Allowance for Credit Losses (Tables)

3 Months Ended

Mar. 31, 2024

Schedule of Allowance for Credit Losses and Recorded Investments in Loans

Allowance for Credit Losses Metrics


Three Months Ended March 31, 2024 (dollars in thousands)	FFELP Loans			Private Education Loans			Total
Allowance for Credit Losses
Beginning balance	$	4,667		$	1,335,105		$	1,339,772
Transfer from unfunded commitment liability(1)	—			131,614			131,614
Provisions:
Provision for current period	83			94,476			94,559
Loan sale reduction to provision	—			(133,204)			(133,204)

Total provisions(2)	83			(38,728)			(38,645)
Net charge-offs:
Charge-offs	(123)			(93,874)			(93,997)
Recoveries	—			11,314			11,314
Net charge-offs	(123)			(82,560)			(82,683)

Ending Balance	$	4,627		$	1,345,431		$	1,350,058
Allowance(3):

Ending balance: collectively evaluated for impairment	$	4,627		$	1,345,431		$	1,350,058
Loans(3):

Ending balance: collectively evaluated for impairment	$	516,363		$	20,952,346		$	21,468,709
Accrued interest to be capitalized(3):
Ending balance: collectively evaluated for impairment	$	—		$	1,217,295		$	1,217,295
Net charge-offs as a percentage of average loans in repayment (annualized)(4)	0.12		%	2.14		%
Allowance as a percentage of the ending total loan balance and accrued interest to be capitalized(5)	0.90		%	6.07		%
Allowance as a percentage of the ending loans in repayment and accrued interest to be capitalized on loans in repayment(4)(5)	1.17		%	8.74		%
Allowance coverage of net charge-offs (annualized)	9.40			4.07
Ending total loans, gross	$	516,363		$	20,952,346
Average loans in repayment(4)	$	399,680		$	15,407,495
Ending loans in repayment(4)	$	393,820		$	14,961,692
Accrued interest to be capitalized on loans in repayment(6)	$	—		$	440,259

(1) See Note 5, “Unfunded Loan Commitments,” for a summary of the activity in the allowance for and balance of unfunded loan commitments, respectively.

(2) Below is a reconciliation of the provisions for credit losses reported in the consolidated statements of income. When a new loan commitment is made, we record the CECL allowance as a liability for unfunded loan commitments by recording a provision for credit losses. When the loan is funded, we transfer that liability to the allowance for credit losses.


Consolidated Statements of Income Provisions for Credit Losses Reconciliation
Three Months Ended March 31, 2024 (dollars in thousands)
Private Education Loan provisions for credit losses:
Provisions for loan losses	$	(38,728)
Provisions for unfunded loan commitments	50,686
Total Private Education Loan provisions for credit losses	11,958
Other impacts to the provisions for credit losses:
FFELP Loans	83

Total	83
Provisions for credit losses reported in consolidated statements of income	$	12,041

(3) For the three months ended March 31, 2024, there were no allowance for credit losses, loans, or accrued interest to be capitalized balances that were individually evaluated for impairment.

(4) Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period (but, for purposes of the table, do not include those loans while they are in forbearance).

(5) Accrued interest to be capitalized on Private Education Loans only.

(6) Accrued interest to be capitalized on loans in repayment includes interest on loans that are in repayment but have not yet entered into full principal and interest repayment status after any applicable grace period (but, for purposes of the table, does not include the interest on those loans while they are in forbearance).


