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Student Loans Receivable and Allowance for Loan Losses (Tables)
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Receivables [Abstract]    
Schedule of Accounts, Notes, Loans and Financing Receivable
Student loans receivable consisted of the following:
 
As of
 
As of
 
March 31, 2016
 
December 31, 2015
Federally insured loans:
 
 
 
Stafford and other
$
5,934,834

 
6,202,064

Consolidation
21,514,363

 
22,086,043

Total
27,449,197

 
28,288,107

Private education loans
294,621

 
267,642

 
27,743,818

 
28,555,749

Loan discount, net of unamortized loan premiums and deferred origination costs (a)
(174,682
)
 
(180,699
)
Allowance for loan losses – federally insured loans
(34,441
)
 
(35,490
)
Allowance for loan losses – private education loans
(15,643
)
 
(15,008
)
 
$
27,519,052

 
28,324,552



(a)
As of March 31, 2016 and December 31, 2015, "loan discount, net of unamortized loan premiums and deferred origination costs" included $29.7 million and $33.0 million, respectively, of non-accretable discount associated with purchased loans of $10.5 billion and $10.8 billion, respectively.

 
Allowance for Credit Losses on Financing Receivables  
Activity in the Allowance for Loan Losses

The provision for loan losses represents the periodic expense of maintaining an allowance sufficient to absorb losses, net of recoveries, inherent in the portfolio of student loans. Activity in the allowance for loan losses is shown below.
 
Three months ended March 31,
 
2016
 
2015
Balance at beginning of period
$
50,498

 
48,900

Provision for loan losses:
 
 
 
Federally insured loans
2,000

 
2,000

Private education loans
500

 

Total provision for loan losses
2,500

 
2,000

Charge-offs:
 

 
 

Federally insured loans
(3,049
)
 
(3,149
)
Private education loans
(401
)
 
(676
)
Total charge-offs
(3,450
)
 
(3,825
)
Recoveries - private education loans
276

 
254

Purchase (sale) of federally insured and private education loans, net
160

 
(230
)
Transfer from repurchase obligation related to private education loans repurchased, net
100

 
4,062

Balance at end of period
$
50,084

 
51,161

 
 
 
 
Allocation of the allowance for loan losses:
 
 
 

Federally insured loans
$
34,441

 
38,021

Private education loans
15,643

 
13,140

Total allowance for loan losses
$
50,084

 
51,161


Financing Receivable Credit Quality Indicators
Student Loan Status and Delinquencies

Delinquencies have the potential to adversely impact the Company’s earnings through increased servicing and collection costs and account charge-offs.  The table below shows the Company’s loan delinquency amounts.

 
As of March 31, 2016
 
As of December 31, 2015
 
As of March 31, 2015
Federally insured loans:
 
 
 
 
 
 
 
 
 
 
 
Loans in-school/grace/deferment
$
2,198,559

 
 
 
$
2,292,941

 
 
 
$
2,781,537

 
 
Loans in forbearance
2,736,472

 
 
 
2,979,357

 
 
 
3,244,255

 
 
Loans in repayment status:
 
 
 
 
 
 
 
 
 
 
 
Loans current
19,375,813

 
86.0
%
 
19,447,541

 
84.4
%
 
18,672,471

 
85.0
%
Loans delinquent 31-60 days
866,207

 
3.8

 
1,028,396

 
4.5

 
911,653

 
4.2

Loans delinquent 61-90 days
538,284

 
2.4

 
566,953

 
2.5

 
571,759

 
2.6

Loans delinquent 91-120 days
329,425

 
1.5

 
415,747

 
1.8

 
346,857

 
1.6

Loans delinquent 121-270 days
1,008,157

 
4.5

 
1,166,940

 
5.1

 
1,030,645

 
4.7

Loans delinquent 271 days or greater
396,280

 
1.8

 
390,232

 
1.7

 
416,398

 
1.9

Total loans in repayment
22,514,166

 
100.0
%
 
23,015,809

 
100.0
%
 
21,949,783

 
100.0
%
Total federally insured loans
$
27,449,197

 
 

 
$
28,288,107

 
 

 
$
27,975,575

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Private education loans:
 
 
 
 
 
 
 
 
 
 
Loans in-school/grace/deferment
$
55,668

 
 
 
$
30,795

 
 
 
$
5,006

 
 
Loans in forbearance
722

 
 
 
350

 
 
 
20

 
 
Loans in repayment status:
 
 
 
 
 
 
 
 
 
 
 
Loans current
231,556

 
97.2
%
 
228,464

 
96.7
%
 
118,278

 
93.5
%
Loans delinquent 31-60 days
968

 
0.4

 
1,771

 
0.7

 
1,200

 
0.9

Loans delinquent 61-90 days
1,144

 
0.5

 
1,283

 
0.5

 
1,753

 
1.4

Loans delinquent 91 days or greater
4,563

 
1.9

 
4,979

 
2.1

 
5,256

 
4.2

Total loans in repayment
238,231

 
100.0
%
 
236,497

 
100.0
%
 
126,487

 
100.0
%
Total private education loans
$
294,621

 
 

 
$
267,642

 
 

 
$
131,513