $ 2,207 | $ 2,187 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year, Percent | 12% | 11% | ||||
Seasoning [Member] | 37-48 Payments [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Private Education Loan Credit Quality Indicators by Origination Year One | $ 0 | $ 0 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Two | 0 | 0 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Three | 0 | 0 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Four | 529 | 251 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Five | 1,036 | 437 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Prior | 230 | 330 | ||||
Total Loans, gross | $ 1,795 | $ 1,018 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year, Percent | 10% | 5% | ||||
Seasoning [Member] | More than 48 Payments [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Private Education Loan Credit Quality Indicators by Origination Year One | $ 0 | $ 0 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Two | 0 | 0 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Three | 0 | 0 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Four | 0 | 0 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Five | 198 | 126 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Prior | 8,572 | 9,420 | ||||
Total Loans, gross | $ 8,770 | $ 9,546 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year, Percent | 48% | 46% | ||||
Seasoning [Member] | School/Grace/Deferment [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Private Education Loan Credit Quality Indicators by Origination Year One | $ 14 | $ 14 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Two | 54 | 47 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Three | 51 | 16 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Four | 12 | 17 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Five | 14 | 6 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Prior | 196 | 248 | ||||
Total Loans, gross | $ 341 | $ 348 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year, Percent | 2% | 2% | ||||
Certain Loan Modifications [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Private Education Loan Credit Quality Indicators by Origination Year One | $ 326 | $ 1,318 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Two | 1,748 | 4,932 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Three | 4,309 | 1,690 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Four | 1,393 | 1,617 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Five | 1,330 | 607 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Prior | 9,283 | 10,425 | ||||
Total Loans, gross | $ 18,389 | $ 20,589 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year, Percent | 100% | 100% | ||||
Certain Loan Modifications [Member] | Modified [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Private Education Loan Credit Quality Indicators by Origination Year One | $ 0 | $ 1 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Two | 20 | 24 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Three | 102 | 22 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Four | 41 | 54 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Five | 75 | 32 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Prior | 6,101 | 6,830 | ||||
Total Loans, gross | $ 6,339 | $ 6,963 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year, Percent | 34% | 34% | ||||
Certain Loan Modifications [Member] | Non-Modified [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Private Education Loan Credit Quality Indicators by Origination Year One | $ 326 | $ 1,317 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Two | 1,728 | 4,908 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Three | 4,207 | 1,668 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Four | 1,352 | 1,563 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Five | 1,255 | 575 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Prior | 3,182 | 3,595 | ||||
Total Loans, gross | $ 12,050 | $ 13,626 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year, Percent | 66% | 66% | ||||
Cosigners [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Private Education Loan Credit Quality Indicators by Origination Year One | $ 326 | $ 1,318 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Two | 1,748 | 4,932 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Three | 4,309 | 1,690 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Four | 1,617 | |||||
Total Private Education Loan Credit Quality Indicators by Origination Year Five | 1,330 | 607 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Prior | 9,283 | 10,425 | ||||
Total Loans, gross | $ 18,389 | $ 20,589 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year, Percent | 100% | 100% | ||||
Cosigners [Member] | With Cosigner [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Private Education Loan Credit Quality Indicators by Origination Year One | $ 57 | $ 19 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Two | 187 | 112 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Three | 100 | 29 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Four | 25 | 11 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Five | 9 | 0 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Prior | 5,647 | 6,710 | ||||
Total Loans, gross | $ 6,025 | $ 6,881 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year, Percent | 33% | 33% | ||||
Cosigners [Member] | Without Cosigner [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Private Education Loan Credit Quality Indicators by Origination Year One | $ 269 | $ 1,299 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Two | 1,561 | 4,820 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Three | 4,209 | 1,661 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Four | 1,368 | 1,606 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Five | 1,321 | 607 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Prior | 3,636 | 3,715 | ||||
Total Loans, gross | $ 12,364 | $ 13,708 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year, Percent | 67% | 67% | ||||
School Type [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Private Education Loan Credit Quality Indicators by Origination Year One | $ 326 | $ 1,318 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Two | 1,748 | 4,932 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Three | 4,309 | 1,690 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Four | 1,393 | 1,617 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Five | 1,330 | 607 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Prior | 9,283 | 10,425 | ||||
Total Loans, gross | $ 18,389 | $ 20,589 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year, Percent | 100% | 100% | ||||
School Type [Member] | Not For Profit [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Private Education Loan Credit Quality Indicators by Origination Year One | $ 304 | $ 1,237 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Two | 1,654 | 4,647 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Three | 4,059 | 1,615 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Four | 1,331 | 1,507 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Five | 1,238 | 558 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Prior | 7,809 | 8,701 | ||||
Total Loans, gross | $ 16,395 | $ 18,265 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year, Percent | 89% | 89% | ||||
School Type [Member] | For Profit [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Private Education Loan Credit Quality Indicators by Origination Year One | $ 22 | $ 81 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Two | 94 | 285 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Three | 250 | 75 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Four | 62 | 110 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Five | 92 | 49 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year Prior | 1,474 | 1,724 | ||||
Total Loans, gross | $ 1,994 | $ 2,324 | ||||
Total Private Education Loan Credit Quality Indicators by Origination Year, Percent | 11% | 11% |
Allowance for Loan Losses - P_2