Three Months Ended March 31, 2023 (dollars in thousands)	FFELP Loans			Private Education Loans			Credit Cards(7)			Total
Allowance for Credit Losses
Beginning balance	$	3,444		$	1,353,631		$	—		$	1,357,075
Transfer from unfunded commitment liability(1)	—			148,513			—			148,513
Provisions:
Provision for current period	739			56,334			730			57,803


Total provisions(2)	739			56,334			730			57,803
Net charge-offs:
Charge-offs	(256)			(95,085)			(741)			(96,082)
Recoveries	—			11,986			11			11,997
Net charge-offs	(256)			(83,099)			(730)			(84,085)

Ending Balance	$	3,927		$	1,475,379		$	—		$	1,479,306
Allowance(3):

Ending balance: collectively evaluated for impairment	$	3,927		$	1,475,379		$	—		$	1,479,306
Loans(3):

Ending balance: collectively evaluated for impairment	$	592,318		$	21,898,003		$	—		$	22,490,321
Accrued interest to be capitalized(3):
Ending balance: collectively evaluated for impairment	$	—		$	1,150,802		$	—		$	1,150,802
Net charge-offs as a percentage of average loans in repayment (annualized)(4)	0.23		%	2.11		%	—		%
Allowance as a percentage of the ending total loan balance and accrued interest to be capitalized(5)	0.66		%	6.40		%	—		%
Allowance as a percentage of the ending loans in repayment and accrued interest to be capitalized on loans in repayment(4)(5)	0.88		%	9.00		%	—		%
Allowance coverage of net charge-offs (annualized)	3.83			4.44			—
Ending total loans, gross	$	592,318		$	21,898,003		$	—
Average loans in repayment(4)	$	451,451		$	15,764,143		$	—
Ending loans in repayment(4)	$	446,214		$	15,990,459		$	—
Accrued interest to be capitalized on loans in repayment(6)	$	—		$	408,263		$	—

(1) See Note 5, “Unfunded Loan Commitments,” for a summary of the activity in the allowance for and balance of unfunded loan commitments, respectively.


Consolidated Statements of Income Provisions for Credit Losses Reconciliation
Three Months Ended March 31, 2023 (dollars in thousands)
Private Education Loan provisions for credit losses:
Provisions for loan losses	$	56,334
Provisions for unfunded loan commitments	56,309
Total Private Education Loan provisions for credit losses	112,643
Other impacts to the provisions for credit losses:
FFELP Loans	739
Credit Cards	730
Total	1,469
Provisions for credit losses reported in consolidated statements of income	$	114,112

(3) For the three months ended March 31, 2023, there were no allowance for credit losses, loans, or accrued interest to be capitalized balances that were individually evaluated for impairment.

(5) Accrued interest to be capitalized on Private Education Loans only.

(7) We use “Credit Cards” to refer to the suite of Credit Card loans that we previously held; we sold the Credit Card portfolio to a third party in May 2023.The tables below summarize the activity in the allowance recorded to cover lifetime expected credit losses on the unfunded commitments, which is recorded in “Other Liabilities” on the consolidated balance sheets, as well as the activity in the unfunded commitments balance.


	2024				2023
Three Months Ended March 31, (dollars in thousands)	Allowance		Unfunded Commitments		Allowance		Unfunded Commitments
Beginning Balance	$	112,962	$	2,221,077	$	124,924	$	1,995,808
Provision/New commitments - net(1)	50,686		1,034,458		56,309		1,124,816
Transfer - funded loans(2)	(131,614)		(2,582,043)		(148,513)		(2,436,271)
Ending Balance	$	32,034	$	673,492	$	32,720	$	684,353

(1) Net of expirations of commitments unused. Also includes incremental provision for new commitments and changes to provision for existing commitments.

(2) When a loan commitment is funded, its related liability for credit losses (which originally was recorded as a provision for unfunded commitments) is transferred to the allowance for credit losses.

Schedule of Amortized Cost Basis of Financing Receivables

The following tables show the amortized cost basis at the end of the respective reporting periods of the loans to borrowers experiencing financial difficulty that were modified during the period, disaggregated by class of financing receivable and type of modification. When we approve a Private Education Loan at the beginning of an academic year, we do not always disburse the full amount of the loan at the time of approval, but instead have a commitment to fund a portion of the loan at a later date (usually at the start of the second semester or subsequent trimesters). We consider borrowers to be in financial difficulty after they have exited school and have difficulty making their scheduled principal and interest payments.


