Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2019shares | |
Document And Entity Information [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | Q2 |
Trading Symbol | NAVI |
Entity Registrant Name | NAVIENT CORP |
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 | 230,494,278 |
Entity Current Reporting Status | Yes |
Entity Shell Company | false |
Entity File Number | 001-36228 |
Entity Tax Identification Number | 464054283 |
Entity Address, Address Line One | 123 Justison Street |
Entity Address, City or Town | Wilmington |
Entity Address, State or Province | Delaware |
Entity Address, Postal Zip Code | 19801 |
City Area Code | (302) |
Local Phone Number | 283-8000 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Investments | ||
Held-to-maturity | $ 22 | |
Other | 200 | $ 226 |
Total investments | 222 | 226 |
Cash and cash equivalents | 1,746 | 1,286 |
Restricted cash and cash equivalents | 2,680 | 3,976 |
Goodwill and acquired intangible assets, net | 769 | 786 |
Other assets | 3,383 | 3,404 |
Total assets | 98,320 | 104,176 |
Liabilities | ||
Short-term borrowings | 6,785 | 5,422 |
Long-term borrowings | 86,776 | 93,519 |
Other liabilities | 1,447 | 1,688 |
Total liabilities | 95,008 | 100,629 |
Commitments and contingencies | ||
Equity | ||
Common stock, par value $0.01 per share, 1.125 billion shares authorized: 450 million and 445 million shares issued, respectively | 4 | 4 |
Additional paid-in capital | 3,181 | 3,145 |
Accumulated other comprehensive (loss) income (net of tax (benefit) expense of $(27) and $35, respectively) | (80) | 113 |
Retained earnings | 3,418 | 3,218 |
Total Navient Corporation stockholders’ equity before treasury stock | 6,523 | 6,480 |
Less: Common stock held in treasury at cost: 220 million and 198 million shares, respectively | (3,222) | (2,961) |
Total Navient Corporation stockholders’ equity | 3,301 | 3,519 |
Noncontrolling interest | 11 | 28 |
Total equity | 3,312 | 3,547 |
Total liabilities and equity | 98,320 | 104,176 |
FFELP Loans [Member] | ||
Assets | ||
Loans, net | 67,956 | 72,253 |
Private Education Loans [Member] | ||
Assets | ||
Loans, net | 21,564 | 22,245 |
Assets and Liabilities of Consolidated Variable Interest Entities [Member] | ||
Assets | ||
Loans, net | 86,735 | 91,619 |
Investments | ||
Restricted cash | 2,640 | 3,928 |
Other assets, net | 1,009 | 956 |
Liabilities | ||
Short-term borrowings | 4,904 | 4,341 |
Long-term borrowings | 77,373 | 82,738 |
Net assets of consolidated variable interest entities | 8,107 | 9,424 |
Assets and Liabilities of Consolidated Variable Interest Entities [Member] | FFELP Loans [Member] | ||
Assets | ||
Loans, net | 67,700 | 71,921 |
Assets and Liabilities of Consolidated Variable Interest Entities [Member] | Private Education Loans [Member] | ||
Assets | ||
Loans, net | $ 19,035 | $ 19,698 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Allowance for loans losses | $ 1,218 | $ 1,286 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,125,000,000 | 1,125,000,000 |
Common stock, shares issued | 450,000,000 | 445,000,000 |
Tax (benefit) expense for accumulated other comprehensive (loss) income | $ (27) | $ 35 |
Common stock held in treasury | 220,000,000 | 198,000,000 |
FFELP Loans [Member] | ||
Allowance for loans losses | $ 67 | $ 76 |
Private Education Loans [Member] | ||
Allowance for loans losses | $ 1,151 | $ 1,201 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Interest income: | ||||
Cash and investments | $ 25 | $ 24 | $ 52 | $ 41 |
Total interest income | 1,204 | 1,227 | 2,439 | 2,399 |
Total interest expense | 911 | 929 | 1,860 | 1,773 |
Net interest income | 293 | 298 | 579 | 626 |
Less: provisions for loan losses | 68 | 112 | 144 | 199 |
Net interest income after provisions for loan losses | 225 | 186 | 435 | 427 |
Other income (loss): | ||||
Servicing revenue | 60 | 71 | 122 | 140 |
Asset recovery and business processing revenue | 123 | 99 | 242 | 207 |
Other income (loss) | 11 | 13 | 27 | 1 |
Gains on sales of loans | 16 | 16 | ||
Gains (losses) on debt repurchases | 44 | (7) | 59 | (8) |
Gains (losses) on derivative and hedging activities, net | (32) | (40) | (25) | 8 |
Total other income | 222 | 136 | 441 | 348 |
Expenses: | ||||
Salaries and benefits | 125 | 125 | 253 | 259 |
Other operating expenses | 116 | 76 | 244 | 217 |
Total operating expenses | 241 | 201 | 497 | 476 |
Goodwill and acquired intangible asset impairment and amortization expense | 11 | 6 | 18 | 16 |
Restructuring/other reorganization expenses | 1 | 2 | 2 | 9 |
Total expenses | 253 | 209 | 517 | 501 |
Income before income tax expense | 194 | 113 | 359 | 274 |
Income tax expense | 41 | 30 | 78 | 64 |
Net income (loss) | $ 153 | $ 83 | $ 281 | $ 210 |
Basic earnings per common share | $ 0.65 | $ 0.31 | $ 1.17 | $ 0.79 |
Average common shares outstanding | 235 | 265 | 239 | 264 |
Diluted earnings per common share | $ 0.64 | $ 0.31 | $ 1.16 | $ 0.78 |
Average common and common equivalent shares outstanding | 238 | 269 | 242 | 269 |
Dividends per common share | $ 0.16 | $ 0.16 | $ 0.32 | $ 0.32 |
FFELP Loans [Member] | ||||
Interest income: | ||||
Total interest income | $ 742 | $ 760 | $ 1,506 | $ 1,483 |
Less: provisions for loan losses | 8 | 40 | 15 | 50 |
Private Education Loans [Member] | ||||
Interest income: | ||||
Total interest income | 436 | 442 | 879 | 873 |
Less: provisions for loan losses | 60 | 72 | 128 | 149 |
Other Loans [Member] | ||||
Interest income: | ||||
Total interest income | $ 1 | $ 1 | $ 2 | $ 2 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 153 | $ 83 | $ 281 | $ 210 |
Other comprehensive income: | ||||
Gains (losses) on derivatives | (162) | 42 | (253) | 173 |
Reclassification adjustments for derivative (gains) losses included in net income (interest expense) | (2) | (1) | (3) | (1) |
Total gains (losses) on derivatives | (164) | 41 | (256) | 172 |
Income tax (expense) benefit | 41 | (11) | 63 | (43) |
Other comprehensive income (loss), net of tax | (123) | 30 | (193) | 129 |
Total comprehensive income | $ 30 | $ 113 | $ 88 | $ 339 |
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, 2017 | $ 3,485 | $ 4 | $ (2,692) | $ 3,077 | $ 61 | $ 3,004 | $ 3,454 | $ 31 | |||||
Beginning Balance, Shares at Dec. 31, 2017 | 439,718,145 | (176,667,573) | 263,050,572 | ||||||||||
Comprehensive income: | |||||||||||||
Net income | 210 | 210 | 210 | ||||||||||
Other comprehensive income (loss), net of tax | 129 | 129 | 129 | ||||||||||
Total comprehensive income | 339 | 339 | |||||||||||
Cash dividends: | |||||||||||||
Common stock | (85) | (85) | (85) | ||||||||||
Dividend equivalent units related to employee stock-based compensation plans | (2) | (2) | (2) | ||||||||||
Issuance of common shares | $ 39 | 39 | 39 | ||||||||||
Issuance of common shares, Shares | 5,134,238 | 5,134,238 | 5,134,238 | ||||||||||
Stock-based compensation expense | $ 18 | 18 | 18 | ||||||||||
Common stock repurchased, Shares | 0 | ||||||||||||
Shares repurchased related to employee stock-based compensation plans | $ (49) | $ (49) | (49) | ||||||||||
Shares repurchased related to employee stock-based compensation plans, Shares | (3,557,504) | (3,557,504) | (3,557,504) | ||||||||||
Reclassification from adoption of ASU No. 2018-02 | 13 | (13) | |||||||||||
Ending Balance, Value at Jun. 30, 2018 | $ 3,745 | $ 4 | $ (2,741) | 3,134 | 203 | 3,114 | 3,714 | 31 | |||||
Ending Balance, Shares at Jun. 30, 2018 | 444,852,383 | (180,225,077) | 264,627,306 | ||||||||||
Beginning Balance, Value at Mar. 31, 2018 | 3,668 | $ 4 | $ (2,740) | 3,127 | 173 | 3,073 | 3,637 | 31 | |||||
Beginning Balance, Shares at Mar. 31, 2018 | 444,739,212 | (180,132,708) | 264,606,504 | ||||||||||
Comprehensive income: | |||||||||||||
Net income | 83 | 83 | 83 | ||||||||||
Other comprehensive income (loss), net of tax | 30 | 30 | 30 | ||||||||||
Total comprehensive income | 113 | 113 | |||||||||||
Cash dividends: | |||||||||||||
Common stock | (42) | (42) | (42) | ||||||||||
Issuance of common shares | $ 1 | 1 | 1 | ||||||||||
Issuance of common shares, Shares | 113,171 | 113,171 | 113,171 | ||||||||||
Stock-based compensation expense | $ 6 | 6 | 6 | ||||||||||
Shares repurchased related to employee stock-based compensation plans | $ (1) | $ (1) | (1) | ||||||||||
Shares repurchased related to employee stock-based compensation plans, Shares | (92,369) | (92,369) | (92,369) | ||||||||||
Ending Balance, Value at Jun. 30, 2018 | $ 3,745 | $ 4 | $ (2,741) | 3,134 | 203 | 3,114 | 3,714 | 31 | |||||
Ending Balance, Shares at Jun. 30, 2018 | 444,852,383 | (180,225,077) | 264,627,306 | ||||||||||
Beginning Balance, Value at Dec. 31, 2018 | 3,547 | $ 4 | $ (2,961) | 3,145 | 113 | 3,218 | 3,519 | 28 | |||||
Beginning Balance, Shares at Dec. 31, 2018 | 445,377,826 | (197,940,553) | 247,437,273 | ||||||||||
Comprehensive income: | |||||||||||||
Net income | 281 | 281 | 281 | ||||||||||
Other comprehensive income (loss), net of tax | (193) | (193) | (193) | ||||||||||
Total comprehensive income | 88 | 88 | |||||||||||
Cash dividends: | |||||||||||||
Common stock | (76) | (76) | (76) | ||||||||||
Dividend equivalent units related to employee stock-based compensation plans | (5) | (5) | (5) | ||||||||||
Issuance of common shares | $ 19 | 19 | 19 | ||||||||||
Issuance of common shares, Shares | 4,625,347 | 4,625,347 | 4,625,347 | ||||||||||
Stock-based compensation expense | $ 17 | 17 | 17 | ||||||||||
Common stock repurchased | $ (233) | $ (233) | $ (233) | $ (233) | |||||||||
Common stock repurchased, Shares | (19,034,252) | (19,034,252) | (19,034,252) | ||||||||||
Shares repurchased related to employee stock-based compensation plans | $ (28) | $ (28) | (28) | ||||||||||
Shares repurchased related to employee stock-based compensation plans, Shares | (2,534,090) | (2,534,090) | (2,534,090) | ||||||||||
Net activity in noncontrolling interest | $ (17) | (17) | |||||||||||
Ending Balance, Value at Jun. 30, 2019 | 3,312 | $ 4 | $ (3,222) | 3,181 | (80) | 3,418 | 3,301 | 11 | |||||
Ending Balance, Shares at Jun. 30, 2019 | 450,003,173 | (219,508,895) | 230,494,278 | ||||||||||
Beginning Balance, Value at Mar. 31, 2019 | 3,443 | $ 4 | $ (3,094) | 3,174 | 43 | 3,303 | 3,430 | 13 | |||||
Beginning Balance, Shares at Mar. 31, 2019 | 449,807,290 | (209,771,402) | 240,035,888 | ||||||||||
Comprehensive income: | |||||||||||||
Net income | 153 | 153 | 153 | ||||||||||
Other comprehensive income (loss), net of tax | (123) | (123) | (123) | ||||||||||
Total comprehensive income | 30 | 30 | |||||||||||
Cash dividends: | |||||||||||||
Common stock | (37) | (37) | (37) | ||||||||||
Dividend equivalent units related to employee stock-based compensation plans | (1) | (1) | (1) | ||||||||||
Issuance of common shares | $ 2 | 2 | 2 | ||||||||||
Issuance of common shares, Shares | 195,883 | 195,883 | 195,883 | ||||||||||
Stock-based compensation expense | $ 5 | 5 | 5 | ||||||||||
Common stock repurchased | $ (126) | $ (126) | $ (126) | $ (126) | |||||||||
Common stock repurchased, Shares | (9,617,008) | (9,617,008) | (9,617,008) | ||||||||||
Shares repurchased related to employee stock-based compensation plans | $ (2) | $ (2) | (2) | ||||||||||
Shares repurchased related to employee stock-based compensation plans, Shares | (120,485) | (120,485) | (120,485) | ||||||||||
Net activity in noncontrolling interest | $ (2) | (2) | |||||||||||
Ending Balance, Value at Jun. 30, 2019 | $ 3,312 | $ 4 | $ (3,222) | $ 3,181 | $ (80) | $ 3,418 | $ 3,301 | $ 11 | |||||
Ending Balance, Shares at Jun. 30, 2019 | 450,003,173 | (219,508,895) | 230,494,278 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Dividends per common share | $ 0.16 | $ 0.16 | $ 0.32 | $ 0.32 |
Retained Earnings [Member] | ||||
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 | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Operating activities | ||||
Net income | $ 153 | $ 83 | $ 281 | $ 210 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
(Gains) on sales of loans | (16) | (16) | ||
(Gains) losses on debt repurchases | (44) | 7 | (59) | 8 |
Goodwill and acquired intangible asset impairment and amortization expense | 11 | 6 | 18 | 16 |
Stock-based compensation expense | 17 | 18 | ||
Mark-to-market losses (gains) on derivative and hedging activities, net | 173 | (63) | ||
Provisions for loan losses | 68 | 112 | 144 | 199 |
Decrease (increase) in accrued interest receivable | 22 | (121) | ||
(Decrease) increase in accrued interest payable | (29) | 86 | ||
Decrease in other assets | 148 | 160 | ||
Decrease in other liabilities | (177) | (31) | ||
Total adjustments | 241 | 272 | ||
Net cash provided by operating activities | 522 | 482 | ||
Investing activities | ||||
Education loans acquired and originated | (1,970) | (1,555) | ||
Principal payments on education loans | 6,411 | 7,340 | ||
Proceeds from sales of education loans | 408 | |||
Other investing activities, net | 32 | (29) | ||
Net cash provided by investing activities | 4,881 | 5,756 | ||
Financing activities | ||||
Borrowings collateralized by loans in trust - issued | 4,863 | 5,443 | ||
Borrowings collateralized by loans in trust - repaid | (7,630) | (6,791) | ||
Long-term notes issued | 495 | |||
Long-term notes repaid | (937) | (1,443) | ||
Other financing activities, net | (149) | (46) | ||
Common stock repurchased | (233) | |||
Common dividends paid | (76) | (85) | ||
Net cash used in financing activities | (6,239) | (5,876) | ||
Net (decrease) increase in cash, cash equivalents, restricted cash and restricted cash equivalents | (836) | 362 | ||
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 5,262 | 4,646 | ||
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | 4,426 | 5,008 | 4,426 | 5,008 |
Cash disbursements made (refunds received) for: | ||||
Interest | 1,845 | 1,618 | ||
Income taxes paid | 22 | 24 | ||
Income taxes received | (1) | (2) | ||
Reconciliation of the Consolidated Statements of Cash Flows to the Consolidated Balance Sheets: | ||||
Cash and cash equivalents | 1,746 | 1,622 | 1,746 | 1,622 |
Restricted cash and restricted cash equivalents | 2,680 | 3,386 | 2,680 | 3,386 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | $ 4,426 | $ 5,008 | 4,426 | 5,008 |
Noncash activity: | ||||
Investing activity - Held-to-maturity asset backed securities retained related to sales of education loans | 22 | |||
Operating activity - Servicing assets recognized upon sales of education loans | 3 | |||
Asset-backed Securities, Securitized Loans and Receivables [Member] | ||||
Financing activities | ||||
Asset-backed commercial paper conduits, net | $ (2,077) | $ (3,449) |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 1. 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, 2019 are not necessarily indicative of the results for the year ending December 31, 2019 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, 2018 (the “2018 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 2018 Form 10-K. Recently Issued Accounting Pronouncements Effective in 2019 Leases In 2016, the FASB issued ASU No. 2016-02, “Leases,” which requires the identification of arrangements that should be accounted for as leases by lessees. In general, for lease arrangements exceeding a twelve-month term, these arrangements must be recognized as assets and liabilities on the balance sheet of the lessee. Under previous GAAP, all operating leases were off-balance sheet, regardless of the term. A right-of-use asset and lease obligation will be recorded for all leases with a term exceeding twelve months, whether operating or financing, while the income statement will reflect lease expense for operating leases and amortization/interest expense for financing leases. It was effective for the Company on January 1, 2019 and resulted in recording a $28 million asset and liability with no change to the income statement. The standard was adopted prospectively without adjustment to comparative periods. Hedging Activities In August 2017, the FASB issued ASU No. 2017-12, “Derivatives and Hedging,” which is intended to better align risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. The new standard was effective for the Company on January 1, 2019 and requires the mark-to-market gains and losses from qualifying fair value hedge relationships to be recorded in the same line item on the income statement of the item being hedged. As a result, the mark-to-market gains and losses from fair value hedging activity are now recorded in interest expense whereas they were previously recorded in gains (losses) on derivative and hedging activities, net. This change in presentation is prospective only and resulted in $7 million and $9 million of gains being recorded in interest expense in the three and six months ended June 30, 2019, respectively. . 1. Significant Accounting Policies (Continued) Effective in 2020 Allowance for Loan Losses In 2016, the FASB issued ASU No. 2016-13, “Financial Instruments — Credit Losses,” which requires measurement and recognition of an allowance for loan loss that estimates remaining expected credit losses for financial assets held at the reporting date. Our current allowance for loan loss is an incurred loss model. As a result, the new guidance will result in an increase to our allowance for loan losses. The standard is to be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The standard is effective for the Company as of January 1, 2020 and will primarily impact the allowance for loan losses related to our Private Education Loans and FFELP Loans. This standard represents a significant change from existing GAAP and will result in material changes to the Company’s accounting for the allowance for loan losses. We are currently evaluating the impact of adopting this accounting standard on our consolidated financial statements and footnote disclosures. |
Allowance for Loan Losses
Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Allowance for Loan Losses | 2. Allowance for Loan Losses Our provisions for loan losses represent the periodic expense of maintaining an allowance sufficient to absorb incurred probable losses, net of expected recoveries, in the held-for-investment loan portfolios. The evaluation of the provisions for loan losses is inherently subjective, as it requires material estimates that may be susceptible to significant changes. We segregate our Private Education Loan portfolio into two classes of loans in monitoring and assessing credit risk — Troubled Debt Restructurings (“TDRs”) and Non-TDRs. We believe that the allowance for loan losses is appropriate to cover probable losses incurred in the loan portfolios. 2. Allowance for Loan Losses (Continued) Allowance for Loan Losses Metrics Three Months Ended June 30, 2019 (Dollars in millions) FFELP Loans Private Education Loans Other Loans Total Allowance for Loan Losses Beginning balance $ 67 $ 1,178 $ 7 $ 1,252 Total provision 8 60 — 68 Charge-offs (1) (7 ) (87 ) (1 ) (95 ) Reclassification of interest reserve (2) — 1 — 1 Loan sales — (1 ) (7 ) (8 ) Ending balance $ 67 $ 1,151 $ — $ 1,218 Allowance Ending Balance: Individually evaluated for impairment — TDR $ — $ 1,040 $ — $ 1,040 Collectively evaluated for impairment: Excluding Purchased Non-Credit Impaired Loans acquired at a discount and Purchased Credit Impaired Loans 67 111 — 178 Purchased Non-Credit Impaired Loans acquired at a discount (3) — — — — Purchased Credit Impaired Loans (3) — — — — Ending total allowance $ 67 $ 1,151 $ — $ 1,218 Loans Ending Balance: Individually evaluated for impairment — TDR $ — $ 10,000 $ — $ 10,000 Collectively evaluated for impairment: Excluding Purchased Non-Credit Impaired Loans acquired at a discount and Purchased Credit Impaired Loans 64,783 11,215 4 76,002 Purchased Non-Credit Impaired Loans acquired at a discount (3) 2,671 1,977 — 4,648 Purchased Credit Impaired Loans (3) — 214 — 214 Ending total loans (4) $ 67,454 $ 23,406 $ 4 $ 90,864 Charge-offs as a percentage of average loans in repayment .05 % 1.59 % 10.19 % Allowance coverage of charge-offs 2.2 3.3 — Allowance as a percentage of the ending total loan balance .10 % 4.92 % — % Allowance as a percentage of the ending loans in repayment .12 % 5.37 % — % Ending total loans (4) $ 67,454 $ 23,406 $ 4 Average loans in repayment $ 56,657 $ 21,854 $ 28 Ending loans in repayment $ 55,684 $ 21,439 $ 4 (1) Charge-offs are reported net of expected recoveries. For Private Education Loans, the expected recovery amount is transferred to the receivable for partially charged-off loan balance. Charge-offs include charge-offs against the receivable for partially charged-off loans which represents the difference between what was expected to be recovered and any shortfalls in what was actually recovered in the period. See “Receivable for Partially Charged-Off Private Education Loans” for further discussion. (2) Represents the additional allowance related to the amount of uncollectible interest reserved within interest income that is transferred in the period to the allowance for loan losses when interest is capitalized to a loan’s principal balance. (3) The Purchased Credit Impaired Loans’ losses are not provided for by the allowance for loan losses in the above table as these loans are separately reserved for, if needed. No allowance for loan losses has been established for these loans as of June 30, 2019. The losses of the Purchased Non-Credit Impaired Loans acquired at a discount are not provided for by the allowance for loan losses in the above table as the remaining purchased discount associated with the FFELP and Private Education Loans of $34 million and $298 million, respectively, as of June 30, 2019 is greater than the incurred losses and as a result no allowance for loan losses has been established for these loans as of June 30, 2019. (4) Ending total loans for Private Education Loans includes the receivable for partially charged-off loans. 2. Allowance for Loan Losses (Continued) Three Months Ended June 30, 2018 (Dollars in millions) FFELP Loans Private Education Loans Other Loans Total Allowance for Loan Losses Beginning balance $ 59 $ 1,298 $ 10 $ 1,367 Total provision 40 72 — 112 Charge-offs (1) (17 ) (75 ) — (92 ) Reclassification of interest reserve (2) — 2 — 2 Ending balance $ 82 $ 1,297 $ 10 $ 1,389 Allowance Ending Balance: Individually evaluated for impairment — TDR $ — $ 1,142 $ 9 $ 1,151 Collectively evaluated for impairment: Excluding Purchased Non-Credit Impaired Loans acquired at a discount and Purchased Credit Impaired Loans 82 155 1 238 Purchased Non-Credit Impaired Loans acquired at a discount (3) — — — — Purchased Credit Impaired Loans (3) — — — — Ending total allowance $ 82 $ 1,297 $ 10 $ 1,389 Loans Ending Balance: Individually evaluated for impairment — TDR $ — $ 10,679 $ 28 $ 10,707 Collectively evaluated for impairment: Excluding Purchased Non-Credit Impaired Loans acquired at a discount and Purchased Credit Impaired Loans 73,018 11,411 51 84,480 Purchased Non-Credit Impaired Loans acquired at a discount (3) 3,034 2,386 — 5,420 Purchased Credit Impaired Loans (3) — 236 — 236 Ending total loans (4) $ 76,052 $ 24,712 $ 79 $ 100,843 Charge-offs as a percentage of average loans in repayment .11 % 1.34 % 2.63 % Allowance coverage of charge-offs 1.2 4.3 5.1 Allowance as a percentage of the ending total loan balance .11 % 5.25 % 12.54 % Allowance as a percentage of the ending loans in repayment .13 % 5.85 % 12.54 % Ending total loans (4) $ 76,052 $ 24,712 $ 79 Average loans in repayment $ 64,238 $ 22,289 $ 73 Ending loans in repayment $ 62,952 $ 22,174 $ 79 (1) Charge-offs are reported net of expected recoveries. For Private Education Loans, the expected recovery amount is transferred to the receivable for partially charged-off loan balance. Charge-offs include charge-offs against the receivable for partially charged-off loans which represents the difference between what was expected to be recovered and any shortfalls in what was actually recovered in the period. See “Receivable for Partially Charged-Off Private Education Loans” for further discussion. (2) Represents the additional allowance related to the amount of uncollectible interest reserved within interest income that is transferred in the period to the allowance for loan losses when interest is capitalized to a loan’s principal balance. (3) The Purchased Credit Impaired Loans’ losses are not provided for by the allowance for loan losses in the above table as these loans are separately reserved for, if needed. No allowance for loan losses has been established for these loans as of June 30, 2018. The losses of the Purchased Non-Credit Impaired Loans acquired at a discount are not provided for by the allowance for loan losses in the above table as the remaining purchased discount associated with the FFELP and Private Education Loans of $40 million and $362 million, respectively, as of June 30, 2018 is greater than the incurred losses and as a result no allowance for loan losses has been established for these loans as of June 30, 2018. (4) Ending total loans for Private Education Loans includes the receivable for partially charged-off loans. 2. Allowance for Loan Losses (Continued) Six Months Ended June 30, 2019 (Dollars in millions) FFELP Loans Private Education Loans Other Loans Total Allowance for Loan Losses Beginning balance $ 76 $ 1,201 $ 9 $ 1,286 Total provision 15 128 1 144 Charge-offs (1) (24 ) (181 ) (2 ) (207 ) Reclassification of interest reserve (2) — 4 — 4 Loan sales — (1 ) (8 ) (9 ) Ending balance $ 67 $ 1,151 $ — $ 1,218 Allowance Ending Balance: Individually evaluated for impairment — TDR $ — $ 1,040 $ — $ 1,040 Collectively evaluated for impairment: Excluding Purchased Non-Credit Impaired Loans acquired at a discount and Purchased Credit Impaired Loans 67 111 — 178 Purchased Non-Credit Impaired Loans acquired at a discount (3) — — — — Purchased Credit Impaired Loans (3) — — — — Ending total allowance $ 67 $ 1,151 $ — $ 1,218 Loans Ending Balance: Individually evaluated for impairment — TDR $ — $ 10,000 $ — $ 10,000 Collectively evaluated for impairment: Excluding Purchased Non-Credit Impaired Loans acquired at a discount and Purchased Credit Impaired Loans 64,783 11,215 4 76,002 Purchased Non-Credit Impaired Loans acquired at a discount (3) 2,671 1,977 — 4,648 Purchased Credit Impaired Loans (3) — 214 — 214 Ending total loans (4) $ 67,454 $ 23,406 $ 4 $ 90,864 Charge-offs as a percentage of average loans in repayment 0.08 % 1.66 % 7.78 % Allowance coverage of charge-offs 1.4 3.2 — Allowance as a percentage of the ending total loan balance .10 % 4.92 % — % Allowance as a percentage of the ending loans in repayment .12 % 5.37 % — % Ending total loans (4) $ 67,454 $ 23,406 $ 4 Average loans in repayment $ 57,435 $ 21,957 $ 52 Ending loans in repayment $ 55,684 $ 21,439 $ 4 (1) Charge-offs are reported net of expected recoveries. For Private Education Loans, the expected recovery amount is transferred to the receivable for partially charged-off loan balance. Charge-offs include charge-offs against the receivable for partially charged-off loans which represents the difference between what was expected to be recovered and any shortfalls in what was actually recovered in the period. See “Receivable for Partially Charged-Off Private Education Loans” for further discussion. (2) Represents the additional allowance related to the amount of uncollectible interest reserved within interest income that is transferred in the period to the allowance for loan losses when interest is capitalized to a loan’s principal balance. (3) The Purchased Credit Impaired Loans’ losses are not provided for by the allowance for loan losses in the above table as these loans are separately reserved for, if needed. No allowance for loan losses has been established for these loans as of June 30, 2019. The losses of the Purchased Non-Credit Impaired Loans acquired at a discount are not provided for by the allowance for loan losses in the above table as the remaining purchased discount associated with the FFELP and Private Education Loans of $34 million and $298 million, respectively, as of June 30, 2019 is greater than the incurred losses and as a result no allowance for loan losses has been established for these loans as of June 30, 2019. (4) Ending total loans for Private Education Loans includes the receivable for partially charged-off loans. 