SEC Filing | Navient

NAVIENT CORPORATION

Date: August 4, 2014

/s/ Somsak Chivavibul

Somsak Chivavibul

Chief Financial Officer

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8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 4, 2014

Navient Corporation

(Exact name of registrant as specified in its charter)

Delaware

001-36228

46-4054283

(State or other jurisdiction

of incorporation)

(Commission

File Number)

(I.R.S. Employer

Identification No.)


300 Continental Drive, Newark, Delaware		19713
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (302) 283-8000

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 7.01

REGULATION FD DISCLOSURE.

Navient Corporation (the “Company”) frequently provides relevant information to its investors via posting to its corporate website. On August 4, 2014, a presentation entitled “2014 2^nd Quarter Investor Deck” was made available on the Company’s website at https://www.navient.com/about/investors/webcasts/. In addition, the presentation is being furnished herewith as Exhibit 99.1.

ITEM 9.01

FINANCIAL STATEMENTS AND EXHIBITS.

(d)

Exhibits


Exhibit Number		Description

99.1*		2014 2^nd Quarter Investor Deck.

*	Furnished herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

EXHIBIT INDEX


Exhibit Number		Description

99.1*		2014 2^nd Quarter Investor Deck.

*	Furnished herewith.

EX-99.1

2014 2

Investor Deck

August 4, 2014

Exhibit 99.1

Quarter

Forward-Looking Statements; Non-GAAP Financial

Measures

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The following information is current as of August 4, 2014 (unless otherwise noted) and should be read in connection with the Registration Statement on Form 10, as amended (the

“Form 10”), filed by Navient Corporation (“Navient”) with the Securities and Exchange Commission (the “SEC”) on April 10, 2014 and subsequent reports filed by Navient with the

SEC. Definitions for capitalized terms in this presentation not defined herein can be found in the Form 10. This presentation contains forward-looking statements and information

based on management’s current expectations as of the date of this presentation. Statements that are not historical fact, including statements about the beliefs and expectations of

Navient and statements that assume or are dependent upon future events, are forward-looking statements. Forward-looking statements are subject to risks, uncertainties,

assumptions and other factors that may cause actual results to be materially different from those reflected in such forward-looking statements. These factors include, among others:

the risks and uncertainties set forth in Item 1A “Risk Factors” and elsewhere in the Form 10, and the subsequent filings of Navient with the SEC; increases in financing costs; limits

on liquidity; increases in costs associated with compliance with laws and regulations; changes in accounting standards and the impact of related changes in significant accounting

estimates; any adverse outcomes in any significant litigation to which Navient is a party; credit risk associated with exposure to third parties, including counterparties to derivative

transactions; and changes in the terms of student loans and the educational credit marketplace (including changes resulting from new laws and the implementation of existing laws).

Navient could also be affected by, among other things: changes in its funding costs and reductions to its credit ratings or the credit ratings of the United States of America; failures of

its operating systems or infrastructure, including those of third-party vendors; damage to its reputation; failures to successfully implement cost-cutting and adverse effects of such

initiatives on its business; risks associated with the recently completed separation of Navient from SLM Corporation, including failure to achieve the expected benefits of the

separation; changes in law and regulations with respect to the student lending business and financial institutions generally; increased competition from other loan servicers; the

creditworthiness of its customers; changes in the general interest rate environment, including the rate relationships among relevant money-market instruments and those of its

earning assets vs. its funding arrangements; changes in general economic conditions; the company’s ability to successfully effectuate any acquisitions and other strategic initiatives;

and changes in the demand for debt management services.

The preparation of Navient’s consolidated financial statements also requires management to make certain estimates and assumptions, including estimates and assumptions about

future events. These estimates or assumptions may prove to be incorrect. All forward-looking statements contained in this release are qualified by these cautionary statements and

are made only as of the date of this release. Navient does not undertake any obligation to update or revise these forward-looking statements to conform the statement to actual

results or changes in expectations.

Navient reports financial results on a GAAP basis and also provides certain core earnings performance measures. When compared to GAAP results, core earnings exclude the

impact of: (1) the financial results of the consumer banking business for historical periods prior to the April 30, 2014 spin-off as well as related restructuring and reorganization

expenses incurred in connection with the spin-off; (2) unrealized, mark-to-market gains/losses on derivatives; and (3) goodwill and acquired intangible asset amortization and

impairment. Navient provides core earnings measures because this is what management uses when making management decisions regarding Navient’s performance and the

allocation of corporate resources. Navient core earnings are not defined terms within GAAP and may not be comparable to similarly titled measures reported by other companies.

For additional information, see “Core Earnings — Definition and Limitations” in Navient’s second quarter earnings release for a further discussion and a complete reconciliation

between GAAP net income and core earnings.

Navient

Corporation

Overview

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About Us

We are the leading education loan management, servicing and asset recovery company

Key Businesses

•

FFELP Loan Portfolio

•

Private Education Loan Portfolio

•

Largest Education Loan Servicer (FFELP, ED, private)

•

Asset Recovery Services

•

Guarantor Servicing

•

Student Assistance and Outreach Solutions

Financial Statistics

As of 06/30/14 ($ billions)

Assets

FFELP Loans

Private Loans

Secured Debt

Senior Unsecured Debt

Total Equity

$143.0

$99.7

$30.3

$115.6

$17.5

$4.0

Regulatory Status

Department of Education and CFPB supervision

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Operating Results

“Core Earning”

Basis

(In millions, except per share amounts)

Q2 14

Q1 14

Q2 13

Net income

$241

$142

$447

EPS

$0.56

$0.33

$1.00

Adjusted EPS

1,2

$0.56

$0.49

$0.52

Operating expenses (excluding remediation reserve¹)

$195

$207

$185

Provision

$155

$146

$202

Average total student loans

$131,875

$133,854

$145,510

Gains from sales of residual interests

$257

Gains from sales of subsidiaries

$38

Debt repurchase gains

$19

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1 Excludes $0 million, $111 million, and $0 million, respectively, related to additional reserves recorded for regulatory matters.