	Loan Modifications Made to Borrowers Experiencing Financial Difficulty
Three Months Ended March 31, 2024 (dollars in thousands)	Interest Rate Reduction				Combination - Interest Rate Reduction and Term Extension
Loan Type:	Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable
Private Education Loans	$	4,991	0.02	%	$	252,761	1.13	%
Total	$	4,991	0.02	%	$	252,761	1.13	%


	Loan Modifications Made to Borrowers Experiencing Financial Difficulty
Three Months Ended March 31, 2023 (dollars in thousands)	Interest Rate Reduction				Combination - Interest Rate Reduction and Term Extension
Loan Type:	Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable
Private Education Loans	$	12,902	0.06	%	$	81,780	0.35	%
Total	$	12,902	0.06	%	$	81,780	0.35	%

The following tables describe the financial effect of the modifications made to loans whose borrowers are experiencing financial difficulty:

Three Months Ended March 31, 2024

Interest Rate Reduction

Combination - Interest Rate
Reduction and Term Extension

Loan Type

Financial Effect

Loan Type

Financial Effect

Private Education Loans

Reduced average contractual rate from 13.15% to 3.94%

Private Education Loans

Added a weighted average 8.59 years to the life of loans

Reduced average contractual rate from 12.57% to 3.71%

Three Months Ended March 31, 2023

Interest Rate Reduction

Combination - Interest Rate
Reduction and Term Extension

Loan Type

Financial Effect

Loan Type

Financial Effect

Private Education Loans

Reduced average contractual rate from 12.47% to 4.00%

Private Education Loans

Added a weighted average 10.19 years to the life of loans

Reduced average contractual rate from 12.74% to 4.00%

We define payment default as 60 days or more past due for purposes of this disclosure.




	Three Months Ended March 31, 2024						Three Months Ended March 31, 2023
(Dollars in thousands)	Modified Loans(1)(2)		Payment Default(3)		Charge-Offs(4)		Modified Loans(1)(2)		Payment Default(3)		Charge-Offs(4)
Loan Type:
Private Education Loans	$	14,783	$	14,496	$	4,179	$	11,624	$	11,404	$	4,628
Total	$	14,783	$	14,496	$	4,179	$	11,624	$	11,404	$	4,628

(1) Represents period-end amortized cost basis of loans that have been modified and for which a payment default occurred in the relevant period presented and within 12 months of receiving a modification.

(2) For the three months ended March 31, 2024, the modified loans include $13.8 million of interest rate reduction and term extension loan modifications and $1.0 million of interest rate reduction only loan modifications. For the three months ended March 31, 2023, the modified loans include $10.4 million of interest rate reduction and term extension loan modifications and $1.2 million of interest rate reduction only loan modifications.

(3) Represents the unpaid principal balance at the time of payment default.

(4) Represents the unpaid principal balance at the time of charge off.

Age Analysis of Past Due Loans Delinquencies

The following tables depict the performance of loans that have been modified during the respective reporting periods (first-quarter 2024 and full year 2023, respectively).


	Payment Status (Amortized Cost Basis)
At March 31, 2024 (dollars in thousands)	Deferment(1)		Current(2)(3)		30-59 Days Past Due(2)(3)		60-89 Days Past Due(2)(3)		90 Days or Greater Past Due(2)(3)		Total
Loan Type:
Private Education Loans	$	3,313	$	244,289	$	5,166	$	2,476	$	2,508	$	257,752
Total	$	3,313	$	244,289	$	5,166	$	2,476	$	2,508	$	257,752


	Payment Status (Amortized Cost Basis)
At December 31, 2023 (dollars in thousands)	Deferment(1)		Current(2)(3)		30-59 Days Past Due(2)(3)		60-89 Days Past Due(2)(3)		90 Days or Greater Past Due(2)(3)		Total
Loan Type:
Private Education Loans	$	6,843	$	334,967	$	17,205	$	7,689	$	13,822	$	380,526
Total	$	6,843	$	334,967	$	17,205	$	7,689	$	13,822	$	380,526

(1) Deferment includes customers who have returned to school or are engaged in other permitted educational activities and are not yet required to make full principal and interest payments on the loans (e.g., residency periods for medical students or a grace period for bar exam preparation). Deferment also includes loans that have entered a forbearance after the loan modification was granted.