Allowance for Loan Losses - Private Education Loan Portfolio Stratified by Key Credit Quality Indicators (Parenthetical) (Detail) | Jun. 30, 2023 | Jun. 30, 2022 |
With Cosigner [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators, Excluding Refinance Loans, Percent | 65% | 65% |
Allowance for Loan Losses - Amo
Allowance for Loan Losses - Amortized Cost Basis of Loans Modified to Borrowers with Financial Difficulty (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Accounts Notes And Loans Receivable [Line Items] | ||||||
Loan Modifications, Amortized Cost | $ 62 | $ 117 | ||||
Private Education Loans [Member] | Interest Rate Reduction [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Loan Modifications, Amortized Cost | $ 548 | $ 1,161 | ||||
Loan Modifications, % of Loan Type | 3% | 6.30% | ||||
Loans receivable, weighted average rate of interest | 5.30% | 13% | 5.10% | 12.90% | ||
Private Education Loans [Member] | More Than an Insignificant Payment Delay [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Loan Modifications, Amortized Cost | $ 274 | $ 539 | ||||
Loan Modifications, % of Loan Type | 1.50% | 2.90% | ||||
Loans receivable, weighted average period added to remaining life of loan | 5 months | 6 months | ||||
Private Education Loans [Member] | Combination Rate Reduction and Term Extension [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Loan Modifications, Amortized Cost | $ 45 | $ 91 | ||||
Loan Modifications, % of Loan Type | 0.20% | 0.50% | ||||
Loans receivable, weighted average rate of interest | 5.30% | 12.40% | 5.20% | 12.40% | ||
Loans receivable, weighted average period added to remaining life of loan | 8 years | 8 years |
Allowance for Loan Losses - A_3
Allowance for Loan Losses - Amortized Cost Basis of Loans Modified to Borrowers with Financial Difficulty (Parenthetical) (Details) - Private Education Loans [Member] - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 |
Accounts Notes And Loans Receivable [Line Items] | |||
Loans | $ 17,732 | $ 18,725 | $ 19,668 |
Interest Rate Reduction [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loans | $ 1,200 |
Allowance for Loan Losses - A_4
Allowance for Loan Losses - Amount of Loans Modified for Borrowers Financial Difficulty and Payment Default (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Accounts Notes And Loans Receivable [Line Items] | ||||
Payment Default (Par) | $ 9 | $ 18 | ||
Private Education Loans [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Modified Loans (Amortized Cost) | $ 36 | $ 38 | ||
Payment Default (Par) | $ 37 | $ 39 |
Allowance for Loan Losses - A_5
Allowance for Loan Losses - Amount of Loans Modified for Borrowers Financial Difficulty and Payment Default (Parenthetical) (Details) - Private Education Loans [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
Accounts Notes And Loans Receivable [Line Items] | ||
Modified Loans (Amortized Cost) | $ 36 | $ 38 |
Interest Rate Reduction [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Modified Loans (Amortized Cost) | 22 | 24 |
More Than an Insignificant Payment Delay [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Modified Loans (Amortized Cost) | 12 | 13 |
Combination Rate Reduction and Term Extension [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Modified Loans (Amortized Cost) | $ 2 | $ 2 |
Allowance for Loan Losses - Sum
Allowance for Loan Losses - Summary of Performance and Related Loan Status of Loans Modified (Details) - Private Education Loans [Member] $ in Millions | Jun. 30, 2023 USD ($) |
Accounts Notes And Loans Receivable [Line Items] | |
Payment status (Amortized Cost) | $ 1,791 |
Financing Asset, Not Past Due [Member] | |
Accounts Notes And Loans Receivable [Line Items] | |
Payment status (Amortized Cost) | 1,646 |
Financial Asset, 31 to 60 Days Past Due [Member] | |
Accounts Notes And Loans Receivable [Line Items] | |
Payment status (Amortized Cost) | 51 |
Financial Asset, 61 to 90 Days Past Due [Member] | |
Accounts Notes And Loans Receivable [Line Items] | |
Payment status (Amortized Cost) | 21 |
Financial Asset, 90 Days Past Due [Member] | |
Accounts Notes And Loans Receivable [Line Items] | |
Payment status (Amortized Cost) | 20 |
School/Deferment [Member] | |
Accounts Notes And Loans Receivable [Line Items] | |
Payment status (Amortized Cost) | 5 |
Forbearance [Member] | |
Accounts Notes And Loans Receivable [Line Items] | |
Payment status (Amortized Cost) | $ 48 |
Allowance for Loan Losses - S_2
Allowance for Loan Losses - Summary of Performance and Related Loan Status of Loans Modified (Parenthetical) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Private Education Loans [Member] | |
Accounts Notes And Loans Receivable [Line Items] | |
Loans modified, charged off | $ 2 |
Allowance for Loan Losses - L_2
Allowance for Loan Losses - Loans Modified Accounts for TDR (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2022 | Jun. 30, 2022 | |
Receivables [Abstract] | ||
Modified loans | $ 62 | $ 117 |
Charge-offs | 59 | 115 |
Payment default | $ 9 | $ 18 |
Borrowings - Company's Borrowin
Borrowings - Company's Borrowings (Detail) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Short-term borrowings | $ 4,838 | $ 5,870 |
Long-term borrowings | 56,936 | 61,026 |
Total | 61,774 | 66,896 |
Total Before Hedge Accounting Adjustments [Member] | ||
Debt Instrument [Line Items] | ||
Short-term borrowings | 4,856 | 5,880 |
Long-term borrowings | 57,358 | 61,516 |
Total | 62,214 | 67,396 |
Total Before Hedge Accounting Adjustments [Member] | Senior Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Short-term borrowings | 1,156 | 1,301 |
Long-term borrowings | 5,353 | 5,711 |
Total | 6,509 | 7,012 |
Total Before Hedge Accounting Adjustments [Member] | Total Unsecured Borrowings [Member] | ||
Debt Instrument [Line Items] | ||
Short-term borrowings | 1,156 | 1,301 |
Long-term borrowings | 5,353 | 5,711 |
Total | 6,509 | 7,012 |
Total Before Hedge Accounting Adjustments [Member] | FFELP Loan Securitizations [Member] | ||
Debt Instrument [Line Items] | ||
Short-term borrowings | 64 | 76 |
Long-term borrowings | 38,293 | 42,675 |
Total | 38,357 | 42,751 |
Total Before Hedge Accounting Adjustments [Member] | Private Education Loan Securitizations [Member] | ||
Debt Instrument [Line Items] | ||
Short-term borrowings | 574 | 725 |
Long-term borrowings | 12,316 | 12,744 |
Total | 12,890 | 13,469 |
Total Before Hedge Accounting Adjustments [Member] | FFELP Loan ABCP Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Short-term borrowings | 1,548 | 923 |
Long-term borrowings | 455 | 386 |
Total | 2,003 | 1,309 |
Total Before Hedge Accounting Adjustments [Member] | Private Education Loan ABCP Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Short-term borrowings | 1,416 | 2,734 |
Long-term borrowings | 901 | 0 |
Total | 2,317 | 2,734 |
Total Before Hedge Accounting Adjustments [Member] | Other [Member] | ||
Debt Instrument [Line Items] | ||
Short-term borrowings | 98 | 121 |
Long-term borrowings | 40 | 0 |
Total | 138 | 121 |
Total Before Hedge Accounting Adjustments [Member] | Secured Borrowings [Member] | ||
Debt Instrument [Line Items] | ||
Short-term borrowings | 3,700 | 4,579 |
Long-term borrowings | 52,005 | 55,805 |
Total | 55,705 | 60,384 |
Hedge Accounting Adjustments [Member] | ||
Debt Instrument [Line Items] | ||
Short-term borrowings | (18) | (10) |
Long-term borrowings | (422) | (490) |
Total | $ (440) | $ (500) |
Borrowings - Company's Borrow_2
Borrowings - Company's Borrowings (Parenthetical) (Detail) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Short-term debt | $ 4,838 | $ 5,870 |
Long-term debt | 56,936 | 61,026 |
FFELP Loan Securitizations ABS Repurchase Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Debt tranches default principal amount | 825 | |
Long Term Senior Unsecured Debt [Member] | FFELP Loan Securitizations ABS Repurchase Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 129 | 0 |
Total Before Hedge Accounting Adjustments [Member] | ||
Debt Instrument [Line Items] | ||
Short-term debt | 4,856 | 5,880 |
Long-term debt | 57,358 | 61,516 |
Total Before Hedge Accounting Adjustments [Member] | FFELP Loan Securitizations ABS Repurchase Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Short-term debt | 64 | 76 |