Excludes Q2 13 impact of items to improve shareholder value of $257 million of gains from sales of residual interests in FFELP securitization trusts, $38 million after-tax gains from sales of subsidiaries, and $19 million of gains from debt

repurchases

FFELP Loans Segment

“Core Earnings”

Basis

•

$257 million pre-tax gain from residual interest sales in Q2 13

(In millions)

Q2 14

Q1 14

Q2 13

Net income

$72

$64

$238

Average FFELP Loans

$100,467

$102,329

$112,891

FFELP Loan spread

0.98%

0.95%

0.97%

Charge-off rate

0.08%

0.12%

0.10%

Greater than 90-day delinquency rate

7.0%

7.3%

8.1%

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FFELP Loans Segment

Portfolio Characteristics

•

Largest holder of FFELP Loans, $100 billion portfolio

•

97-98% of portfolio is government guaranteed

•

86% of portfolio funded to term with securitizations

•

Fully integrated servicing and asset recovery support operations

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FFELP Loans Segment

Credit Quality “Core Earnings”

Basis

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FFELP Education Loan Portfolio

June 30, 2014

June 30, 2013

Balance

Loans in-school/grace/deferment

$11,794

$15,120

Loans in forbearance

14,929

15,018

Loans in repayment and percentage of each status

Loans current

61,438

85.2%

64,261

84.3%

Loans delinquent 31-60 days

3,531

4.9%

3,682

4.8%

Loans delinquent 61-90 days

2,112

2.9%

2,109

2.8%

Loans delinqent greater than 90 days

5,033

7.0%

6,186

8.1%

Total FFELP Loans in repayment

72,114

100%

76,238

100%

Total FFELP Loans, gross

$98,837

$106,376

Percentage of FFELP Loans in repayment

73.0%

71.7%

Delinquencies as a percentage of FFELP Loans in

repayment

14.8%

15.7%

Loans in forbearance as a percentage of loans in

repayment and forbearance

17.2%

16.5%

Federal Student Loan Market

Source: Department of Education, U.S. Department of Education FY 2013 Agency Financial Report, Navient

Outstanding Government Student Loan Market Distribution

FFYE 9/30/2013 ($ in billions)

FDLP, $614

FFELP Loans,

$158

FFELP owned

by Navient,

$106

FFELP owned

by ED, $146

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Top Holders of FFELP Loans Excluding Navient

Top Ten Not-For-Profit Holders of FFELP Loans

Lender

$’s in Billions

Brazos

$8.7

PHEAA

$7.3

Access Group

$4.1

Northstar

$3.4

MOHELA

$2.9

EdSouth

$2.4

College Foundation

$2.4

SC Student Loan

$2.4

Edsouth Services

$1.8

KHESLC

$1.3

Total Not-For-Profit

$34

Top Ten For-Profit Holders of FFELP Loans

Lender

$’s in Billions

Nelnet

$25.2

Wells Fargo

$12.9

Chase

$7.5

PNC

$6.1

CLC

$5.7

Goal Financial

$5.6

SunTrust

$5.5

Student Loan Express

$3.6

Bank of America

$3.6

U.S. Bank

$3.0

Total For-Profit

$75

*Source: Sallie Mae 9/30/2013 estimates based on US ED Top 100 Holder 2013 and 2012 report

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Private Education Loans Segment

“Core Earnings”

Basis

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(In millions, except FICO score)

Q2 14

Q1 14

Q2 13

Net income

$86

$74

$61

Average Private Education Loans

$31,408

$31,525

$32,619

Private Education Loan spread

4.10%

4.01%

4.10%

Provision for loan losses

$145

$136

$189

Charge-offs

$166

$218

$212

Charge-off rate

2.5%

3.3%

3.0%

Total delinquency rate

7.1%

7.8%

8.4%

Greater than 90-day delinquency rate

3.2%

3.9%

4.0%

Forbearance rate

4.2%

4.3%

3.9%

Private Education Loans Segment

Portfolio Characteristics

•

$30 billion portfolio

•

23% of Navient’s total student loan portfolio

•

Approximately 64% of portfolio has a cosigner, typically a parent

•

Average FICO at origination of 718

•

Higher education loans typically non-dischargeable in bankruptcy

•

Integrated underwriting, servicing and collections

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Private Education Loans Segment

Credit Quality “Core Earnings”

Basis

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Private Education Loan Portfolio

June 30, 2014

June 30, 2013

Balance

Loans in-school/grace/deferment

$3,375

$3,599

Loans in forbearance

1,201

1,156

Loans in repayment and percentage of each status

Loans current

25,202

92.9%

26,141

91.6%

Loans delinquent 31-60 days

670

2.5%

774

2.7%

Loans delinquent 61-90 days

391

1.4%

486

1.7%

Loans delinqent greater than 90 days

873

3.2%

1,144

4.0%

Total Private Education Loans in repayment

27,136

100%

28,545

100%

Total Private Education Loans, gross

$31,712

$33,300

Percentage of Private Education Loans in repayment

85.6%

85.7%

Delinquencies as a percentage of Private Education

Loans in repayment

7.1%

8.4%

Loans in forbearance as a percentage of loans in

repayment and forbearance

4.2%

3.9%

Private Education Loans Segment

High Quality Portfolio

Private Credit: % of Portfolio Outstanding by Segment

Private Credit Charge-Off Rate by Segment

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2.7%

2.3%

2.1%

1.8%

6.7%

6.8%

5.6%

5.4%

4.6%

3.9%

10.4%

21.3%

17.3%

12.6%

11.1%

9.4%

8.2%

6.3%

5.6%

4.3%

3.9%

3.1%

10%

15%

20%

25%

2008

2009

2010

2011

2012

2013

YTD 2014

Low Risk

Moderate Risk

Elevated Risk

Overall Portfolio

57%

59%

60%

61%

64%

66%

67%

28%

29%

27%

25%

14%

13%

11%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Dec 08

Dec 09

Dec 10

Dec 11

Dec 12

Dec 13

Jun 14

Low Risk

Moderate Risk

Elevated Risk

2.8%

2.9%

1.0%

2.6%

2.9%

Low Risk = Smart Option, Legacy Traditional Cosigned, and Law/MBA/MED/CT/Other

Moderate Risk = Legacy Traditional Non-Cosigned

Elevated Risk = Non-Traditional

Private Education Loans Segment

Default Performance

•

Seasoned portfolio with 91% of loans having made more than 12 payments

•

The probability of default substantially diminishes as the number of payments

and years of seasoning increases

57%

11%

57%

69%

76%

80%

84%

86%

88%

90%

92%

94%

96%

98%

99%

100%

50%

100%

108

120

132

144

156

168

180

# Payments Made

Defaults Per Payments Made

Cumulative Defaults

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Historical Defaults by Payments Made