2. Allowance for Loan Losses (Continued) Six Months Ended June 30, 2018 (Dollars in millions) FFELP Loans Private Education Loans Other Loans Total Allowance for Loan Losses Beginning balance $ 60 $ 1,297 $ 10 $ 1,367 Total provision 50 149 — 199 Charge-offs (1) (28 ) (153 ) — (181 ) Reclassification of interest reserve (2) — 4 — 4 Ending balance $ 82 $ 1,297 $ 10 $ 1,389 Allowance Ending Balance: Individually evaluated for impairment - TDR $ — $ 1,142 $ 9 $ 1,151 Collectively evaluated for impairment: Excluding Purchased Non-Credit Impaired Loans acquired at a discount and Purchased Credit Impaired Loans 82 155 1 238 Purchased Non-Credit Impaired Loans acquired at a discount (3) — — — — Purchased Credit Impaired Loans (3) — — — — Ending total allowance $ 82 $ 1,297 $ 10 $ 1,389 Loans Ending Balance: Individually evaluated for impairment - TDR $ — $ 10,679 $ 28 $ 10,707 Collectively evaluated for impairment: Excluding Purchased Non-Credit Impaired Loans acquired at a discount and Purchased Credit Impaired Loans 73,018 11,411 51 84,480 Purchased Non-Credit Impaired Loans acquired at a discount (3) 3,034 2,386 — 5,420 Purchased Credit Impaired Loans (3) — 236 — 236 Ending total loans (4) $ 76,052 $ 24,712 $ 79 $ 100,843 Charge-offs as a percentage of average loans in repayment .09 % 1.37 % 1.13 % Allowance coverage of charge-offs 1.5 4.2 11.9 Allowance as a percentage of the ending total loan balance .11 % 5.25 % 12.21 % Allowance as a percentage of the ending loans in repayment .13 % 5.85 % 12.21 % Ending total loans (4) $ 76,052 $ 24,712 $ 79 Average loans in repayment $ 64,940 $ 22,474 $ 72 Ending loans in repayment $ 62,952 $ 22,174 $ 79 (1) Charge-offs are reported net of expected recoveries. For Private Education Loans, the expected recovery amount is transferred to the receivable for partially charged-off loan balance. Charge-offs include charge-offs against the receivable for partially charged-off loans which represents the difference between what was expected to be recovered and any shortfalls in what was actually recovered in the period. See “Receivable for Partially Charged-Off Private Education Loans” for further discussion. (2) Represents the additional allowance related to the amount of uncollectible interest reserved within interest income that is transferred in the period to the allowance for loan losses when interest is capitalized to a loan’s principal balance. (3) The Purchased Credit Impaired Loans’ losses are not provided for by the allowance for loan losses in the above table as these loans are separately reserved for, if needed. No allowance for loan losses has been established for these loans as of June 30, 2018. The losses of the Purchased Non-Credit Impaired Loans acquired at a discount are not provided for by the allowance for loan losses in the above table as the remaining purchased discount associated with the FFELP and Private Education Loans of $40 million and $362 million, respectively, as of June 30, 2018 is greater than the incurred losses and as a result no allowance for loan losses has been established for these loans as of June 30, 2018. (4) Ending total loans for Private Education Loans includes the receivable for partially charged-off loans. 2. Allowance for Loan Losses (Continued) Key Credit Quality Indicators FFELP Loans are substantially insured and guaranteed as to their principal and accrued interest in the event of default. The key credit quality indicator for this portfolio is loan status. The impact of changes in loan status is incorporated quarterly into the allowance for loan losses calculation. FFELP Loan Delinquencies June 30, 2019 December 31, 2018 (Dollars in millions) Balance % Balance % Loans in-school/grace/deferment (1) $ 3,530 $ 3,793 Loans in forbearance (2) 8,240 8,386 Loans in repayment and percentage of each status: Loans current 49,855 89.5 % 53,500 89.8 % Loans delinquent 31-60 days (3) 1,540 2.8 1,964 3.4 Loans delinquent 61-90 days (3) 870 1.6 910 1.5 Loans delinquent greater than 90 days (3) 3,419 6.1 3,177 5.3 Total FFELP Loans in repayment 55,684 100 % 59,551 100 % Total FFELP Loans, gross 67,454 71,730 FFELP Loan unamortized premium 569 599 Total FFELP Loans 68,023 72,329 FFELP Loan allowance for losses (67 ) (76 ) FFELP Loans, net $ 67,956 $ 72,253 Percentage of FFELP Loans in repayment 82.6 % 83.0 % Delinquencies as a percentage of FFELP Loans in repayment 10.5 % 10.2 % FFELP Loans in forbearance as a percentage of loans in repayment and forbearance 12.9 % 12.3 % (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. (3) The period of delinquency is based on the number of days scheduled payments are contractually past due. 2. Allowance for Loan Losses (Continued) For Private Education Loans, the key credit quality indicators are FICO scores, school type, the existence of a cosigner, the loan status and loan seasoning. The FICO scores and school type are assessed at origination. The other Private Education Loan key quality indicators can change and are incorporated quarterly into the allowance for loan losses calculation. The following table highlights the principal balance (excluding the receivable for partially charged-off loans) of our Private Education Loan portfolio stratified by the key credit quality indicators. Private Education Loan Credit Quality Indicators TDRs June 30, 2019 December 31, 2018 (Dollars in millions) Balance (3) % of Balance Balance (3) % of Balance Credit Quality Indicators Original Winning FICO Scores: FICO 640 and above $ 8,828 92 % $ 9,133 92 % FICO below 640 808 8 836 8 Total $ 9,636 100 % $ 9,969 100 % School Type: Not-for-profit $ 7,651 79 % $ 7,888 79 % For-profit 1,985 21 2,081 21 Total $ 9,636 100 % $ 9,969 100 % Cosigners: With cosigner (1) $ 5,998 62 % $ 6,172 62 % Without cosigner 3,638 38 3,797 38 Total $ 9,636 100 % $ 9,969 100 % Seasoning (2) 1-12 payments $ 282 3 % $ 335 3 % 13-24 payments 363 4 436 4 25-36 payments 556 6 660 7 37-48 payments 784 8 934 10 More than 48 payments 7,280 75 7,178 72 Not yet in repayment 371 4 426 4 Total $ 9,636 100 % $ 9,969 100 % (1) Excluding Private Education Refinance Loans, which do not have a cosigner, the cosigner rate was 62% at June 30, 2019 and December 31, 2018. (2) Number of months in active repayment for which a scheduled payment was received. (3) Balance equals the gross Private Education Loans. 2. Allowance for Loan Losses (Continued) Private Education Loan Credit Quality Indicators Non-TDRs June 30, 2019 December 31, 2018 (Dollars in millions) Balance (3) % of Balance Balance (3) % of Balance Credit Quality Indicators Original Winning FICO Scores: FICO 640 and above $ 12,715 97 % $ 13,087 96 % FICO below 640 415 3 475 4 Total $ 13,130 100 % $ 13,562 100 % School Type: Not-for-profit $ 11,648 89 % $ 11,953 88 % For-profit 1,482 11 1,609 12 Total $ 13,130 100 % $ 13,562 100 % Cosigners: With cosigner (1) $ 5,979 46 % $ 6,961 51 % Without cosigner 7,151 54 6,601 49 Total $ 13,130 100 % $ 13,562 100 % Seasoning (2) 1-12 payments $ 3,205 24 % $ 3,353 25 % 13-24 payments 1,285 10 486 3 25-36 payments 465 4 322 2 37-48 payments 280 2 383 3 More than 48 payments 7,580 58 8,626 64 Not yet in repayment 315 2 392 3 Total $ 13,130 100 % $ 13,562 100 % (1) Excluding Private Education Refinance Loans, which do not have a cosigner, the cosigner rate was 67% at June 30, 2019 and December 31, 2018. (2) Number of months in active repayment for which a scheduled payment was received. (3) Balance equals the gross Private Education Loans. 2. Allowance for Loan Losses (Continued) Private Education Loan Delinquencies TDRs June 30, 2019 December 31, 2018 (Dollars in millions) Balance % Balance % Loans in-school/grace/deferment (1) $ 371 $ 426 Loans in forbearance (2) 505 518 Loans in repayment and percentage of each status: Loans current 7,816 89.2 % 7,890 87.4 % Loans delinquent 31-60 days (3) 276 3.2 344 3.8 Loans delinquent 61-90 days (3) 191 2.2 235 2.6 Loans delinquent greater than 90 days (3) 477 5.4 556 6.2 Total TDR loans in repayment 8,760 100 % 9,025 100 % Total TDR loans, gross 9,636 9,969 TDR loans unamortized discount (209 ) (212 ) Total TDR loans 9,427 9,757 TDR loans receivable for partially charged-off loans 364 367 TDR loans allowance for losses (1,040 ) (1,100 ) TDR loans, net $ 8,751 $ 9,024 Percentage of TDR loans in repayment 90.9 % 90.5 % Delinquencies as a percentage of TDR loans in repayment 10.8 % 12.6 % Loans in forbearance as a percentage of TDR loans in repayment and forbearance 5.4 % 5.4 % (1) Deferment includes customers who have returned to school or are engaged in other permitted educational activities and are not yet required to make payments on their loans, e.g., residency periods for medical students or a grace period for bar exam preparation. (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, 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) Private Education Loan Delinquencies Non-TDRs June 30, 2019 December 31, 2018 (Dollars in millions) Balance % Balance % Loans in-school/grace/deferment (1) $ 315 $ 392 Loans in forbearance (2) 136 158 Loans in repayment and percentage of each status: Loans current 12,553 99.0 % 12,851 98.8 % Loans delinquent 31-60 days (3) 51 .4 71 .5 Loans delinquent 61-90 days (3) 28 .2 32 .3 Loans delinquent greater than 90 days (3) 47 .4 58 .4 Total non-TDR loans in repayment 12,679 100 % 13,012 100 % Total non-TDR loans, gross 13,130 13,562 Non-TDR loans unamortized discount (482 ) (547 ) Total non-TDR loans 12,648 13,015 Non-TDR loans receivable for partially charged-off loans 276 307 Non-TDR loans allowance for losses (111 ) (101 ) Non-TDR loans, net $ 12,813 $ 13,221 Percentage of non-TDR loans in repayment 96.6 % 95.9 % Delinquencies as a percentage of non-TDR loans in repayment 1.0 % 1.2 % Loans in forbearance as a percentage of non- TDR loans in repayment and forbearance 1.1 % 1.2 % (1) Deferment includes customers who have returned to school or are engaged in other permitted educational activities and are not yet required to make payments on their loans, e.g., residency periods for medical students or a grace period for bar exam preparation. (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, 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) Receivable for Partially Charged-Off Private Education Loans At the end of each month, for loans that are 212 or more days past due, we charge off the estimated loss of a defaulted loan balance. We refer to the remaining loan balance as the “receivable for partially charged-off loans.” Actual recoveries are applied against this receivable balance. If actual periodic recoveries are less than expected, the difference is immediately charged off through the allowance for Private Education Loan losses. The following table summarizes the activity in the receivable for partially charged-off Private Education Loans. Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2019 2018 2019 2018 Receivable at beginning of period $ 657 $ 741 $ 674 $ 760 Expected future recoveries of current period defaults (1) 18 19 38 38 Recoveries (2) (33 ) (36 ) (67 ) (74 ) Charge-offs (3) (2 ) — (5 ) — Receivable at end of period $ 640 $ 724 $ 640 $ 724 (1) Represents our estimate of the amount to be collected in the future. (2) Current period cash collections. (3) Represents the current period recovery shortfall — the difference between what was expected to be collected and what was actually collected. These amounts are included in total charge-offs as reported in the “Allowance for Private Education Loan Losses” table. Troubled Debt Restructurings (“TDRs”) We sometimes modify the terms of loans for customers experiencing financial difficulty. Where we have granted either a forbearance of greater than three months, an interest rate reduction or an extended repayment plan, these are classified as TDRs. Approximately 68% and 65% of the loans granted forbearance have qualified as a TDR loan at June 30, 2019 and December 31, 2018, respectively. The unpaid principal balance of TDR loans that were in an interest rate reduction program as of June 30, 2019 and December 31, 2018 was $2.0 billion and $1.8 billion, respectively. 2. Allowance for Loan Losses (Continued) At June 30, 2019 and December 31, 2018, all of our TDR loans had a related allowance recorded. The following table provides the recorded investment, unpaid principal balance and related allowance for our TDR loans. TDRs (Dollars in millions) June 30, 2019 December 31, 2018 Recorded investment (1) $ 9,980 $ 10,326 Total ending loans (2) $ 10,000 $ 10,336 Related allowance $ 1,040 $ 1,100 (1) (2) Total ending loans includes the receivable for partially charged-off loans. The following tables provide the average recorded investment and interest income recognized for our TDR loans. Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2019 2018 2019 2018 Average recorded investment $ 9,995 $ 10,733 $ 10,025 $ 10,794 Interest income recognized $ 194 $ 187 $ 392 $ 367 The following table provides the amount of loans modified in the periods 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) 2019 2018 2019 2018 Modified loans (1) $ 123 $ 137 $ 256 $ 307 Charge-offs (2) $ 75 $ 60 $ 155 $ 120 Payment default $ 27 $ 33 $ 59 $ 70 (1) Represents period ending balance of loans that have been modified during the period and resulted in a TDR. (2) Represents loans that charged off that were classified as TDRs. 2. Allowance for Loan Losses (Continued) Accrued Interest Receivable The following table provides information regarding accrued interest receivable on our Private Education Loans. (Dollars in millions) Total Greater Than 90 Days Past Due Allowance for Uncollectible Interest June 30, 2019 TDR $ 191 $ 26 $ 22 Non-TDR 128 3 6 Total $ 319 $ 29 $ 28 December 31, 2018 TDR $ 205 $ 26 $ 23 Non-TDR 149 3 4 Total $ 354 $ 29 $ 27 |
Borrowings
Borrowings | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Borrowings | 3. Borrowings The following table summarizes our borrowings. June 30, 2019 December 31, 2018 (Dollars in millions) Short Term Long Term Total Short Term Long Term Total Unsecured borrowings: Senior unsecured debt (1) $ 1,496 $ 9,005 $ 10,501 $ 817 $ 10,674 $ 11,491 Total unsecured borrowings 1,496 9,005 10,501 817 10,674 11,491 Secured borrowings: FFELP Loan securitizations (2) 72 62,405 62,477 — 66,318 66,318 Private Education Loan securitizations (3) 1,867 12,541 14,408 300 12,985 13,285 FFELP Loan — other facilities 2,270 1,836 4,106 2,927 2,625 5,552 Private Education Loan — other facilities 695 1,053 1,748 1,114 1,266 2,380 Other (4) 362 — 362 267 — 267 Total secured borrowings 5,266 77,835 83,101 4,608 83,194 87,802 Total before hedge accounting adjustments 6,762 86,840 93,602 5,425 93,868 99,293 Hedge accounting adjustments 23 (64 ) (41 ) (3 ) (349 ) (352 ) Total $ 6,785 $ 86,776 $ 93,561 $ 5,422 $ 93,519 $ 98,941 (1) Includes principal amount of $1.5 billion and $817 million of short-term debt as of June 30, 2019 and December 31, 2018, respectively. Includes principal amount of $9.1 billion and $10.8 billion of long-term debt as of June 30, 2019 and December 31, 2018, respectively. (2) Includes $72 million and $0 of short-term debt related to the FFELP asset-backed securitization repurchase facilities (“FFELP Loan Repurchase Facilities”) as of June 30, 2019 and December 31, 2018, respectively. Includes $214 million and $244 million of long-term debt related to the FFELP Loan Repurchase Facilities as of June 30, 2019 and December 31, 2018, respectively. (3) Includes $1.9 billion and $300 million of short-term debt related to the Private Education Loan asset-backed securitization repurchase facilities (“Private Education Loan Repurchase Facilities”) as of June 30, 2019 and December 31, 2018, respectively. Includes $921 million and $2.0 billion of long-term debt related to the Private Education Loan Repurchase Facilities as of June 30, 2019 and December 31, 2018, respectively. (4) “Other” primarily includes the obligation to return cash collateral held related to derivative exposures. 3. Borrowings (Continued) Variable Interest Entities We consolidated the following financing VIEs as of June 30, 2019 and December 31, 2018, as we are the primary beneficiary. As a result, these VIEs are accounted for as secured borrowings. June 30, 2019 Debt Outstanding Carrying Amount of Assets Securing Debt Outstanding (Dollars in millions) Short Term Long Term Total Loans Cash Other Assets Total Secured Borrowings — VIEs: FFELP Loan securitizations (1) $ 72 $ 62,405 $ 62,477 $ 63,494 $ 1,969 $ 1,316 $ 66,779 Private Education Loan securitizations (2) 1,867 12,541 14,408 16,433 541 173 17,147 FFELP Loan — other facilities 2,270 1,836 4,106 4,206 66 124 4,396 Private Education Loan — other facilities 695 1,053 1,748 2,602 64 18 2,684 Total before hedge accounting adjustments 4,904 77,835 82,739 86,735 2,640 1,631 91,006 Hedge accounting adjustments — (462 ) (462 ) — — (622 ) (622 ) Total $ 4,904 $ 77,373 $ 82,277 $ 86,735 $ 2,640 $ 1,009 $ 90,384 December 31, 2018 Debt Outstanding Carrying Amount of Assets Securing Debt Outstanding (Dollars in millions) Short Term Long Term Total Loans Cash Other Assets Total Secured Borrowings — VIEs: FFELP Loan securitizations (1) $ — $ 66,318 $ 66,318 $ 66,266 $ 3,181 $ 1,211 $ 70,658 Private Education Loan securitizations (2) 300 12,985 13,285 16,336 536 198 17,070 FFELP Loan — other facilities 2,927 2,625 5,552 5,656 132 162 5,950 Private Education Loan — other facilities 1,114 1,266 2,380 3,361 79 27 3,467 Total before hedge accounting adjustments 4,341 83,194 87,535 91,619 3,928 1,598 97,145 Hedge accounting adjustments — (456 ) (456 ) — — (642 ) (642 ) Total $ 4,341 $ 82,738 $ 87,079 $ 91,619 $ 3,928 $ 956 $ 96,503 (1) Includes $72 million of short-term debt, $214 million of long-term debt and $9 million of restricted cash related to the FFELP Loan Repurchase Facilities as of June 30, 2019. Includes $244 million of long-term debt and $9 million of restricted cash related to the FFELP Loan Repurchase Facilities as of December 31, 2018. (2) Includes $1.9 billion of short-term debt, $921 million of long-term debt and $65 million of restricted cash related to the Private Education Loan Repurchase Facilities as of June 30, 2019. Includes $300 million of short-term debt, $2.0 billion of long-term debt and $115 million of restricted cash related to the Private Education Loan Repurchase Facilities as of December 31, 2018. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 4. Derivative Financial Instruments Our risk management strategy and use of and accounting for derivatives have not materially changed from that discussed in our 2018 Form 10-K. Please refer to “Note 7 — Derivative Financial Instruments” in our 2018 Form 10-K for a full discussion. Summary of Derivative Financial Statement Impact The following tables summarize the fair values and notional amounts of all derivative instruments at June 30, 2019 and December 31, 2018, and their impact on other comprehensive income and earnings for the three and six months ended June 30, 2019 and 2018. 4. Derivative Financial Instruments (Continued) Impact of Derivatives on Consolidated Balance Sheet Cash Flow Fair Value (4) Trading Total (Dollars in millions) Hedged Risk Exposure Jun 30, 2019 Dec 31, 2018 Jun 30, 2019 Dec 31, 2018 Jun 30, 2019 Dec 31, 2018 Jun 30, 2019 Dec 31, 2018 Fair Values (1) Derivative Assets: Interest rate swaps Interest rate $ — $ — $ 239 $ 170 $ 4 $ 3 $ 243 $ 173 Cross-currency interest rate swaps Foreign currency and interest rate — — 3 6 — — 3 6 Total derivative assets (2) — — 242 176 4 3 246 179 Derivative Liabilities: Interest rate swaps Interest rate — — — (34 ) (24 ) (45 ) (24 ) (79 ) Floor Income Contracts Interest rate — — — — (99 ) (53 ) (99 ) (53 ) Cross-currency interest rate swaps Foreign currency and interest rate — — (606 ) (639 ) — (26 ) (606 ) (665 ) Other (3) Interest rate — — — — (2 ) (4 ) (2 ) (4 ) Total derivative liabilities (2) — — (606 ) (673 ) (125 ) (128 ) (731 ) (801 ) Net total derivatives $ — $ — $ (364 ) $ (497 ) $ (121 ) $ (125 ) $ (485 ) $ (622 ) (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, 2019 December 31, 2018 June 30, 2019 December 31, 2018 Gross position $ 246 $ 179 $ (731 ) $ (801 ) Impact of master netting agreements (32 ) (22 ) 32 22 Derivative values with impact of master netting agreements (as carried on balance sheet) 214 157 (699 ) (779 ) Cash collateral (held) pledged (359 ) (266 ) 164 188 Net position $ (145 ) $ (109 ) $ (535 ) $ (591 ) (3) (4) As of June 30, 2019 As of December 31, 2018 (Dollar in millions) Carrying Value Hedge Basis Adjustments Carrying Value Hedge Basis Adjustments Short-term borrowings $ 1,519 $ 23 $ 664 $ (3 ) Long-term borrowings 12,187 (85 ) 13,657 (368 ) 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, 2019 and December 31, 2018 by $15 million and $26 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, 2019 and December 31, 2018 by $15 million and $19 million, respectively. Cash Flow Fair Value Trading Total (Dollars in billions) Jun 30, 2019 Dec 31, 2018 Jun 30, 2019 Dec 31, 2018 Jun 30, 2019 Dec 31, 2018 Jun 30, 2019 Dec 31, 2018 Notional Values: Interest rate swaps $ 22.4 $ 21.4 $ 9.6 $ 10.3 $ 63.1 $ 66.9 $ 95.1 $ 98.6 Floor Income Contracts — — — — 21.2 27.9 21.2 27.9 Cross-currency interest rate swaps — — 4.2 4.5 — .2 4.2 4.7 Other (1) — — — — .1 .2 .1 .2 Total derivatives $ 22.4 $ 21.4 $ 13.8 $ 14.8 $ 84.4 $ 95.2 $ 120.6 $ 131.4 (1) “Other” includes derivatives related to our Total Return Swap Facility. Mark-to-Market Total Gains (Losses) Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2019 2018 2019 2018 Fair Value Hedges: Interest Rate Swaps Gains (losses) recognized in net income on derivatives $ 186 $ (71 ) $ 290 $ (258 ) Gains (losses) recognized in net income on hedged items (200 ) 66 (317 ) 290 Net fair value hedge ineffectiveness gains (losses) (14 ) (5 ) (27 ) 32 Cross currency interest rate swaps Gains (losses) recognized in net income on derivatives 41 (283 ) 29 (207 ) Gains (losses) recognized in net income on hedged items (20 ) 257 7 128 Net fair value hedge ineffectiveness gains (losses) 21 (26 ) 36 (79 ) Total fair value hedges (1)(2) 7 (31 ) 9 (47 ) Cash Flow Hedges: Total cash flow hedges (2) — — — — Trading: Interest rate swaps 16 (4 ) 23 18 Floor income contracts (49 ) 10 (48 ) 33 Cross currency interest rate swaps 1 (14 ) (2 ) 2 Other — (1 ) 2 2 Total trading derivatives (3) (32 ) (9 ) (25 ) 55 Mark-to-market gains (losses) recognized $ (25 ) $ (40 ) $ (16 ) $ 8 (1) Recorded in interest expense in the consolidated statements of income for 2019 with the adoption of ASU No, 2017-12. Recorded in “gains (losses) on derivatives and hedging activities, net” in the consolidated statements of income in 2018. (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 derivatives and hedging activities, net” in the consolidated statements of income. 4. Derivative Financial Instruments (Continued) Collateral Collateral held and pledged related to derivative exposures between us and our derivative counterparties are detailed in the following table: (Dollars in millions) June 30, 2019 December 31, 2018 Collateral held: Cash (obligation to return cash collateral is recorded in short-term borrowings) $ 359 $ 266 Securities at fair value — corporate derivatives (not recorded in financial statements) (1) — — Securities at fair value — on-balance sheet securitization derivatives (not recorded in financial statements) (2) 79 90 Total collateral held $ 438 $ 356 Derivative asset at fair value including accrued interest $ 307 $ 210 Collateral pledged to others: Cash (right to receive return of cash collateral is recorded in investments) $ 164 $ 188 Total collateral pledged $ 164 $ 188 Derivative liability at fair value including accrued interest and premium receivable $ 713 $ 752 (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 $73 million 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. |
Other Assets
Other Assets | 6 Months Ended |
Jun. 30, 2019 | |
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, 2019 December 31, 2018 Accrued interest receivable $ 1,994 $ 1,999 Benefit and insurance-related investments 460 470 Income tax asset, net (current and deferred) 275 271 Derivatives at fair value 214 157 Fixed assets, net 136 136 Accounts receivable 99 95 Other loans, net 4 69 Other 201 207 Total $ 3,383 $ 3,404 |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | 6. Stockholders’ Equity The following table summarizes common share repurchases and issuances. Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Common stock repurchased (1) 9,617,008 — 19,034,252 — Average purchase price per share $ 13.06 $ — $ 12.24 $ — Shares repurchased related to employee stock- based compensation plans (2) 120,485 92,369 2,534,090 3,557,504 Average purchase price per share $ 13.45 $ 14.53 $ 10.94 $ 13.77 Common shares issued (3) 195,883 113,171 4,625,347 5,134,238 (1) Common shares purchased under our share repurchase program. (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 28, 2019 was $13.65. Dividend and Share Repurchase Program In the three and six months ended June 30, 2019, we paid $37 million ($0.16 per share) and $76 million ($0.32 per share), respectively, of common stock dividends. In the three and six months ended June 30, 2019, we repurchased 9.6 million and 19.0 million shares of common stock for $126 million and $233 million, respectively. Our board of directors authorized a new $500 million share repurchase program in September 2018. As of June 30, 2019, the remaining common share repurchase authority was $207 million. There were no share repurchases in the year-ago period. |
Earnings per Common Share