Total Before Hedge Accounting Adjustments [Member] | Private Education Loan Asset-backed Securitization Repurchase Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Short-term debt | 574 | 725 |
Total Before Hedge Accounting Adjustments [Member] | Short Term Senior Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt principal amount | 1,100 | 1,300 |
Total Before Hedge Accounting Adjustments [Member] | Long Term Senior Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt principal amount | $ 5,400 | $ 5,700 |
Borrowings - Financing VIEs (De
Borrowings - Financing VIEs (Detail) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Securities Financing Transaction [Line Items] | ||
Short-term borrowings | $ 4,838 | $ 5,870 |
Long-term borrowings | 56,936 | 61,026 |
Total | 61,774 | 66,896 |
Total assets | 65,598 | 70,795 |
Total Before Hedge Accounting Adjustments [Member] | ||
Securities Financing Transaction [Line Items] | ||
Short-term borrowings | 4,856 | 5,880 |
Long-term borrowings | 57,358 | 61,516 |
Total | 62,214 | 67,396 |
Hedge Accounting Adjustments [Member] | ||
Securities Financing Transaction [Line Items] | ||
Short-term borrowings | (18) | (10) |
Long-term borrowings | (422) | (490) |
Total | (440) | (500) |
Assets and Liabilities of Consolidated Variable Interest Entities [Member] | ||
Securities Financing Transaction [Line Items] | ||
Short-term borrowings | 3,602 | 4,458 |
Long-term borrowings | 51,804 | 55,598 |
Total | 55,406 | 60,056 |
Loans | 57,179 | 60,672 |
Cash | 1,924 | 3,233 |
Other assets | 1,560 | 1,356 |
Total assets | 60,663 | 65,261 |
Assets and Liabilities of Consolidated Variable Interest Entities [Member] | FFELP Loan Securitizations [Member] | ||
Securities Financing Transaction [Line Items] | ||
Short-term borrowings | 64 | 76 |
Long-term borrowings | 38,293 | 42,675 |
Total | 38,357 | 42,751 |
Loans | 38,757 | 42,148 |
Cash | 1,445 | 2,705 |
Other assets | 1,579 | 1,544 |
Total assets | 41,781 | 46,397 |
Assets and Liabilities of Consolidated Variable Interest Entities [Member] | Private Education Loan Securitizations [Member] | ||
Securities Financing Transaction [Line Items] | ||
Short-term borrowings | 574 | 725 |
Long-term borrowings | 12,316 | 12,744 |
Total | 12,890 | 13,469 |
Loans | 13,833 | 14,168 |
Cash | 365 | 367 |
Other assets | 98 | 105 |
Total assets | 14,296 | 14,640 |
Assets and Liabilities of Consolidated Variable Interest Entities [Member] | FFELP Loan ABCP Facilities [Member] | ||
Securities Financing Transaction [Line Items] | ||
Short-term borrowings | 1,548 | 923 |
Long-term borrowings | 455 | 386 |
Total | 2,003 | 1,309 |
Loans | 2,025 | 1,317 |
Cash | 37 | 39 |
Other assets | 75 | 44 |
Total assets | 2,137 | 1,400 |
Assets and Liabilities of Consolidated Variable Interest Entities [Member] | Private Education Loan ABCP Facilities [Member] | ||
Securities Financing Transaction [Line Items] | ||
Short-term borrowings | 1,416 | 2,734 |
Long-term borrowings | 901 | 0 |
Total | 2,317 | 2,734 |
Loans | 2,564 | 3,039 |
Cash | 77 | 122 |
Other assets | 44 | (81) |
Total assets | 2,685 | 3,080 |
Assets and Liabilities of Consolidated Variable Interest Entities [Member] | Total Before Hedge Accounting Adjustments [Member] | ||
Securities Financing Transaction [Line Items] | ||
Short-term borrowings | 3,602 | 4,458 |
Long-term borrowings | 51,965 | 55,805 |
Total | 55,567 | 60,263 |
Loans | 57,179 | 60,672 |
Cash | 1,924 | 3,233 |
Other assets | 1,796 | 1,612 |
Total assets | 60,899 | 65,517 |
Assets and Liabilities of Consolidated Variable Interest Entities [Member] | Hedge Accounting Adjustments [Member] | ||
Securities Financing Transaction [Line Items] | ||
Short-term borrowings | 0 | 0 |
Long-term borrowings | (161) | (207) |
Total | (161) | (207) |
Loans | 0 | 0 |
Cash | 0 | 0 |
Other assets | (236) | (256) |
Total assets | $ (236) | $ (256) |
Derivative Financial Instrume_3
Derivative Financial Instruments - Impact of Derivatives on Balance Sheet (Detail) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Derivative Assets: | ||
Derivative assets | $ 53 | $ 56 |
Derivative Liabilities: | ||
Derivative liabilities | (236) | (258) |
Net total derivatives | (183) | (202) |
Designated as Hedging Instrument [Member] | Cash Flow [Member] | ||
Derivative Assets: | ||
Derivative assets | 0 | 0 |
Derivative Liabilities: | ||
Derivative liabilities | 0 | 0 |
Net total derivatives | 0 | 0 |
Designated as Hedging Instrument [Member] | Fair Value [Member] | ||
Derivative Assets: | ||
Derivative assets | 53 | 55 |
Derivative Liabilities: | ||
Derivative liabilities | (234) | (255) |
Net total derivatives | (181) | (200) |
Trading [Member] | ||
Derivative Assets: | ||
Derivative assets | 0 | 1 |
Derivative Liabilities: | ||
Derivative liabilities | (2) | (3) |
Net total derivatives | (2) | (2) |
Interest Rate Swaps [Member] | ||
Derivative Assets: | ||
Derivative assets | 53 | 56 |
Derivative Liabilities: | ||
Derivative liabilities | (2) | (5) |
Interest Rate Swaps [Member] | Designated as Hedging Instrument [Member] | Cash Flow [Member] | ||
Derivative Assets: | ||
Derivative assets | 0 | 0 |
Derivative Liabilities: | ||
Derivative liabilities | 0 | 0 |
Interest Rate Swaps [Member] | Designated as Hedging Instrument [Member] | Fair Value [Member] | ||
Derivative Assets: | ||
Derivative assets | 53 | 55 |
Derivative Liabilities: | ||
Derivative liabilities | 0 | (2) |
Interest Rate Swaps [Member] | Trading [Member] | ||
Derivative Assets: | ||
Derivative assets | 0 | 1 |
Derivative Liabilities: | ||
Derivative liabilities | (2) | (3) |
Cross-Currency Interest Rate Swaps [Member] | ||
Derivative Assets: | ||
Derivative assets | 0 | 0 |
Derivative Liabilities: | ||
Derivative liabilities | (234) | (253) |
Cross-Currency Interest Rate Swaps [Member] | Designated as Hedging Instrument [Member] | Cash Flow [Member] | ||
Derivative Assets: | ||
Derivative assets | 0 | 0 |
Derivative Liabilities: | ||
Derivative liabilities | 0 | 0 |
Cross-Currency Interest Rate Swaps [Member] | Designated as Hedging Instrument [Member] | Fair Value [Member] | ||
Derivative Assets: | ||
Derivative assets | 0 | 0 |
Derivative Liabilities: | ||
Derivative liabilities | (234) | (253) |
Cross-Currency Interest Rate Swaps [Member] | Trading [Member] | ||
Derivative Assets: | ||
Derivative assets | 0 | 0 |
Derivative Liabilities: | ||
Derivative liabilities | 0 | 0 |
Floor Income Contracts [Member] | ||
Derivative Liabilities: | ||
Derivative liabilities | 0 | 0 |
Floor Income Contracts [Member] | Designated as Hedging Instrument [Member] | Cash Flow [Member] | ||
Derivative Liabilities: | ||
Derivative liabilities | 0 | 0 |
Floor Income Contracts [Member] | Designated as Hedging Instrument [Member] | Fair Value [Member] | ||
Derivative Liabilities: | ||
Derivative liabilities | 0 | 0 |
Floor Income Contracts [Member] | Trading [Member] | ||
Derivative Liabilities: | ||
Derivative liabilities | $ 0 | $ 0 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Gross Positions without Impact of Master Netting Agreements (Detail) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative assets | $ 53 | $ 56 |
Impact of master netting agreements, Assets | 0 | 0 |
Derivative values with impact of master netting agreements (as carried on balance sheet), Assets | $ 53 | $ 56 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets |
Cash collateral (held) pledged, Assets | $ (60) | $ (80) |
Net position, Assets | (7) | (24) |
Derivative liabilities | (236) | (258) |
Impact of master netting agreements, Liabilities | 0 | 0 |
Derivative values with impact of master netting agreements (as carried on balance sheet), Liabilities | $ (236) | $ (258) |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
Cash collateral (held) pledged, Liabilities | $ 61 | $ 62 |
Net position, Liabilities | $ (175) | $ (196) |
Derivative Financial Instrume_5
Derivative Financial Instruments - Carrying Value and Related Fair Value Hedging Adjustments of Liabilities (Detail) - Designated as Hedging Instrument [Member] - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Short-term borrowings [Member] | ||
Derivatives Fair Value [Line Items] | ||
Carrying Value | $ 1,131 | $ 1,289 |
Hedge Basis Adjustments | (18) | (10) |