Loan Seasoning –

“Core Earnings”

Basis

June 30, 2014

Traditional Portfolio

Monthly Scheduled Payments Due

Loan Status

0-12 payments

13-24 payments

25-36 payments

37-48 payments

More than 48 payments

Total

Not Yet in Repayment

3,036

Loans in Forbearance

461

17.5%

178

4.8%

153

3.6%

114

2.6%

153

1.4%

1,059

4.1%

Loans in Repayment-

Current

1,853

70.3%

3,187

86.2%

3,768

89.3%

3,971

91.9%

10,588

95.1%

23,367

89.8%

Loans in Repayment-

Delinq 31-60 days

114

4.3%

108

2.9%

103

2.5%

2.0%

149

1.3%

561

2.2%

Loans in Repayment-

Delinq 61-90 days

2.4%

1.8%

1.5%

1.1%

0.8%

322

1.2%

Loans in Repayment-

Delinq 90 + days

145

5.5%

160

4.3%

132

3.1%

103

2.4%

157

1.4%

697

2.7%

Total Loans in Repayment or Forbearance

$ 2,637

100%

$ 3,699

100%

$ 4,219

100%

$ 4,322

100%

$ 11,129

100%

$ 26,007

100%

Charge-offs as a % of loans in repayment

5.0%

3.8%

2.2%

1.8%

1.0%

2.1%

Non-Traditional Portfolio

Monthly Scheduled Payments Due

Loan Status

0-12 payments

13-24 payments

25-36 payments

37-48 payments

More than 48 payments

Total

Not Yet in Repayment

339

Loans in Forbearance

20.2%

5.7%

4.5%

3.4%

1.9%

142

6.1%

Loans in Repayment-

Current

216

57.7%

276

72.1%

280

78.3%

262

82.3%

801

89.2%

1,835

78.7%

Loans in Repayment-

Delinq 31-60 days

7.2%

5.9%

5.4%

4.2%

3.0%

109

4.7%

Loans in Repayment-

Delinq 61-90 days

4.3%

4.0%

3.3%

2.8%

1.9%

3.0%

Loans in Repayment-

Delinq 90 + days

10.6%

12.3%

8.5%

7.3%

4.0%

176

7.5%

Total Loans in Repayment or Forbearance

$ 375

100%

$ 383

100%

$ 357

100%

$ 318

100%

$ 898

100%

$ 2,331

100%

Charge-offs as a % of loans in repayment

12.8%

12.0%

6.7%

4.7%

3.3%

6.8%

Total

Monthly Scheduled Payments Due

Loan Status

0-12 payments

13-24 payments

25-36 payments

37-48 payments

More than 48 payments

Total

Not Yet in Repayment

3,375

Loans in Forbearance

537

17.8%

200

4.9%

169

3.7%

125

2.7%

170

1.4%

1,201

4.2%

Loans in Repayment-

Current

2,069

68.7%

3,463

84.8%

4,048

88.5%

4,233

91.2%

11,389

94.7%

25,202

88.9%

Loans in Repayment-

Delinq 31-60 days

141

4.7%

131

3.2%

122

2.7%

100

2.2%

176

1.5%

670

2.4%

Loans in Repayment-

Delinq 61-90 days

2.6%

2.0%

1.6%

1.2%

0.8%

391

1.4%

Loans in Repayment-

Delinq 90 + days

185

6.2%

207

5.1%

162

3.5%

126

2.7%

193

1.6%

873

3.1%

Total Loans in Repayment or Forbearance

$ 3,012

100%

$ 4,082

100%

$ 4,576

100%

$ 4,640

100%

$ 12,027

100%

$ 28,337

100%

Charge-offs as a % of loans in repayment

6.0%

4.6%

2.6%

2.0%

1.2%

2.5%

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Traditional Portfolio

Monthly Scheduled Payments Due

Loan Status

0-12 payments

13-24 payments

25-36 payments

37-48 payments

More than 48 payments

Total

Not Yet in Repayment

3,203

Loans in Forbearance

496

10.2%

169

3.8%

148

3.0%

1.9%

113

1.3%

1,012

3.7%

Loans in Repayment-

Current

3,683

76.1%

3,860

87.4%

4,410

90.1%

4,134

93.0%

8,110

95.2%

24,197

89.2%

Loans in Repayment-

Delinq 31-60 days

193

4.0%

122

2.7%

113

2.3%

1.9%

121

1.4%

633

2.3%

Loans in Repayment-

Delinq 61-90 days

133

2.8%

1.7%

1.4%

1.0%

0.8%

387

1.5%

Loans in Repayment-

Delinq 90 + days

334

6.9%

194

4.4%

155

3.2%

2.2%

114

1.3%

892

3.3%

Total Loans in Repayment or Forbearance

$ 4,839

100%

$ 4,419

100%

$ 4,897

100%

$ 4,444

100%

$ 8,522

100%

$ 27,120

100%

Charge-offs as a % of loans in repayment

6.8%

2.8%

2.0%

1.2%

0.9%

2.4%

Non-Traditional Portfolio

Monthly Scheduled Payments Due

Loan Status

0-12 payments

13-24 payments

25-36 payments

37-48 payments

More than 48 payments

Total

Not Yet in Repayment

396

Loans in Forbearance

12.3%

5.2%

3.4%

2.8%

1.7%

144

5.6%

Loans in Repayment-

Current

409

58.5%

305

71.9%

298

78.7%

282

83.2%

650

87.8%

1,944

75.3%

Loans in Repayment-

Delinq 31-60 days

7.5%

6.1%

5.1%

4.4%

3.8%

141

5.5%

Loans in Repayment-

Delinq 61-90 days

6.2%

4.5%

3.5%

2.7%

2.1%

3.8%

Loans in Repayment-

Delinq 90 + days

108

15.5%

12.3%

9.3%

6.9%

4.6%

252

9.8%

Total Loans in Repayment or Forbearance

$ 698

100%

$ 424

100%

$ 379

100%

$ 339

100%

$ 740

100%

$ 2,580

100%

Charge-offs as a % of loans in repayment

17.3%

10.2%

6.9%

4.5%

3.0%

9.2%

Total

Monthly Scheduled Payments Due

Loan Status

0-12 payments

13-24 payments

25-36 payments

37-48 payments

More than 48 payments

Total

Not Yet in Repayment

3,599

Loans in Forbearance

582

10.5%

191

3.9%

161

3.1%

2.0%

126

1.4%

1,156

3.9%

Loans in Repayment-

Current

4,092

73.9%

4,165

86.0%

4,708

89.2%

4,416

92.3%

8,760

94.6%

26,141

88.0%

Loans in Repayment-

Delinq 31-60 days

245

4.4%

148

3.1%

133

2.5%

2.1%

149

1.6%

774

2.6%

Loans in Repayment-

Delinq 61-90 days

176

3.2%

1.9%

1.6%

1.1%

0.8%

486

1.6%

Loans in Repayment-

Delinq 90 + days

442

8.0%

246

5.1%