(2) Loans in repayment include loans on which borrowers are making full principal and interest payments after any applicable grace period (but, for purposes of the table, do not include those loans while they are in forbearance).

(3) The period of delinquency is based on the number of days scheduled payments are contractually past due.

The following tables provide information regarding the loan status of our Private Education Loans held for investment, by year of origination approval. Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period (but, for purposes of the following tables, do not include those loans while they are in forbearance).


	Private Education Loans Held for Investment - Delinquencies by Origination Vintage
As of March 31, 2024 (dollars in thousands)	2024			2023			2022			2021			2020			2019 and Prior			Total

Loans in-school/grace/deferment(1)	$	442,021		$	2,501,814		$	1,235,053		$	541,726		$	268,959		$	613,124		$	5,602,697
Loans in forbearance(2)	1,205			34,042			115,729			69,721			42,974			124,286			387,957
Loans in repayment:
Loans current	480,422			3,236,356			2,569,306			1,776,854			1,245,882			5,142,786			14,451,606
Loans delinquent 30-59 days(3)	2,576			18,739			32,476			30,460			22,553			133,231			240,035
Loans delinquent 60-89 days(3)	—			7,600			20,016			17,424			12,482			76,399			133,921
Loans 90 days or greater past due(3)	—			4,791			21,781			18,154			13,369			78,035			136,130
Total Private Education Loans in repayment	482,998			3,267,486			2,643,579			1,842,892			1,294,286			5,430,451			14,961,692
Total Private Education Loans, gross	926,224			5,803,342			3,994,361			2,454,339			1,606,219			6,167,861			20,952,346
Private Education Loans deferred origination costs and unamortized premium/(discount)	10,902			31,667			14,460			7,834			5,078			10,927			80,868
Total Private Education Loans	937,126			5,835,009			4,008,821			2,462,173			1,611,297			6,178,788			21,033,214
Private Education Loans allowance for losses	(67,459)			(354,779)			(271,004)			(164,549)			(105,385)			(382,255)			(1,345,431)
Private Education Loans, net	$	869,667		$	5,480,230		$	3,737,817		$	2,297,624		$	1,505,912		$	5,796,533		$	19,687,783

Percentage of Private Education Loans in repayment	52.1		%	56.3		%	66.2		%	75.1		%	80.6		%	88.0		%	71.4		%
Delinquent Private Education Loans in repayment as a percentage of Private Education Loans in repayment	0.5		%	1.0		%	2.8		%	3.6		%	3.7		%	5.3		%	3.4		%
Loans in forbearance as a percentage of loans in repayment and forbearance	0.2		%	1.0		%	4.2		%	3.6		%	3.2		%	2.2		%	2.5		%

(1)Deferment includes customers who have returned to school or are engaged in other permitted educational activities and are not yet required to make payments on the loans (e.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, 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 Loans Held for Investment - Delinquencies by Origination Vintage
As of December 31, 2023 (dollars in thousands)	2023			2022			2021			2020			2019			2018 and Prior			Total