Long-term borrowings [Member] | ||
Derivatives Fair Value [Line Items] | ||
Carrying Value | 5,772 | 6,188 |
Hedge Basis Adjustments | $ (426) | $ (494) |
Derivative Financial Instrume_6
Derivative Financial Instruments - Additional Information (Detail) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Decrease in valuation due to net credit risk adjustments | $ 4,000,000 | $ 6,000,000 |
Decrease in valuation due to liquidity adjustments | 1,000,000 | 1,000,000 |
Derivative liability at fair value including accrued interest and premium receivable | 243,000,000 | $ 266,000,000 |
Counterparty [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative liability at fair value including accrued interest and premium receivable | $ 0 |
Derivative Financial Instrume_7
Derivative Financial Instruments - Derivative Notional Values (Detail) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Derivative [Line Items] | ||
Total Derivative Notional Values | $ 16,900,000,000 | $ 39,700,000,000 |
Designated as Hedging Instrument [Member] | Cash Flow [Member] | ||
Derivative [Line Items] | ||
Total Derivative Notional Values | 4,800,000,000 | 8,300,000,000 |
Designated as Hedging Instrument [Member] | Fair Value [Member] | ||
Derivative [Line Items] | ||
Total Derivative Notional Values | 7,400,000,000 | 8,000,000,000 |
Trading [Member] | ||
Derivative [Line Items] | ||
Total Derivative Notional Values | 4,700,000,000 | 23,400,000,000 |
Interest Rate Swaps [Member] | ||
Derivative [Line Items] | ||
Total Derivative Notional Values | 12,200,000,000 | 31,900,000,000 |
Interest Rate Swaps [Member] | Designated as Hedging Instrument [Member] | Cash Flow [Member] | ||
Derivative [Line Items] | ||
Total Derivative Notional Values | 4,800,000,000 | 8,300,000,000 |
Interest Rate Swaps [Member] | Designated as Hedging Instrument [Member] | Fair Value [Member] | ||
Derivative [Line Items] | ||
Total Derivative Notional Values | 5,700,000,000 | 6,200,000,000 |
Interest Rate Swaps [Member] | Trading [Member] | ||
Derivative [Line Items] | ||
Total Derivative Notional Values | 1,700,000,000 | 17,400,000,000 |
Floor Income Contracts [Member] | ||
Derivative [Line Items] | ||
Total Derivative Notional Values | 3,000,000,000 | 6,000,000,000 |
Floor Income Contracts [Member] | Designated as Hedging Instrument [Member] | Cash Flow [Member] | ||
Derivative [Line Items] | ||
Total Derivative Notional Values | 0 | 0 |
Floor Income Contracts [Member] | Designated as Hedging Instrument [Member] | Fair Value [Member] | ||
Derivative [Line Items] | ||
Total Derivative Notional Values | 0 | 0 |
Floor Income Contracts [Member] | Trading [Member] | ||
Derivative [Line Items] | ||
Total Derivative Notional Values | 3,000,000,000 | 6,000,000,000 |
Cross-Currency Interest Rate Swaps [Member] | ||
Derivative [Line Items] | ||
Total Derivative Notional Values | 1,700,000,000 | 1,800,000,000 |
Cross-Currency Interest Rate Swaps [Member] | Designated as Hedging Instrument [Member] | Cash Flow [Member] | ||
Derivative [Line Items] | ||
Total Derivative Notional Values | 0 | 0 |
Cross-Currency Interest Rate Swaps [Member] | Designated as Hedging Instrument [Member] | Fair Value [Member] | ||
Derivative [Line Items] | ||
Total Derivative Notional Values | 1,700,000,000 | 1,800,000,000 |
Cross-Currency Interest Rate Swaps [Member] | Trading [Member] | ||
Derivative [Line Items] | ||
Total Derivative Notional Values | $ 0 | $ 0 |
Derivative Financial Instrume_8
Derivative Financial Instruments - Mark-to-Market Impact of Derivatives on Statements of Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Mark-to-market gains (losses) recognized | $ 26 | $ 22 | $ 17 | $ 120 |
Interest Expense and Derivative Instruments Hedging Activities [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Mark-to-market gains (losses) recognized | (11) | 72 | (25) | 211 |
Designated as Hedging Instrument [Member] | Fair Value [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Mark-to-market gains (losses) recognized | (37) | 50 | (42) | 91 |
Designated as Hedging Instrument [Member] | Fair Value [Member] | Interest Rate Swaps [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in net income on derivatives | (10) | (54) | (1) | (437) |
Gains (losses) recognized in net income on hedged items | (14) | 94 | (15) | 471 |
Net fair value hedge ineffectiveness gains (losses) | 24 | 40 | (16) | 34 |
Designated as Hedging Instrument [Member] | Fair Value [Member] | Cross-Currency Interest Rate Swaps [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in net income on derivatives | (80) | (148) | 19 | (89) |
Gains (losses) recognized in net income on hedged items | 67 | 158 | (45) | 146 |
Net fair value hedge ineffectiveness gains (losses) | (13) | 10 | (26) | 57 |
Designated as Hedging Instrument [Member] | Cash Flow [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Mark-to-market gains (losses) recognized | 0 | 0 | 0 | 0 |
Trading [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Mark-to-market gains (losses) recognized | 26 | 22 | 17 | 120 |
Trading [Member] | Interest Rate Swaps [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Mark-to-market gains (losses) recognized | 26 | 17 | 17 | 80 |
Trading [Member] | Cross-Currency Interest Rate Swaps [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Mark-to-market gains (losses) recognized | 0 | 0 | 0 | 0 |
Trading [Member] | Floor Income Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Mark-to-market gains (losses) recognized | 0 | 5 | 0 | 40 |
Trading [Member] | Other [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Mark-to-market gains (losses) recognized | $ 0 | $ 0 | $ 0 | $ 0 |
Derivative Financial Instrume_9
Derivative Financial Instruments - Impact of Derivatives on Other Comprehensive Income (Equity) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Derivative Instruments Gain Loss [Line Items] | |||||
Total gains (losses) on cash flow hedges | $ 18 | $ 34 | $ 15 | $ 127 | |
Net changes in cash flow hedges, net of tax | [1] | (1) | 49 | (22) | 163 |
Interest Expense [Member] | |||||
Derivative Instruments Gain Loss [Line Items] | |||||
Reclassification adjustments for derivative (gains) losses included in net income (interest expense) | $ (19) | $ 15 | $ (37) | $ 36 | |
[1] See “Note 4 – Derivative Financial Instruments.” |
Derivative Financial Instrum_10
Derivative Financial Instruments - Collateral Held and Pledged (Detail) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Collateral held: | ||
Cash (obligation to return cash collateral is recorded in short-term borrowings) | $ 60 | $ 80 |
Securities at fair value - corporate derivatives (not recorded in financial statements) | 0 | 0 |
Securities at fair value - on-balance sheet securitization derivatives (not recorded in financial statements) | 0 | 0 |
Total collateral held | 60 | 80 |
Derivative asset at fair value including accrued interest | 60 | 85 |
Collateral pledged to others: | ||
Cash (right to receive return of cash collateral is recorded in investments) | 61 | 62 |
Total collateral pledged | 61 | 62 |
Derivative liability at fair value including accrued interest and premium receivable | $ 243 | $ 266 |
Derivative Financial Instrum_11
Derivative Financial Instruments - Credit Exposure Related Counterparties (Detail) $ in Millions | Jun. 30, 2023 USD ($) |
Corporate Contracts [Member] | |
Derivative Instruments Gain Loss [Line Items] | |
Exposure, net of collateral | $ 5 |
Percent of exposure to counterparties with credit ratings below S&P AA- or Moody’s Aa3 | 100% |
Percent of exposure to counterparties with credit ratings below S&P A- or Moody’s A3 | 0% |
Securitization Trust Contracts [Member] | |
Derivative Instruments Gain Loss [Line Items] | |
Exposure, net of collateral | $ 0 |
Percent of exposure to counterparties with credit ratings below S&P AA- or Moody’s Aa3 | 0% |
Percent of exposure to counterparties with credit ratings below S&P A- or Moody’s A3 | 0% |
Other Assets - Schedule of Othe
Other Assets - Schedule of Other Assets (Detail) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Accrued interest receivable | $ 2,100 | $ 2,031 |
Benefit and insurance-related investments | 456 | 452 |
Income tax asset, net | 84 | 132 |