Earnings per Common Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | 7. Earnings per Common Share Basic earnings per common share (“EPS”) are calculated using the weighted average number of shares of common stock outstanding during each period. A reconciliation of the numerators and denominators of the basic and diluted EPS calculations follows. Three Months Ended June 30, Six Months Ended June 30, (In millions, except per share data) 2019 2018 2019 2018 Numerator: Net income $ 153 $ 83 $ 281 $ 210 Denominator: Weighted average shares used to compute basic EPS 235 265 239 264 Effect of dilutive securities: Dilutive effect of stock options, restricted stock, restricted stock units, performance stock units, and Employee Stock Purchase Plan (“ESPP”) (1) 3 4 3 5 Dilutive potential common shares (2) 3 4 3 5 Weighted average shares used to compute diluted EPS 238 269 242 269 Basic earnings per common share $ .65 $ .31 $ 1.17 $ .79 Diluted earnings per common share $ .64 $ .31 $ 1.16 $ .78 (1) (2) |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
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. Please refer to “Note 12 — Fair Value Measurements” in our 2018 Form 10-K for a full discussion. During the three and six months ended June 30, 2019, there were no significant transfers of financial instruments between levels, or changes in our methodology or assumptions 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. Fair Value Measurements on a Recurring Basis June 30, 2019 December 31, 2018 (Dollars in millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Derivative instruments: (1) Interest rate swaps — 241 2 243 — 171 2 173 Cross-currency interest rate swaps — — 3 3 — — 6 6 Total derivative assets (2) — 241 5 246 — 171 8 179 Total $ — $ 241 $ 5 $ 246 $ — $ 171 $ 8 $ 179 Liabilities (3) Derivative instruments (1) Interest rate swaps $ — $ (1 ) $ (23 ) $ (24 ) $ — $ (50 ) $ (29 ) $ (79 ) Floor Income Contracts — (99 ) — (99 ) — (53 ) — (53 ) Cross-currency interest rate swaps — — (606 ) (606 ) — (26 ) (639 ) (665 ) Other — — (2 ) (2 ) — — (4 ) (4 ) Total derivative liabilities (2) — (100 ) (631 ) (731 ) — (129 ) (672 ) (801 ) Total $ — $ (100 ) $ (631 ) $ (731 ) $ — $ (129 ) $ (672 ) $ (801 ) (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 items 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 are 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, 2019 2018 Derivative instruments Derivative instruments (Dollars in millions) Interest Rate Swaps Cross Currency Interest Rate Swaps Other Total Derivative Instruments Interest Rate Swaps Cross Currency Interest Rate Swaps Other Total Derivative Instruments Balance, beginning of period $ (24 ) $ (645 ) $ (2 ) $ (671 ) $ (37 ) $ (246 ) $ (12 ) $ (295 ) Total gains/(losses): Included in earnings (1) 2 10 — 12 3 (314 ) 3 (308 ) Included in other comprehensive income — — — — — — — — Settlements 1 32 — 33 1 31 1 33 Transfers in and/or out of level 3 — — — — — — — — Balance, end of period $ (21 ) $ (603 ) $ (2 ) $ (626 ) $ (33 ) $ (529 ) $ (8 ) $ (570 ) Change in mark-to-market gains/(losses) relating to instruments still held at the reporting date (2) $ 2 $ 42 $ — $ 44 $ 4 $ (283 ) $ 4 $ (275 ) Six Months Ended June 30, 2019 2018 Derivative instruments Derivative instruments (Dollars in millions) Interest Rate Swaps Cross Currency Interest Rate Swaps Other Total Derivative Instruments Interest Rate Swaps Cross Currency Interest Rate Swaps Other Total Derivative Instruments Balance, beginning of period $ (27 ) $ (633 ) $ (4 ) $ (664 ) $ (41 ) $ (322 ) $ (18 ) $ (381 ) Total gains/(losses): Included in earnings (1) 4 (35 ) 2 (29 ) 6 (265 ) 6 (253 ) Included in other comprehensive income — — — — — — — — Settlements 2 65 — 67 2 58 4 64 Transfers in and/or out of level 3 — — — — — — — — Balance, end of period $ (21 ) $ (603 ) $ (2 ) $ (626 ) $ (33 ) $ (529 ) $ (8 ) $ (570 ) Change in mark-to-market gains/(losses) relating to instruments still held at the reporting date (2) $ 5 $ 30 $ 2 $ 37 $ 7 $ (180 ) $ 10 $ (163 ) (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) 2019 2018 2019 2018 Gains (losses) on derivative and hedging activities, net $ 2 $ (277 ) $ 6 $ (195 ) Interest expense 10 (31 ) (35 ) (58 ) Total $ 12 $ (308 ) $ (29 ) $ (253 ) (2) Recorded in “gains (losses) on derivative and hedging activities, net” in the consolidated statements of income for interest rate swaps and other. Recorded in interest expense for cross currency interest rate swaps in fair value hedges for 2019 with the adoption of ASU No. 2017-12. Recorded in “gains (losses) on derivatives and hedging activities, net” for cross currency interest rate swaps in 2018. 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, 2019 Valuation Technique Input Range (Weighted Average) Derivatives Prime/LIBOR basis swaps $ (21 ) Discounted cash flow Constant Prepayment Rate 7% Bid/ask adjustment to .08% — .08% discount rate (.08%) Cross-currency interest rate swaps (603 ) Discounted cash flow Constant Prepayment Rate 4% Other (2 ) Total $ (626 ) The significant inputs that are unobservable or from inactive markets related to our level 3 derivatives detailed in the table above would be expected to have the following impacts to the valuations: • Prime/LIBOR basis swaps — These swaps do not actively trade in the markets as indicated by a wide bid/ask spread. A wider bid/ask spread will result in a decrease in the overall valuation. In addition, the unobservable inputs include Constant Prepayment Rates of the underlying securitization trust the swap references. A decrease in this input will result in a longer weighted average life of the swap which will increase the value for swaps in a gain position and decrease the value for swaps in a loss position, everything else equal. The opposite is true for an increase in the input. • Cross-currency interest rate swaps — The unobservable inputs used in these valuations are Constant Prepayment Rates of the underlying securitization trust the swap references. A decrease in this input will result in a longer weighted average life of the swap. All else equal in a typical currency market, this will result in a decrease to the valuation due to the delay in the cash flows of the currency exchanges as well as diminished liquidity in the forward exchange markets as you increase the term. The opposite is true for an increase in the input. The following table summarizes the fair values of our financial assets and liabilities, including derivative financial instruments. June 30, 2019 December 31, 2018 (Dollars in millions) Fair Value Carrying Value Difference Fair Value Carrying Value Difference Earning assets FFELP Loans $ 68,378 $ 67,956 $ 422 $ 72,074 $ 72,253 $ (179 ) Private Education Loans 22,312 21,564 748 22,958 22,245 713 Cash and investments 4,648 4,648 — 5,488 5,488 — Total earning assets 95,338 94,168 1,170 100,520 99,986 534 Interest-bearing liabilities Short-term borrowings 6,812 6,785 (27 ) 5,418 5,422 4 Long-term borrowings 86,412 86,776 364 92,173 93,519 1,346 Total interest-bearing liabilities 93,224 93,561 337 97,591 98,941 1,350 Derivative financial instruments Floor Income Contracts (99 ) (99 ) — (53 ) (53 ) — Interest rate swaps 219 219 — 94 94 — Cross-currency interest rate swaps (603 ) (603 ) — (659 ) (659 ) — Other (2 ) (2 ) — (4 ) (4 ) — Excess of net asset fair value over carrying value $ 1,507 $ 1,884 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies Legal Proceedings 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”) and various other state consumer protection laws. 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. In October 2017, the Attorney General for the Commonwealth of Pennsylvania initiated a civil action against Navient Corporation and Navient Solutions, LLC (“Solutions”), containing similar alleged violations of the CFPA and the Pennsylvania Unfair Trade Practices and Consumer Protection Law. Additionally, the Attorneys General for the States of California and Mississippi recently initiated similar actions against the Company and certain subsidiaries alleging violations of various state and federal consumer protection laws. We refer to the Illinois, Pennsylvania, Washington, California, and Mississippi Attorneys General collectively as the “State Attorneys General.” 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. As the Company has previously stated, we believe the suits improperly seek to impose penalties on Navient based on new, unannounced servicing standards applied retroactively only against one servicer, and that the allegations are false. We therefore have denied these allegations and intend to vigorously defend against the allegations in each of these cases. For additional information on these civil actions, please refer to section entitled “Regulatory Matters” below. 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. Regulatory Matters In addition, Navient and its subsidiaries are subject to examination or regulation by the SEC, CFPB, FFIEC, ED and various state agencies as part of its ordinary course of business. 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. As previously disclosed, the Company and various of its subsidiaries have been subject to the following investigations and inquiries: • In December 2013, Navient received Civil Investigative Demands (“CIDs”) issued by the Illinois Attorney General, the Washington Attorney General and multiple other state Attorneys General. According to the CIDs, the investigations were initiated to ascertain whether any practices declared to be unlawful under the Consumer Fraud and Deceptive Business Practices Act have occurred or are about to occur. The Company subsequently received separate but similar CIDs or subpoenas from the Attorneys General for the District of Columbia, Kansas, Oregon, Colorado, New Jersey and New York. We may receive additional CIDs or subpoenas from these or other Attorneys General with respect to similar or different matters. • In April 2014, Solutions received a CID from the CFPB as part of the CFPB’s separate investigation regarding allegations relating to Navient’s disclosures and assessment of late fees and other matters. Navient has received a series of supplemental CIDs on these matters. In August 2015, Solutions received a letter from the CFPB notifying Solutions that, in accordance with the CFPB’s discretionary Notice and Opportunity to Respond and Advise (“NORA”) process, the CFPB’s Office of Enforcement was considering recommending that the CFPB take legal action against Solutions. The NORA letter related to a previously disclosed investigation into Solutions’ disclosures and assessment of late fees and other matters and states that, in connection with any action, the CFPB may seek restitution, civil monetary penalties and corrective action against Solutions. The Company responded to the NORA letter in September 2015. 9. Commitments and Contingencies (Continued) • In November 2014, Navient’s subsidiary, Pioneer Credit Recovery, Inc. (“Pioneer”), received a CID from the CFPB as part of an investigation regarding Pioneer’s activities relating to rehabilitation loans and collection of defaulted student debt. In May 2019, Pioneer received a similar CID from the New York Department of Financial Services (the “NY DFS”). • In December 2014, Solutions received a subpoena from the NY DFS as part of its inquiry with regard to whether persons or entities have engaged in fraud or misconduct with respect to a financial product or service under New York Financial Services Law or other laws. In January 2017, the CFPB initiated a civil action naming Navient Corporation and several of its subsidiaries as defendants alleging violations of Federal and State consumer protection statutes, including the DFPA, FCRA, FDCPA and various state consumer protection laws. The CFPB, Washington Attorney General and Illinois Attorney General lawsuits relate to matters which were covered under the CIDs or the NORA letter discussed above. In addition, various State Attorneys General have filed suits alleging violations of various state and federal consumer protection laws covering matters similar to those covered by the CIDs or the NORA letter. As stated above, we have denied these allegations and intend to vigorously defend against the allegations in each of these cases. Under the terms of the Separation and Distribution Agreement between the Company and SLM BankCo, Navient has agreed to indemnify SLM BankCo for all 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 the Separation and Distribution Agreement. As a result, subject to the terms, conditions and limitations set forth in the Separation and Distribution Agreement, Navient has 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. Navient has 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 additional reserves related to indemnification matters with SLM BankCo as of June 30, 2019. OIG Audit The Office of the Inspector General (the “OIG”) of ED commenced an audit regarding Special Allowance Payments (“SAP”) on September 10, 2007. In September 2013, we received the final audit determination of Federal Student Aid (the “Final Audit Determination”) on the final audit report issued by the OIG in August 2009 related to this audit. The Final Audit Determination concurred with the final audit report issued by the OIG and instructed us to make adjustment to our government billing to reflect the policy determination. In August 2016, we filed our notice of appeal to the Administrative Actions and Appeals Service Group of ED, and a hearing was held in April 2017. In March 2019, the administrative law judge hearing the appeal affirmed the audit’s findings, holding the then-existing Dear Colleague letter relied upon by the Company and other industry participants was inconsistent with the statutory framework creating the SAP rules applicable to loans funded by certain types of debt obligations at issue. We have appealed the administrative law judge’s decision to the Secretary of Education given Navient’s adherence to ED-issued guidance and the potential impact on participants in any ED program student loan servicers if such guidance is deemed unreliable and may not be relied upon. We continue to believe that our SAP billing practices were proper, considering then-existing ED guidance and lack of applicable regulations. The Company established a reserve for this matter in 2014 and does not believe, at this time, that an adverse ruling would have a material effect on the Company as a whole. Contingencies As of June 30, 2018, we concluded that a contingency loss was no longer probable of occurring. Accordingly, the related $40 million contingency reserve was released as a reduction of operating expenses. 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. 9. Commitments and Contingencies (Continued) 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 such litigation and regulatory matters, we cannot predict what the eventual outcome of the pending matters will be, what the timing or the ultimate resolution of these matters will be, or what the eventual loss, fines or penalties, 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, 2019 | |
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 We account for certain contract revenue in accordance with ASC 606. Servicing contract revenue is not accounted for under ASC 606. Contract revenue earned by our Federal Education Loans segment is derived from asset recovery activities related to the collection of delinquent education loans on behalf of ED, Guarantor agencies and other institutions. Revenue earned by our Business Processing segment is derived from government services, which includes receivables management services and account processing solutions, and healthcare services, which includes revenue cycle management services. 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, 2019 2018 (Dollars in millions) Federal Education Loans Business Processing Total Revenue Federal Education Loans Business Processing Total Revenue Federal Education Loan asset recovery services $ 35 $ — $ 35 $ 19 $ — $ 19 Government services — 40 40 — 41 41 Healthcare services — 25 25 — 24 24 Total $ 35 $ 65 $ 100 $ 19 $ 65 $ 84 Six Months Ended June 30, 2019 2018 (Dollars in millions) Federal Education Loans Business Processing Total Revenue Federal Education Loans Business Processing Total Revenue Federal Education Loan asset recovery services $ 64 $ — $ 64 $ 39 $ — $ 39 Government services — 82 82 — 94 94 Healthcare services — 52 52 — 44 44 Total $ 64 $ 134 $ 198 $ 39 $ 138 $ 177 10. Revenue from Contracts with Customers Accounted for in Accordance with ASC 606 (Continued) Revenue by Client Type Three Months Ended June 30, 2019 2018 (Dollars in millions) Federal Education Loans Business Processing Total Revenue Federal Education Loans Business Processing Total Revenue Federal government $ 17 $ 4 $ 21 $ 1 $ 2 $ 3 Guarantor agencies 14 — 14 15 — 15 Other institutions 4 — 4 3 — 3 State and local government — 23 23 — 23 23 Tolling authorities — 13 13 — 16 16 Hospitals and other healthcare providers — 25 25 — 24 24 Total $ 35 $ 65 $ 100 $ 19 $ 65 $ 84 Six Months Ended June 30, 2019 2018 (Dollars in millions) Federal Education Loans Business Processing Total Revenue Federal Education Loans Business Processing Total Revenue Federal government $ 30 $ 7 $ 37 $ 2 $ 3 $ 5 Guarantor agencies 28 — 28 31 — 31 Other institutions 6 — 6 6 — 6 State and local government — 48 48 — 49 49 Tolling authorities — 27 27 — 42 42 Hospitals and other healthcare providers — 52 52 — 44 44 Total $ 64 $ 134 $ 198 $ 39 $ 138 $ 177 As of June 30, 2019 and June 30, 2018, there was $69 million and $70 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, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | 11. Segment Reporting We monitor and assess our ongoing operations and results based on the following Federal Education Loans Segment In this segment, Navient holds and acquires FFELP Loans and performs servicing and asset recovery services on its own loan portfolio, federal education loans owned by ED and other institutions. Although FFELP Loans are no longer originated, we continue to pursue acquisitions of FFELP Loan portfolios as well as servicing and asset recovery services contracts. These acquisitions leverage our servicing scale and generate incremental earnings and cash flow. In this segment, we generate revenue primarily through net interest income on the FFELP Loan portfolio (after provision for loan losses) as well as servicing and asset recovery services revenue. This segment is expected to generate significant amounts of earnings and cash flow over the remaining life of the portfolio. The following table includes GAAP basis asset information for our Federal Education Loans segment. (Dollars in millions) June 30, 2019 December 31, 2018 FFELP Loans, net $ 67,956 $ 72,253 Cash and investments (1) 2,219 3,368 Other 2,174 2,100 Total assets $ 72,349 $ 77,721 (1) Includes restricted cash and investments. Consumer Lending Segment In this segment, Navient holds, originates and acquires consumer loans and performs servicing activities on its own education loan portfolio. Originations and acquisitions leverage our servicing scale and generate incremental earnings and cash flow. In this segment, we generate revenue primarily through net interest income on the Private Education Loan portfolio (after provision for loan losses). This segment is expected to generate significant amounts of earnings and cash flow over the remaining life of the portfolio. The following table includes GAAP basis asset information for our Consumer Lending segment. (Dollars in millions) June 30, 2019 December 31, 2018 Private Education Loans, net $ 21,564 $ 22,245 Cash and investments (1) 931 732 Other 1,012 1,076 Total assets $ 23,507 $ 24,053 (1) Includes restricted cash and investments. Business Processing Segment In this segment, Navient performs revenue cycle management and business processing services for over 600 non-education related government and healthcare clients. Our integrated solutions technology and superior data driven approach allows state governments, agencies, court systems, municipalities, and toll authorities (Government Services) to reduce their operating expenses while maximizing revenue opportunities. Healthcare services include revenue cycle outsourcing, accounts receivable management, extended business office support and consulting engagements. We offer customizable solutions for our clients that include non-profit/religious-affiliated hospital systems, teaching hospitals, urban medical centers, for-profit healthcare systems, critical access hospitals, children’s hospitals and large physician groups. At June 30, 2019 and December 31, 2018, the Business Processing segment had total assets of $425 million and $448 million, respectively, on a GAAP basis. 11. Segment Reporting (Continued) Other Segment Our Other segment primarily consists of our corporate liquidity portfolio and the repurchase of debt, unallocated expenses of shared services, restructuring/other reorganization expenses, and the deferred tax asset remeasurement loss recognized due to the enactment of the TCJA in the fourth quarter of 2017. Unallocated expenses of shared services are comprised of costs primarily related to certain executive management, the board of directors, accounting, finance, legal, human resources, compliance and risk management, regulatory-related costs, stock-based compensation expense, and information technology costs related to infrastructure and operations. Regulatory-related costs include actual settlement amounts as well as third-party professional fees we incur in connection with regulatory matters. At June 30, 2019 and December 31, 2018, the Other segment had total assets of $2.0 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 are 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. Segm ent Reporting (Continued) Segment Results and Reconciliations to GAAP Three Months Ended June 30, 2019 Adjustments (Dollars in millions) Federal Education Loans Consumer Lending Business Processing Other Total Core Earnings Reclassi- fications Additions/ (Subtractions) Total Adjustments (1) Total GAAP Interest income: Education loans $ 758 $ 436 $ — $ — $ 1,194 $ 1 $ (17 ) $ (16 ) $ 1,178 Other loans — 1 — — 1 — — — 1 Cash and investments 14 4 — 7 25 — — — 25 Total interest income 772 441 — 7 1,220 1 (17 ) (16 ) 1,204 Total interest expense 627 255 — 42 924 (2 ) (11 ) (13 ) 911 Net interest income (loss) 145 186 — (35 ) 296 3 (6 ) (3 ) 293 Less: provisions for loan losses 8 60 — — 68 — — — 68 Net interest income (loss) after provisions for loan losses 137 126 — (35 ) 228 3 (6 ) (3 ) 225 Other income (loss): Servicing revenue 57 3 — — 60 — — — 60 Asset recovery and business processing revenue 58 — 65 — 123 — — — 123 Other income (loss) 7 — — 4 11 (38 ) 6 (32 ) (21 ) Gains on sales of loans — 16 — — 16 — — — 16 Gains on debt repurchases — — — 32 32 35 (23 ) 12 44 Total other income (loss) 122 19 65 36 242 (3 ) (17 ) (20 ) 222 Expenses: Direct operating expenses 89 34 56 — 179 — — — 179 Unallocated shared services expenses — — — 62 62 — — — 62 Operating expenses 89 34 56 62 241 — — — 241 Goodwill and acquired intangible asset impairment and amortization — — — — — — 11 11 11 Restructuring/other reorganization expenses — — — 1 1 — — — 1 Total expenses 89 34 56 63 242 — 11 11 253 Income (loss) before income tax expense (benefit) 170 111 9 (62 ) 228 — (34 ) (34 ) 194 Income tax expense (benefit) (2) 39 26 2 (14 ) 53 — (12 ) (12 ) 41 Net income (loss) $ 131 $ 85 $ 7 $ (48 ) $ 175 $ — $ (22 ) $ (22 ) $ 153 (1) Core Earnings adjustments to GAAP: Three Months Ended June 30, 2019 (Dollars in millions) Net Impact of Derivative Accounting Net Impact of Acquired Intangibles Total Net interest income (loss) after provisions for loan losses $ (3 ) $ — $ (3 ) Total other income (loss) (20 ) — (20 ) Goodwill and acquired intangible asset impairment and amortization — 11 11 Total Core Earnings adjustments to GAAP $ (23 ) $ (11 ) (34 ) Income tax expense (benefit) (12 ) 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, 2018 Adjustments (Dollars in millions) Federal Education Loans Consumer Lending Business Processing Other Total Core Earnings Reclassi- fications Additions/ (Subtractions) Total Adjustments (1) Total GAAP Interest income: Education loans $ 775 $ 442 $ — $ — $ 1,217 $ 3 $ (18 ) $ (15 ) $ 1,202 Other loans 1 — — — 1 — — — 1 Cash and investments 12 3 — 9 24 — — — 24 Total interest income 788 445 — 9 1,242 3 (18 ) (15 ) 1,227 Total interest expense 622 252 — 49 923 10 (4 ) 6 929 Net interest income (loss) 166 193 — (40 ) 319 (7 ) (14 ) (21 ) 298 Less: provisions for loan losses 40 72 — — 112 — — — 112 Net interest income (loss) after provisions for loan losses 126 121 — (40 ) 207 (7 ) (14 ) (21 ) 186 Other income (loss): Servicing revenue 68 3 — — 71 — — — 71 Asset recovery and business processing revenue 34 — 65 — 99 — — — 99 Other income (loss) — — — 3 3 7 (37 ) (30 ) (27 ) Losses on debt repurchases — — — (7 ) (7 ) — — — (7 ) Total other income (loss) 102 3 65 (4 ) 166 7 (37 ) (30 ) 136 Expenses: Direct operating expenses 36 39 54 — 129 — — — 129 Unallocated shared services expenses — — — 72 72 — — — 72 Operating expenses 36 39 54 72 201 — — — 201 Goodwill and acquired intangible asset impairment and amortization — — — — — — 6 6 6 Restructuring/other reorganization expenses — — — 2 2 — — — 2 Total expenses 36 39 54 74 203 — 6 6 209 Income (loss) before income tax expense (benefit) 192 85 11 (118 ) 170 — (57 ) (57 ) 113 Income tax expense (benefit) (2) 44 19 3 (27 ) 39 — (9 ) (9 ) 30 Net income (loss) $ 148 $ 66 $ 8 $ (91 ) $ 131 $ — $ (48 ) $ (48 ) $ 83 (1) Core Earnings adjustments to GAAP: Three Months Ended June 30, 2018 (Dollars in millions) Net Impact of Derivative Accounting Net Impact of Acquired Intangibles Total Net interest income (loss) after provisions for loan losses $ (21 ) $ — $ (21 ) Total other income (loss) (30 ) — (30 ) Goodwill and acquired intangible asset impairment and amortization — 6 6 Total Core Earnings adjustments to GAAP $ (51 ) $ (6 ) (57 ) Income tax expense (benefit) (9 ) Net income (loss) $ (48 ) (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, 2019 Adjustments (Dollars in millions) Federal Education Loans Consumer Lending Business Processing Other Total Core Earnings Reclassi- fications Additions/ (Subtractions) Total Adjustments (1) Total GAAP Interest income: Education loans $ 1,537 $ 879 $ — $ — $ 2,416 $ 2 $ (33 ) $ (31 ) $ 2,385 Other loans 1 1 — — 2 — — — 2 Cash and investments 30 9 — 13 52 — — — 52 Total interest income 1,568 889 — 13 2,470 2 (33 ) (31 ) 2,439 Total interest expense 1,278 516 — 80 1,874 2 (16 ) (14 ) 1,860 Net interest income (loss) 290 373 — (67 ) 596 — (17 ) (17 ) 579 Less: provisions for loan losses 15 129 — — 144 — — — 144 Net interest income (loss) after provisions for loan losses 275 244 — (67 ) 452 — (17 ) (17 ) 435 Other income (loss): Servicing revenue 117 5 — — 122 — — — 122 Asset recovery and business processing revenue 