Loans in-school/grace/deferment(1)	$	1,976,040		$	1,672,333		$	669,250		$	307,781		$	213,593		$	452,994		$	5,291,991
Loans in forbearance(2)	19,265			93,079			58,438			35,450			31,818			85,989			324,039
Loans in repayment:
Loans current	2,469,817			3,254,534			2,131,040			1,416,069			1,323,825			4,213,986			14,809,271
Loans delinquent 30-59 days(3)	17,599			34,627			37,147			28,020			31,432			149,926			298,751
Loans delinquent 60-89 days(3)	5,720			17,227			20,077			16,614			15,482			75,897			151,017
Loans 90 days or greater past due(3)	1,678			16,939			21,470			15,155			16,150			79,383			150,775
Total Private Education Loans in repayment	2,494,814			3,323,327			2,209,734			1,475,858			1,386,889			4,519,192			15,409,814
Total Private Education Loans, gross	4,490,119			5,088,739			2,937,422			1,819,089			1,632,300			5,058,175			21,025,844
Private Education Loans deferred origination costs and unamortized premium/(discount)	35,616			18,556			9,465			5,809			3,556			8,552			81,554
Total Private Education Loans	4,525,735			5,107,295			2,946,887			1,824,898			1,635,856			5,066,727			21,107,398
Private Education Loans allowance for losses	(269,642)			(335,090)			(194,104)			(118,755)			(100,111)			(317,403)			(1,335,105)
Private Education Loans, net	$	4,256,093		$	4,772,205		$	2,752,783		$	1,706,143		$	1,535,745		$	4,749,324		$	19,772,293

Percentage of Private Education Loans in repayment	55.6		%	65.3		%	75.2		%	81.1		%	85.0		%	89.3		%	73.3		%
Delinquent Private Education Loans in repayment as a percentage of Private Education Loans in repayment	1.0		%	2.1		%	3.6		%	4.1		%	4.5		%	6.8		%	3.9		%
Loans in forbearance as a percentage of loans in repayment and forbearance	0.8		%	2.7		%	2.6		%	2.3		%	2.2		%	1.9		%	2.1		%

(3)The period of delinquency is based on the number of days scheduled payments are contractually past due.

Schedule of Private Education Loan Portfolio Stratified by Key Credit Quality Indicators

The following tables highlight the gross principal balance of our Private Education Loan portfolio (held for investment), by year of origination approval, stratified by key credit quality indicators.


As of March 31, 2024 (dollars in thousands)	Private Education Loans Held for Investment - Credit Quality Indicators
Year of Origination Approval	2024(1)		2023(1)		2022(1)		2021(1)		2020(1)		2019 and Prior(1)		Total(1)		% of Balance
Cosigners:
With cosigner	$	814,592	$	5,130,203	$	3,451,511	$	2,089,098	$	1,347,339	$	5,440,233	$	18,272,976	87	%
Without cosigner	111,632		673,139		542,850		365,241		258,880		727,628		2,679,370		13
Total	$	926,224	$	5,803,342	$	3,994,361	$	2,454,339	$	1,606,219	$	6,167,861	$	20,952,346	100	%

FICO at Origination Approval(2):
Less than 670	$	61,789	$	424,857	$	316,552	$	176,921	$	105,953	$	546,958	$	1,633,030	8	%
670-699	129,467		816,049		553,845		332,430		226,123		1,041,796		3,099,710		15
700-749	288,936		1,783,230		1,243,850		779,798		522,793		2,082,333		6,700,940		32
Greater than or equal to 750	446,032		2,779,206		1,880,114		1,165,190		751,350		2,496,774		9,518,666		45
Total	$	926,224	$	5,803,342	$	3,994,361	$	2,454,339	$	1,606,219	$	6,167,861	$	20,952,346	100	%


FICO Refreshed(2)(3):
Less than 670	$	84,355	$	669,427	$	541,494	$	335,868	$	205,407	$	951,407	$	2,787,958	13	%
670-699	129,421		789,950		514,154		299,737		167,203		671,160		2,571,625		12
700-749	286,786		1,700,049		1,127,465		678,404		430,414		1,643,152		5,866,270		28
Greater than or equal to 750	425,662		2,643,916		1,811,248		1,140,330		803,195		2,902,142		9,726,493		47
Total	$	926,224	$	5,803,342	$	3,994,361	$	2,454,339	$	1,606,219	$	6,167,861	$	20,952,346	100	%