Derivatives at fair value | 53 | 56 |
Accounts receivable | 94 | 83 |
Fixed assets | 68 | 74 |
Other | 34 | 38 |
Total | $ 2,889 | $ 2,866 |
Stockholders' Equity - Common S
Stockholders' Equity - Common Share Repurchases, Issuances and Dividends Paid (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Average purchase price per share | $ 0 | $ 18.43 | $ 17.92 | |
Remaining common stock repurchase authority | $ 435 | $ 780 | $ 435 | $ 780 |
Shares repurchased related to employee stock-based compensation plans | 0 | 0 | 1,300,000 | 1,100,000 |
Average purchase price per share | $ 16.38 | $ 15.26 | $ 16.89 | $ 16.76 |
Common shares issued | 0 | 0 | 2,400,000 | 2,400,000 |
Dividends paid | $ 20 | $ 23 | $ 40 | $ 47 |
Dividends per share | $ 0.16 | $ 0.16 | $ 0.32 | $ 0.32 |
Common Stock Shares Outstanding [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Common stock repurchased, shares | 4,900,000 | 6,900,000 | 9,800,000 | 13,100,000 |
Common stock repurchased, value | $ 80 | $ 105 | $ 165 | $ 220 |
Shares repurchased related to employee stock-based compensation plans | 2,829 | 3,895 | 1,279,542 | 1,114,479 |
Common shares issued | 26,259 | 23,751 | 2,447,191 | 2,383,652 |
Stockholders' Equity - Common_2
Stockholders' Equity - Common Share Repurchases, Issuances and Dividends Paid (Parenthetical) (Detail) $ in Billions | Dec. 31, 2021 USD ($) |
Equity [Abstract] | |
Authorized multi-year share repurchased program amount | $ 1 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) | Jun. 30, 2023 $ / shares |
Common Stock [Member] | |
Class of Stock [Line Items] | |
Closing price of common stock | $ 18.58 |
Earnings (Loss) per Common Sh_3
Earnings (Loss) per Common Share - Schedule of Earnings (Loss) per Common Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Numerator: | ||||
Net income | $ 66 | $ 180 | $ 177 | $ 435 |
Denominator: | ||||
Weighted average shares used to compute basic EPS | 124 | 146 | 126 | 149 |
Effect of dilutive securities: | ||||
Dilutive effect of stock options, restricted stock, restricted stock units, performance stock units, and Employee Stock Purchase Plan ("ESPP") | 1 | 1 | 2 | 1 |
Dilutive potential common shares | 1 | 1 | 2 | 1 |
Weighted average shares used to compute diluted EPS | 125 | 147 | 128 | 150 |
Basic earnings per common share | $ 0.53 | $ 1.23 | $ 1.4 | $ 2.93 |
Diluted earnings per common share | $ 0.52 | $ 1.22 | $ 1.39 | $ 2.9 |
Earnings (Loss) per Common Sh_4
Earnings (Loss) per Common Share - Schedule of Earnings (Loss) per Common Share (Parenthetical) (Detail) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Securities not included in the computation of diluted earnings per share | 0 | 0 | 0 | 0 |
Fair Value Measurements - Valua
Fair Value Measurements - Valuation of Financial Instruments that are Marked-to-Market on Recurring Basis (Detail) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | $ 53 | $ 56 |
Derivative liabilities | (236) | (258) |
Interest Rate Swaps [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 53 | 56 |
Derivative liabilities | (2) | (5) |
Cross-Currency Interest Rate Swaps [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | (234) | (253) |
Floor Income Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Fair Value Measurements Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 53 | 56 |
Total | 53 | 56 |
Derivative liabilities | (236) | (258) |
Total | (236) | (258) |
Fair Value Measurements Recurring [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Total | 0 | 0 |
Derivative liabilities | 0 | 0 |
Total | 0 | 0 |
Fair Value Measurements Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 53 | 55 |
Total | 53 | 55 |
Derivative liabilities | 0 | (2) |
Total | 0 | (2) |
Fair Value Measurements Recurring [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 1 |
Total | 0 | 1 |
Derivative liabilities | (236) | (256) |
Total | (236) | (256) |
Fair Value Measurements Recurring [Member] | Interest Rate Swaps [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 53 | 56 |
Derivative liabilities | (2) | (5) |
Fair Value Measurements Recurring [Member] | Interest Rate Swaps [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Fair Value Measurements Recurring [Member] | Interest Rate Swaps [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 53 | 55 |
Derivative liabilities | 0 | (2) |
Fair Value Measurements Recurring [Member] | Interest Rate Swaps [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 1 |
Derivative liabilities | (2) | (3) |
Fair Value Measurements Recurring [Member] | Cross-Currency Interest Rate Swaps [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | (234) | (253) |
Fair Value Measurements Recurring [Member] | Cross-Currency Interest Rate Swaps [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Fair Value Measurements Recurring [Member] | Cross-Currency Interest Rate Swaps [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Fair Value Measurements Recurring [Member] | Cross-Currency Interest Rate Swaps [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | (234) | (253) |
Fair Value Measurements Recurring [Member] | Floor Income Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Fair Value Measurements Recurring [Member] | Floor Income Contracts [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Fair Value Measurements Recurring [Member] | Floor Income Contracts [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Fair Value Measurements Recurring [Member] | Floor Income Contracts [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | $ 0 | $ 0 |
Fair Value Measurements - Chang
Fair Value Measurements - Change in Balance Sheet Carrying Value Associated with Level 3 Financial Instruments Carried at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of period | $ (226) | $ (229) | $ (255) | $ (194) |
Total gains/(losses): | ||||
Included in earnings | $ (22) | $ (62) | $ (6) | $ (102) |
Fair Value, Net Derivative Asset (Liability), Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Gain (Loss) on Derivative Instruments, Net, Pretax | Gain (Loss) on Derivative Instruments, Net, Pretax | Gain (Loss) on Derivative Instruments, Net, Pretax | Gain (Loss) on Derivative Instruments, Net, Pretax |
Included in other comprehensive income | $ 0 | $ 0 | $ 0 | $ 0 |
Settlements | 12 | 9 | 25 | 14 |
Transfers in and/or out of level 3 | 0 | 0 | 0 | 0 |
Balance, end of period | (236) | (282) | (236) | (282) |
Change in mark-to-market gains/(losses) relating to instruments still held at the reporting date | (10) | (53) | 19 | (88) |
Interest Rate Swaps [Member] | ||||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of period | (2) | (3) | (2) | (4) |
Total gains/(losses): | ||||
Included in earnings | 0 | 0 | 0 | 1 |
Included in other comprehensive income | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers in and/or out of level 3 | 0 | 0 | 0 | 0 |
Balance, end of period | (2) | (3) | (2) | (3) |
Change in mark-to-market gains/(losses) relating to instruments still held at the reporting date | 0 | 0 | 0 | 1 |
Cross-Currency Interest Rate Swaps [Member] | ||||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of period | (224) | (226) | (253) | (190) |
Total gains/(losses): | ||||
Included in earnings | (22) | (62) | (6) | (103) |
Included in other comprehensive income | 0 | 0 | 0 | 0 |
Settlements | 12 | 9 | 25 | 14 |
Transfers in and/or out of level 3 | 0 | 0 | 0 | 0 |
Balance, end of period | (234) | (279) | (234) | (279) |
Change in mark-to-market gains/(losses) relating to instruments still held at the reporting date | (10) | (53) | 19 | (89) |
Other [Member] | ||||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of period | 0 | 0 | 0 | 0 |
Total gains/(losses): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Included in other comprehensive income | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers in and/or out of level 3 | 0 | 0 | 0 | 0 |
Balance, end of period | 0 | 0 | 0 | 0 |
Change in mark-to-market gains/(losses) relating to instruments still held at the reporting date | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value Measurements - Inclu
Fair Value Measurements - Included in Earnings (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Gains (losses) on derivative and hedging activities, net | $ (22) | $ (62) | $ (6) | $ (102) |