108 — 134 — 242 — — — 242 Other income (loss) 15 1 — 9 25 (39 ) 16 (23 ) 2 Gains on sales of loans — 16 — — 16 — — — 16 Gains on debt repurchases — — — 47 47 39 (27 ) 12 59 Total other income (loss) 240 22 134 56 452 — (11 ) (11 ) 441 Expenses: Direct operating expenses 180 72 111 — 363 — — — 363 Unallocated shared services expenses — — — 134 134 — — — 134 Operating expenses 180 72 111 134 497 — — — 497 Goodwill and acquired intangible asset impairment and amortization — — — — — — 18 18 18 Restructuring/other reorganization expenses — — — 2 2 — — — 2 Total expenses 180 72 111 136 499 — 18 18 517 Income (loss) before income tax expense (benefit) 335 194 23 (147 ) 405 — (46 ) (46 ) 359 Income tax expense (benefit) (2) 77 44 6 (34 ) 93 — (15 ) (15 ) 78 Net income (loss) $ 258 $ 150 $ 17 $ (113 ) $ 312 $ — $ (31 ) $ (31 ) $ 281 (1) Core Earnings adjustments to GAAP: Six Months Ended June 30, 2019 (Dollars in millions) Net Impact of Derivative Accounting Net Impact of Goodwill and Acquired Intangible Assets Total Net interest income (loss) after provisions for loan losses $ (17 ) $ — $ (17 ) Total other income (loss) (11 ) — (11 ) Goodwill and acquired intangible asset impairment and amortization — 18 18 Total Core Earnings adjustments to GAAP $ (28 ) $ (18 ) (46 ) Income tax expense (benefit) (15 ) Net income (loss) $ (31 ) (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, 2018 Adjustments (Dollars in millions) Federal Education Loans Consumer Lending Business Processing Other Total Core Earnings Reclassi- fications Additions/ (Subtractions) Total Adjustments (1) Total GAAP Interest income: Education loans $ 1,507 $ 873 $ — $ — $ 2,380 $ 11 $ (35 ) $ (24 ) $ 2,356 Other loans 2 — — — 2 — — — 2 Cash and investments 19 6 — 16 41 — — — 41 Total interest income 1,528 879 — 16 2,423 11 (35 ) (24 ) 2,399 Total interest expense 1,193 490 — 91 1,774 4 (5 ) (1 ) 1,773 Net interest income (loss) 335 389 — (75 ) 649 7 (30 ) (23 ) 626 Less: provisions for loan losses 50 149 — — 199 — — — 199 Net interest income (loss) after provisions for loan losses 285 240 — (75 ) 450 7 (30 ) (23 ) 427 Other income (loss): Servicing revenue 134 6 — — 140 — — — 140 Asset recovery and business processing revenue 70 — 137 — 207 — — — 207 Other income (loss) 1 — — 5 6 (7 ) 10 3 9 Losses on debt repurchases — — — (8 ) (8 ) — — — (8 ) Total other income (loss) 205 6 137 (3 ) 345 (7 ) 10 3 348 Expenses: Direct operating expenses 115 95 113 — 323 — — — 323 Unallocated shared services expenses — — — 153 153 — — — 153 Operating expenses 115 95 113 153 476 — — — 476 Goodwill and acquired intangible asset impairment and amortization — — — — — — 16 16 16 Restructuring/other reorganization expenses — — — 9 9 — — — 9 Total expenses 115 95 113 162 485 — 16 16 501 Income (loss) before income tax expense (benefit) 375 151 24 (240 ) 310 — (36 ) (36 ) 274 Income tax expense (benefit) (2) 86 35 6 (55 ) 72 — (8 ) (8 ) 64 Net income (loss) $ 289 $ 116 $ 18 $ (185 ) $ 238 $ — $ (28 ) $ (28 ) $ 210 (1) Core Earnings adjustments to GAAP: Six Months Ended June 30, 2018 (Dollars in millions) Net Impact of Derivative Accounting Net Impact of Goodwill and Acquired Intangible Assets Total Net interest income (loss) after provisions for loan losses $ (23 ) $ — $ (23 ) Total other income (loss) 3 — 3 Goodwill and acquired intangible asset impairment and amortization — 16 16 Total Core Earnings adjustments to GAAP $ (20 ) $ (16 ) (36 ) Income tax expense (benefit) (8 ) Net income (loss) $ (28 ) (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, Six Months Ended June 30, (Dollars in millions) 2019 2018 2019 2018 Core Earnings net income $ 175 $ 131 $ 312 $ 238 Core Earnings adjustments to GAAP: Net impact of derivative accounting (1) (23 ) (51 ) (28 ) (20 ) Net impact of goodwill and acquired intangible assets (2) (11 ) (6 ) (18 ) (16 ) Net tax effect (3) 12 9 15 8 Total Core Earnings adjustments to GAAP (22 ) (48 ) (31 ) (28 ) GAAP net income $ 153 $ 83 $ 281 $ 210 (1) Derivative accounting: (2) Goodwill and acquired intangible assets: (3) Net tax effect: |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
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, 2019 are not necessarily indicative of the results for the year ending December 31, 2019 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, 2018 (the “2018 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 2018 Form 10-K. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Effective in 2019 Leases In 2016, the FASB issued ASU No. 2016-02, “Leases,” which requires the identification of arrangements that should be accounted for as leases by lessees. In general, for lease arrangements exceeding a twelve-month term, these arrangements must be recognized as assets and liabilities on the balance sheet of the lessee. Under previous GAAP, all operating leases were off-balance sheet, regardless of the term. A right-of-use asset and lease obligation will be recorded for all leases with a term exceeding twelve months, whether operating or financing, while the income statement will reflect lease expense for operating leases and amortization/interest expense for financing leases. It was effective for the Company on January 1, 2019 and resulted in recording a $28 million asset and liability with no change to the income statement. The standard was adopted prospectively without adjustment to comparative periods. Hedging Activities In August 2017, the FASB issued ASU No. 2017-12, “Derivatives and Hedging,” which is intended to better align risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. The new standard was effective for the Company on January 1, 2019 and requires the mark-to-market gains and losses from qualifying fair value hedge relationships to be recorded in the same line item on the income statement of the item being hedged. As a result, the mark-to-market gains and losses from fair value hedging activity are now recorded in interest expense whereas they were previously recorded in gains (losses) on derivative and hedging activities, net. This change in presentation is prospective only and resulted in $7 million and $9 million of gains being recorded in interest expense in the three and six months ended June 30, 2019, respectively. . 1. Significant Accounting Policies (Continued) Effective in 2020 Allowance for Loan Losses In 2016, the FASB issued ASU No. 2016-13, “Financial Instruments — Credit Losses,” which requires measurement and recognition of an allowance for loan loss that estimates remaining expected credit losses for financial assets held at the reporting date. Our current allowance for loan loss is an incurred loss model. As a result, the new guidance will result in an increase to our allowance for loan losses. The standard is to be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The standard is effective for the Company as of January 1, 2020 and will primarily impact the allowance for loan losses related to our Private Education Loans and FFELP Loans. This standard represents a significant change from existing GAAP and will result in material changes to the Company’s accounting for the allowance for loan losses. We are currently evaluating the impact of adopting this accounting standard on our consolidated financial statements and footnote disclosures. |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Allowance for Credit Losses and Recorded Investments in Loans | Allowance for Loan Losses Metrics Three Months Ended June 30, 2019 (Dollars in millions) FFELP Loans Private Education Loans Other Loans Total Allowance for Loan Losses Beginning balance $ 67 $ 1,178 $ 7 $ 1,252 Total provision 8 60 — 68 Charge-offs (1) (7 ) (87 ) (1 ) (95 ) Reclassification of interest reserve (2) — 1 — 1 Loan sales — (1 ) (7 ) (8 ) Ending balance $ 67 $ 1,151 $ — $ 1,218 Allowance Ending Balance: Individually evaluated for impairment — TDR $ — $ 1,040 $ — $ 1,040 Collectively evaluated for impairment: Excluding Purchased Non-Credit Impaired Loans acquired at a discount and Purchased Credit Impaired Loans 67 111 — 178 Purchased Non-Credit Impaired Loans acquired at a discount (3) — — — — Purchased Credit Impaired Loans (3) — — — — Ending total allowance $ 67 $ 1,151 $ — $ 1,218 Loans Ending Balance: Individually evaluated for impairment — TDR $ — $ 10,000 $ — $ 10,000 Collectively evaluated for impairment: Excluding Purchased Non-Credit Impaired Loans acquired at a discount and Purchased Credit Impaired Loans 64,783 11,215 4 76,002 Purchased Non-Credit Impaired Loans acquired at a discount (3) 2,671 1,977 — 4,648 Purchased Credit Impaired Loans (3) — 214 — 214 Ending total loans (4) $ 67,454 $ 23,406 $ 4 $ 90,864 Charge-offs as a percentage of average loans in repayment .05 % 1.59 % 10.19 % Allowance coverage of charge-offs 2.2 3.3 — Allowance as a percentage of the ending total loan balance .10 % 4.92 % — % Allowance as a percentage of the ending loans in repayment .12 % 5.37 % — % Ending total loans (4) $ 67,454 $ 23,406 $ 4 Average loans in repayment $ 56,657 $ 21,854 $ 28 Ending loans in repayment $ 55,684 $ 21,439 $ 4 (1) Charge-offs are reported net of expected recoveries. For Private Education Loans, the expected recovery amount is transferred to the receivable for partially charged-off loan balance. Charge-offs include charge-offs against the receivable for partially charged-off loans which represents the difference between what was expected to be recovered and any shortfalls in what was actually recovered in the period. See “Receivable for Partially Charged-Off Private Education Loans” for further discussion. (2) Represents the additional allowance related to the amount of uncollectible interest reserved within interest income that is transferred in the period to the allowance for loan losses when interest is capitalized to a loan’s principal balance. (3) The Purchased Credit Impaired Loans’ losses are not provided for by the allowance for loan losses in the above table as these loans are separately reserved for, if needed. No allowance for loan losses has been established for these loans as of June 30, 2019. The losses of the Purchased Non-Credit Impaired Loans acquired at a discount are not provided for by the allowance for loan losses in the above table as the remaining purchased discount associated with the FFELP and Private Education Loans of $34 million and $298 million, respectively, as of June 30, 2019 is greater than the incurred losses and as a result no allowance for loan losses has been established for these loans as of June 30, 2019. (4) Ending total loans for Private Education Loans includes the receivable for partially charged-off loans. Three Months Ended June 30, 2018 (Dollars in millions) FFELP Loans Private Education Loans Other Loans Total Allowance for Loan Losses Beginning balance $ 59 $ 1,298 $ 10 $ 1,367 Total provision 40 72 — 112 Charge-offs (1) (17 ) (75 ) — (92 ) Reclassification of interest reserve (2) — 2 — 2 Ending balance $ 82 $ 1,297 $ 10 $ 1,389 Allowance Ending Balance: Individually evaluated for impairment — TDR $ — $ 1,142 $ 9 $ 1,151 Collectively evaluated for impairment: Excluding Purchased Non-Credit Impaired Loans acquired at a discount and Purchased Credit Impaired Loans 82 155 1 238 Purchased Non-Credit Impaired Loans acquired at a discount (3) — — — — Purchased Credit Impaired Loans (3) — — — — Ending total allowance $ 82 $ 1,297 $ 10 $ 1,389 Loans Ending Balance: Individually evaluated for impairment — TDR $ — $ 10,679 $ 28 $ 10,707 Collectively evaluated for impairment: Excluding Purchased Non-Credit Impaired Loans acquired at a discount and Purchased Credit Impaired Loans 73,018 11,411 51 84,480 Purchased Non-Credit Impaired Loans acquired at a discount (3) 3,034 2,386 — 5,420 Purchased Credit Impaired Loans (3) — 236 — 236 Ending total loans (4) $ 76,052 $ 24,712 $ 79 $ 100,843 Charge-offs as a percentage of average loans in repayment .11 % 1.34 % 2.63 % Allowance coverage of charge-offs 1.2 4.3 5.1 Allowance as a percentage of the ending total loan balance .11 % 5.25 % 12.54 % Allowance as a percentage of the ending loans in repayment .13 % 5.85 % 12.54 % Ending total loans (4) $ 76,052 $ 24,712 $ 79 Average loans in repayment $ 64,238 $ 22,289 $ 73 Ending loans in repayment $ 62,952 $ 22,174 $ 79 (1) Charge-offs are reported net of expected recoveries. For Private Education Loans, the expected recovery amount is transferred to the receivable for partially charged-off loan balance. Charge-offs include charge-offs against the receivable for partially charged-off loans which represents the difference between what was expected to be recovered and any shortfalls in what was actually recovered in the period. See “Receivable for Partially Charged-Off Private Education Loans” for further discussion. (2) Represents the additional allowance related to the amount of uncollectible interest reserved within interest income that is transferred in the period to the allowance for loan losses when interest is capitalized to a loan’s principal balance. (3) The Purchased Credit Impaired Loans’ losses are not provided for by the allowance for loan losses in the above table as these loans are separately reserved for, if needed. No allowance for loan losses has been established for these loans as of June 30, 2018. The losses of the Purchased Non-Credit Impaired Loans acquired at a discount are not provided for by the allowance for loan losses in the above table as the remaining purchased discount associated with the FFELP and Private Education Loans of $40 million and $362 million, respectively, as of June 30, 2018 is greater than the incurred losses and as a result no allowance for loan losses has been established for these loans as of June 30, 2018. (4) Ending total loans for Private Education Loans includes the receivable for partially charged-off loans. Six Months Ended June 30, 2019 (Dollars in millions) FFELP Loans Private Education Loans Other Loans Total Allowance for Loan Losses Beginning balance $ 76 $ 1,201 $ 9 $ 1,286 Total provision 15 128 1 144 Charge-offs (1) (24 ) (181 ) (2 ) (207 ) Reclassification of interest reserve (2) — 4 — 4 Loan sales — (1 ) (8 ) (9 ) Ending balance $ 67 $ 1,151 $ — $ 1,218 Allowance Ending Balance: Individually evaluated for impairment — TDR $ — $ 1,040 $ — $ 1,040 Collectively evaluated for impairment: Excluding Purchased Non-Credit Impaired Loans acquired at a discount and Purchased Credit Impaired Loans 67 111 — 178 Purchased Non-Credit Impaired Loans acquired at a discount (3) — — — — Purchased Credit Impaired Loans (3) — — — — Ending total allowance $ 67 $ 1,151 $ — $ 1,218 Loans Ending Balance: Individually evaluated for impairment — TDR $ — $ 10,000 $ — $ 10,000 Collectively evaluated for impairment: Excluding Purchased Non-Credit Impaired Loans acquired at a discount and Purchased Credit Impaired Loans 64,783 11,215 4 76,002 Purchased Non-Credit Impaired Loans acquired at a discount (3) 2,671 1,977 — 4,648 Purchased Credit Impaired Loans (3) — 214 — 214 Ending total loans (4) $ 67,454 $ 23,406 $ 4 $ 90,864 Charge-offs as a percentage of average loans in repayment 0.08 % 1.66 % 7.78 % Allowance coverage of charge-offs 1.4 3.2 — Allowance as a percentage of the ending total loan balance .10 % 4.92 % — % Allowance as a percentage of the ending loans in repayment .12 % 5.37 % — % Ending total loans (4) $ 67,454 $ 23,406 $ 4 Average loans in repayment $ 57,435 $ 21,957 $ 52 Ending loans in repayment $ 55,684 $ 21,439 $ 4 (1) Charge-offs are reported net of expected recoveries. For Private Education Loans, the expected recovery amount is transferred to the receivable for partially charged-off loan balance. Charge-offs include charge-offs against the receivable for partially charged-off loans which represents the difference between what was expected to be recovered and any shortfalls in what was actually recovered in the period. See “Receivable for Partially Charged-Off Private Education Loans” for further discussion. (2) Represents the additional allowance related to the amount of uncollectible interest reserved within interest income that is transferred in the period to the allowance for loan losses when interest is capitalized to a loan’s principal balance. (3) The Purchased Credit Impaired Loans’ losses are not provided for by the allowance for loan losses in the above table as these loans are separately reserved for, if needed. No allowance for loan losses has been established for these loans as of June 30, 2019. The losses of the Purchased Non-Credit Impaired Loans acquired at a discount are not provided for by the allowance for loan losses in the above table as the remaining purchased discount associated with the FFELP and Private Education Loans of $34 million and $298 million, respectively, as of June 30, 2019 is greater than the incurred losses and as a result no allowance for loan losses has been established for these loans as of June 30, 2019. (4) Ending total loans for Private Education Loans includes the receivable for partially charged-off loans. Six Months Ended June 30, 2018 (Dollars in millions) FFELP Loans Private Education Loans Other Loans Total Allowance for Loan Losses Beginning balance $ 60 $ 1,297 $ 10 $ 1,367 Total provision 50 149 — 199 Charge-offs (1) (28 ) (153 ) — (181 ) Reclassification of interest reserve (2) — 4 — 4 Ending balance $ 82 $ 1,297 $ 10 $ 1,389 Allowance Ending Balance: Individually evaluated for impairment - TDR $ — $ 1,142 $ 9 $ 1,151 Collectively evaluated for impairment: Excluding Purchased Non-Credit Impaired Loans acquired at a discount and Purchased Credit Impaired Loans 82 155 1 238 Purchased Non-Credit Impaired Loans acquired at a discount (3) — — — — Purchased Credit Impaired Loans (3) — — — — Ending total allowance $ 82 $ 1,297 $ 10 $ 1,389 Loans Ending Balance: Individually evaluated for impairment - TDR $ — $ 10,679 $ 28 $ 10,707 Collectively evaluated for impairment: Excluding Purchased Non-Credit Impaired Loans acquired at a discount and Purchased Credit Impaired Loans 73,018 11,411 51 84,480 Purchased Non-Credit Impaired Loans acquired at a discount (3) 3,034 2,386 — 5,420 Purchased Credit Impaired Loans (3) — 236 — 236 Ending total loans (4) $ 76,052 $ 24,712 $ 79 $ 100,843 Charge-offs as a percentage of average loans in repayment .09 % 1.37 % 1.13 % Allowance coverage of charge-offs 1.5 4.2 11.9 Allowance as a percentage of the ending total loan balance .11 % 5.25 % 12.21 % Allowance as a percentage of the ending loans in repayment .13 % 5.85 % 12.21 % Ending total loans (4) $ 76,052 $ 24,712 $ 79 Average loans in repayment $ 64,940 $ 22,474 $ 72 Ending loans in repayment $ 62,952 $ 22,174 $ 79 (1) Charge-offs are reported net of expected recoveries. For Private Education Loans, the expected recovery amount is transferred to the receivable for partially charged-off loan balance. Charge-offs include charge-offs against the receivable for partially charged-off loans which represents the difference between what was expected to be recovered and any shortfalls in what was actually recovered in the period. See “Receivable for Partially Charged-Off Private Education Loans” for further discussion. (2) Represents the additional allowance related to the amount of uncollectible interest reserved within interest income that is transferred in the period to the allowance for loan losses when interest is capitalized to a loan’s principal balance. (3) The Purchased Credit Impaired Loans’ losses are not provided for by the allowance for loan losses in the above table as these loans are separately reserved for, if needed. No allowance for loan losses has been established for these loans as of June 30, 2018. The losses of the Purchased Non-Credit Impaired Loans acquired at a discount are not provided for by the allowance for loan losses in the above table as the remaining purchased discount associated with the FFELP and Private Education Loans of $40 million and $362 million, respectively, as of June 30, 2018 is greater than the incurred losses and as a result no allowance for loan losses has been established for these loans as of June 30, 2018. (4) Ending total loans for Private Education Loans includes the receivable for partially charged-off loans. |
Age Analysis of Past Due Loans Delinquencies | FFELP Loan Delinquencies June 30, 2019 December 31, 2018 (Dollars in millions) Balance % Balance % Loans in-school/grace/deferment (1) $ 3,530 $ 3,793 Loans in forbearance (2) 8,240 8,386 Loans in repayment and percentage of each status: Loans current 49,855 89.5 % 53,500 89.8 % Loans delinquent 31-60 days (3) 1,540 2.8 1,964 3.4 Loans delinquent 61-90 days (3) 870 1.6 910 1.5 Loans delinquent greater than 90 days (3) 3,419 6.1 3,177 5.3 Total FFELP Loans in repayment 55,684 100 % 59,551 100 % Total FFELP Loans, gross 67,454 71,730 FFELP Loan unamortized premium 569 599 Total FFELP Loans 68,023 72,329 FFELP Loan allowance for losses (67 ) (76 ) FFELP Loans, net $ 67,956 $ 72,253 Percentage of FFELP Loans in repayment 82.6 % 83.0 % Delinquencies as a percentage of FFELP Loans in repayment 10.5 % 10.2 % FFELP Loans in forbearance as a percentage of loans in repayment and forbearance 12.9 % 12.3 % (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. (3) The period of delinquency is based on the number of days scheduled payments are contractually past due. Private Education Loan Delinquencies TDRs June 30, 2019 December 31, 2018 (Dollars in millions) Balance % Balance % Loans in-school/grace/deferment (1) $ 371 $ 426 Loans in forbearance (2) 505 518 Loans in repayment and percentage of each status: Loans current 7,816 89.2 % 7,890 87.4 % Loans delinquent 31-60 days (3) 276 3.2 344 3.8 Loans delinquent 61-90 days (3) 191 2.2 235 2.6 Loans delinquent greater than 90 days (3) 477 5.4 556 6.2 Total TDR loans in repayment 8,760 100 % 9,025 100 % Total TDR loans, gross 9,636 9,969 TDR loans unamortized discount (209 ) (212 ) Total TDR loans 9,427 9,757 TDR loans receivable for partially charged-off loans 364 367 TDR loans allowance for losses (1,040 ) (1,100 ) TDR loans, net $ 8,751 $ 9,024 Percentage of TDR loans in repayment 90.9 % 90.5 % Delinquencies as a percentage of TDR loans in repayment 10.8 % 12.6 % Loans in forbearance as a percentage of TDR loans in repayment and forbearance 5.4 % 5.4 % (1) Deferment includes customers who have returned to school or are engaged in other permitted educational activities and are not yet required to make payments on their loans, e.g., residency periods for medical students or a grace period for bar exam preparation. (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, 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 Non-TDRs June 30, 2019 December 31, 2018 (Dollars in millions) Balance % Balance % Loans in-school/grace/deferment (1) $ 315 $ 392 Loans in forbearance (2) 136 158 Loans in repayment and percentage of each status: Loans current 12,553 99.0 % 12,851 98.8 % Loans delinquent 31-60 days (3) 51 .4 71 .5 Loans delinquent 61-90 days (3) 28 .2 32 .3 Loans delinquent greater than 90 days (3) 47 .4 58 .4 Total non-TDR loans in repayment 12,679 100 % 13,012 100 % Total non-TDR loans, gross 13,130 13,562 Non-TDR loans unamortized discount (482 ) (547 ) Total non-TDR loans 12,648 13,015 Non-TDR loans receivable for partially charged-off loans 276 307 Non-TDR loans allowance for losses (111 ) (101 ) Non-TDR loans, net $ 12,813 $ 13,221 Percentage of non-TDR loans in repayment 96.6 % 95.9 % Delinquencies as a percentage of non-TDR loans in repayment 1.0 % 1.2 % Loans in forbearance as a percentage of non- TDR loans in repayment and forbearance 1.1 % 1.2 % (1) Deferment includes customers who have returned to school or are engaged in other permitted educational activities and are not yet required to make payments on their loans, e.g., residency periods for medical students or a grace period for bar exam preparation. (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, 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 Modified Accounts for TDR | The following table provides the recorded investment, unpaid principal balance and related allowance for our TDR loans. TDRs (Dollars in millions) June 30, 2019 December 31, 2018 Recorded investment (1) $ 9,980 $ 10,326 Total ending loans (2) $ 10,000 $ 10,336 Related allowance $ 1,040 $ 1,100 (1) (2) Total ending loans includes the receivable for partially charged-off loans. |
Entity Loan Modification Program [Member] | |
Loans Modified Accounts for TDR | The following table provides the amount of loans modified in the periods 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) 2019 2018 2019 2018 Modified loans (1) $ 123 $ 137 $ 256 $ 307 Charge-offs (2) $ 75 $ 60 $ 155 $ 120 Payment default $ 27 $ 33 $ 59 $ 70 (1) Represents period ending balance of loans that have been modified during the period and resulted in a TDR. (2) Represents loans that charged off that were classified as TDRs. |
Troubled Debt Restructuring Loans [Member] | |
Average Recorded Investment and Interest Income Recognized for TDR | The following tables provide the average recorded investment and interest income recognized for our TDR loans. Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2019 2018 2019 2018 Average recorded investment $ 9,995 $ 10,733 $ 10,025 $ 10,794 Interest income recognized $ 194 $ 187 $ 392 $ 367 |
Private Education Loans [Member] | |
Private Education Loan Portfolio Stratified by Key Credit Quality Indicators | The following table highlights the principal balance (excluding the receivable for partially charged-off loans) of our Private Education Loan portfolio stratified by the key credit quality indicators. Private Education Loan Credit Quality Indicators TDRs June 30, 2019 December 31, 2018 (Dollars in millions) Balance (3) % of Balance Balance (3) % of Balance Credit Quality Indicators Original Winning FICO Scores: FICO 640 and above $ 8,828 92 % $ 9,133 92 % FICO below 640 808 8 836 8 Total $ 9,636 100 % $ 9,969 100 % School Type: Not-for-profit $ 7,651 79 % $ 7,888 79 % For-profit 1,985 21 2,081 21 Total $ 9,636 100 % $ 9,969 100 % Cosigners: With cosigner (1) $ 5,998 62 % $ 6,172 62 % Without cosigner 3,638 38 3,797 38 Total $ 9,636 100 % $ 9,969 100 % Seasoning (2) 1-12 payments $ 282 3 % $ 335 3 % 13-24 payments 363 4 436 4 25-36 payments 556 6 660 7 37-48 payments 784 8 934 10 More than 48 payments 7,280 75 7,178 72 Not yet in repayment 371 4 426 4 Total $ 9,636 100 % $ 9,969 100 % (1) Excluding Private Education Refinance Loans, which do not have a cosigner, the cosigner rate was 62% at June 30, 2019 and December 31, 2018. (2) Number of months in active repayment for which a scheduled payment was received. (3) Balance equals the gross Private Education Loans. Private Education Loan Credit Quality Indicators Non-TDRs June 30, 2019 December 31, 2018 (Dollars in millions) Balance (3) % of Balance Balance (3) % of Balance Credit Quality Indicators Original Winning FICO Scores: FICO 640 and above $ 12,715 97 % $ 13,087 96 % FICO below 640 415 3 475 4 Total $ 13,130 100 % $ 13,562 100 % School Type: Not-for-profit $ 11,648 89 % $ 11,953 88 % For-profit 1,482 11 1,609 12 Total $ 13,130 100 % $ 13,562 100 % Cosigners: With cosigner (1) $ 5,979 46 % $ 6,961 51 % Without cosigner 7,151 54 6,601 49 Total $ 13,130 100 % $ 13,562 100 % Seasoning (2) 1-12 payments $ 3,205 24 % $ 3,353 25 % 13-24 payments 1,285 10 486 3 25-36 payments 465 4 322 2 37-48 payments 280 2 383 3 More than 48 payments 7,580 58 8,626 64 Not yet in repayment 315 2 392 3 Total $ 13,130 100 % $ 13,562 100 % (1) Excluding Private Education Refinance Loans, which do not have a cosigner, the cosigner rate was 67% at June 30, 2019 and December 31, 2018. (2) Number of months in active repayment for which a scheduled payment was received. (3) Balance equals the gross Private Education Loans. |