190

3.6%

118

2.5%

148

1.6%

1,144

3.9%

Total Loans in Repayment or Forbearance

$ 5,537

100%

$ 4,843

100%

$ 5,276

100%

$ 4,783

100%

$ 9,262

100%

$ 29,701

100%

Charge-offs as a % of loans in repayment

8.4%

3.5%

2.3%

1.5%

1.1%

3.0%

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Loan Seasoning –

“Core Earnings”

Basis

Business Services Segment

“Core Earnings”

Basis

•

Net income in Q2 13 includes $38 million after-tax gain recognized on the sale

of a subsidiary

(In millions)

Q2 14

Q1 14

Q2 13

Net income

$130

$116

$168

Federal loans serviced ($’s in billions)

$272

$271

$245

Third-party loan servicing revenue

$40

$33

Asset recovery revenue

$132

$111

$109

Department of Education accounts serviced

5.8

5.2

Contingency asset recovery receivables

$16,298

$15,901

$14,607

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Business Services Segment

Federal Loan Servicing & Customer Success

•

Largest servicer of federal student loans

•

Federal loans serviced by Navient have a 30%

better cohort default rate

•

Direct Loan borrowers serviced by Navient are

more likely to be in income-based repayment

plans

•

We promote awareness through more than 50

million communications annually

•

Every week we help nearly 1,200 borrowers

rehabilitate their loans

$300

$275

$250

$225

$200

$175

$150

2011

2012

2013

June 2014

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Federal Loans Serviced by Navient

Business Services Segment

Asset Recovery

•

Requires little capital and generates high returns

on equity

•

Consistent top performer on the Department of

Education collections contract

•

Successfully performing on over 300 state, local

and federal contracts

•

Providing collection services for over 1,000

schools

•

Multiple Asset Classes

Education loans

Government receivables

Taxes

Court/Municipal

Schools

Contingency Asset Recovery Receivables

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$10

$12

$14

$16

$18

2011

2012

2013

June 2014

Student Loans

Other

Funding and

Liquidity

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2014 Capital Markets Summary

•

Issued $2.7 billion of FFELP ABS

•

Closed on an $8 billion FFELP ABCP facility

•

Refinanced $1.1 billion of FFELP reset notes to term

•

Issued $1.1 billion of Private ABS

•

Closed on a $1 billion Private ABCP facility

•

Issued $850 million of long-term unsecured debt

•

Returned $392 million to shareholders through share repurchases and

dividends

(1)

•

Maintained strong capital position

(1) As of June 30, 2014

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Secured Funding

•

Navient is among the largest issuers

of ABS globally, having issued over

$250 billion of Private and FFELP

ABS transactions to date

•

Over $107 billion of securitizations

on balance sheet

•

Additional capacity under FFELP

secured facilities is $10.7 billion

•

Additional capacity under Private

Education Loan secured facilities is

$1 billion

2013 Issuance

Issuer

Total ($mm)

Asset Class

Citi

12,325

Credit Card

Ford

12,080

Auto

Navient

(1)

9,600

Student Loan

Chase

7,685

Credit Card

Santander

7,567

Auto

Nissan

6,641

Auto

Hyundai

6,479

Auto

Honda

5,500

Auto

Ally Bank

5,202

Auto

AmeriCredit

5,080

Auto

Discover

4,550

Credit Card

4,530

Credit Card / Equipment

Mercedes-Benz

4,302

Auto

Ally Financial

4,125

Auto

Volkswagen

4,000

Auto

CarMax

3,965

Auto

CNH

3,925

Equipment

Nelnet

3,220

Student Loan

Springleaf

3,204

Consumer Loan

World Omni

2,781

Auto

(1) Previous issuing entities: SLM Student Loan Trust and SLM Private Education Loan Trust (Bloomberg

ticker: SLMA)

Source: Informa Global

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Recent FFELP ABS Transactions

Issue

$747M NAVSL Trust 2014-1

$992M SLM Trust 2014-2

$994M SLM Trust 2014-1

Pricing Date

May 20, 2014

March 18, 2014

January 15, 2014

Collateral

US Govt. Guaranteed or Insured

FFELP Stafford, Plus and

Consolidation Loans

US Govt. Guaranteed or Insured

FFELP Stafford and Plus Loans

US Govt. Guaranteed or Insured

FFELP Stafford and Plus Loans

Prepayment

Speed

(1)

6% CPR Stafford / 4% CPR

Consolidation

6% Constant Prepayment Rate

Tranching

Rating

Amt

WAL

(1)

Pricing

(2)

A-1 Aaa $216 1.3 L+25

A-2 Aaa $101 3.3 L+31

A-3 Aaa $350 6.8 L+51

A-4 Aaa $60 10.6 L+75

B Aa1 $20 10.6 L+190

Rating

Amt

WAL

(1)

Pricing

(2)

A-1 Aaa $268 1.3 L+25

A-2 Aaa $191 3.3 L+35

A-3 Aaa $506 6.8 L+59

B Aa1 $27 9.1 L+190

Rating

Amt

WAL

(1)

Pricing

(2)

A-1 Aaa $272 1.3 L+28

A-2 Aaa $184 3.3 L+38

A-3 Aaa $511 6.8 L+60

B Aa1 $27 9.2 L+210

(1)

Estimated based on a variety of assumptions concerning loan repayment behavior, as more fully described in the related prospectus, which may be obtained at https://www.navient.com/about/investors/debtasset/. Actual average life

may vary significantly from estimates.