Fair Value Recurring Basis Unobservable Input Reconciliation Net Derivative Asset Liability Gain Loss Statement Of Income Extensible List | Gains (losses) on derivative and hedging activities, net | Gains (losses) on derivative and hedging activities, net | Gains (losses) on derivative and hedging activities, net | Gains (losses) on derivative and hedging activities, net |
Gain (Losses) on Derivative Instruments [Member] | ||||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Gains (losses) on derivative and hedging activities, net | $ 0 | $ 0 | $ 0 | $ 1 |
Fair Value Recurring Basis Unobservable Input Reconciliation Net Derivative Asset Liability Gain Loss Statement Of Income Extensible List | Gains (losses) on derivative and hedging activities, net | Gains (losses) on derivative and hedging activities, net | Gains (losses) on derivative and hedging activities, net | Gains (losses) on derivative and hedging activities, net |
Interest Expense [Member] | ||||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Gains (losses) on derivative and hedging activities, net | $ (22) | $ (62) | $ (6) | $ (103) |
Fair Value Recurring Basis Unobservable Input Reconciliation Net Derivative Asset Liability Gain Loss Statement Of Income Extensible List | Gains (losses) on derivative and hedging activities, net | Gains (losses) on derivative and hedging activities, net | Gains (losses) on derivative and hedging activities, net | Gains (losses) on derivative and hedging activities, net |
Fair Value Measurements - Unobs
Fair Value Measurements - Unobservable Data Used in Recurring Valuations of Level 3 (Detail) $ in Millions | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Interest Rate Swaps [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Derivative financial instruments, Fair Value | $ 51 | $ 51 |
Cross-Currency Interest Rate Swaps [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Derivative financial instruments, Fair Value | (234) | (253) |
Other [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Derivative financial instruments, Fair Value | 0 | $ 0 |
Level 3 [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Derivative financial instruments, Fair Value | (236) | |
Level 3 [Member] | Cross-Currency Interest Rate Swaps [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Derivative financial instruments, Fair Value | $ (234) | |
Derivative Asset (Liability) Net, Valuation Technique [Extensible List] | us-gaap:ValuationTechniqueDiscountedCashFlowMember | |
Derivatives | 5 | |
Derivative Asset (Liability) Net, Measurement Input [Extensible Enumeration] | Constant Prepayment Rate [Member] | |
Level 3 [Member] | Other [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Derivative financial instruments, Fair Value | $ 0 | |
Level 3 [Member] | Prime/LIBOR Basis Swaps [Member] | Interest Rate Swaps [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Derivative financial instruments, Fair Value | $ (2) | |
Derivative Asset (Liability) Net, Valuation Technique [Extensible List] | us-gaap:ValuationTechniqueDiscountedCashFlowMember | |
Level 3 [Member] | Prime/LIBOR Basis Swaps [Member] | Interest Rate Swaps [Member] | Constant Prepayment Rate [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Derivatives | 10 | |
Level 3 [Member] | Prime/LIBOR Basis Swaps [Member] | Interest Rate Swaps [Member] | Bid/ask adjustment to discount rate [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Derivatives | 0.08 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Values of Financial Assets and Liabilities, Including Derivative Financial Instruments (Detail) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Total earning assets, Carrying Value | $ 62,009 | $ 67,224 | |
Short-term borrowings, Carrying Value | 4,838 | 5,870 | |
Long-term borrowings, Carrying Value | 56,936 | 61,026 | |
Total | 61,774 | 66,896 | |
Total earning assets, Fair Value | 59,611 | 64,280 | |
Short-term borrowings, Fair Value | 4,853 | 5,879 | |
Long-term borrowings, Fair Value | 54,082 | 57,652 | |
Total interest-bearing liabilities, Fair Value | 58,935 | 63,531 | |
FFELP Loans [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans, Carrying Value | 40,851 | 43,525 | |
Loans receivable, Fair Value | 39,250 | 41,426 | |
Floor Income Contracts [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative financial instruments, Carrying Value | 0 | 0 | |
Derivative financial instruments, Fair Value | 0 | 0 | |
Interest Rate Swaps [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative financial instruments, Carrying Value | 51 | 51 | |
Derivative financial instruments, Fair Value | 51 | 51 | |
Cross-Currency Interest Rate Swaps [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative financial instruments, Carrying Value | (234) | (253) | |
Derivative financial instruments, Fair Value | (234) | (253) | |
Other [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative financial instruments, Carrying Value | 0 | 0 | |
Derivative financial instruments, Fair Value | 0 | 0 | |
Private Education Loans [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans, Carrying Value | 17,732 | 18,725 | $ 19,668 |
Loans receivable, Fair Value | 16,935 | 17,880 | |
Difference [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and investments | 0 | 0 | |
Total earning assets, Fair Value | (2,398) | (2,944) | |
Short-term borrowings, Fair Value | (15) | (9) | |
Long-term borrowings, Fair Value | 2,854 | 3,374 | |
Total interest-bearing liabilities, Fair Value | 2,839 | 3,365 | |
Excess of net asset fair value over carrying value | 441 | 421 | |
Difference [Member] | FFELP Loans [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans receivable, Fair Value | (1,601) | (2,099) | |
Difference [Member] | Floor Income Contracts [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative financial instruments, Fair Value | 0 | 0 | |
Difference [Member] | Interest Rate Swaps [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative financial instruments, Fair Value | 0 | 0 | |
Difference [Member] | Cross-Currency Interest Rate Swaps [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative financial instruments, Fair Value | 0 | 0 | |
Difference [Member] | Other [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative financial instruments, Fair Value | 0 | 0 | |
Difference [Member] | Private Education Loans [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans receivable, Fair Value | (797) | (845) | |
Carrying Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and investments | 3,426 | 4,974 | |
Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and investments | $ 3,426 | $ 4,974 |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | ||
Apr. 12, 2023 USD ($) | Jan. 31, 2022 StateAttorneysGeneral | Mar. 31, 2023 USD ($) | Jun. 30, 2023 USD ($) | |
Loss Contingencies [Line Items] | ||||
Number of State Attorneys General under Agreement | StateAttorneysGeneral | 40 | |||
Additional private loan provision for loan losses | $ 23,000,000 | |||
Aggregate cash fund contribution | $ 44,000,000 | |||
Net impact to operating expense | $ 0 | |||
SLM BankCo [Member] | Indemnification Matters [Member] | ||||
Loss Contingencies [Line Items] | ||||
Reserve for estimated amounts and costs incurred | $ 0 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers Accounted for in Accordance with ASC 606 - Summary of Disaggregation of Revenue from Contracts with Customers Accounted Under ASC 606 (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation Of Revenue [Line Items] | ||||
Total Revenue | $ 83 | $ 87 | $ 155 | $ 182 |
Federal Government [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenue | 17 | 2 | 23 | 4 |
Guarantor Agencies [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenue | 0 | 0 | 0 | 1 |
State and Local Government [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenue | 17 | 35 | 35 | 68 |
Tolling Authorities [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenue | 18 | 16 | 34 | 30 |
Hospitals and Other Healthcare Providers [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenue | 31 | 34 | 63 | 79 |