Seasoning(4):
1-12 payments	$	484,203	$	3,024,087	$	508,182	$	323,857	$	191,566	$	433,762	$	4,965,657	24	%
13-24 payments	—		277,441		2,095,039		206,882		147,749		467,866		3,194,977		15
25-36 payments	—		—		156,087		1,301,243		128,581		559,089		2,145,000		10
37-48 payments	—		—		—		80,631		798,248		529,743		1,408,622		7
More than 48 payments	—		—		—		—		71,116		3,564,277		3,635,393		17
Not yet in repayment	442,021		2,501,814		1,235,053		541,726		268,959		613,124		5,602,697		27
Total	$	926,224	$	5,803,342	$	3,994,361	$	2,454,339	$	1,606,219	$	6,167,861	$	20,952,346	100	%

2024 Current period(5) gross charge-offs	$	(7)	$	(2,683)	$	(13,167)	$	(14,125)	$	(9,561)	$	(54,331)	$	(93,874)
2024 Current period(5) recoveries	—		212		1,397		1,518		1,033		7,154		11,314
2024 Current period(5) net charge-offs	$	(7)	$	(2,471)	$	(11,770)	$	(12,607)	$	(8,528)	$	(47,177)	$	(82,560)

Total accrued interest by origination vintage	$	15,497	$	281,098	$	365,340	$	240,093	$	138,852	$	317,107	$	1,357,987
(1)Balance represents gross Private Education Loans held for investment. (2)Represents the higher credit score of the cosigner or the borrower. (3)Represents the FICO score updated as of the first-quarter 2024. (4)Number of months in active repayment (whether interest only payment, fixed payment, or full principal and interest payment status) for which a scheduled payment was due. (5)Current period refers to period from January 1, 2024 through March 31, 2024.


As of December 31, 2023 (dollars in thousands)	Private Education Loans Held for Investment - Credit Quality Indicators
Year of Origination Approval	2023(1)		2022(1)		2021(1)		2020(1)		2019(1)		2018 and Prior(1)		Total(1)		% of Balance
Cosigners:
With cosigner	$	3,903,676	$	4,428,163	$	2,516,380	$	1,535,308	$	1,378,699	$	4,529,768	$	18,291,994	87	%
Without cosigner	586,443		660,576		421,042		283,781		253,601		528,407		2,733,850		13
Total	$	4,490,119	$	5,088,739	$	2,937,422	$	1,819,089	$	1,632,300	$	5,058,175	$	21,025,844	100	%

FICO at Origination Approval(2):
Less than 670	$	328,199	$	395,526	$	208,696	$	118,935	$	137,494	$	451,613	$	1,640,463	8	%
670-699	635,642		704,642		400,744		254,762		257,840		868,777		3,122,407		15
700-749	1,383,779		1,586,783		934,033		590,401		545,333		1,709,299		6,749,628		32
Greater than or equal to 750	2,142,499		2,401,788		1,393,949		854,991		691,633		2,028,486		9,513,346		45
Total	$	4,490,119	$	5,088,739	$	2,937,422	$	1,819,089	$	1,632,300	$	5,058,175	$	21,025,844	100	%


FICO Refreshed(2)(3):
Less than 670	$	495,451	$	638,381	$	379,738	$	217,956	$	214,665	$	791,875	$	2,738,066	13	%
670-699	616,684		672,777		365,674		193,462		176,963		564,245		2,589,805		12
700-749	1,347,094		1,477,310		836,747		498,414		445,244		1,361,073		5,965,882		28
Greater than or equal to 750	2,030,890		2,300,271		1,355,263		909,257		795,428		2,340,982		9,732,091		47
Total	$	4,490,119	$	5,088,739	$	2,937,422	$	1,819,089	$	1,632,300	$	5,058,175	$	21,025,844	100	%