(2)

Pricing represents the yield to expected call.

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Recent Private Education Loan ABS Transactions

Issue

$463M NAVSL Trust 2014-CT

$676M SLM Trust 2014-A

$624M SLM Trust 2013-C

Pricing Date

July 15, 2014

February 25, 2014

September 18, 2013

Collateral

Private Education Loans

Prepayment

Speed

(1)

Tranching

Rating

Amt

WAL

(1)

Pricing

A-1 Aaa

B A

Total

Rating

Amt

WAL

(1)

Pricing

(2)

A-1 Aaa

A-2A Aaa

A-2B Aaa

A-3 Aaa

B A

Total

Rating

Amt

WAL

(1)

Pricing

(2)

A-1 Aaa

A-2A Aaa

A-2B Aaa

B A

Total

(1)

average life may vary significantly from estimates.

(2)

Yield on fixed rate A-2 tranches were 2.59% and 2.96% for 2014-A and 2013-C, respectively. Yield on fixed rate B tranches were 4.73% and 4.86% for 2014-A and 2013-C, respectively.

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$394

$69

$463

2.2

6.6

2.9

L+70

L+215

L+118

$355

$77

$100

$67

$676

1.8

4.6

6.4

7.2

3.6

L+60

s+115

L+115

Not offered

s+225

L+132

$300

$131

$67

$624

1.8

4.5

5.9

3.3

L+85

s+135

L+140

s+275

L+147

Unsecured Debt

Fitch

Moody’s

S&P

Senior Unsecured Debt

Ba3

Outlook

Stable

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$0.6

$1.5

$2.3

$1.8

$2.8

$2.5

$1.6

$0.1

$4.5

2014

2015

2016

2017

2018

2019

2020

2021

2022+

Maturity Table

As of June 30, 2014

(par value, $ in billions)

Education Loan Portfolio Generates Significant

Cash Flows

*Floor

cash

flows

projected

using

6/30/14

yield

curve.

These

projections

are

based

internal

estimates

and

assumptions

and

are

subject

ongoing

review

and

modification.

These

projections

may

prove

incorrect.

•

Over $36 billion of estimated future cash flows

Highly predictable

Includes ~$11 billion of overcollateralization to

be released from residuals

Continuing low interest rate environment will

increase future floor revenue

•

~20 year remaining life

•

Significant pool of cash available for shareholder

distributions

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Projected Life of Loan Cash Flows*

As of June 30, 2014

FFELP Cash Flows

Secured

Residual (including O/C)

$7.1

Floor

1.9

Servicing

4.0

Total Secured

$13.0

Unencumbered

$1.9

Total FFELP Cash Flows

$14.9

Private Credit Cash Flows

Secured

Residual (including O/C)

$12.8

Servicing

1.3

$14.1

Unencumbered

$7.5

Total Private Cash Flows

$21.6

Combined Cash Flows

$36.5

Total Secured

FFELP Cash Flows Highly Predictable

as of 6/30/14

2H 2014

2015

2016

2017

2018

2019

2020

2021

Projected FFELP Average Balance

$95,247

$89,240

$80,752

$72,614

$65,178

$57,821

$50,777

$44,106

Projected Excess Spread

$406

$843

$800

$712

$646

$575

$501

$448

Projected Servicing Revenue

$256

$489

$451

$413

$377

$338

$297

$256

Projected Total Revenue

$662

$1,332

$1,251

$1,124

$1,023

$913

$798

$703

2022

2023

2024

2025

2026

2027

2028

2029+

Projected FFELP Average Balance

$37,831

$32,075

$26,858

$22,649

$18,940

$15,406

$12,060

$4,444

Projected Excess Spread

$403

$349

$292

$242

$215

$187

$156

$384

Projected Servicing Revenue

$216

$180

$148

$124

$104

$86

$68

$161

Projected Total Revenue

$620

$530

$440

$365

$319

$272

$224

$545

•

Total Cash Flows from Projected Excess Spread = $7.1 Billion

•

Total Cash Flows from Projected Servicing Revenues = $4.0 Billion

Assumptions

No Floor Income, CPR/CDR = Stafford & Plus (4.0%), Consolidation (3.0%)

* These projections are based on internal estimates and assumptions and are subject to ongoing review and modification. These projections may prove to be incorrect.

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Secured Cash Flow

Note: Totals may not add due to rounding

Net residual represents excess distribution, net of payments on floor contracts and receipts from basis swaps

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Servicing (Cash Paid)

Net Residual* (Excess Distributions)

Net Cash Flow

Servicing (Cash Paid)

Total Proceeds from Residual Sales

Total Private Credit

Total FFELP and Private Credit

Term FFELP

Other Secured FFELP

Total FFELP

Term Private Credit

Other Secured Financings

FFELP

Term Securitized

Other Secured FFELP

Total FFELP

Other Secured Financings

Total Private Credit

Total FFELP and Private Credit

Average Principal Balances

$ in Millions

Residual (Excess Distribution)

Net Cash Flow

Private Credit

Term Securitized

2Q14 YTD

2013

2012

2011

2Q14 YTD

2013

2012

2011

170

$ 95,055

11,085

$ 106,140

$ 26,037

1,106

$ 507

476

$ 2,182

$ 198

$ 377

$ 3,148

1,199

$ 589

$ 27,143

$ 133,283

$ 563

568

$ 189

$ 2,065

715

$ 1,846

$ 219

$ 109,509

29,466

$ 138,975

$ 25,619

233

$ 25,853

$ 164,828

$ 526

$ 2,088

$ 181

103

$ 2,394

628

934

$ 306

$ 104,913

$ 127,184

$ 25,111

$ 26,987

$ 154,171

22,271

1,875

$ 95

$ 244

319

117

$ 218

$ 847

$ 629

$ 89,887

6,340

$ 96,227

$ 24,623

1,446

$ 122,296

$ 26,069

FFELP ABS

Appendix

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Recent FFELP ABS Issuance Characteristics

•

Issue size of $500M to $1.5B

•

Tranches or pass-through denominated in

US$

•

Triple-A rated senior notes make up to

97% of issue structure

•

Floating rate tied to 1 month LIBOR

•

Amortizing tranches with 1 to 15(+) year

average lives

•

Navient Solutions, Inc. is servicer or

master servicer

•

Insurance or guarantee of underlying

collateral insulates bondholders from

virtually any loss of principal

(1)

•

Typically non-dischargeable in bankruptcy

•

Formerly a 20% risk-weighted asset, now

a <10% risk-weighted under Basel II’s

IRB methodology

•

Offer significantly higher yields than

government agency securities with

comparable risk profiles

(1) Principal and accrued interest on underlying FFELP loan collateral carry insurance or guarantee of 97%-100%

dependent on origination year and on meeting the servicing requirements of the U.S. Department of Education.