Federal Education Loans [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenue | 0 | 0 | 0 | 1 |
Federal Education Loans [Member] | Federal Government [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenue | 0 | 0 | 0 | 0 |
Federal Education Loans [Member] | Guarantor Agencies [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenue | 0 | 0 | 0 | 1 |
Federal Education Loans [Member] | State and Local Government [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenue | 0 | 0 | 0 | 0 |
Federal Education Loans [Member] | Tolling Authorities [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenue | 0 | 0 | 0 | 0 |
Federal Education Loans [Member] | Hospitals and Other Healthcare Providers [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenue | 0 | 0 | 0 | 0 |
Business Processing [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenue | 83 | 87 | 155 | 181 |
Business Processing [Member] | Federal Government [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenue | 17 | 2 | 23 | 4 |
Business Processing [Member] | Guarantor Agencies [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenue | 0 | 0 | 0 | 0 |
Business Processing [Member] | State and Local Government [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenue | 17 | 35 | 35 | 68 |
Business Processing [Member] | Tolling Authorities [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenue | 18 | 16 | 34 | 30 |
Business Processing [Member] | Hospitals and Other Healthcare Providers [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenue | 31 | 34 | 63 | 79 |
Federal Education Loan Asset Recovery Services [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenue | 0 | 0 | 0 | 1 |
Federal Education Loan Asset Recovery Services [Member] | Federal Education Loans [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenue | 0 | 0 | 0 | 1 |
Federal Education Loan Asset Recovery Services [Member] | Business Processing [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenue | 0 | 0 | 0 | 0 |
Government Services [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenue | 52 | 53 | 92 | 102 |
Government Services [Member] | Federal Education Loans [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenue | 0 | 0 | 0 | 0 |
Government Services [Member] | Business Processing [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenue | 52 | 53 | 92 | 102 |
Healthcare Services [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenue | 31 | 34 | 63 | 79 |
Healthcare Services [Member] | Federal Education Loans [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenue | 0 | 0 | 0 | 0 |
Healthcare Services [Member] | Business Processing [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenue | $ 31 | $ 34 | $ 63 | $ 79 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers Accounted for in Accordance with ASC 606 - Additional Information (Detail) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 |
Disaggregation Of Revenue [Line Items] | |||
Accounts receivable | $ 94,000,000 | $ 83,000,000 | |
ASU 2014-09 [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Accounts receivable | 82,000,000 | $ 94,000,000 | |
Contract assets | 0 | ||
Contract liability | $ 0 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 USD ($) Segment | Dec. 31, 2022 USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of reportable operating segments | Segment | 4 | |
Total assets | $ 65,598 | $ 70,795 |
Business Processing [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 388 | 390 |
Other Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 1,900 | $ 2,100 |
Segment Reporting - Asset Infor
Segment Reporting - Asset Information for Loans Segment (Detail) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Segment Reporting Information [Line Items] | ||
Other | $ 2,889 | $ 2,866 |
Total assets | 65,598 | 70,795 |
Federal Education Loans [Member] | ||
Segment Reporting Information [Line Items] | ||
Loans, net | 40,851 | 43,525 |
Cash and investments | 1,484 | 2,746 |
Other | 2,147 | 2,229 |
Total assets | 44,482 | 48,500 |
Consumer Lending [Member] | ||
Segment Reporting Information [Line Items] | ||
Loans, net | 17,732 | 18,725 |
Cash and investments | 512 | 617 |
Other | 556 | 453 |
Total assets | $ 18,800 | $ 19,795 |
Segment Reporting - Segment Res
Segment Reporting - Segment Results and Reconciliations to GAAP (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Interest income: | ||||
Cash and investments | $ 36 | $ 5 | $ 70 | $ 6 |
Total interest income | 1,097 | 692 | 2,169 | 1,318 |
Total interest expense | 919 | 371 | 1,756 | 660 |
Net interest income | 178 | 321 | 413 | 658 |
Less: provisions for loan losses | 11 | 18 | (3) | 34 |
Net interest income after provisions for loan losses | 167 | 303 | 416 | 624 |
Other income (loss): | ||||
Servicing revenue | 16 | 17 | 33 | 36 |
Asset recovery and business processing revenue | 83 | 88 | 155 | 185 |
Other revenue | 30 | 29 | 28 | 136 |
Total other income | 129 | 134 | 216 | 357 |
Expenses: | ||||
Direct operating expenses | 135 | 134 | 259 | 273 |
Unallocated shared services expenses | 47 | 56 | 109 | 122 |
Total operating expenses | 182 | 190 | 368 | 395 |
Goodwill and acquired intangible asset impairment and amortization | 3 | 3 | 5 | 7 |
Restructuring/other reorganization expenses | 15 | 0 | 19 | 3 |
Total expenses | 200 | 193 | 392 | 405 |
Income before income tax expense | 96 | 244 | 240 | 576 |
Income tax expense (benefit) | 30 | 64 | 63 | 141 |
Net income | 66 | 180 | 177 | 435 |
Operating Segments [Member] | ||||
Interest income: | ||||
Net interest income | 221 | 271 | 474 | 547 |
Less: provisions for loan losses | (11) | 18 | 3 | 34 |
Other income (loss): | ||||
Total other income | 0 | 112 | 199 | 237 |
Expenses: | ||||
Total operating expenses | 182 | 190 | 368 | 395 |
Goodwill and acquired intangible asset impairment and amortization | 0 | 0 | 0 | 0 |
Restructuring/other reorganization expenses | 15 | 0 | 19 | 3 |
Total expenses | 197 | 190 | 387 | 398 |
Income before income tax expense | 116 | 175 | 289 | 352 |
Income tax expense (benefit) | 28 | 41 | 68 | 83 |
Net income | 88 | 134 | 221 | 269 |
Operating Segments [Member] | Federal Education Loans [Member] | ||||
Interest income: | ||||
Cash and investments | 18 | 3 | 38 | 3 |
Total interest income | 739 | 412 | 1,454 | 746 |
Total interest expense | 633 | 266 | 1,223 | 461 |
Net interest income | 106 | 146 | 231 | 285 |
Less: provisions for loan losses | 5 | 0 | 15 | 0 |
Net interest income after provisions for loan losses | 101 | 146 | 216 | 285 |
Other income (loss): | ||||
Servicing revenue | 13 | 14 | 27 | 30 |
Asset recovery and business processing revenue | 0 | 1 | 0 | 4 |
Other revenue | 2 | 8 | 7 | 18 |
Total other income | 15 | 23 | 34 | 52 |
Expenses: | ||||
Direct operating expenses | 18 | 25 | 38 | 54 |
Unallocated shared services expenses | 0 | 0 | 0 | 0 |
Total operating expenses | 0 | 25 | 38 | 54 |
Goodwill and acquired intangible asset impairment and amortization | 0 | 0 | 0 | 0 |
Restructuring/other reorganization expenses | 0 | 0 | 0 | 0 |
Total expenses | 18 | 25 | 38 | 54 |
Income before income tax expense | 98 | 144 | 212 | 283 |
Income tax expense (benefit) | 22 | 34 | 50 | 67 |
Net income | 76 | 110 | 162 | 216 |
Operating Segments [Member] | Consumer Lending [Member] | ||||
Interest income: | ||||
Cash and investments | 7 | 1 | 13 | 2 |
Total interest income | 348 | 278 | 699 | 555 |
Total interest expense | 205 | 136 | 402 | 262 |
Net interest income | 143 | 142 | 297 | 293 |
Less: provisions for loan losses | (6) | 18 | 18 | 34 |
Net interest income after provisions for loan losses | 137 | 124 | 315 | 259 |
Other income (loss): | ||||
Servicing revenue | 3 | 3 | 6 | 6 |
Asset recovery and business processing revenue | 0 | 0 | 0 | 0 |
Other revenue | 2 | 1 | 1 | 1 |
Total other income | 5 | 4 | 7 | 7 |
Expenses: | ||||
Direct operating expenses | 42 | 35 | 79 | 69 |
Unallocated shared services expenses | 0 | 0 | 0 | 0 |
Total operating expenses | 0 | 35 | 79 | 69 |
Goodwill and acquired intangible asset impairment and amortization | 0 | 0 | 0 | 0 |
Restructuring/other reorganization expenses | 0 | 0 | 0 | 0 |
Total expenses | 42 | 35 | 79 | 69 |
Income before income tax expense | 100 | 93 | 243 | 197 |