Seasoning(4):
1-12 payments	$	2,514,079	$	740,450	$	440,293	$	245,631	$	208,941	$	332,608	$	4,482,002	21	%
13-24 payments	—		2,675,956		303,045		167,532		165,577		384,760		3,696,870		18
25-36 payments	—		—		1,524,834		195,091		129,571		456,448		2,305,944		11
37-48 payments	—		—		—		902,938		208,521		446,350		1,557,809		7
More than 48 payments	—		—		—		116		706,097		2,985,015		3,691,228		18
Not yet in repayment	1,976,040		1,672,333		669,250		307,781		213,593		452,994		5,291,991		25
Total	$	4,490,119	$	5,088,739	$	2,937,422	$	1,819,089	$	1,632,300	$	5,058,175	$	21,025,844	100	%

2023 Current period(5) gross charge-offs	$	(1,812)	$	(31,032)	$	(70,331)	$	(49,624)	$	(50,585)	$	(216,711)	$	(420,095)
2023 Current period(5) recoveries	172		2,342		6,496		4,923		5,260		27,175		46,368
2023 Current period(5) net charge-offs	$	(1,640)	$	(28,690)	$	(63,835)	$	(44,701)	$	(45,325)	$	(189,536)	$	(373,727)

Total accrued interest by origination vintage	$	177,959	$	408,800	$	269,978	$	152,094	$	116,618	$	229,116	$	1,354,565

(1)Balance represents gross Private Education Loans held for investment.

(2)Represents the higher credit score of the cosigner or the borrower.

(3)Represents the FICO score updated as of the fourth-quarter 2023.

(4)Number of months in active repayment (whether interest only payment, fixed payment, or full principal and interest payment status) for which a scheduled payment was due.

(5)Current period refers to January 1, 2023 through December 31, 2023.

Schedule of Accrued Interest Receivable

The following table provides information regarding accrued interest receivable on our Private Education Loans. The table also discloses the amount of accrued interest on loans 90 days or greater past due as compared to our allowance for uncollectible interest on loans making full interest payments. The majority of the total accrued interest receivable represents accrued interest on deferred loans where no payments are due while the borrower is in school and fixed-pay loans where the borrower makes a $25 monthly payment that is smaller than the interest accruing on the loan in that month. The accrued interest on these loans will be capitalized to the balance of the loans when the borrower exits the grace period after separation from school, and the current expected credit losses on accrued interest that will be capitalized is included in our allowance for credit losses.


	Private Education Loans
	Accrued Interest Receivable
(Dollars in thousands)	Total Interest Receivable		90 Days or Greater Past Due		Allowance for Uncollectible Interest(1)(2)

March 31, 2024	$	1,357,987	$	7,216	$	8,247
December 31, 2023	$	1,354,565	$	8,373	$	9,897

(1)The allowance for uncollectible interest at March 31, 2024 represents the expected losses related to the portion of accrued interest receivable on those loans that are in repayment ($141 million of accrued interest receivable) that is not expected to be capitalized. The accrued interest receivable that is expected to be capitalized ($1.2 billion) is reserved in the allowance for credit losses. The accrued interest receivable for the loans delinquent 90 days or greater includes $6.7 million of accrued interest receivable on those loans that are in repayment that is not expected to be capitalized and $0.5 million that is expected to be capitalized.

(2)The allowance for uncollectible interest at December 31, 2023 represents the expected losses related to the portion of accrued interest receivable on those loans in repayment ($151 million of accrued interest receivable) that was not expected to be capitalized. The accrued interest receivable that was expected to be capitalized ($1.2 billion) was reserved in the allowance for credit losses. The accrued interest receivable for the loans delinquent 90 days or greater includes $7.7 million of accrued interest receivable on those loans that are in repayment that is not expected to be capitalized and $0.6 million that is expected to be capitalized.