Receivable for Partially Charged-Off Private Education Loans | The following table summarizes the activity in the receivable for partially charged-off Private Education Loans. Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2019 2018 2019 2018 Receivable at beginning of period $ 657 $ 741 $ 674 $ 760 Expected future recoveries of current period defaults (1) 18 19 38 38 Recoveries (2) (33 ) (36 ) (67 ) (74 ) Charge-offs (3) (2 ) — (5 ) — Receivable at end of period $ 640 $ 724 $ 640 $ 724 (1) Represents our estimate of the amount to be collected in the future. (2) Current period cash collections. (3) Represents the current period recovery shortfall — the difference between what was expected to be collected and what was actually collected. These amounts are included in total charge-offs as reported in the “Allowance for Private Education Loan Losses” table. |
Accrued Interest Receivable | The following table provides information regarding accrued interest receivable on our Private Education Loans. (Dollars in millions) Total Greater Than 90 Days Past Due Allowance for Uncollectible Interest June 30, 2019 TDR $ 191 $ 26 $ 22 Non-TDR 128 3 6 Total $ 319 $ 29 $ 28 December 31, 2018 TDR $ 205 $ 26 $ 23 Non-TDR 149 3 4 Total $ 354 $ 29 $ 27 |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Company's Borrowings | The following table summarizes our borrowings. June 30, 2019 December 31, 2018 (Dollars in millions) Short Term Long Term Total Short Term Long Term Total Unsecured borrowings: Senior unsecured debt (1) $ 1,496 $ 9,005 $ 10,501 $ 817 $ 10,674 $ 11,491 Total unsecured borrowings 1,496 9,005 10,501 817 10,674 11,491 Secured borrowings: FFELP Loan securitizations (2) 72 62,405 62,477 — 66,318 66,318 Private Education Loan securitizations (3) 1,867 12,541 14,408 300 12,985 13,285 FFELP Loan — other facilities 2,270 1,836 4,106 2,927 2,625 5,552 Private Education Loan — other facilities 695 1,053 1,748 1,114 1,266 2,380 Other (4) 362 — 362 267 — 267 Total secured borrowings 5,266 77,835 83,101 4,608 83,194 87,802 Total before hedge accounting adjustments 6,762 86,840 93,602 5,425 93,868 99,293 Hedge accounting adjustments 23 (64 ) (41 ) (3 ) (349 ) (352 ) Total $ 6,785 $ 86,776 $ 93,561 $ 5,422 $ 93,519 $ 98,941 (1) Includes principal amount of $1.5 billion and $817 million of short-term debt as of June 30, 2019 and December 31, 2018, respectively. Includes principal amount of $9.1 billion and $10.8 billion of long-term debt as of June 30, 2019 and December 31, 2018, respectively. (2) Includes $72 million and $0 of short-term debt related to the FFELP asset-backed securitization repurchase facilities (“FFELP Loan Repurchase Facilities”) as of June 30, 2019 and December 31, 2018, respectively. Includes $214 million and $244 million of long-term debt related to the FFELP Loan Repurchase Facilities as of June 30, 2019 and December 31, 2018, respectively. (3) Includes $1.9 billion and $300 million of short-term debt related to the Private Education Loan asset-backed securitization repurchase facilities (“Private Education Loan Repurchase Facilities”) as of June 30, 2019 and December 31, 2018, respectively. Includes $921 million and $2.0 billion of long-term debt related to the Private Education Loan Repurchase Facilities as of June 30, 2019 and December 31, 2018, respectively. (4) “Other” primarily includes the obligation to return cash collateral held related to derivative exposures. |
Financing VIEs | We consolidated the following financing VIEs as of June 30, 2019 and December 31, 2018, as we are the primary beneficiary. As a result, these VIEs are accounted for as secured borrowings. June 30, 2019 Debt Outstanding Carrying Amount of Assets Securing Debt Outstanding (Dollars in millions) Short Term Long Term Total Loans Cash Other Assets Total Secured Borrowings — VIEs: FFELP Loan securitizations (1) $ 72 $ 62,405 $ 62,477 $ 63,494 $ 1,969 $ 1,316 $ 66,779 Private Education Loan securitizations (2) 1,867 12,541 14,408 16,433 541 173 17,147 FFELP Loan — other facilities 2,270 1,836 4,106 4,206 66 124 4,396 Private Education Loan — other facilities 695 1,053 1,748 2,602 64 18 2,684 Total before hedge accounting adjustments 4,904 77,835 82,739 86,735 2,640 1,631 91,006 Hedge accounting adjustments — (462 ) (462 ) — — (622 ) (622 ) Total $ 4,904 $ 77,373 $ 82,277 $ 86,735 $ 2,640 $ 1,009 $ 90,384 December 31, 2018 Debt Outstanding Carrying Amount of Assets Securing Debt Outstanding (Dollars in millions) Short Term Long Term Total Loans Cash Other Assets Total Secured Borrowings — VIEs: FFELP Loan securitizations (1) $ — $ 66,318 $ 66,318 $ 66,266 $ 3,181 $ 1,211 $ 70,658 Private Education Loan securitizations (2) 300 12,985 13,285 16,336 536 198 17,070 FFELP Loan — other facilities 2,927 2,625 5,552 5,656 132 162 5,950 Private Education Loan — other facilities 1,114 1,266 2,380 3,361 79 27 3,467 Total before hedge accounting adjustments 4,341 83,194 87,535 91,619 3,928 1,598 97,145 Hedge accounting adjustments — (456 ) (456 ) — — (642 ) (642 ) Total $ 4,341 $ 82,738 $ 87,079 $ 91,619 $ 3,928 $ 956 $ 96,503 (1) Includes $72 million of short-term debt, $214 million of long-term debt and $9 million of restricted cash related to the FFELP Loan Repurchase Facilities as of June 30, 2019. Includes $244 million of long-term debt and $9 million of restricted cash related to the FFELP Loan Repurchase Facilities as of December 31, 2018. (2) Includes $1.9 billion of short-term debt, $921 million of long-term debt and $65 million of restricted cash related to the Private Education Loan Repurchase Facilities as of June 30, 2019. Includes $300 million of short-term debt, $2.0 billion of long-term debt and $115 million of restricted cash related to the Private Education Loan Repurchase Facilities as of December 31, 2018. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Impact of Derivatives on Consolidated Balance Sheet | The following tables summarize the fair values and notional amounts of all derivative instruments at June 30, 2019 and December 31, 2018, and their impact on other comprehensive income and earnings for the three and six months ended June 30, 2019 and 2018. Impact of Derivatives on Consolidated Balance Sheet Cash Flow Fair Value (4) Trading Total (Dollars in millions) Hedged Risk Exposure Jun 30, 2019 Dec 31, 2018 Jun 30, 2019 Dec 31, 2018 Jun 30, 2019 Dec 31, 2018 Jun 30, 2019 Dec 31, 2018 Fair Values (1) Derivative Assets: Interest rate swaps Interest rate $ — $ — $ 239 $ 170 $ 4 $ 3 $ 243 $ 173 Cross-currency interest rate swaps Foreign currency and interest rate — — 3 6 — — 3 6 Total derivative assets (2) — — 242 176 4 3 246 179 Derivative Liabilities: Interest rate swaps Interest rate — — — (34 ) (24 ) (45 ) (24 ) (79 ) Floor Income Contracts Interest rate — — — — (99 ) (53 ) (99 ) (53 ) Cross-currency interest rate swaps Foreign currency and interest rate — — (606 ) (639 ) — (26 ) (606 ) (665 ) Other (3) Interest rate — — — — (2 ) (4 ) (2 ) (4 ) Total derivative liabilities (2) — — (606 ) (673 ) (125 ) (128 ) (731 ) (801 ) Net total derivatives $ — $ — $ (364 ) $ (497 ) $ (121 ) $ (125 ) $ (485 ) $ (622 ) (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, 2019 December 31, 2018 June 30, 2019 December 31, 2018 Gross position $ 246 $ 179 $ (731 ) $ (801 ) Impact of master netting agreements (32 ) (22 ) 32 22 Derivative values with impact of master netting agreements (as carried on balance sheet) 214 157 (699 ) (779 ) Cash collateral (held) pledged (359 ) (266 ) 164 188 Net position $ (145 ) $ (109 ) $ (535 ) $ (591 ) (3) (4) As of June 30, 2019 As of December 31, 2018 (Dollar in millions) Carrying Value Hedge Basis Adjustments Carrying Value Hedge Basis Adjustments Short-term borrowings $ 1,519 $ 23 $ 664 $ (3 ) Long-term borrowings 12,187 (85 ) 13,657 (368 ) |
Gross Positions with Impact of Master Netting Agreements | 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, 2019 December 31, 2018 June 30, 2019 December 31, 2018 Gross position $ 246 $ 179 $ (731 ) $ (801 ) Impact of master netting agreements (32 ) (22 ) 32 22 Derivative values with impact of master netting agreements (as carried on balance sheet) 214 157 (699 ) (779 ) Cash collateral (held) pledged (359 ) (266 ) 164 188 Net position $ (145 ) $ (109 ) $ (535 ) $ (591 ) (3) (4) |
Carrying Value and Related Fair Value Hedging Adjustments of Liabilities | 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, 2019 As of December 31, 2018 (Dollar in millions) Carrying Value Hedge Basis Adjustments Carrying Value Hedge Basis Adjustments Short-term borrowings $ 1,519 $ 23 $ 664 $ (3 ) Long-term borrowings 12,187 (85 ) 13,657 (368 ) |
Derivative Notional Values | Cash Flow Fair Value Trading Total (Dollars in billions) Jun 30, 2019 Dec 31, 2018 Jun 30, 2019 Dec 31, 2018 Jun 30, 2019 Dec 31, 2018 Jun 30, 2019 Dec 31, 2018 Notional Values: Interest rate swaps $ 22.4 $ 21.4 $ 9.6 $ 10.3 $ 63.1 $ 66.9 $ 95.1 $ 98.6 Floor Income Contracts — — — — 21.2 27.9 21.2 27.9 Cross-currency interest rate swaps — — 4.2 4.5 — .2 4.2 4.7 Other (1) — — — — .1 .2 .1 .2 Total derivatives $ 22.4 $ 21.4 $ 13.8 $ 14.8 $ 84.4 $ 95.2 $ 120.6 $ 131.4 (1) “Other” includes derivatives related to our Total Return Swap Facility. |
Mark-to-Market Impact of Derivatives on Consolidated Statements of Income | Mark-to-Market Total Gains (Losses) Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2019 2018 2019 2018 Fair Value Hedges: Interest Rate Swaps Gains (losses) recognized in net income on derivatives $ 186 $ (71 ) $ 290 $ (258 ) Gains (losses) recognized in net income on hedged items (200 ) 66 (317 ) 290 Net fair value hedge ineffectiveness gains (losses) (14 ) (5 ) (27 ) 32 Cross currency interest rate swaps Gains (losses) recognized in net income on derivatives 41 (283 ) 29 (207 ) Gains (losses) recognized in net income on hedged items (20 ) 257 7 128 Net fair value hedge ineffectiveness gains (losses) 21 (26 ) 36 (79 ) Total fair value hedges (1)(2) 7 (31 ) 9 (47 ) Cash Flow Hedges: Total cash flow hedges (2) — — — — Trading: Interest rate swaps 16 (4 ) 23 18 Floor income contracts (49 ) 10 (48 ) 33 Cross currency interest rate swaps 1 (14 ) (2 ) 2 Other — (1 ) 2 2 Total trading derivatives (3) (32 ) (9 ) (25 ) 55 Mark-to-market gains (losses) recognized $ (25 ) $ (40 ) $ (16 ) $ 8 (1) Recorded in interest expense in the consolidated statements of income for 2019 with the adoption of ASU No, 2017-12. Recorded in “gains (losses) on derivatives and hedging activities, net” in the consolidated statements of income in 2018. (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 derivatives and hedging activities, net” in the consolidated statements of income. |
Collateral Held and Pledged | Collateral held and pledged related to derivative exposures between us and our derivative counterparties are detailed in the following table: (Dollars in millions) June 30, 2019 December 31, 2018 Collateral held: Cash (obligation to return cash collateral is recorded in short-term borrowings) $ 359 $ 266 Securities at fair value — corporate derivatives (not recorded in financial statements) (1) — — Securities at fair value — on-balance sheet securitization derivatives (not recorded in financial statements) (2) 79 90 Total collateral held $ 438 $ 356 Derivative asset at fair value including accrued interest $ 307 $ 210 Collateral pledged to others: Cash (right to receive return of cash collateral is recorded in investments) $ 164 $ 188 Total collateral pledged $ 164 $ 188 Derivative liability at fair value including accrued interest and premium receivable $ 713 $ 752 (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. |
Other Assets (Tables)
Other Assets (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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, 2019 December 31, 2018 Accrued interest receivable $ 1,994 $ 1,999 Benefit and insurance-related investments 460 470 Income tax asset, net (current and deferred) 275 271 Derivatives at fair value 214 157 Fixed assets, net 136 136 Accounts receivable 99 95 Other loans, net 4 69 Other 201 207 Total $ 3,383 $ 3,404 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Common Share Repurchases and Issuances | The following table summarizes common share repurchases and issuances. Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Common stock repurchased (1) 9,617,008 — 19,034,252 — Average purchase price per share $ 13.06 $ — $ 12.24 $ — Shares repurchased related to employee stock- based compensation plans (2) 120,485 92,369 2,534,090 3,557,504 Average purchase price per share $ 13.45 $ 14.53 $ 10.94 $ 13.77 Common shares issued (3) 195,883 113,171 4,625,347 5,134,238 (1) Common shares purchased under our share repurchase program. (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 per Common Share (Tabl
Earnings per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings per Common Share | Basic earnings per common share (“EPS”) are calculated using the weighted average number of shares of common stock outstanding during each period. A reconciliation of the numerators and denominators of the basic and diluted EPS calculations follows. Three Months Ended June 30, Six Months Ended June 30, (In millions, except per share data) 2019 2018 2019 2018 Numerator: Net income $ 153 $ 83 $ 281 $ 210 Denominator: Weighted average shares used to compute basic EPS 235 265 239 264 Effect of dilutive securities: Dilutive effect of stock options, restricted stock, restricted stock units, performance stock units, and Employee Stock Purchase Plan (“ESPP”) (1) 3 4 3 5 Dilutive potential common shares (2) 3 4 3 5 Weighted average shares used to compute diluted EPS 238 269 242 269 Basic earnings per common share $ .65 $ .31 $ 1.17 $ .79 Diluted earnings per common share $ .64 $ .31 $ 1.16 $ .78 (1) (2) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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. Fair Value Measurements on a Recurring Basis June 30, 2019 December 31, 2018 (Dollars in millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Derivative instruments: (1) Interest rate swaps — 241 2 243 — 171 2 173 Cross-currency interest rate swaps — — 3 3 — — 6 6 Total derivative assets (2) — 241 5 246 — 171 8 179 Total $ — $ 241 $ 5 $ 246 $ — $ 171 $ 8 $ 179 Liabilities (3) Derivative instruments (1) Interest rate swaps $ — $ (1 ) $ (23 ) $ (24 ) $ — $ (50 ) $ (29 ) $ (79 ) Floor Income Contracts — (99 ) — (99 ) — (53 ) — (53 ) Cross-currency interest rate swaps — — (606 ) (606 ) — (26 ) (639 ) (665 ) Other — — (2 ) (2 ) — — (4 ) (4 ) Total derivative liabilities (2) — (100 ) (631 ) (731 ) — (129 ) (672 ) (801 ) Total $ — $ (100 ) $ (631 ) $ (731 ) $ — $ (129 ) $ (672 ) $ (801 ) (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 items 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 are not reflected in this table. |
Change in Balance Sheet Carrying Value Associated with Level 3 Financial Instruments Carried at Fair Value on Recurring Basis | 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, 2019 2018 Derivative instruments Derivative instruments (Dollars in millions) Interest Rate Swaps Cross Currency Interest Rate Swaps Other Total Derivative Instruments Interest Rate Swaps Cross Currency Interest Rate Swaps Other Total Derivative Instruments Balance, beginning of period $ (24 ) $ (645 ) $ (2 ) $ (671 ) $ (37 ) $ (246 ) $ (12 ) $ (295 ) Total gains/(losses): Included in earnings (1) 2 10 — 12 3 (314 ) 3 (308 ) Included in other comprehensive income — — — — — — — — Settlements 1 32 — 33 1 31 1 33 Transfers in and/or out of level 3 — — — — — — — — Balance, end of period $ (21 ) $ (603 ) $ (2 ) $ (626 ) $ (33 ) $ (529 ) $ (8 ) $ (570 ) Change in mark-to-market gains/(losses) relating to instruments still held at the reporting date (2) $ 2 $ 42 $ — $ 44 $ 4 $ (283 ) $ 4 $ (275 ) Six Months Ended June 30, 2019 2018 Derivative instruments Derivative instruments (Dollars in millions) Interest Rate Swaps Cross Currency Interest Rate Swaps Other Total Derivative Instruments Interest Rate Swaps Cross Currency Interest Rate Swaps Other Total Derivative Instruments Balance, beginning of period $ (27 ) $ (633 ) $ (4 ) $ (664 ) $ (41 ) $ (322 ) $ (18 ) $ (381 ) Total gains/(losses): Included in earnings (1) 4 (35 ) 2 (29 ) 6 (265 ) 6 (253 ) Included in other comprehensive income — — — — — — — — Settlements 2 65 — 67 2 58 4 64 Transfers in and/or out of level 3 — — — — — — — — Balance, end of period $ (21 ) $ (603 ) $ (2 ) $ (626 ) $ (33 ) $ (529 ) $ (8 ) $ (570 ) Change in mark-to-market gains/(losses) relating to instruments still held at the reporting date (2) $ 5 $ 30 $ 2 $ 37 $ 7 $ (180 ) $ 10 $ (163 ) (1) “Included in earnings” is comprised of the following amounts recorded in the specified line item in the consolidated statements of income: |
Included in Earnings | Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2019 2018 2019 2018 Gains (losses) on derivative and hedging activities, net $ 2 $ (277 ) $ 6 $ (195 ) Interest expense 10 (31 ) (35 ) (58 ) Total $ 12 $ (308 ) $ (29 ) $ (253 ) (2) Recorded in “gains (losses) on derivative and hedging activities, net” in the consolidated statements of income for interest rate swaps and other. Recorded in interest expense for cross currency interest rate swaps in fair value hedges for 2019 with the adoption of ASU No. 2017-12. Recorded in “gains (losses) on derivatives and hedging activities, net” for cross currency interest rate swaps in 2018. |
Unobservable Data Used in Recurring Valuations of Level 3 | 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, 2019 Valuation Technique Input Range (Weighted Average) Derivatives Prime/LIBOR basis swaps $ (21 ) Discounted cash flow Constant Prepayment Rate 7% Bid/ask adjustment to .08% — .08% discount rate (.08%) Cross-currency interest rate swaps (603 ) Discounted cash flow Constant Prepayment Rate 4% Other (2 ) Total $ (626 ) |
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, 2019 December 31, 2018 (Dollars in millions) Fair Value Carrying Value Difference Fair Value Carrying Value Difference Earning assets FFELP Loans $ 68,378 $ 67,956 $ 422 $ 72,074 $ 72,253 $ (179 ) Private Education Loans 22,312 21,564 748 22,958 22,245 713 Cash and investments 4,648 4,648 — 5,488 5,488 — Total earning assets 95,338 94,168 1,170 100,520 99,986 534 Interest-bearing liabilities Short-term borrowings 6,812 6,785 (27 ) 5,418 5,422 4 Long-term borrowings 86,412 86,776 364 92,173 93,519 1,346 Total interest-bearing liabilities 93,224 93,561 337 97,591 98,941 1,350 Derivative financial instruments Floor Income Contracts (99 ) (99 ) — (53 ) (53 ) — Interest rate swaps 219 219 — 94 94 — Cross-currency interest rate swaps (603 ) (603 ) — (659 ) (659 ) — Other (2 ) (2 ) — (4 ) (4 ) — Excess of net asset fair value over carrying value $ 1,507 $ 1,884 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers Accounted for in Accordance with ASC 606 (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Disaggregation of Revenue from Contracts Accounted Under ASC 606 with Customers | 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, 2019 2018 (Dollars in millions) Federal Education Loans Business Processing Total Revenue Federal Education Loans Business Processing Total Revenue Federal Education Loan asset recovery services $ 35 $ — $ 35 $ 19 $ — $ 19 Government services — 40 40 — 41 41 Healthcare services — 25 25 — 24 24 Total $ 35 $ 65 $ 100 $ 19 $ 65 $ 84 Six Months Ended June 30, 2019 2018 (Dollars in millions) Federal Education Loans Business Processing Total Revenue Federal Education Loans Business Processing Total Revenue Federal Education Loan asset recovery services $ 64 $ — $ 64 $ 39 $ — $ 39 Government services — 82 82 — 94 94 Healthcare services — 52 52 — 44 44 Total $ 64 $ 134 $ 198 $ 39 $ 138 $ 177 Revenue by Client Type Three Months Ended June 30, 2019 2018 (Dollars in millions) Federal Education Loans Business Processing Total Revenue Federal Education Loans Business Processing Total Revenue Federal government $ 17 $ 4 $ 21 $ 1 $ 2 $ 3 Guarantor agencies 14 — 14 15 — 15 Other institutions 4 — 4 3 — 3 State and local government — 23 23 — 23 23 Tolling authorities — 13 13 — 16 16 Hospitals and other healthcare providers — 25 25 — 24 24 Total $ 35 $ 65 $ 100 $ 19 $ 65 $ 84 Six Months Ended June 30, 2019 2018 (Dollars in millions) Federal Education Loans Business Processing Total Revenue Federal Education Loans Business Processing Total Revenue Federal government $ 30 $ 7 $ 37 $ 2 $ 3 $ 5 Guarantor agencies 28 — 28 31 — 31 Other institutions 6 — 6 6 — 6 State and local government — 48 48 — 49 49 Tolling authorities — 27 27 — 42 42 Hospitals and other healthcare providers — 52 52 — 44 44 Total $ 64 $ 134 $ 198 $ 39 $ 138 $ 177 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Results and Reconciliations to GAAP | Three Months Ended June 30, 2019 Adjustments (Dollars in millions) Federal Education Loans Consumer Lending Business Processing Other Total Core Earnings Reclassi- fications Additions/ (Subtractions) Total Adjustments (1) Total GAAP Interest income: Education loans $ 758 $ 436 $ — $ — $ 1,194 $ 1 $ (17 ) $ (16 ) $ 1,178 Other loans — 1 — — 1 — — — 1 Cash and investments 14 4 — 7 25 — — — 25 Total interest income 772 441 — 7 1,220 1 (17 ) (16 ) 1,204 Total interest expense 627 255 — 42 924 (2 ) (11 ) (13 ) 911 Net interest income (loss) 145 186 — (35 ) 296 3 (6 ) (3 ) 293 Less: provisions for loan losses 8 60 — — 68 — — — 68 Net interest income (loss) after provisions for loan losses 137 126 — (35 ) 228 3 (6 ) (3 ) 225 Other income (loss): Servicing revenue 57 3 — — 60 — — — 60 Asset recovery and business processing revenue 58 — 65 — 123 — — — 123 Other income (loss) 7 — — 4 11 (38 ) 6 (32 ) (21 ) Gains on sales of loans — 16 — — 16 — — — 16 Gains on debt repurchases — — — 32 32 35 (23 ) 12 44 Total other income (loss) 122 19 65 36 242 (3 ) (17 ) (20 ) 222 Expenses: Direct operating expenses 89 34 56 — 179 — — — 179 Unallocated shared services expenses — — — 62 62 — — — 62 Operating expenses 89 34 56 62 241 — — — 241 Goodwill and acquired intangible asset impairment and amortization — — — — — — 11 11 11 Restructuring/other reorganization expenses — — — 1 1 — — — 1 Total expenses 89 34 56 63 242 — 11 11 253 Income (loss) before income tax expense (benefit) 170 111 9 (62 ) 228 — (34 ) (34 ) 194 Income tax expense (benefit) (2) 39 26 2 (14 ) 53 — (12 ) (12 ) 41 Net income (loss) $ 131 $ 85 $ 7 $ (48 ) $ 175 $ — $ (22 ) $ (22 ) $ 153 (1) Core Earnings adjustments to GAAP: Three Months Ended June 30, 2019 (Dollars in millions) Net Impact of Derivative Accounting Net Impact of Acquired Intangibles Total Net interest income (loss) after provisions for loan losses $ (3 ) $ — $ (3 ) Total other income (loss) (20 ) — (20 ) Goodwill and acquired intangible asset impairment and amortization — 11 11 Total Core Earnings adjustments to GAAP $ (23 ) $ (11 ) (34 ) Income tax expense (benefit) (12 ) Net income (loss) $ (22 ) (2) Income taxes are based on a percentage of net income before tax for the individual reportable segment. Three Months Ended June 30, 2018 Adjustments (Dollars in millions) Federal Education Loans Consumer Lending Business Processing Other Total Core Earnings Reclassi- fications Additions/ (Subtractions) Total Adjustments (1) Total GAAP Interest income: Education loans $ 775 $ 442 $ — $ — $ 1,217 $ 3 $ (18 ) $ (15 ) $ 1,202 Other loans 1 — — — 1 — — — 1 Cash and investments 12 3 — 9 24 — — — 24 Total interest income 788 445 — 9 1,242 3 (18 ) (15 ) 1,227 Total interest expense 622 252 — 49 923 10 (4 ) 6 929 Net interest income (loss) 166 193 — (40 ) 319 (7 ) (14 ) (21 ) 298 Less: provisions for loan losses 40 72 — — 112 — — — 112 Net interest income (loss) after provisions for loan losses 126 121 — (40 ) 207 (7 ) (14 ) (21 ) 186 Other income (loss): Servicing revenue 68 3 — — 71 — — — 71 Asset recovery and business processing revenue 34 — 65 — 99 — — — 99 Other income (loss) — — — 3 3 7 (37 ) (30 ) (27 ) Losses on debt repurchases — — — (7 ) (7 ) — — — (7 ) Total other income (loss) 102 3 65 (4 ) 166 7 (37 ) (30 ) 136 Expenses: Direct operating expenses 36 39 54 — 129 — — — 129 Unallocated shared services expenses — — — 72 72 — — — 72 Operating expenses 36 39 54 72 201 — — — 201 Goodwill and acquired intangible asset impairment and amortization — — — — — — 6 6 6 Restructuring/other reorganization expenses — — — 2 2 — — — 2 Total expenses 36 39 54 74 203 — 6 6 209 Income (loss) before income tax expense (benefit) 192 85 11 (118 ) 170 — (57 ) (57 ) 113 Income tax expense (benefit) (2) 44 19 3 (27 ) 39 — (9 ) (9 ) 30 Net income (loss) $ 148 $ 66 $ 8 $ (91 ) $ 131 $ — $ (48 ) $ (48 ) $ 83 (1) Core Earnings adjustments to GAAP: Three Months Ended June 30, 2018 (Dollars in millions) Net Impact of Derivative Accounting Net Impact of Acquired Intangibles Total Net interest income (loss) after provisions for loan losses $ (21 ) $ — $ (21 ) Total other income (loss) (30 ) — (30 ) Goodwill and acquired intangible asset impairment and amortization — 6 6 Total Core Earnings adjustments to GAAP $ (51 ) $ (6 ) (57 ) Income tax expense (benefit) (9 ) Net income (loss) $ (48 ) (2) Income taxes are based on a percentage of net income before tax for the individual reportable segment. Six Months Ended June 30, 2019 Adjustments (Dollars in millions) Federal Education Loans Consumer Lending Business Processing Other Total Core Earnings Reclassi- fications Additions/ (Subtractions) Total Adjustments (1) Total GAAP Interest income: Education loans $ 1,537 $ 879 $ — $ — $ 2,416 $ 2 $ (33 ) $ (31 ) $ 2,385 Other loans 1 1 — — 2 — — — 2 Cash and investments 30 9 — 13 52 — — — 52 Total interest income 1,568 889 — 13 2,470 2 (33 ) (31 ) 2,439 Total interest expense 1,278 516 — 80 1,874 2 (16 ) (14 ) 1,860 Net interest income (loss) 290 373 — (67 ) 596 — (17 ) (17 ) 579 Less: provisions for loan losses 15 129 — — 144 — — — 144 Net interest income (loss) after provisions for loan losses 275 244 — (67 ) 452 — (17 ) (17 ) 435 Other income (loss): Servicing revenue 117 5 — — 122 — — — 122 Asset recovery and business processing revenue 108 — 134 — 242 — — — 242 Other income (loss) 15 1 — 9 25 (39 ) 16 (23 ) 2 Gains on sales of loans — 16 — — 16 — — — 16 Gains on debt repurchases — — — 47 47 39 (27 ) 12 59 Total other income (loss) 240 22 134 56 452 — (11 ) (11 ) 441 Expenses: Direct operating expenses 180 72 111 — 363 — — — 363 Unallocated shared services expenses — — — 134 134 — — — 134 Operating expenses 180 72 111 134 497 — — — 497 Goodwill and acquired intangible asset impairment and amortization — — — — — — 18 18 18 Restructuring/other reorganization expenses — — — 2 2 — — — 2 Total expenses 180 72 111 136 499 — 18 18 517 Income (loss) before income tax expense (benefit) 335 194 23 (147 ) 405 — (46 ) (46 ) 359 Income tax expense (benefit) (2) 77 44 6 (34 ) 93 — (15 ) (15 ) 78 Net income (loss) $ 258 $ 150 $ 17 $ (113 ) $ 312 $ — $ (31 ) $ (31 ) $ 281 (1) Core Earnings adjustments to GAAP: Six Months Ended June 30, 2019 (Dollars in millions) Net Impact of Derivative Accounting Net Impact of Goodwill and Acquired Intangible Assets Total Net interest income (loss) after provisions for loan losses $ (17 ) $ — $ (17 ) Total other income (loss) (11 ) — (11 ) Goodwill and acquired intangible asset impairment and amortization — 18 18 Total Core Earnings adjustments to GAAP $ (28 ) $ (18 ) (46 ) Income tax expense (benefit) (15 ) Net income (loss) $ (31 ) (2) Income taxes are based on a percentage of net income before tax for the individual reportable segment. Six Months Ended June 30, 2018 Adjustments (Dollars in millions) Federal Education Loans Consumer Lending Business Processing Other Total Core Earnings Reclassi- fications Additions/ (Subtractions) Total Adjustments (1) Total GAAP Interest income: Education loans $ 1,507 $ 873 $ — $ — $ 2,380 $ 11 $ (35 ) $ (24 ) $ 2,356 Other loans 2 — — — 2 — — — 2 Cash and investments 19 6 — 16 41 — — — 41 Total interest income 1,528 879 — 16 2,423 11 (35 ) (24 ) 2,399 Total interest expense 1,193 490 — 91 1,774 4 (5 ) (1 ) 1,773 Net interest income (loss) 335 389 — (75 ) 649 7 (30 ) (23 ) 626 Less: provisions for loan losses 50 149 — — 199 — — — 199 Net interest income (loss) after provisions for loan losses 285 240 — (75 ) 450 7 (30 ) (23 ) 427 Other income (loss): Servicing revenue 134 6 — — 140 — — — 140 Asset recovery and business processing revenue 70 — 137 — 207 — — — 207 Other income (loss) 1 — — 5 6 (7 ) 10 3 9 Losses on debt repurchases — — — (8 ) (8 ) — — — (8 ) Total other income (loss) 205 6 137 (3 ) 345 (7 ) 10 3 348 Expenses: Direct operating expenses 115 95 113 — 323 — — — 323 Unallocated shared services expenses — — — 153 153 — — — 153 Operating expenses 115 95 113 153 476 — — — 476 Goodwill and acquired intangible asset impairment and amortization — — — — — — 16 16 16 Restructuring/other reorganization expenses — — — 9 9 — — — 9 Total expenses 115 95 113 162 485 — 16 16 501 Income (loss) before income tax expense (benefit) 375 151 24 (240 ) 310 — (36 ) (36 ) 274 Income tax expense (benefit) (2) 86 35 6 (55 ) 72 — (8 ) (8 ) 64 Net income (loss) $ 289 $ 116 $ 18 $ (185 ) $ 238 $ — $ (28 ) $ (28 ) $ 210 (1) Core Earnings adjustments to GAAP: Six Months Ended June 30, 2018 (Dollars in millions) Net Impact of Derivative Accounting Net Impact of Goodwill and Acquired Intangible Assets Total Net interest income (loss) after provisions for loan losses $ (23 ) $ — $ (23 ) Total other income (loss) 3 — 3 Goodwill and acquired intangible asset impairment and amortization — 16 16 Total Core Earnings adjustments to GAAP $ (20 ) $ (16 ) (36 ) Income tax expense (benefit) (8 ) Net income (loss) $ (28 ) (2) Income taxes are based on a percentage of net income before tax for the individual reportable segment. |