Income tax expense (benefit) | 25 | 22 | 58 | 47 |
Net income | 75 | 71 | 185 | 150 |
Operating Segments [Member] | Business Processing [Member] | ||||
Interest income: | ||||
Cash and investments | 0 | 0 | 0 | 0 |
Total interest income | 0 | 0 | 0 | 0 |
Total interest expense | 0 | 0 | 0 | 0 |
Net interest income | 0 | 0 | 0 | 0 |
Less: provisions for loan losses | 0 | 0 | 0 | 0 |
Net interest income after provisions for loan losses | 0 | 0 | 0 | 0 |
Other income (loss): | ||||
Servicing revenue | 0 | 0 | 0 | 0 |
Asset recovery and business processing revenue | 83 | 87 | 155 | 181 |
Other revenue | 0 | 0 | 0 | 0 |
Total other income | 83 | 87 | 155 | 181 |
Expenses: | ||||
Direct operating expenses | 75 | 74 | 142 | 150 |
Unallocated shared services expenses | 0 | 0 | 0 | 0 |
Total operating expenses | 0 | 74 | 142 | 150 |
Goodwill and acquired intangible asset impairment and amortization | 0 | 0 | 0 | 0 |
Restructuring/other reorganization expenses | 0 | 0 | 0 | 0 |
Total expenses | 75 | 74 | 142 | 150 |
Income before income tax expense | 8 | 13 | 13 | 31 |
Income tax expense (benefit) | 2 | 3 | 3 | 7 |
Net income | 6 | 10 | 10 | 24 |
Operating Segments [Member] | Other Segment [Member] | ||||
Interest income: | ||||
Cash and investments | 11 | 1 | 19 | 1 |
Total interest income | 11 | 1 | 19 | 1 |
Total interest expense | 39 | 18 | 73 | 32 |
Net interest income | (28) | (17) | 54 | (31) |
Less: provisions for loan losses | 0 | 0 | 0 | 0 |
Net interest income after provisions for loan losses | (28) | (17) | 54 | (31) |
Other income (loss): | ||||
Servicing revenue | 0 | 0 | 0 | 0 |
Asset recovery and business processing revenue | 0 | 0 | 0 | 0 |
Other revenue | 0 | (2) | 3 | (3) |
Total other income | 0 | (2) | 3 | (3) |
Expenses: | ||||
Direct operating expenses | 0 | 0 | 0 | 0 |
Unallocated shared services expenses | 47 | 56 | 109 | 122 |
Total operating expenses | 47 | 56 | 109 | 122 |
Goodwill and acquired intangible asset impairment and amortization | 0 | 0 | 0 | 0 |
Restructuring/other reorganization expenses | 15 | 0 | 19 | 3 |
Total expenses | 62 | 56 | 128 | 125 |
Income before income tax expense | (90) | (75) | 179 | (159) |
Income tax expense (benefit) | (21) | (18) | 43 | (38) |
Net income | (69) | (57) | 136 | (121) |
Adjustments [Member] | Reclassifications [Member] | ||||
Interest income: | ||||
Net interest income | 4 | 0 | 16 | (19) |
Other income (loss): | ||||
Total other income | (4) | 0 | 16 | 19 |
Expenses: | ||||
Total operating expenses | 0 | 0 | 0 | 0 |
Goodwill and acquired intangible asset impairment and amortization | 0 | 0 | 0 | 0 |
Restructuring/other reorganization expenses | 0 | 0 | 0 | 0 |
Total expenses | 0 | 0 | 0 | 0 |
Income before income tax expense | 0 | 0 | 0 | 0 |
Income tax expense (benefit) | 0 | 0 | 0 | 0 |
Net income | 0 | 0 | 0 | 0 |
Adjustments [Member] | Additions (Subtractions) [Member] | ||||
Interest income: | ||||
Net interest income | 39 | (50) | 45 | (92) |
Other income (loss): | ||||
Total other income | 22 | (22) | 1 | (139) |
Expenses: | ||||
Total operating expenses | 0 | 0 | 0 | 0 |
Goodwill and acquired intangible asset impairment and amortization | (3) | (3) | 5 | (7) |
Restructuring/other reorganization expenses | 0 | 0 | 0 | 0 |
Total expenses | (3) | (3) | 5 | (7) |
Income before income tax expense | 20 | (69) | 49 | (224) |
Income tax expense (benefit) | 2 | (23) | 5 | (58) |
Net income | 22 | (46) | 44 | (166) |
Adjustments [Member] | Total Adjustments [Member] | ||||
Interest income: | ||||
Net interest income | 43 | (50) | 61 | (111) |
Net interest income after provisions for loan losses | 43 | (50) | 61 | (111) |
Other income (loss): | ||||
Total other income | 0 | (22) | 17 | (120) |
Expenses: | ||||
Total operating expenses | 0 | 0 | 0 | 0 |
Goodwill and acquired intangible asset impairment and amortization | (3) | (3) | (5) | (7) |
Restructuring/other reorganization expenses | 0 | 0 | 0 | 0 |
Total expenses | (3) | (3) | 5 | (7) |
Income before income tax expense | 20 | (69) | 49 | (224) |
Income tax expense (benefit) | 2 | (23) | 5 | (58) |
Net income | 22 | (46) | 44 | (166) |
Education Loan Portfolio [Member] | ||||
Interest income: | ||||
Total interest income | 1,061 | 687 | 2,099 | 1,312 |
Education Loan Portfolio [Member] | Operating Segments [Member] | Federal Education Loans [Member] | ||||
Interest income: | ||||
Total interest income | 721 | 409 | 1,416 | 743 |
Education Loan Portfolio [Member] | Operating Segments [Member] | Consumer Lending [Member] | ||||
Interest income: | ||||
Total interest income | 341 | 277 | 686 | 553 |
Education Loan Portfolio [Member] | Operating Segments [Member] | Business Processing [Member] | ||||
Interest income: | ||||
Total interest income | 0 | 0 | 0 | 0 |
Education Loan Portfolio [Member] | Operating Segments [Member] | Other Segment [Member] | ||||
Interest income: | ||||
Total interest income | $ 0 | $ 0 | $ 0 | $ 0 |
Segment Reporting - Segment R_2
Segment Reporting - Segment Results and Reconciliations to GAAP - Core Earnings Adjustments (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net interest income (loss) after provisions for loan losses | $ 167 | $ 303 | $ 416 | $ 624 |
Goodwill and acquired intangible asset impairment and amortization | 3 | 3 | 5 | 7 |
Income tax expense (benefit) | 30 | 64 | 63 | 141 |
Net income | 66 | 180 | 177 | 435 |
Total Adjustments [Member] | Adjustments [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net interest income (loss) after provisions for loan losses | 43 | (50) | 61 | (111) |
Total other income (loss) | (26) | (22) | (17) | (120) |
Goodwill and acquired intangible asset impairment and amortization | (3) | (3) | (5) | (7) |
Total Core Earnings adjustments to GAAP | 20 | (69) | 49 | (224) |
Income tax expense (benefit) | 2 | (23) | 5 | (58) |
Net income | 22 | (46) | 44 | (166) |
Net Impact of Goodwill and Acquired Intangible Assets [Member] | Total Adjustments [Member] | Adjustments [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net interest income (loss) after provisions for loan losses | 0 | 0 | 0 | 0 |
Total other income (loss) | 0 | 0 | 0 | 0 |
Goodwill and acquired intangible asset impairment and amortization | (3) | (3) | (5) | (7) |
Total Core Earnings adjustments to GAAP | 3 | 3 | 5 | 7 |
Net Impact of Derivative Accounting [Member] | Total Adjustments [Member] | Adjustments [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net interest income (loss) after provisions for loan losses | 43 | (50) | 61 | (111) |
Total other income (loss) | (26) | (22) | (17) | (120) |
Goodwill and acquired intangible asset impairment and amortization | 0 | 0 | 0 | 0 |
Total Core Earnings adjustments to GAAP | $ 17 | $ (72) | $ 44 | $ (231) |
Segment Reporting - Core Earnin
Segment Reporting - Core Earnings Adjustments to GAAP (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Adjustments Required To Reconcile Core Earnings [Line Items] | ||||
Net income | $ 66 | $ 180 | $ 177 | $ 435 |
Net tax effect | (30) | (64) | (63) | (141) |
Operating Segments [Member] | ||||
Adjustments Required To Reconcile Core Earnings [Line Items] | ||||
Net income | 88 | 134 | 221 | 269 |
Net tax effect | (28) | (41) | (68) | (83) |
Total Adjustments [Member] | Adjustments [Member] | ||||
Adjustments Required To Reconcile Core Earnings [Line Items] | ||||
Net income | 22 | (46) | 44 | (166) |
Core Earnings adjustments to GAAP | 20 | (69) | 49 | (224) |
Net tax effect | (2) | 23 | (5) | 58 |
Net Impact of Derivative Accounting [Member] | Total Adjustments [Member] | Adjustments [Member] | ||||
Adjustments Required To Reconcile Core Earnings [Line Items] | ||||
Core Earnings adjustments to GAAP | 17 | (72) | 44 | (231) |
Net Impact of Goodwill and Acquired Intangible Assets [Member] | Total Adjustments [Member] | Adjustments [Member] | ||||
Adjustments Required To Reconcile Core Earnings [Line Items] | ||||
Core Earnings adjustments to GAAP | $ 3 | $ 3 | $ 5 | $ 7 |
Segment Reporting - Core Earn_2
Segment Reporting - Core Earnings Adjustments to GAAP (Parenthetical) (Detail) | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Segment Reporting [Abstract] | |
Amount that will be equal to mark-to-market gain or loss over the life of the contract | $ 0 |