Collateral Characteristics

FFELP ABS Transaction Features

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FFELP Loan Program Characteristics

(1)

Aggregate loan limit for a Dependent Undergraduate is $31,000

Note: As of July 1, 2011

Parameter

Subsidized Stafford

Unsubsidized Stafford

PLUS/Grad PLUS

Unsubsidized

Consolidation

Borrower

Student

Parents or Graduate

Students

Student or Parents

Needs Based

Yes

N/A

Federal Guarantee of

Principal and Accrued

Interest

97 -

100%

97 -

100%

97 -

100%

97 -

100%

97 -

100%

Interest Subsidy

Payments

Yes

Special Allowance

Payments (SAP)

Yes

If cap is reached

Yes

Repayment Term

120 months

Up to 360 months

Aggregate Loan Limit

Undergraduate: $23,000

Graduate: $65,500

Undergraduate¹: $57,500

Graduate: $138,500

None

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Subsidized Consolidation

•

Annualized CPRs for Stafford/PLUS ABS trusts have decreased significantly as

incentives for borrowers to consolidate have declined

•

After

temporary

increase

mid

2012

due

the

Special

Direct

Consolidation

Loan

program, CPRs decreased in the fourth quarter

Navient Stafford & PLUS Loan Prepayments

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-10%

10%

20%

30%

40%

50%

60%

70%

Historical Stafford/PLUS ABS CPRs

by Issuance Vintage

2002

2003

2004

2005

2006

2007

2008

2010

2012

2013

2014

Quarterly CPR assumes School and Grace loans are not scheduled to make payments. Deferment, Forbearance and Repayment loans are scheduled to make payments.

Navient Consolidation Loan Prepayments

•

CPRs for Consolidation ABS trusts declined significantly following legislation effective in

2006

that

prevented

in-school

and

re-consolidation

borrowers’

loans

•

After

temporary

increase

mid

2012

due

the

Special

Direct

Consolidation

Loan

program, CPRs decreased in the fourth quarter

Quarterly

CPR

assumes

School

and

Grace

loans

are

not

scheduled

make

payments.

Deferment,

Forbearance

and

Repayment

loans

are

scheduled

make

payments.

Historical Consolidation ABS CPRs by Issuance Vintage

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25%

20%

15%

10%

-5%

2002

2003

2004

2005

2006

2007

2009

2011

2012

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Private Education

Loan ABS

Appendix

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Recent Private Education Loan ABS Issuance

Characteristics

Private Education Loan ABS Transaction Features

Collateral Characteristics

•

Issue size of $500M to $1.5B

•

Triple-A rated senior notes, Single-A

rated subordinated notes

•

20-30% Triple-A overcollateralization

•

Amortizing tranches with 1 to 10 year

average lives

•

Fixed rate or floating rate tied to 1 month

LIBOR

•

Complies with European risk retention

(5% retention)

•

Navient Solutions, Inc. is servicer or

master servicer

•

Collateralized by loans made to students

and parents to fund college tuition, room

and board

•

Underwritten using FICO, Custom

Scorecard & judgmental criteria w/risk

based pricing

•

70-80% with cosigners, typically a parent

•

Many seasoned assets benefiting from

proven payment history

•

Typically non-dischargeable in bankruptcy

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Navient Private Education Loan Programs

Smart Option

Undergraduate/Graduate/

Med/Law/MBA

Direct-to-Consumer

(DTC)

Consolidation

Career Training

Origination Channel

School

Direct-to-Consumer

Lender

School

Typical Borrower

Student

College Graduates

Student

Typical Co-signer

Parent

Parent, Spouse

Typical Loan

$10k avg orig bal, 10 yr avg

term, in-school payments of

interest only, $25 or fully

deferred

$10k avg orig bal, 15 yr term,

deferred payments

$12k avg orig bal, 15 yr term,

deferred payments

$43k avg orig bal, 15-30 year

term depending on balance,

immediate repayment

$9k avg orig bal, up to 15 yr

term, immediate payments

Origination Period

March 2009 to April 2014

All history through 2014

2004 through 2008

2006 through 2008

1998 through 2014

Certification and Disbursement

School certified and disbursed

Borrower self-certified, disbursed

to borrower

Proceeds to lender to pay off

loans being consolidated

School certified and disbursed

Borrower Underwriting

FICO,

custom credit score model, and

judgmental underwriting

Primarily FICO

FICO and Debt-to-Income

FICO, Debt-to-Income and

judgmental underwriting

Borrowing Limits

$200,000

$100,000 Undergraduate, $150,000

Graduate

$130,000

$400,000

Cost of attendance plus up to

$6,000 for expenses

Current ABS Sec. Criteria

For-Profit; FICO

670

For-Profit; FICO

670

FICO

670

For-Profit; FICO

670

FICO

670

Non-Profit; FICO

640

Non-Profit; FICO

640

Non-Profit; FICO

640

School UW

Yes

Historical Risk-Based Pricing

L + 2% to L + 14%

P-1.5% to P+7.5%

P+1% to P+6.5%

P -

0.5% to P + 6.5%

P+0% to P+9%

L+0% to L+15%

L+6% to L+12%

L+6.5% to L+14%

Dischargeable in Bankruptcy

Yes

Additional Characteristics

Made to students and parents

primarily through college

financial aid offices to fund 2-

year, 4-year and graduate

school college tuition, room and

board

Also available on a limited

basis to students and parents to

fund non-degree granting

secondary education, including

community college, part time,

technical and trade school

programs

Both Title IV and non-Title IV

schools

(1)