Core Earnings Adjustments to GAAP | Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2019 2018 2019 2018 Core Earnings net income $ 175 $ 131 $ 312 $ 238 Core Earnings adjustments to GAAP: Net impact of derivative accounting (1) (23 ) (51 ) (28 ) (20 ) Net impact of goodwill and acquired intangible assets (2) (11 ) (6 ) (18 ) (16 ) Net tax effect (3) 12 9 15 8 Total Core Earnings adjustments to GAAP (22 ) (48 ) (31 ) (28 ) GAAP net income $ 153 $ 83 $ 281 $ 210 (1) Derivative accounting: (2) Goodwill and acquired intangible assets: (3) Net tax effect: |
Federal Education Loans [Member] | |
Asset Information for Loans Segment | The following table includes GAAP basis asset information for our Federal Education Loans segment. (Dollars in millions) June 30, 2019 December 31, 2018 FFELP Loans, net $ 67,956 $ 72,253 Cash and investments (1) 2,219 3,368 Other 2,174 2,100 Total assets $ 72,349 $ 77,721 (1) Includes restricted cash and investments. |
Consumer Lending [Member] | |
Asset Information for Loans Segment | The following table includes GAAP basis asset information for our Consumer Lending segment. (Dollars in millions) June 30, 2019 December 31, 2018 Private Education Loans, net $ 21,564 $ 22,245 Cash and investments (1) 931 732 Other 1,012 1,076 Total assets $ 23,507 $ 24,053 (1) Includes restricted cash and investments. |
Significant Accounting Polici_3
Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Summary Of Significant Accounting Policies [Line Items] | ||||
Gains (losses) on derivative and hedging activities, net | $ (32) | $ (40) | $ (25) | $ 8 |
ASC 2016-02 [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Lease assets and liabilities amount | 28 | |||
ASU 2017-12 [Member] | Interest Expense [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Gains (losses) on derivative and hedging activities, net | $ 7 | $ 9 |
Allowance for Loan Losses - Add
Allowance for Loan Losses - Additional Information (Detail) $ in Billions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019USD ($)Loan | Dec. 31, 2018USD ($) | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Percentage of loans granted forbearance that migrated to TDR classification | 68.00% | 65.00% |
Payment default period for TDRs | 60 days past due | |
Interest Rate Reduction [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
TDR loans, Unpaid Principal Balance | $ | $ 2 | $ 1.8 |
Minimum [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Delinquency period (in days) | 212 days | |
Private Education Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Number of classes of loans | Loan | 2 |
Allowance for Loan Losses - All
Allowance for Loan Losses - Allowance for Credit Losses and Recorded Investments in Loans (Detail) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($)SecurityLoan | Jun. 30, 2018USD ($)SecurityLoan | Jun. 30, 2019USD ($)SecurityLoan | Jun. 30, 2018USD ($)SecurityLoan | |
Allowance for Loan Losses | ||||
Beginning balance | $ 1,252 | $ 1,367 | $ 1,286 | $ 1,367 |
Total provision | 68 | 112 | 144 | 199 |
Charge-offs | (95) | (92) | (207) | (181) |
Reclassification of interest reserve | 1 | 2 | 4 | 4 |
Loan sales | (8) | (9) | ||
Ending balance | 1,218 | 1,389 | 1,218 | 1,389 |
Allowance Ending Balance: | ||||
Ending balance: individually evaluated for impairment - TDR | 1,040 | 1,151 | 1,040 | 1,151 |
Collectively evaluated for impairment: | ||||
Excluding Purchased Non-Credit Impaired Loans acquired at a discount and Purchased Credit Impaired Loans | 178 | 238 | 178 | 238 |
Ending balance | 1,218 | 1,389 | 1,218 | 1,389 |
Loans Ending Balance: | ||||
Ending balance: individually evaluated for impairment - TDR | 10,000 | 10,707 | 10,000 | 10,707 |
Collectively evaluated for impairment: | ||||
Excluding Purchased Non-Credit Impaired Loans acquired at a discount and Purchased Credit Impaired Loans | 76,002 | 84,480 | 76,002 | 84,480 |
Purchased Non-Credit Impaired Loans acquired at a discount | 4,648 | 5,420 | 4,648 | 5,420 |
Purchased Credit Impaired Loans | 214 | 236 | 214 | 236 |
Ending total loans | 90,864 | 100,843 | 90,864 | 100,843 |
FFELP Loans [Member] | ||||
Allowance for Loan Losses | ||||
Beginning balance | 67 | 59 | 76 | 60 |
Total provision | 8 | 40 | 15 | 50 |
Charge-offs | (7) | (17) | (24) | (28) |
Ending balance | 67 | 82 | 67 | 82 |
Collectively evaluated for impairment: | ||||
Excluding Purchased Non-Credit Impaired Loans acquired at a discount and Purchased Credit Impaired Loans | 67 | 82 | 67 | 82 |
Ending balance | 67 | 82 | 67 | 82 |
Collectively evaluated for impairment: | ||||
Excluding Purchased Non-Credit Impaired Loans acquired at a discount and Purchased Credit Impaired Loans | 64,783 | 73,018 | 64,783 | 73,018 |
Purchased Non-Credit Impaired Loans acquired at a discount | 2,671 | 3,034 | 2,671 | 3,034 |
Ending total loans | $ 67,454 | $ 76,052 | $ 67,454 | $ 76,052 |
Charge-offs as a percentage of average loans in repayment | 0.05% | 0.11% | 0.08% | 0.09% |
Allowance coverage of charge-offs | SecurityLoan | 2.2 | 1.2 | 1.4 | 1.5 |
Allowance as a percentage of the ending total loan balance | 0.10% | 0.11% | 0.10% | 0.11% |
Allowance as a percentage of the ending loans in repayment | 0.12% | 0.13% | 0.12% | 0.13% |
Average loans in repayment | $ 56,657 | $ 64,238 | $ 57,435 | $ 64,940 |
Ending loans in repayment | 55,684 | 62,952 | 55,684 | 62,952 |
Private Education Loans [Member] | ||||
Allowance for Loan Losses | ||||
Beginning balance | 1,178 | 1,298 | 1,201 | 1,297 |
Total provision | 60 | 72 | 128 | 149 |
Charge-offs | (87) | (75) | (181) | (153) |
Reclassification of interest reserve | 1 | 2 | 4 | 4 |
Loan sales | (1) | (1) | ||
Ending balance | 1,151 | 1,297 | 1,151 | 1,297 |
Allowance Ending Balance: | ||||
Ending balance: individually evaluated for impairment - TDR | 1,040 | 1,142 | 1,040 | 1,142 |
Collectively evaluated for impairment: | ||||
Excluding Purchased Non-Credit Impaired Loans acquired at a discount and Purchased Credit Impaired Loans | 111 | 155 | 111 | 155 |
Ending balance | 1,151 | 1,297 | 1,151 | 1,297 |
Loans Ending Balance: | ||||
Ending balance: individually evaluated for impairment - TDR | 10,000 | 10,679 | 10,000 | 10,679 |
Collectively evaluated for impairment: | ||||
Excluding Purchased Non-Credit Impaired Loans acquired at a discount and Purchased Credit Impaired Loans | 11,215 | 11,411 | 11,215 | 11,411 |
Purchased Non-Credit Impaired Loans acquired at a discount | 1,977 | 2,386 | 1,977 | 2,386 |
Purchased Credit Impaired Loans | 214 | 236 | 214 | 236 |
Ending total loans | $ 23,406 | $ 24,712 | $ 23,406 | $ 24,712 |
Charge-offs as a percentage of average loans in repayment | 1.59% | 1.34% | 1.66% | 1.37% |
Allowance coverage of charge-offs | SecurityLoan | 3.3 | 4.3 | 3.2 | 4.2 |
Allowance as a percentage of the ending total loan balance | 4.92% | 5.25% | 4.92% | 5.25% |
Allowance as a percentage of the ending loans in repayment | 5.37% | 5.85% | 5.37% | 5.85% |
Average loans in repayment | $ 21,854 | $ 22,289 | $ 21,957 | $ 22,474 |
Ending loans in repayment | 21,439 | 22,174 | 21,439 | 22,174 |
Other Loans [Member] | ||||
Allowance for Loan Losses | ||||
Beginning balance | 7 | 10 | 9 | 10 |
Total provision | 1 | |||
Charge-offs | (1) | (2) | ||
Loan sales | (7) | (8) | ||
Ending balance | 10 | 10 | ||
Allowance Ending Balance: | ||||
Ending balance: individually evaluated for impairment - TDR | 9 | 9 | ||
Collectively evaluated for impairment: | ||||
Excluding Purchased Non-Credit Impaired Loans acquired at a discount and Purchased Credit Impaired Loans | 1 | 1 | ||
Ending balance | 10 | 10 | ||
Loans Ending Balance: | ||||
Ending balance: individually evaluated for impairment - TDR | 28 | 28 | ||
Collectively evaluated for impairment: | ||||
Excluding Purchased Non-Credit Impaired Loans acquired at a discount and Purchased Credit Impaired Loans | 4 | 51 | 4 | 51 |
Ending total loans | $ 4 | $ 79 | $ 4 | $ 79 |
Charge-offs as a percentage of average loans in repayment | 10.19% | 2.63% | 7.78% | 1.13% |
Allowance coverage of charge-offs | SecurityLoan | 5.1 | 11.9 | ||
Allowance as a percentage of the ending total loan balance | 12.54% | 12.21% | ||
Allowance as a percentage of the ending loans in repayment | 12.54% | 12.21% | ||
Average loans in repayment | $ 28 | $ 73 | $ 52 | $ 72 |
Ending loans in repayment | $ 4 | $ 79 | $ 4 | $ 79 |
Allowance for Loan Losses - A_2
Allowance for Loan Losses - Allowance for Credit Losses and Recorded Investments in Loans (Parenthetical) (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
FFELP Loans [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Allowance for loans acquired | $ 0 | $ 0 | $ 0 | $ 0 |
Loans receivable, discount | 34,000,000 | 40,000,000 | 34,000,000 | 40,000,000 |
Private Education Loans [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Allowance for loans acquired | 0 | 0 | 0 | 0 |
Loans receivable, discount | $ 298,000,000 | $ 362,000,000 | $ 298,000,000 | $ 362,000,000 |
Allowance for Loan Losses - Age
Allowance for Loan Losses - Age Analysis of Past Due Loans Delinquencies (Detail) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Loans in repayment and percentage of each status: | ||||||
Loans allowance for losses | $ (1,218) | $ (1,286) | $ (1,252) | $ (1,389) | $ (1,367) | $ (1,367) |
FFELP Loans [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Total loans in repayment | 55,684 | 62,952 | ||||
Loans allowance for losses | (67) | (76) | $ (67) | $ (82) | $ (59) | $ (60) |
Loans, net | 67,956 | 72,253 | ||||
Credit Concentration Risk [Member] | Accounts Receivable [Member] | Private Education Loans - TDRs [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Loans current | 7,816 | 7,890 | ||||
Total loans in repayment | 8,760 | 9,025 | ||||
Total loans, gross | 9,636 | 9,969 | ||||
Loans unamortized premium (discount) | (209) | (212) | ||||
Total loans | 9,427 | 9,757 | ||||
Loans receivable for partially charged-off loans | 364 | 367 | ||||
Loans allowance for losses | (1,040) | (1,100) | ||||
Loans, net | $ 8,751 | $ 9,024 | ||||
Dimensions of concentration risk | 100.00% | 100.00% | ||||
Credit Concentration Risk [Member] | Accounts Receivable [Member] | Private Education Loans - Non-TDRs [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Loans current | $ 12,553 | $ 12,851 | ||||
Total loans in repayment | 12,679 | 13,012 | ||||
Total loans, gross | 13,130 | 13,562 | ||||
Loans unamortized premium (discount) | (482) | (547) | ||||
Total loans | 12,648 | 13,015 | ||||
Loans receivable for partially charged-off loans | 276 | 307 | ||||
Loans allowance for losses | (111) | (101) | ||||
Loans, net | $ 12,813 | $ 13,221 | ||||
Dimensions of concentration risk | 100.00% | 100.00% | ||||
Credit Concentration Risk [Member] | Accounts Receivable [Member] | School/Grace/Deferment [Member] | Private Education Loans - TDRs [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Total loans, gross | $ 371 | $ 426 | ||||
Credit Concentration Risk [Member] | Accounts Receivable [Member] | School/Grace/Deferment [Member] | Private Education Loans - Non-TDRs [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Total loans, gross | 315 | 392 | ||||
Credit Concentration Risk [Member] | Accounts Receivable [Member] | Forbearance [Member] | Private Education Loans - TDRs [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Total loans, gross | 505 | 518 | ||||
Credit Concentration Risk [Member] | Accounts Receivable [Member] | Forbearance [Member] | Private Education Loans - Non-TDRs [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Total loans, gross | 136 | 158 | ||||
Credit Concentration Risk [Member] | Accounts Receivable [Member] | FFELP Loans [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Loans current | 49,855 | 53,500 | ||||
Total loans in repayment | 55,684 | 59,551 | ||||
Total loans, gross | 67,454 | 71,730 | ||||
Loans unamortized premium (discount) | 569 | 599 | ||||
Total loans | 68,023 | 72,329 | ||||
Loans allowance for losses | (67) | (76) | ||||
Loans, net | $ 67,956 | $ 72,253 | ||||
Dimensions of concentration risk | 100.00% | 100.00% | ||||
Credit Concentration Risk [Member] | Accounts Receivable [Member] | FFELP Loans [Member] | School/Grace/Deferment [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Total loans, gross | $ 3,530 | $ 3,793 | ||||
Credit Concentration Risk [Member] | Accounts Receivable [Member] | FFELP Loans [Member] | Forbearance [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Total loans, gross | 8,240 | 8,386 | ||||
Credit Concentration Risk [Member] | Accounts Receivable [Member] | Financing Receivables, 31 to 60 Days Past Due [Member] | Private Education Loans - TDRs [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Loans delinquent | $ 276 | $ 344 | ||||
Loans delinquent, percentage | 3.20% | 3.80% | ||||
Credit Concentration Risk [Member] | Accounts Receivable [Member] | Financing Receivables, 31 to 60 Days Past Due [Member] | Private Education Loans - Non-TDRs [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Loans delinquent | $ 51 | $ 71 | ||||
Loans delinquent, percentage | 0.40% | 0.50% | ||||
Credit Concentration Risk [Member] | Accounts Receivable [Member] | Financing Receivables, 31 to 60 Days Past Due [Member] | FFELP Loans [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Loans delinquent | $ 1,540 | $ 1,964 | ||||
Loans delinquent, percentage | 2.80% | 3.40% | ||||
Credit Concentration Risk [Member] | Accounts Receivable [Member] | Financing Receivables, 61 to 90 Days Past Due [Member] | Private Education Loans - TDRs [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Loans delinquent | $ 191 | $ 235 | ||||
Loans delinquent, percentage | 2.20% | 2.60% | ||||
Credit Concentration Risk [Member] | Accounts Receivable [Member] | Financing Receivables, 61 to 90 Days Past Due [Member] | Private Education Loans - Non-TDRs [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Loans delinquent | $ 28 | $ 32 | ||||
Loans delinquent, percentage | 0.20% | 0.30% | ||||
Credit Concentration Risk [Member] | Accounts Receivable [Member] | Financing Receivables, 61 to 90 Days Past Due [Member] | FFELP Loans [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Loans delinquent | $ 870 | $ 910 | ||||
Loans delinquent, percentage | 1.60% | 1.50% | ||||
Credit Concentration Risk [Member] | Accounts Receivable [Member] | Financing Receivables, 90 Days Past Due [Member] | Private Education Loans - TDRs [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Loans delinquent | $ 477 | $ 556 | ||||
Loans delinquent, percentage | 5.40% | 6.20% | ||||
Credit Concentration Risk [Member] | Accounts Receivable [Member] | Financing Receivables, 90 Days Past Due [Member] | Private Education Loans - Non-TDRs [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Loans delinquent | $ 47 | $ 58 | ||||
Loans delinquent, percentage | 0.40% | 0.40% | ||||
Credit Concentration Risk [Member] | Accounts Receivable [Member] | Financing Receivables, 90 Days Past Due [Member] | FFELP Loans [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Loans delinquent | $ 3,419 | $ 3,177 | ||||
Loans delinquent, percentage | 6.10% | 5.30% | ||||
Credit Concentration Risk [Member] | Accounts Receivable [Member] | Financing Receivables, Current [Member] | Private Education Loans - TDRs [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Dimensions of concentration risk | 89.20% | 87.40% | ||||
Credit Concentration Risk [Member] | Accounts Receivable [Member] | Financing Receivables, Current [Member] | Private Education Loans - Non-TDRs [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Dimensions of concentration risk | 99.00% | 98.80% | ||||
Credit Concentration Risk [Member] | Accounts Receivable [Member] | Financing Receivables, Current [Member] | FFELP Loans [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Dimensions of concentration risk | 89.50% | 89.80% | ||||
Credit Concentration Risk [Member] | Accounts Receivable [Member] | Financing Receivables, Loans In Repayment [Member] | Private Education Loans - TDRs [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Dimensions of concentration risk | 90.90% | 90.50% | ||||
Credit Concentration Risk [Member] | Accounts Receivable [Member] | Financing Receivables, Loans In Repayment [Member] | Private Education Loans - Non-TDRs [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Dimensions of concentration risk | 96.60% | 95.90% | ||||
Credit Concentration Risk [Member] | Accounts Receivable [Member] | Financing Receivables, Loans In Repayment [Member] | FFELP Loans [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Dimensions of concentration risk | 82.60% | 83.00% | ||||
Credit Concentration Risk [Member] | Accounts Receivable [Member] | Financing Receivables, Delinquent Loans in Repayment [Member] | Private Education Loans - TDRs [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Dimensions of concentration risk | 10.80% | 12.60% | ||||
Credit Concentration Risk [Member] | Accounts Receivable [Member] | Financing Receivables, Delinquent Loans in Repayment [Member] | Private Education Loans - Non-TDRs [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Dimensions of concentration risk | 1.00% | 1.20% | ||||
Credit Concentration Risk [Member] | Accounts Receivable [Member] | Financing Receivables, Delinquent Loans in Repayment [Member] | FFELP Loans [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Dimensions of concentration risk | 10.50% | 10.20% | ||||
Credit Concentration Risk [Member] | Accounts Receivable [Member] | Financing Receivables, Forbearance, Loans In Repayment [Member] | Private Education Loans - TDRs [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Dimensions of concentration risk | 5.40% | 5.40% | ||||
Credit Concentration Risk [Member] | Accounts Receivable [Member] | Financing Receivables, Forbearance, Loans In Repayment [Member] | Private Education Loans - Non-TDRs [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Dimensions of concentration risk | 1.10% | 1.20% | ||||
Credit Concentration Risk [Member] | Accounts Receivable [Member] | Financing Receivables, Forbearance, Loans In Repayment [Member] | FFELP Loans [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Dimensions of concentration risk | 12.90% | 12.30% |
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, 2019 | Dec. 31, 2018 |
With Cosigner [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators, Excluding Refinance Loans, Percent | 67.00% | 67.00% |
Private Education Loans - TDRs [Member] | With Cosigner [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators, Excluding Refinance Loans, Percent | 62.00% | 62.00% |
Private Education Loans - TDRs [Member] | Original Winning FICO Scores [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 9,636 | $ 9,969 |
Total Private Education Loan Credit Quality Indicators, Excluding Refinance Loans, Percent | 100.00% | 100.00% |
Private Education Loans - TDRs [Member] | Original Winning FICO Scores [Member] | FICO 640 and Above [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 8,828 | $ 9,133 |
Total Private Education Loan Credit Quality Indicators, Excluding Refinance Loans, Percent | 92.00% | 92.00% |
Private Education Loans - TDRs [Member] | Original Winning FICO Scores [Member] | FICO Below 640 [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 808 | $ 836 |
Total Private Education Loan Credit Quality Indicators, Excluding Refinance Loans, Percent | 8.00% | 8.00% |
Private Education Loans - TDRs [Member] | School Type [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 9,636 | $ 9,969 |
Total Private Education Loan Credit Quality Indicators, Excluding Refinance Loans, Percent | 100.00% | 100.00% |
Private Education Loans - TDRs [Member] | School Type [Member] | Not For Profit [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 7,651 | $ 7,888 |
Total Private Education Loan Credit Quality Indicators, Excluding Refinance Loans, Percent | 79.00% | 79.00% |
Private Education Loans - TDRs [Member] | School Type [Member] | For Profit [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 1,985 | $ 2,081 |
Total Private Education Loan Credit Quality Indicators, Excluding Refinance Loans, Percent | 21.00% | 21.00% |
Private Education Loans - TDRs [Member] | Cosigners [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 9,636 | $ 9,969 |
Total Private Education Loan Credit Quality Indicators, Excluding Refinance Loans, Percent | 100.00% | 100.00% |
Private Education Loans - TDRs [Member] | Cosigners [Member] | With Cosigner [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 5,998 | $ 6,172 |
Total Private Education Loan Credit Quality Indicators, Excluding Refinance Loans, Percent | 62.00% | 62.00% |
Private Education Loans - TDRs [Member] | Cosigners [Member] | Without Cosigner [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 3,638 | $ 3,797 |
Total Private Education Loan Credit Quality Indicators, Excluding Refinance Loans, Percent | 38.00% | 38.00% |
Private Education Loans - TDRs [Member] | Seasoning [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 9,636 | $ 9,969 |
Total Private Education Loan Credit Quality Indicators, Excluding Refinance Loans, Percent | 100.00% | 100.00% |
Private Education Loans - TDRs [Member] | Seasoning [Member] | 1-12 Payments [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 282 | $ 335 |
Total Private Education Loan Credit Quality Indicators, Excluding Refinance Loans, Percent | 3.00% | 3.00% |
Private Education Loans - TDRs [Member] | Seasoning [Member] | 13-24 Payments [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 363 | $ 436 |
Total Private Education Loan Credit Quality Indicators, Excluding Refinance Loans, Percent | 4.00% | 4.00% |
Private Education Loans - TDRs [Member] | Seasoning [Member] | 25-36 Payments [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 556 | $ 660 |
Total Private Education Loan Credit Quality Indicators, Excluding Refinance Loans, Percent | 6.00% | 7.00% |
Private Education Loans - TDRs [Member] | Seasoning [Member] | 37-48 Payments [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 784 | $ 934 |
Total Private Education Loan Credit Quality Indicators, Excluding Refinance Loans, Percent | 8.00% | 10.00% |
Private Education Loans - TDRs [Member] | Seasoning [Member] | More than 48 Payments [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 7,280 | $ 7,178 |
Total Private Education Loan Credit Quality Indicators, Excluding Refinance Loans, Percent | 75.00% | 72.00% |
Private Education Loans - TDRs [Member] | Seasoning [Member] | Not Yet in Repayment [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 371 | $ 426 |
Total Private Education Loan Credit Quality Indicators, Excluding Refinance Loans, Percent | 4.00% | 4.00% |
Private Education Loans - Non-TDRs [Member] | Original Winning FICO Scores [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 13,130 | $ 13,562 |
Total Private Education Loan Credit Quality Indicators, Excluding Refinance Loans, Percent | 100.00% | 100.00% |
Private Education Loans - Non-TDRs [Member] | Original Winning FICO Scores [Member] | FICO 640 and Above [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 12,715 | $ 13,087 |
Total Private Education Loan Credit Quality Indicators, Excluding Refinance Loans, Percent | 97.00% | 96.00% |
Private Education Loans - Non-TDRs [Member] | Original Winning FICO Scores [Member] | FICO Below 640 [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 415 | $ 475 |
Total Private Education Loan Credit Quality Indicators, Excluding Refinance Loans, Percent | 3.00% | 4.00% |
Private Education Loans - Non-TDRs [Member] | School Type [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 13,130 | $ 13,562 |
Total Private Education Loan Credit Quality Indicators, Excluding Refinance Loans, Percent | 100.00% | 100.00% |
Private Education Loans - Non-TDRs [Member] | School Type [Member] | Not For Profit [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 11,648 | $ 11,953 |
Total Private Education Loan Credit Quality Indicators, Excluding Refinance Loans, Percent | 89.00% | 88.00% |
Private Education Loans - Non-TDRs [Member] | School Type [Member] | For Profit [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 1,482 | $ 1,609 |
Total Private Education Loan Credit Quality Indicators, Excluding Refinance Loans, Percent | 11.00% | 12.00% |
Private Education Loans - Non-TDRs [Member] | Cosigners [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 13,130 | $ 13,562 |
Total Private Education Loan Credit Quality Indicators, Excluding Refinance Loans, Percent | 100.00% | 100.00% |
Private Education Loans - Non-TDRs [Member] | Cosigners [Member] | With Cosigner [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 5,979 | $ 6,961 |
Total Private Education Loan Credit Quality Indicators, Excluding Refinance Loans, Percent | 46.00% | 51.00% |
Private Education Loans - Non-TDRs [Member] | Cosigners [Member] | Without Cosigner [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 7,151 | $ 6,601 |
Total Private Education Loan Credit Quality Indicators, Excluding Refinance Loans, Percent | 54.00% | 49.00% |
Private Education Loans - Non-TDRs [Member] | Seasoning [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 13,130 | $ 13,562 |
Total Private Education Loan Credit Quality Indicators, Excluding Refinance Loans, Percent | 100.00% | 100.00% |
Private Education Loans - Non-TDRs [Member] | Seasoning [Member] | 1-12 Payments [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 3,205 | $ 3,353 |
Total Private Education Loan Credit Quality Indicators, Excluding Refinance Loans, Percent | 24.00% | 25.00% |
Private Education Loans - Non-TDRs [Member] | Seasoning [Member] | 13-24 Payments [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 1,285 | $ 486 |
Total Private Education Loan Credit Quality Indicators, Excluding Refinance Loans, Percent | 10.00% | 3.00% |
Private Education Loans - Non-TDRs [Member] | Seasoning [Member] | 25-36 Payments [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 465 | $ 322 |
Total Private Education Loan Credit Quality Indicators, Excluding Refinance Loans, Percent | 4.00% | 2.00% |
Private Education Loans - Non-TDRs [Member] | Seasoning [Member] | 37-48 Payments [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 280 | $ 383 |
Total Private Education Loan Credit Quality Indicators, Excluding Refinance Loans, Percent | 2.00% | 3.00% |
Private Education Loans - Non-TDRs [Member] | Seasoning [Member] | More than 48 Payments [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 7,580 | $ 8,626 |
Total Private Education Loan Credit Quality Indicators, Excluding Refinance Loans, Percent | 58.00% | 64.00% |
Private Education Loans - Non-TDRs [Member] | Seasoning [Member] | Not Yet in Repayment [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 315 | $ 392 |
Total Private Education Loan Credit Quality Indicators, Excluding Refinance Loans, Percent | 2.00% | 3.00% |
Allowance for Loan Losses - P_2
Allowance for Loan Losses - Private Education Loan Portfolio Stratified by Key Credit Quality Indicators (Parenthetical) (Detail) - With Cosigner [Member] | Jun. 30, 2019 | Dec. 31, 2018 |
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators, Excluding Refinance Loans, Percent | 67.00% | 67.00% |
Private Education Loans - TDRs [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators, Excluding Refinance Loans, Percent | 62.00% | 62.00% |
Allowance for Loan Losses - Rec
Allowance for Loan Losses - Receivable for Partially Charged-Off Private Education Loans (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Charge-offs | $ (95) | $ (92) | $ (207) | $ (181) |
Private Education Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Receivable at beginning of period | 22,245 | |||
Charge-offs | (87) | (75) | (181) | (153) |
Receivable at end of period | 21,564 | 21,564 | ||
Private Education Loans [Member] | Loans Receivable For Partially Charged Off Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Receivable at beginning of period | 657 | 741 | 674 | 760 |
Expected future recoveries of current period defaults | 18 | 19 | 38 | 38 |
Recoveries | (33) | (36) | (67) | (74) |
Charge-offs | (2) | (5) | ||
Receivable at end of period | $ 640 | $ 724 | $ 640 | $ 724 |
Allowance for Loan Losses - R_2
Allowance for Loan Losses - Recorded Investment, Unpaid Principal Balance and Related Allowance for TDR Loans (Detail) - TDR [Member] - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable Impaired [Line Items] | ||
Recorded investment | $ 9,980 | $ 10,326 |
Total ending loans | 10,000 | 10,336 |
Related allowance | $ 1,040 | $ 1,100 |
Allowance for Loan Losses - Ave
Allowance for Loan Losses - Average Recorded Investment and Interest Income Recognized for TDR (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Receivables [Abstract] | ||||
Impaired financing receivable, Average recorded investment | $ 9,995 | $ 10,733 | $ 10,025 | $ 10,794 |
Impaired financing receivable, Interest income recognized | $ 194 | $ 187 | $ 392 | $ 367 |
Allowance for Loan Losses - Loa
Allowance for Loan Losses - Loans Modified Accounts for TDR (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Receivables [Abstract] | ||||
Modified loans | $ 123 | $ 137 | $ 256 | $ 307 |
Charge-offs | 75 | 60 | 155 | 120 |
Payment-default | $ 27 | $ 33 | $ 59 | $ 70 |
Allowance for Loan Losses - Acc
Allowance for Loan Losses - Accrued Interest Receivable (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Accounts Notes And Loans Receivable [Line Items] | ||
Accrued Interest Receivable | $ 1,994 | $ 1,999 |
Private Education Loans [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Accrued Interest Receivable | 319 | 354 |
Accrued Interest Receivable, Allowance for Uncollectible Interest | 28 | 27 |
Private Education Loans [Member] | TDR [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Accrued Interest Receivable | 191 | 205 |
Accrued Interest Receivable, Allowance for Uncollectible Interest | 22 | 23 |
Private Education Loans [Member] | Non-TDR [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Accrued Interest Receivable | 128 | 149 |
Accrued Interest Receivable, Allowance for Uncollectible Interest | 6 | 4 |
Accrued Interest Receivable, Greater Than 90 Days Past Due [Member] | Private Education Loans [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Accrued Interest Receivable | 29 | 29 |
Accrued Interest Receivable, Greater Than 90 Days Past Due [Member] | Private Education Loans [Member] | TDR [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Accrued Interest Receivable | 26 | 26 |
Accrued Interest Receivable, Greater Than 90 Days Past Due [Member] | Private Education Loans [Member] | Non-TDR [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Accrued Interest Receivable | $ 3 | $ 3 |
Borrowings - Company's Borrowin
Borrowings - Company's Borrowings (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Short-term borrowings | $ 6,785 | $ 5,422 |
Long-term borrowings | 86,776 | 93,519 |
Total | 93,561 | 98,941 |
Total Before Hedge Accounting Adjustments [Member] | ||
Debt Instrument [Line Items] | ||
Short-term borrowings | 6,762 | 5,425 |
Long-term borrowings | 86,840 | 93,868 |
Total | 93,602 | 99,293 |
Total Before Hedge Accounting Adjustments [Member] | Senior Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Short-term borrowings | 1,496 | 817 |
Long-term borrowings | 9,005 | 10,674 |
Total | 10,501 | 11,491 |
Total Before Hedge Accounting Adjustments [Member] | Total Unsecured Borrowings [Member] | ||
Debt Instrument [Line Items] | ||
Short-term borrowings | 1,496 | 817 |
Long-term borrowings | 9,005 | 10,674 |
Total | 10,501 | 11,491 |
Total Before Hedge Accounting Adjustments [Member] | FFELP Loan Securitizations [Member] | ||
Debt Instrument [Line Items] | ||
Short-term borrowings | 72 | |
Long-term borrowings | 62,405 | 66,318 |
Total | 62,477 | 66,318 |
Total Before Hedge Accounting Adjustments [Member] | Private Education Loan Securitizations [Member] | ||
Debt Instrument [Line Items] | ||
Short-term borrowings | 1,867 | 300 |
Long-term borrowings | 12,541 | 12,985 |
Total | 14,408 | 13,285 |
Total Before Hedge Accounting Adjustments [Member] | FFELP Loan - Other Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Short-term borrowings | 2,270 | 2,927 |
Long-term borrowings | 1,836 | 2,625 |
Total | 4,106 | 5,552 |
Total Before Hedge Accounting Adjustments [Member] | Private Education Loan - Other Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Short-term borrowings | 695 | 1,114 |
Long-term borrowings | 1,053 | 1,266 |
Total | 1,748 | 2,380 |
Total Before Hedge Accounting Adjustments [Member] | Other [Member] | ||
Debt Instrument [Line Items] | ||
Short-term borrowings | 362 | 267 |
Total | 362 | 267 |
Total Before Hedge Accounting Adjustments [Member] | Secured Borrowings [Member] | ||
Debt Instrument [Line Items] | ||
Short-term borrowings | 5,266 | 4,608 |
Long-term borrowings | 77,835 | 83,194 |
Total | 83,101 | 87,802 |
Hedge Accounting Adjustments [Member] | ||
Debt Instrument [Line Items] | ||
Short-term borrowings | 23 | (3) |
Long-term borrowings | (64) | (349) |
Total | $ (41) | $ (352) |
Borrowings - Company's Borrow_2
Borrowings - Company's Borrowings (Parenthetical) (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Short-term Debt | $ 6,785 | $ 5,422 |
Long-term debt | 86,776 | 93,519 |
Total Before Hedge Accounting Adjustments [Member] | ||
Debt Instrument [Line Items] | ||
Short-term Debt | 6,762 | 5,425 |
Long-term debt | 86,840 | 93,868 |
Total Before Hedge Accounting Adjustments [Member] | FFELP Loan Securitizations Asset-backed Repurchase Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Short-term Debt | 72 | 0 |
Long-term debt | 214 | 244 |
Total Before Hedge Accounting Adjustments [Member] | Private Education Loan Securitizations Repurchase Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Short-term Debt | 1,900 | 300 |
Long-term debt | 921 | 2,000 |
Total Before Hedge Accounting Adjustments [Member] | Short Term Senior Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt principal amount | 1,500 | 817 |
Total Before Hedge Accounting Adjustments [Member] | Long Term Senior Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt principal amount | $ 9,100 | $ 10,800 |
Borrowings - Financing VIEs (De
Borrowings - Financing VIEs (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Securities Financing Transaction [Line Items] | ||
Short-term borrowings | $ 6,785 | $ 5,422 |
Long-term borrowings | 86,776 | 93,519 |
Total | 93,561 | 98,941 |
Total Before Hedge Accounting Adjustments [Member] | ||
Securities Financing Transaction [Line Items] | ||
Short-term borrowings | 6,762 | 5,425 |
Long-term borrowings | 86,840 | 93,868 |
Total | 93,602 | 99,293 |
Hedge Accounting Adjustments [Member] | ||
Securities Financing Transaction [Line Items] | ||
Short-term borrowings | 23 | (3) |
Long-term borrowings | (64) | (349) |
Total | (41) | (352) |
Assets and Liabilities of Consolidated Variable Interest Entities [Member] | ||
Securities Financing Transaction [Line Items] | ||
Short-term borrowings | 4,904 | 4,341 |
Long-term borrowings | 77,373 | 82,738 |
Total | 82,277 | 87,079 |
Loans | 86,735 | 91,619 |
Cash | 2,640 | 3,928 |
Other assets, Net | 1,009 | 956 |
Total Carrying Amount of Assets Securing Debt Outstanding | 90,384 | 96,503 |
Assets and Liabilities of Consolidated Variable Interest Entities [Member] | FFELP Loan Securitizations [Member] | ||
Securities Financing Transaction [Line Items] | ||
Short-term borrowings | 72 | |
Long-term borrowings | 62,405 | 66,318 |
Total | 62,477 | 66,318 |
Loans | 63,494 | 66,266 |
Cash | 1,969 | 3,181 |
Other assets, Net | 1,316 | 1,211 |
Total Carrying Amount of Assets Securing Debt Outstanding | 66,779 | 70,658 |
Assets and Liabilities of Consolidated Variable Interest Entities [Member] | Private Education Loan Securitizations [Member] | ||
Securities Financing Transaction [Line Items] | ||
Short-term borrowings | 1,867 | 300 |
Long-term borrowings | 12,541 | 12,985 |
Total | 14,408 | 13,285 |
Loans | 16,433 | 16,336 |
Cash | 541 | 536 |
Other assets, Net | 173 | 198 |
Total Carrying Amount of Assets Securing Debt Outstanding | 17,147 | 17,070 |
Assets and Liabilities of Consolidated Variable Interest Entities [Member] | FFELP Loan - Other Facilities [Member] | ||
Securities Financing Transaction [Line Items] | ||
Short-term borrowings | 2,270 | 2,927 |
Long-term borrowings | 1,836 | 2,625 |
Total | 4,106 | 5,552 |
Loans | 4,206 | 5,656 |
Cash | 66 | 132 |
Other assets, Net | 124 | 162 |
Total Carrying Amount of Assets Securing Debt Outstanding | 4,396 | 5,950 |
Assets and Liabilities of Consolidated Variable Interest Entities [Member] | Private Education Loan - Other Facilities [Member] | ||
Securities Financing Transaction [Line Items] | ||
Short-term borrowings | 695 | 1,114 |
Long-term borrowings | 1,053 | 1,266 |
Total | 1,748 | 2,380 |
Loans | 2,602 | 3,361 |
Cash | 64 | 79 |
Other assets, Net | 18 | 27 |
Total Carrying Amount of Assets Securing Debt Outstanding | 2,684 | 3,467 |
Assets and Liabilities of Consolidated Variable Interest Entities [Member] | Total Before Hedge Accounting Adjustments [Member] | ||
Securities Financing Transaction [Line Items] | ||
Short-term borrowings | 4,904 | 4,341 |
Long-term borrowings | 77,835 | 83,194 |
Total | 82,739 | 87,535 |
Loans | 86,735 | 91,619 |
Cash | 2,640 | 3,928 |
Other assets, Net | 1,631 | 1,598 |
Total Carrying Amount of Assets Securing Debt Outstanding | 91,006 | 97,145 |
Assets and Liabilities of Consolidated Variable Interest Entities [Member] | Hedge Accounting Adjustments [Member] | ||
Securities Financing Transaction [Line Items] | ||
Long-term borrowings | (462) | (456) |
Total | (462) | (456) |
Other assets, Net | (622) | (642) |
Total Carrying Amount of Assets Securing Debt Outstanding | $ (622) | $ (642) |
Borrowings - Financing VIEs (Pa
Borrowings - Financing VIEs (Parenthetical) (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Securities Financing Transaction [Line Items] | ||
Short-term Debt | $ 6,785 | $ 5,422 |
Long-term debt | 86,776 | 93,519 |
Assets and Liabilities of Consolidated Variable Interest Entities [Member] | ||
Securities Financing Transaction [Line Items] | ||
Short-term Debt | 4,904 | 4,341 |
Long-term debt | 77,373 | 82,738 |
Restricted cash | 2,640 | 3,928 |
FFELP Loan Securitizations Repurchase Facilities [Member] | Assets and Liabilities of Consolidated Variable Interest Entities [Member] | ||
Securities Financing Transaction [Line Items] | ||
Short-term Debt | 72 | |
Long-term debt | 214 | 244 |
Restricted cash | 9 | 9 |
Private Education Loan Securitizations Repurchase Facilities [Member] | Assets and Liabilities of Consolidated Variable Interest Entities [Member] | ||
Securities Financing Transaction [Line Items] | ||
Short-term Debt | 1,900 | 300 |
Long-term debt | 921 | 2,000 |
Restricted cash | $ 65 | $ 115 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Impact of Derivatives on Consolidated Balance Sheet (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Derivative Assets: | ||
Derivative assets | $ 246 | $ 179 |
Derivative Liabilities: | ||
Derivative liabilities | (731) | (801) |
Net total derivatives | (485) | (622) |
Designated as Hedging Instrument [Member] | Fair Value [Member] | ||
Derivative Assets: | ||
Derivative assets | 242 | 176 |
Derivative Liabilities: | ||
Derivative liabilities | (606) | (673) |
Net total derivatives | (364) | (497) |
Trading [Member] | ||
Derivative Assets: | ||
Derivative assets | 4 | 3 |
Derivative Liabilities: | ||
Derivative liabilities | (125) | (128) |
Net total derivatives | (121) | (125) |
Interest Rate Swaps [Member] | ||
Derivative Assets: | ||
Derivative assets | 243 | 173 |
Derivative Liabilities: | ||
Derivative liabilities | (24) | (79) |
Interest Rate Swaps [Member] | Designated as Hedging Instrument [Member] | Fair Value [Member] | ||
Derivative Assets: | ||
Derivative assets | 239 | 170 |
Derivative Liabilities: | ||
Derivative liabilities | (34) | |
Interest Rate Swaps [Member] | Trading [Member] | ||
Derivative Assets: | ||
Derivative assets | 4 | 3 |
Derivative Liabilities: | ||
Derivative liabilities | (24) | (45) |
Cross-Currency Interest Rate Swaps [Member] | ||
Derivative Assets: | ||
Derivative assets | 3 | 6 |
Derivative Liabilities: | ||
Derivative liabilities | (606) | (665) |
Cross-Currency Interest Rate Swaps [Member] | Designated as Hedging Instrument [Member] | Fair Value [Member] | ||
Derivative Assets: | ||
Derivative assets | 3 | 6 |
Derivative Liabilities: | ||
Derivative liabilities | (606) | (639) |
Cross-Currency Interest Rate Swaps [Member] | Trading [Member] | ||
Derivative Liabilities: | ||
Derivative liabilities | (26) | |
Floor Income Contracts [Member] | ||
Derivative Liabilities: | ||
Derivative liabilities | (99) | (53) |
Floor Income Contracts [Member] | Trading [Member] | ||
Derivative Liabilities: | ||
Derivative liabilities | (99) | (53) |
Other [Member] | ||
Derivative Liabilities: | ||
Derivative liabilities | (2) | (4) |
Other [Member] | Trading [Member] | ||
Derivative Liabilities: | ||
Derivative liabilities | $ (2) | $ (4) |
Derivative Financial Instrume_4
Derivative Financial Instruments - Gross Positions without Impact of Master Netting Agreements (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Derivatives Fair Value [Line Items] | ||
Derivative assets | $ 246 | $ 179 |
Derivative values with impact of master netting agreements (as carried on balance sheet), Assets | 214 | 157 |
Cash collateral (held) pledged, Assets | (359) | (266) |
Derivative liabilities | (731) | (801) |
Cash collateral (held) pledged, Liabilities | 164 | 188 |
Other Assets [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivative assets | 246 | 179 |
Impact of master netting agreements, Assets | (32) | (22) |
Derivative values with impact of master netting agreements (as carried on balance sheet), Assets | 214 | 157 |
Cash collateral (held) pledged, Assets | (359) | (266) |
Net position, Assets | (145) | (109) |
Other Liabilities [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivative liabilities | (731) | (801) |
Impact of master netting agreements, Liabilities | 32 | 22 |
Derivative values with impact of master netting agreements (as carried on balance sheet), Liabilities | (699) | (779) |
Cash collateral (held) pledged, Liabilities | 164 | 188 |
Net position, Liabilities | $ (535) | $ (591) |
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, 2019 | Dec. 31, 2018 |
Short-term borrowings [Member] | ||
Derivatives Fair Value [Line Items] | ||
Carrying Value | $ 1,519 | $ 664 |
Hedge Basis Adjustments | 23 | (3) |
Long-term borrowings [Member] | ||
Derivatives Fair Value [Line Items] | ||
Carrying Value | 12,187 | 13,657 |
Hedge Basis Adjustments | $ (85) | $ (368) |
Derivative Financial Instrume_6
Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Decrease in valuation due to net credit risk adjustments | $ 15 | $ 26 |
Decrease in valuation due to liquidity adjustments | 15 | 19 |
Derivative liability at fair value including accrued interest and premium receivable | 713 | $ 752 |
Counterparty [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative liability at fair value including accrued interest and premium receivable | $ 73 |
Derivative Financial Instrume_7
Derivative Financial Instruments - Derivative Notional Values (Detail) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Total Derivative Notional Values | $ 120,600,000,000 | $ 131,400,000,000 |
Designated as Hedging Instrument [Member] | Cash Flow [Member] | ||
Derivative [Line Items] | ||
Total Derivative Notional Values | 22,400,000,000 | 21,400,000,000 |
Designated as Hedging Instrument [Member] | Fair Value [Member] | ||
Derivative [Line Items] | ||
Total Derivative Notional Values | 13,800,000,000 | 14,800,000,000 |
Trading [Member] | ||
Derivative [Line Items] | ||
Total Derivative Notional Values | 84,400,000,000 | 95,200,000,000 |
Interest Rate Swaps [Member] | ||
Derivative [Line Items] | ||
Total Derivative Notional Values | 95,100,000,000 | 98,600,000,000 |
Interest Rate Swaps [Member] | Designated as Hedging Instrument [Member] | Cash Flow [Member] | ||
Derivative [Line Items] | ||
Total Derivative Notional Values | 22,400,000,000 | 21,400,000,000 |
Interest Rate Swaps [Member] | Designated as Hedging Instrument [Member] | Fair Value [Member] | ||
Derivative [Line Items] | ||
Total Derivative Notional Values | 9,600,000,000 | 10,300,000,000 |
Interest Rate Swaps [Member] | Trading [Member] | ||
Derivative [Line Items] | ||
Total Derivative Notional Values | 63,100,000,000 | 66,900,000,000 |
Floor Income Contracts [Member] | ||
Derivative [Line Items] | ||
Total Derivative Notional Values | 21,200,000,000 | 27,900,000,000 |
Floor Income Contracts [Member] | Trading [Member] | ||
Derivative [Line Items] | ||
Total Derivative Notional Values | 21,200,000,000 | 27,900,000,000 |
Cross-Currency Interest Rate Swaps [Member] | ||
Derivative [Line Items] | ||
Total Derivative Notional Values | 4,200,000,000 | 4,700,000,000 |
Cross-Currency Interest Rate Swaps [Member] | Designated as Hedging Instrument [Member] | Fair Value [Member] | ||
Derivative [Line Items] | ||
Total Derivative Notional Values | 4,200,000,000 | 4,500,000,000 |
Cross-Currency Interest Rate Swaps [Member] | Trading [Member] | ||
Derivative [Line Items] | ||
Total Derivative Notional Values | 200,000,000 | |
Other [Member] | ||
Derivative [Line Items] | ||
Total Derivative Notional Values | 100,000,000 | 200,000,000 |
Other [Member] | Trading [Member] | ||
Derivative [Line Items] | ||
Total Derivative Notional Values | $ 100,000,000 | $ 200,000,000 |
Derivative Financial Instrume_8
Derivative Financial Instruments - Mark-to-Market Impact of Derivatives on Consolidated Statements of Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Mark-to-market gains (losses) recognized | $ (32) | $ (40) | $ (25) | $ 8 |
Interest Expense and Derivative Instruments Hedging Activities [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Mark-to-market gains (losses) recognized | (25) | (40) | (16) | 8 |
Designated as Hedging Instrument [Member] | Fair Value [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Mark-to-market gains (losses) recognized | 7 | (31) | 9 | (47) |
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 | 186 | (71) | 290 | (258) |
Gains (losses) recognized in net income on hedged items | (200) | 66 | (317) | 290 |
Net fair value hedge ineffectiveness gains (losses) | (14) | (5) | (27) | 32 |
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 | 41 | (283) | 29 | (207) |
Gains (losses) recognized in net income on hedged items | (20) | 257 | 7 | 128 |
Net fair value hedge ineffectiveness gains (losses) | 21 | (26) | 36 | (79) |
Trading [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Mark-to-market gains (losses) recognized | (32) | (9) | (25) | 55 |
Trading [Member] | Interest Rate Swaps [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Mark-to-market gains (losses) recognized | 16 | (4) | 23 | 18 |
Trading [Member] | Cross-Currency Interest Rate Swaps [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Mark-to-market gains (losses) recognized | 1 | (14) | (2) | 2 |
Trading [Member] | Floor Income Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Mark-to-market gains (losses) recognized | $ (49) | 10 | (48) | 33 |
Trading [Member] | Other [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Mark-to-market gains (losses) recognized | $ (1) | $ 2 | $ 2 |
Derivative Financial Instrume_9
Derivative Financial Instruments - Collateral Held and Pledged (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Collateral held: | ||
Cash (obligation to return cash collateral is recorded in short-term borrowings) | $ 359 | $ 266 |
Securities at fair value - on-balance sheet securitization derivatives (not recorded in financial statements) | 79 | 90 |
Total collateral held | 438 | 356 |
Derivative asset at fair value including accrued interest | 307 | 210 |
Collateral pledged to others: | ||
Cash (right to receive return of cash collateral is recorded in investments) | 164 | 188 |
Total collateral pledged | 164 | 188 |
Derivative liability at fair value including accrued interest and premium receivable | $ 713 | $ 752 |
Other Assets - Schedule of Othe
Other Assets - Schedule of Other Assets (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Offsetting [Abstract] | ||
Accrued interest receivable | $ 1,994 | $ 1,999 |
Benefit and insurance-related investments | 460 | 470 |
Income tax asset, net (current and deferred) | 275 | 271 |
Derivatives at fair value | 214 | 157 |
Fixed assets, net | 136 | 136 |
Accounts receivable | 99 | 95 |
Other loans, net | 4 | 69 |
Other | 201 | 207 |
Total | $ 3,383 | $ 3,404 |
Stockholders' Equity - Common S
Stockholders' Equity - Common Share Repurchases and Issuances (Detail) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Average purchase price per share | $ 13.06 | $ 12.24 | ||
Shares repurchased related to employee stock-based compensation plans | 120,485 | 92,369 | 2,534,090 | 3,557,504 |
Average purchase price per share | $ 13.45 | $ 14.53 | $ 10.94 | $ 13.77 |
Common shares issued | 195,883 | 113,171 | 4,625,347 | 5,134,238 |
Common Stock Shares Outstanding [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Common stock repurchased | 9,617,008 | 19,034,252 | 0 | |
Shares repurchased related to employee stock-based compensation plans | 120,485 | 92,369 | 2,534,090 | 3,557,504 |
Common shares issued | 195,883 | 113,171 | 4,625,347 | 5,134,238 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 28, 2019 | Sep. 30, 2018 | |
Class of Stock [Line Items] | ||||||
Dividends per common share | $ 0.16 | $ 0.16 | $ 0.32 | $ 0.32 | ||
Common stock dividends paid | $ 37,000,000 | $ 42,000,000 | $ 76,000,000 | $ 85,000,000 | ||
Authorized share repurchased program amount | $ 500,000,000 | |||||
Common Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Closing price of common stock | $ 13.65 | |||||
Authorized common share repurchased program remaining available amount | $ 207,000,000 | $ 207,000,000 | ||||
Common Stock Shares Outstanding [Member] | ||||||
Class of Stock [Line Items] | ||||||
Common stock repurchased | 9,617,008 | 19,034,252 | 0 | |||
Purchase price of common stock repurchased on open market | $ 126,000,000 | $ 233,000,000 |
Earnings per Common Share - Sch
Earnings per Common Share - Schedule of Earnings per Common Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Numerator: | ||||