Made to students and parents

through college financial aid

offices to fund 2-year, 4-year and

graduate school college tuition,

room and board

Signature, Excel, Law, Med

and MBA Loan brands

Title IV schools only

(1)

Freshmen must have a co-

signer with limited exceptions

Co-signer stability test

(minimum 3 year repayment

history)

Terms and underwriting

criteria similar to

Undergraduate, Graduate,

Med/Law/MBA with primary

differences being:

Marketing channel

No school certification

Disbursement of proceeds

directly to borrower

Title IV schools only

(1)

Freshmen must have a co-

signer with limited exceptions

Co-signer stability test

(minimum 3 year repayment

history)

Loans made to students and

parents to refinance one or

more private education loans

Student must provide proof of

graduation in order to obtain

loan

Loans made to students and

parents to fund non-degree

granting secondary education,

including community college,

part time, technical, trade

school and tutorial programs

Both Title IV and non-Title IV

schools

(1)

Title IV Institutions are post-secondary institutions that have a written agreement with the Secretary of Education that allows the institution to participate in any of the Title IV federal student financial

assistance programs and the National Early Intervention Scholarship and Partnership (NEISP) programs.

Navient Private Education Trusts

(1) Smart Option loans subject to interim interest only and $25 fixed monthly payments are classified as in Repayment.

(2) Assumes Prime/LIBOR spread of 3.00% for all transactions.

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09-CT

10-A

10-B

10-C

11-A

11-B

11-C

12-A

12-B

12-C

12-D

12-E

13-A

13-B

13-C

14-A

14-CT

Bond Amount ($mil)

590

1,550

869

1,701

562

825

721

547

891

1,135

640

976

1,108

1,135

624

676

463

Initial AAA Enhancement (%)

37%

23%

45%

37%

21%

18%

24%

27%

26%

25%

21%

26%

22%

28%

24%

30%

Total Enhancement (%)

37%

23%

45%

37%

21%

18%

24%

27%

26%

25%

21%

15%

13%

20%

15%

17%

Loan Program (%)

Signature/Law/MBA/Med

76%

46%

89%

88%

91%

71%

61%

48%

43%

37%

35%

26%

29%

26%

19%

Smart Option

10%

20%

30%

40%

45%

48%

63%

64%

63%

Consolidation

11%

Direct to Consumer

10%

20%

12%

10%

12%

Career Training

100%

13%

26%

100%

Total

100%

Payment Status (%)

(1)

School, Grace, Deferment

63%

12%

36%

55%

45%

37%

38%

40%

39%

44%

59%

62%

63%

49%

Repayment

98%

32%

85%

60%

43%

52%

60%

57%

59%

54%

39%

36%

50%

99%

Forbearance

Wtd Avg Term to Maturity (Mo.)

141

190

169

194

192

189

182

171

164

151

144

148

144

146

143

150

104

% Loans with Cosigner

70%

72%

65%

62%

72%

75%

71%

75%

77%

79%

80%

81%

82%

71%

% Loans with No Cosigner

30%

28%

35%

38%

28%

25%

29%

25%

23%

21%

20%

19%

18%

29%

Wtd Avg FICO at Origination

747

739

734

727

737

736

733

735

736

737

740

733

741

740

742

743

Wtd Avg Recent FICO at Issuance

725

732

713

723

722

720

724

726

728

730

722

733

734

733

741

726

WA FICO (Cosigner at Origination)

753

749

744

742

747

745

744

745

748

741

751

750

749

750

749

WA FICO (Cosigner at Rescored)

734

739

740

733

736

731

734

732

734

735

738

728

745

746

745

750

735

WA FICO (Borrower at Origination)

734

714

712

701

709

710

704

705

707

710

702

703

702

705

707

728

WA FICO (Borrower at Rescored)

703

691

716

679

690

695

688

700

702

698

696

683

684

682

701

Wtd Avg LIBOR Equivalent Margin

(2)

7.19%

7.09%

5.48%

4.89%

7.40%

7.21%

6.37%

6.74%

6.98%

7.14%

7.18%

7.46%

6.63%

6.64%

6.88%

6.60%

7.01%

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and

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information

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reserved.

•

Constant prepayment rates increased in 2007 due to the introduction of Private

Education Consolidation loans, then declined following SLM’s decision to

suspend its consolidation loan program in 2008

2002-A

2003-A

2003-B

2003-C

2004-A

2004-B

2005-A

2005-B

2006-A

2006-B

2006-C

2007-A

2010-A

2010-B

2010-C

2011-A

2011-B

2011-C

2012-A

2012-B

2012-C

2012-D

2012-E

2013-A

2013-B

2013-C

Navient Private Education Loan Trusts –

Prepayment Analysis

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and

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information

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reserved.

Cohort Default Triangles

•

The following cohort default triangles provide loan performance information for certain Private Education Loans of

Navient

Corporation

and

its

consolidated

subsidiaries

that

meet

such

subsidiaries’

current

securitization

criteria

(including those criteria listed below):

Program

types

include

Undergraduate/Graduate(1),

Direct-to-Consumer

(“DTC”)

(2)

Career

Training

(3)

and

Private Consolidation Loans

FICO scores are based on the greater of the borrower and cosigner scores as of a date near the loan

application and must be at least:

•

Undergraduate/Graduate

not-for-profit

schools:

640

•

Undergraduate/Graduate

for-profit

schools:

670

•

DTC

loans:

670

•

Career

Training

loans:

670

•

Private

Consolidation

loans:

640

Excludes loans made at selected schools that have historically experienced higher rates of default

•

The cohort default triangles are not representative of the characteristics of the portfolio of Private Education Loans of

Navient

Corporation

and

its

consolidated

subsidiaries

whole

any

particular

securitization

trust

(1)

Undergraduate/Graduate loans marketed under the Signature Student Loan brand.

(2)

Direct-to-Consumer Loans marketed under the Tuition Answer brand.

(3)

Career Training loans provide eligible borrowers financing at technical, trade, K-12 or tutoring schools.

Confidential

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reserved.