Net income | $ 153 | $ 83 | $ 281 | $ 210 |
Denominator: | ||||
Weighted average shares used to compute basic EPS | 235 | 265 | 239 | 264 |
Effect of dilutive securities: | ||||
Dilutive effect of stock options, restricted stock, restricted stock units, performance stock units, and Employee Stock Purchase Plan (“ESPP”) | 3 | 4 | 3 | 5 |
Dilutive potential common shares | 3 | 4 | 3 | 5 |
Weighted average shares used to compute diluted EPS | 238 | 269 | 242 | 269 |
Basic earnings per common share | $ 0.65 | $ 0.31 | $ 1.17 | $ 0.79 |
Diluted earnings per common share | $ 0.64 | $ 0.31 | $ 1.16 | $ 0.78 |
Earnings per Common Share - S_2
Earnings per Common Share - Schedule of Earnings per Common Share (Parenthetical) (Detail) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Securities not included in the computation of diluted earnings per share | 4 | 10 | 4 | 10 |
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, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | $ 246 | $ 179 |
Derivative liabilities | (731) | (801) |
Interest Rate Swaps [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 243 | 173 |
Derivative liabilities | (24) | (79) |
Cross-Currency Interest Rate Swaps [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 3 | 6 |
Derivative liabilities | (606) | (665) |
Floor Income Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | (99) | (53) |
Other [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | (2) | (4) |
Fair Value Measurements Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 246 | 179 |
Total | 246 | 179 |
Derivative liabilities | (731) | (801) |
Total | (731) | (801) |
Fair Value Measurements Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 241 | 171 |
Total | 241 | 171 |
Derivative liabilities | (100) | (129) |
Total | (100) | (129) |
Fair Value Measurements Recurring [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 5 | 8 |
Total | 5 | 8 |
Derivative liabilities | (631) | (672) |
Total | (631) | (672) |
Fair Value Measurements Recurring [Member] | Interest Rate Swaps [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 243 | 173 |
Derivative liabilities | (24) | (79) |
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 | 241 | 171 |
Derivative liabilities | (1) | (50) |
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 | 2 | 2 |
Derivative liabilities | (23) | (29) |
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 | 3 | 6 |
Derivative liabilities | (606) | (665) |
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 liabilities | (26) | |
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 | 3 | 6 |
Derivative liabilities | (606) | (639) |
Fair Value Measurements Recurring [Member] | Floor Income Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | (99) | (53) |
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 | (99) | (53) |
Fair Value Measurements Recurring [Member] | Other [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | (2) | (4) |
Fair Value Measurements Recurring [Member] | Other [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | $ (2) | $ (4) |
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, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of period | $ (671) | $ (295) | $ (664) | $ (381) |
Total gains/(losses): | ||||
Included in earnings | 12 | (308) | (29) | (253) |
Included in other comprehensive income | 0 | 0 | 0 | 0 |
Settlements | 33 | 33 | 67 | 64 |
Transfers in and/or out of level 3 | 0 | 0 | 0 | 0 |
Balance, end of period | (626) | (570) | (626) | (570) |
Change in mark-to-market gains/(losses) relating to instruments still held at the reporting date | 44 | (275) | 37 | (163) |
Interest Rate Swaps [Member] | ||||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of period | (24) | (37) | (27) | (41) |
Total gains/(losses): | ||||
Included in earnings | 2 | 3 | 4 | 6 |
Included in other comprehensive income | 0 | 0 | 0 | 0 |
Settlements | 1 | 1 | 2 | 2 |
Transfers in and/or out of level 3 | 0 | 0 | 0 | 0 |
Balance, end of period | (21) | (33) | (21) | (33) |
Change in mark-to-market gains/(losses) relating to instruments still held at the reporting date | 2 | 4 | 5 | 7 |
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 | (645) | (246) | (633) | (322) |
Total gains/(losses): | ||||
Included in earnings | 10 | (314) | (35) | (265) |
Included in other comprehensive income | 0 | 0 | 0 | 0 |
Settlements | 32 | 31 | 65 | 58 |
Transfers in and/or out of level 3 | 0 | 0 | 0 | 0 |
Balance, end of period | (603) | (529) | (603) | (529) |
Change in mark-to-market gains/(losses) relating to instruments still held at the reporting date | 42 | (283) | 30 | (180) |
Other [Member] | ||||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of period | (2) | (12) | (4) | (18) |
Total gains/(losses): | ||||
Included in earnings | 0 | 3 | 2 | 6 |
Included in other comprehensive income | 0 | 0 | 0 | 0 |
Settlements | 0 | 1 | 0 | 4 |
Transfers in and/or out of level 3 | 0 | 0 | 0 | 0 |
Balance, end of period | (2) | (8) | (2) | (8) |
Change in mark-to-market gains/(losses) relating to instruments still held at the reporting date | $ 0 | $ 4 | $ 2 | $ 10 |
Fair Value Measurements - Inclu
Fair Value Measurements - Included in Earnings (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Gains (losses) on derivative and hedging activities, net | $ 12 | $ (308) | $ (29) | $ (253) |
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 | 2 | (277) | 6 | (195) |
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 | $ 10 | $ (31) | $ (35) | $ (58) |
Fair Value Measurements - Unobs
Fair Value Measurements - Unobservable Data Used in Recurring Valuations of Level 3 (Detail) $ in Millions | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) |
Interest Rate Swaps [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Derivative financial instruments, Fair Value | $ 219 | $ 94 |
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 | (603) | (659) |
Other [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Derivative financial instruments, Fair Value | (2) | $ (4) |
Level 3 [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Derivative financial instruments, Fair Value | (626) | |
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 | $ (603) | |
Derivative Asset (Liability) Net, Valuation Technique [Extensible List] | us-gaap:ValuationTechniqueDiscountedCashFlowMember | |
Derivatives | 0.04 | |
Derivative Asset (Liability) Net, Measurement Input [Extensible List] | us-gaap:MeasurementInputConstantPrepaymentRateMember | |
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 | $ (2) | |
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 | $ (21) | |
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 | 0.07 | |
Level 3 [Member] | Prime/LIBOR Basis Swaps [Member] | Interest Rate Swaps [Member] | Bid/ask adjustment to discount rate [Member] | Minimum [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Derivatives | 0.0008 | |
Level 3 [Member] | Prime/LIBOR Basis Swaps [Member] | Interest Rate Swaps [Member] | Bid/ask adjustment to discount rate [Member] | Maximum [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Derivatives | 0.0008 | |
Level 3 [Member] | Prime/LIBOR Basis Swaps [Member] | Interest Rate Swaps [Member] | Bid/ask adjustment to discount rate [Member] | Weighted Average [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Derivatives | (0.0008) |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Values of Financial Assets and Liabilities, Including Derivative Financial Instruments (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total earning assets, Carrying Value | $ 94,168 | $ 99,986 |
Short-term borrowings, Carrying Value | 6,785 | 5,422 |
Long-term borrowings, Carrying Value | 86,776 | 93,519 |
Total | 93,561 | 98,941 |
Total earning assets, Fair Value | 95,338 | 100,520 |
Short-term borrowings, Fair Value | 6,812 | 5,418 |
Long-term borrowings, Fair Value | 86,412 | 92,173 |
Total interest-bearing liabilities, Fair Value | 93,224 | 97,591 |
FFELP Loans [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, Carrying Value | 67,956 | 72,253 |
Loans receivable, Fair Value | 68,378 | 72,074 |
Floor Income Contracts [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative financial instruments, Carrying Value | (99) | (53) |
Derivative financial instruments, Fair Value | (99) | (53) |
Interest Rate Swaps [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative financial instruments, Carrying Value | 219 | 94 |
Derivative financial instruments, Fair Value | 219 | 94 |
Cross-Currency Interest Rate Swaps [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative financial instruments, Carrying Value | (603) | (659) |
Derivative financial instruments, Fair Value | (603) | (659) |
Other [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative financial instruments, Carrying Value | (2) | (4) |
Derivative financial instruments, Fair Value | (2) | (4) |
Private Education Loans [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, Carrying Value | 21,564 | 22,245 |
Loans receivable, Fair Value | 22,312 | 22,958 |
Difference [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total earning assets, Fair Value | 1,170 | 534 |
Short-term borrowings, Fair Value | (27) | 4 |
Long-term borrowings, Fair Value | 364 | 1,346 |
Total interest-bearing liabilities, Fair Value | 337 | 1,350 |
Excess of net asset fair value over carrying value | 1,507 | 1,884 |
Difference [Member] | FFELP Loans [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans receivable, Fair Value | 422 | (179) |
Difference [Member] | Private Education Loans [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans receivable, Fair Value | 748 | 713 |
Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and investments | 4,648 | 5,488 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and investments | $ 4,648 | $ 5,488 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Operating Expense [Member] | |
Loss Contingencies [Line Items] | |
Contingency reserve | $ 40,000,000 |
SLM BankCo [Member] | Indemnification Matters [Member] | |
Loss Contingencies [Line Items] | |
Reserve for estimated amounts and costs incurred | $ 0 |
Revenue from Contract with Cust
Revenue from Contract with Customers Accounted for in Accordance with ASC 606 - Summary of Disaggregation of Revenue from Contracts Accounted Under ASC 606 with Customers (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation Of Revenue [Line Items] | ||||
Total Revenue | $ 100 | $ 84 | $ 198 | $ 177 |
Federal Government [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenue | 21 | 3 | 37 | 5 |
Guarantor Agencies [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenue | 14 | 15 | 28 | 31 |
Other Institutions [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenue | 4 | 3 | 6 | 6 |
State and Local Government [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenue | 23 | 23 | 48 | 49 |
Tolling Authorities [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenue | 13 | 16 | 27 | 42 |
Hospitals and Other Healthcare Providers [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenue | 25 | 24 | 52 | 44 |
Federal Education Loans [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenue | 35 | 19 | 64 | 39 |
Federal Education Loans [Member] | Federal Government [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenue | 17 | 1 | 30 | 2 |
Federal Education Loans [Member] | Guarantor Agencies [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenue | 14 | 15 | 28 | 31 |
Federal Education Loans [Member] | Other Institutions [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenue | 4 | 3 | 6 | 6 |
Business Processing [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenue | 65 | 65 | 134 | 138 |
Business Processing [Member] | Federal Government [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenue | 4 | 2 | 7 | 3 |
Business Processing [Member] | State and Local Government [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenue | 23 | 23 | 48 | 49 |
Business Processing [Member] | Tolling Authorities [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenue | 13 | 16 | 27 | 42 |
Business Processing [Member] | Hospitals and Other Healthcare Providers [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenue | 25 | 24 | 52 | 44 |
Federal Education Loan Asset Recovery Services [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenue | 35 | 19 | 64 | 39 |
Federal Education Loan Asset Recovery Services [Member] | Federal Education Loans [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenue | 35 | 19 | 64 | 39 |
Government Services [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenue | 40 | 41 | 82 | 94 |
Government Services [Member] | Business Processing [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenue | 40 | 41 | 82 | 94 |
Healthcare Services [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenue | 25 | 24 | 52 | 44 |
Healthcare Services [Member] | Business Processing [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenue | $ 25 | $ 24 | $ 52 | $ 44 |
Revenue from Contract with Cu_2
Revenue from Contract with Customers Accounted for in Accordance with ASC 606 - Additional Information (Detail) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 |
Disaggregation Of Revenue [Line Items] | |||
Accounts receivable | $ 99,000,000 | $ 95,000,000 | |
ASU 2014-09 [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Accounts receivable | 69,000,000 | $ 70,000,000 | |
Contract assets | 0 | ||
Contract liability | $ 0 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) $ in Millions | 6 Months Ended | |
Jun. 30, 2019USD ($)SegmentClient | Dec. 31, 2018USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of reportable operating segments | Segment | 4 | |
Total assets | $ 98,320 | $ 104,176 |
Business Processing [Member] | ||
Segment Reporting Information [Line Items] | ||
Number of clients for business processing services | Client | 600 | |
Total assets | $ 425 | 448 |
Other Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 2,000 | $ 2,000 |
Segment Reporting - Asset Infor
Segment Reporting - Asset Information for Loans Segment (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | ||
Other | $ 3,383 | $ 3,404 |
Total assets | 98,320 | 104,176 |
Federal Education Loans [Member] | ||
Segment Reporting Information [Line Items] | ||
Loans, net | 67,956 | 72,253 |
Cash and investments | 2,219 | 3,368 |
Other | 2,174 | 2,100 |
Total assets | 72,349 | 77,721 |
Consumer Lending [Member] | ||
Segment Reporting Information [Line Items] | ||
Loans, net | 21,564 | 22,245 |
Cash and investments | 931 | 732 |
Other | 1,012 | 1,076 |
Total assets | $ 23,507 | $ 24,053 |
Segment Reporting - Segment Res
Segment Reporting - Segment Results and Reconciliations to GAAP (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Interest income: | ||||
Cash and investments | $ 25 | $ 24 | $ 52 | $ 41 |
Total interest income | 1,204 | 1,227 | 2,439 | 2,399 |
Total interest expense | 911 | 929 | 1,860 | 1,773 |
Net interest income | 293 | 298 | 579 | 626 |
Less: provisions for loan losses | 68 | 112 | 144 | 199 |
Net interest income after provisions for loan losses | 225 | 186 | 435 | 427 |
Other income (loss): | ||||
Servicing revenue | 60 | 71 | 122 | 140 |
Asset recovery and business processing revenue | 123 | 99 | 242 | 207 |
Other income (loss) | (21) | (27) | 2 | 9 |
Gains on sales of loans | 16 | 16 | ||
Gains (losses) on debt repurchases | 44 | (7) | 59 | (8) |
Total other income | 222 | 136 | 441 | 348 |
Expenses: | ||||
Direct operating expenses | 179 | 129 | 363 | 323 |
Unallocated shared services expenses | 62 | 72 | 134 | 153 |
Total operating expenses | 241 | 201 | 497 | 476 |
Goodwill and acquired intangible asset impairment and amortization | 11 | 6 | 18 | 16 |
Restructuring/other reorganization expenses | 1 | 2 | 2 | 9 |
Total expenses | 253 | 209 | 517 | 501 |
Income before income tax expense | 194 | 113 | 359 | 274 |
Income tax expense (benefit) | 41 | 30 | 78 | 64 |
Net income (loss) | 153 | 83 | 281 | 210 |
Education Loan Portfolio [Member] | ||||
Interest income: | ||||
Total interest income | 1,178 | 1,202 | 2,385 | 2,356 |
Other Loans [Member] | ||||
Interest income: | ||||
Total interest income | 1 | 1 | 2 | 2 |
Operating Segments [Member] | ||||
Interest income: | ||||
Cash and investments | 25 | 24 | 52 | 41 |
Total interest income | 1,220 | 1,242 | 2,470 | 2,423 |
Total interest expense | 924 | 923 | 1,874 | 1,774 |
Net interest income | 296 | 319 | 596 | 649 |
Less: provisions for loan losses | 68 | 112 | 144 | 199 |
Net interest income after provisions for loan losses | 228 | 207 | 452 | 450 |
Other income (loss): | ||||
Servicing revenue | 60 | 71 | 122 | 140 |
Asset recovery and business processing revenue | 123 | 99 | 242 | 207 |
Other income (loss) | 11 | 3 | 25 | 6 |
Gains on sales of loans | 16 | 16 | ||
Gains (losses) on debt repurchases | 32 | (7) | 47 | (8) |
Total other income | 242 | 166 | 452 | 345 |
Expenses: | ||||
Direct operating expenses | 179 | 129 | 363 | 323 |
Unallocated shared services expenses | 62 | 72 | 134 | 153 |
Total operating expenses | 241 | 201 | 497 | 476 |
Restructuring/other reorganization expenses | 1 | 2 | 2 | 9 |
Total expenses | 242 | 203 | 499 | 485 |
Income before income tax expense | 228 | 170 | 405 | 310 |
Income tax expense (benefit) | 53 | 39 | 93 | 72 |
Net income (loss) | 175 | 131 | 312 | 238 |
Operating Segments [Member] | Federal Education Loans [Member] | ||||
Interest income: | ||||
Cash and investments | 14 | 12 | 30 | 19 |
Total interest income | 772 | 788 | 1,568 | 1,528 |
Total interest expense | 627 | 622 | 1,278 | 1,193 |
Net interest income | 145 | 166 | 290 | 335 |
Less: provisions for loan losses | 8 | 40 | 15 | 50 |
Net interest income after provisions for loan losses | 137 | 126 | 275 | 285 |
Other income (loss): | ||||
Servicing revenue | 57 | 68 | 117 | 134 |
Asset recovery and business processing revenue | 58 | 34 | 108 | 70 |
Other income (loss) | 7 | 15 | 1 | |
Total other income | 122 | 102 | 240 | 205 |
Expenses: | ||||
Direct operating expenses | 89 | 36 | 180 | 115 |
Total operating expenses | 89 | 36 | 180 | 115 |
Total expenses | 89 | 36 | 180 | 115 |
Income before income tax expense | 170 | 192 | 335 | 375 |
Income tax expense (benefit) | 39 | 44 | 77 | 86 |
Net income (loss) | 131 | 148 | 258 | 289 |
Operating Segments [Member] | Consumer Lending [Member] | ||||
Interest income: | ||||
Cash and investments | 4 | 3 | 9 | 6 |
Total interest income | 441 | 445 | 889 | 879 |
Total interest expense | 255 | 252 | 516 | 490 |
Net interest income | 186 | 193 | 373 | 389 |
Less: provisions for loan losses | 60 | 72 | 129 | 149 |
Net interest income after provisions for loan losses | 126 | 121 | 244 | 240 |
Other income (loss): | ||||
Servicing revenue | 3 | 3 | 5 | 6 |
Other income (loss) | 1 | |||
Gains on sales of loans | 16 | 16 | ||
Total other income | 19 | 3 | 22 | 6 |
Expenses: | ||||
Direct operating expenses | 34 | 39 | 72 | 95 |
Total operating expenses | 34 | 39 | 72 | 95 |
Total expenses | 34 | 39 | 72 | 95 |
Income before income tax expense | 111 | 85 | 194 | 151 |
Income tax expense (benefit) | 26 | 19 | 44 | 35 |
Net income (loss) | 85 | 66 | 150 | 116 |
Operating Segments [Member] | Business Processing [Member] | ||||
Other income (loss): | ||||
Asset recovery and business processing revenue | 65 | 65 | 134 | 137 |
Total other income | 65 | 65 | 134 | 137 |
Expenses: | ||||
Direct operating expenses | 56 | 54 | 111 | 113 |
Total operating expenses | 56 | 54 | 111 | 113 |
Total expenses | 56 | 54 | 111 | 113 |
Income before income tax expense | 9 | 11 | 23 | 24 |
Income tax expense (benefit) | 2 | 3 | 6 | 6 |
Net income (loss) | 7 | 8 | 17 | 18 |
Operating Segments [Member] | Other Segment [Member] | ||||
Interest income: | ||||
Cash and investments | 7 | 9 | 13 | 16 |
Total interest income | 7 | 9 | 13 | 16 |
Total interest expense | 42 | 49 | 80 | 91 |
Net interest income | (35) | (40) | (67) | (75) |
Net interest income after provisions for loan losses | (35) | (40) | (67) | (75) |
Other income (loss): | ||||
Other income (loss) | 4 | 3 | 9 | 5 |
Gains (losses) on debt repurchases | 32 | (7) | 47 | (8) |
Total other income | 36 | (4) | 56 | (3) |
Expenses: | ||||
Unallocated shared services expenses | 62 | 72 | 134 | 153 |
Total operating expenses | 62 | 72 | 134 | 153 |
Restructuring/other reorganization expenses | 1 | 2 | 2 | 9 |
Total expenses | 63 | 74 | 136 | 162 |
Income before income tax expense | (62) | (118) | (147) | (240) |
Income tax expense (benefit) | (14) | (27) | (34) | (55) |
Net income (loss) | (48) | (91) | (113) | (185) |
Operating Segments [Member] | Education Loan Portfolio [Member] | ||||
Interest income: | ||||
Total interest income | 1,194 | 1,217 | 2,416 | 2,380 |
Operating Segments [Member] | Education Loan Portfolio [Member] | Federal Education Loans [Member] | ||||
Interest income: | ||||
Total interest income | 758 | 775 | 1,537 | 1,507 |
Operating Segments [Member] | Education Loan Portfolio [Member] | Consumer Lending [Member] | ||||
Interest income: | ||||
Total interest income | 436 | 442 | 879 | 873 |
Operating Segments [Member] | Other Loans [Member] | ||||
Interest income: | ||||
Total interest income | 1 | 1 | 2 | 2 |
Operating Segments [Member] | Other Loans [Member] | Federal Education Loans [Member] | ||||
Interest income: | ||||
Total interest income | 1 | 1 | 2 | |
Operating Segments [Member] | Other Loans [Member] | Consumer Lending [Member] | ||||
Interest income: | ||||
Total interest income | 1 | 1 | ||
Adjustments [Member] | Reclassifications [Member] | ||||
Interest income: | ||||
Total interest income | 1 | 3 | 2 | 11 |
Total interest expense | (2) | 10 | 2 | 4 |
Net interest income | 3 | (7) | 7 | |
Net interest income after provisions for loan losses | 3 | (7) | 7 | |
Other income (loss): | ||||
Other income (loss) | (38) | 7 | (39) | (7) |
Gains (losses) on debt repurchases | 35 | 39 | ||
Total other income | (3) | 7 | (7) | |
Adjustments [Member] | Additions (Subtractions) [Member] | ||||
Interest income: | ||||
Total interest income | (17) | (18) | (33) | (35) |
Total interest expense | (11) | (4) | (16) | (5) |
Net interest income | (6) | (14) | (17) | (30) |
Net interest income after provisions for loan losses | (6) | (14) | (17) | (30) |
Other income (loss): | ||||
Other income (loss) | 6 | (37) | 16 | 10 |
Gains (losses) on debt repurchases | (23) | (27) | ||
Total other income | (17) | (37) | (11) | 10 |
Expenses: | ||||
Goodwill and acquired intangible asset impairment and amortization | 11 | 6 | 18 | 16 |
Total expenses | 11 | 6 | 18 | 16 |
Income before income tax expense | (34) | (57) | (46) | (36) |
Income tax expense (benefit) | (12) | (9) | (15) | (8) |
Net income (loss) | (22) | (48) | (31) | (28) |
Adjustments [Member] | Total Adjustments [Member] | ||||
Interest income: | ||||
Total interest income | (16) | (15) | (31) | (24) |
Total interest expense | (13) | 6 | (14) | (1) |
Net interest income | (3) | (21) | (17) | (23) |
Net interest income after provisions for loan losses | (3) | (21) | (17) | (23) |
Other income (loss): | ||||
Other income (loss) | (32) | (30) | (23) | 3 |
Gains (losses) on debt repurchases | 12 | 12 | ||
Total other income | (20) | (30) | (11) | 3 |
Expenses: | ||||
Goodwill and acquired intangible asset impairment and amortization | 11 | 6 | 18 | 16 |
Total expenses | 11 | 6 | 18 | 16 |
Income before income tax expense | (34) | (57) | (46) | (36) |
Income tax expense (benefit) | (12) | (9) | (15) | (8) |
Net income (loss) | (22) | (48) | (31) | (28) |
Adjustments [Member] | Education Loan Portfolio [Member] | Reclassifications [Member] | ||||
Interest income: | ||||
Total interest income | 1 | 3 | 2 | 11 |
Adjustments [Member] | Education Loan Portfolio [Member] | Additions (Subtractions) [Member] | ||||
Interest income: | ||||
Total interest income | (17) | (18) | (33) | (35) |
Adjustments [Member] | Education Loan Portfolio [Member] | Total Adjustments [Member] | ||||
Interest income: | ||||
Total interest income | $ (16) | $ (15) | $ (31) | $ (24) |
Segment Reporting - Segment R_2
Segment Reporting - Segment Result and Reconciliations to GAAP - Core Earnings Adjustments (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net interest income (loss) after provisions for loan losses | $ 225 | $ 186 | $ 435 | $ 427 |
Total other income (loss) | 222 | 136 | 441 | 348 |
Goodwill and acquired intangible asset impairment and amortization | 11 | 6 | 18 | 16 |
Income tax expense (benefit) | 41 | 30 | 78 | 64 |
Net income (loss) | 153 | 83 | 281 | 210 |
Total Adjustments [Member] | Adjustments [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net interest income (loss) after provisions for loan losses | (3) | (21) | (17) | (23) |
Total other income (loss) | (20) | (30) | (11) | 3 |
Goodwill and acquired intangible asset impairment and amortization | 11 | 6 | 18 | 16 |
Total Core Earnings adjustments to GAAP | (34) | (57) | (46) | (36) |
Income tax expense (benefit) | (12) | (9) | (15) | (8) |
Net income (loss) | (22) | (48) | (31) | (28) |
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 | (3) | (21) | (17) | (23) |
Total other income (loss) | (20) | (30) | (11) | 3 |
Total Core Earnings adjustments to GAAP | (23) | (51) | (28) | (20) |
Net Impact of Goodwill and Acquired Intangible Assets [Member] | Total Adjustments [Member] | Adjustments [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Goodwill and acquired intangible asset impairment and amortization | 11 | 6 | 18 | 16 |
Total Core Earnings adjustments to GAAP | $ (11) | $ (6) | $ (18) | $ (16) |
Segment Reporting - Core Earnin
Segment Reporting - Core Earnings Adjustments to GAAP (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Adjustments Required To Reconcile Core Earnings [Line Items] | ||||
Net income (loss) | $ 153 | $ 83 | $ 281 | $ 210 |
Net tax effect | (41) | (30) | (78) | (64) |
Operating Segments [Member] | ||||
Adjustments Required To Reconcile Core Earnings [Line Items] | ||||
Net income (loss) | 175 | 131 | 312 | 238 |
Net tax effect | (53) | (39) | (93) | (72) |
Total Adjustments [Member] | Adjustments [Member] | ||||
Adjustments Required To Reconcile Core Earnings [Line Items] | ||||
Net income (loss) | (22) | (48) | (31) | (28) |
Core Earnings adjustments to GAAP | (34) | (57) | (46) | (36) |
Net tax effect | 12 | 9 | 15 | 8 |
Net Impact of Derivative Accounting [Member] | Total Adjustments [Member] | Adjustments [Member] | ||||
Adjustments Required To Reconcile Core Earnings [Line Items] | ||||
Core Earnings adjustments to GAAP | (23) | (51) | (28) | (20) |
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 | $ (11) | $ (6) | $ (18) | $ (16) |
Segment Reporting - Core Earn_2
Segment Reporting - Core Earnings Adjustments to GAAP (Parenthetical) (Detail) | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Segment Reporting [Abstract] | |
Amount that will be equal to mark-to-market gain or loss over the life of the contract | $ 0 |