Cohort Default Triangles

•

The cohort default triangles featured on subsequent slides are segmented by loan program type, FICO score, cosigner

status, and school type

•

Terms and calculations used in the cohort default triangles are defined below:

Repayment

Year

–

The

calendar

year

loans

entered

repayment

Disbursed

Principal

Entering

Repayment

–

The

amount

principal

entering

repayment

given

year,

based

on disbursed principal prior to any interest capitalization

Years

Repayment

–

Measured

years

between

repayment

start

date

and

default

date.

Zero

represents

defaults that occurred prior to the start of repayment.

Periodic Defaults –

Defaulted principal in each Year in Repayment as a percentage of the disbursed principal

entering repayment in each Repayment Year

•

Defaulted principal includes any interest capitalization that occurred prior to default

•

Defaulted principal is not reduced by any amounts recovered after the loan defaulted

•

Because the numerator includes capitalized interest while the denominator does not, default rates are higher

than if the numerator and denominator both included capitalized interest

Total

–

The

sum

Periodic

Defaults

across

Years

Repayment

for

each

Repayment

Year

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Cohort Default Triangles

Note: Data as of 6/30/14.

(1)

Undergraduate/Graduate loans marketed under the Signature Student Loan brand.

(2)

Periodic Defaults for the most recent two calendar Years in Repayment are for a partial year.

(3)

Numerator is the amount of principal in each cohort that defaulted in each Year in Repayment. Denominator is the amount of disbursed principal for that Repayment Year.

Undergraduate/Graduate

(1)

Disbursed Principal

Entering

Repayment Year

Repayment ($m)

Total

1998

$11

0.0%

0.1%

0.4%

0.8%

0.4%

0.2%

1.5%

0.7%

0.4%

0.3%

0.0%

0.1%

5.0%

1999

$28

0.0%

0.1%

0.9%

0.6%

1.4%

0.4%

0.3%

1.0%

0.5%

0.2%

0.7%

0.3%

0.1%

0.4%

6.9%

2000

$70

0.0%

0.6%

1.1%

1.3%

0.6%

0.9%

1.5%

1.0%

0.8%

0.4%

0.5%

0.2%

0.0%

10.6%

2001

$187

0.0%

0.1%

1.1%

1.4%

0.9%

1.8%

1.3%

2.3%

1.9%

1.5%

0.8%

0.6%

0.3%

0.0%

13.8%

2002

$386

0.0%

0.2%

1.2%

1.1%

1.8%

1.6%

2.3%

1.9%

1.3%

0.9%

0.6%

0.5%

0.0%

13.8%

2003

$682

0.0%

0.2%

0.6%

0.9%

1.9%

1.6%

2.7%

2.4%

1.8%

1.2%

0.8%

0.5%

0.0%

14.5%

2004

$1,132

0.0%

0.2%

0.3%

1.9%

1.8%

3.0%

2.9%

1.8%

1.4%

1.1%

0.6%

0.1%

15.0%

2005

$1,537

0.0%

0.4%

2.5%

3.7%

3.4%

2.1%

1.6%

1.2%

0.7%

0.0%

15.7%

2006

$2,013

0.0%

0.1%

1.6%

3.7%

2.5%

1.8%

1.4%

0.8%

0.0%

15.7%

2007

$2,451

0.0%

0.4%

3.5%

4.6%

3.0%

2.0%

1.7%

1.1%

0.0%

16.4%

2008

$2,933

0.0%

2.3%

4.2%

3.9%

2.6%

2.2%

1.3%

0.1%

16.6%

2009

$3,241

0.0%

3.4%

3.7%

3.6%

2.6%

1.5%

0.1%

14.9%

2010

$2,769

0.0%

3.6%

3.8%

3.5%

1.6%

0.1%

12.6%

2011

$1,870

0.0%

3.0%

4.5%

1.9%

0.1%

9.5%

2012

$1,101

0.0%

2.9%

3.2%

0.2%

6.4%

2013

$528

0.0%

1.8%

0.3%

2.1%

Periodic Defaults by Years in Repayment

(2),(3)

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and

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Cohort Default Triangles

Undergraduate/Graduate

(1)

Without

Co-signer

Undergraduate/Graduate

(1)

With

Co-signer

Note: Data as of 6/30/14.

(1)

Undergraduate/Graduate loans marketed under the Signature Student Loan brand.

(2)

Periodic Defaults for the most recent two calendar Years in Repayment are for a partial year.

(3)

Numerator is the amount of principal in each cohort that defaulted in each Year in Repayment. Denominator is the amount of disbursed principal for that Repayment Year.

Disbursed Principal

Entering

Repayment Year

Repayment ($m)

Total

1998

0.0%

0.1%

0.6%

1.0%

0.4%

0.0%

0.2%

1.1%

0.1%

0.0%

0.1%

3.6%

1999

$14

0.0%

0.4%

0.1%

0.9%

0.4%

0.2%

0.1%

0.4%

0.0%

0.1%

0.2%

3.0%

2000

$37

0.0%

0.5%

0.7%

0.4%

0.7%

1.2%

0.8%

0.9%

0.2%

0.5%

0.2%

0.0%

7.4%

2001

$90

0.0%

0.1%

0.7%

0.9%

0.6%

1.2%

1.0%

1.7%

1.4%

1.1%

0.8%

0.4%

0.2%

0.0%

10.1%

2002

$196

0.0%

0.2%

0.1%

0.8%

0.6%

1.4%

0.8%

1.9%

1.5%

1.1%

0.7%

0.6%

0.4%

0.0%

10.3%

2003

$367

0.0%

0.1%

0.3%

0.6%

0.9%

1.1%

2.2%

1.9%

1.4%

0.9%

0.7%

0.4%

0.0%

10.5%

2004

$632

0.0%

0.2%

1.0%

2.2%

2.1%

1.4%

1.1%

0.9%

0.5%

0.0%

10.6%

2005

$844

0.0%

0.2%

1.4%

2.4%

2.3%

1.6%

1.2%

0.9%

0.6%

0.0%

10.7%

2006

$1,121

0.0%

0.7%

2.4%

1.8%

1.3%

1.1%

0.7%

0.0%

10.4%

2007

$1,408

0.0%

0.2%

2.0%

2.9%

2.0%

1.5%

1.2%

0.9%

0.0%

10.8%

2008

$1,758

0.0%

1.2%

2.6%

2.7%

1.8%

1.6%

1.0%

0.1%

10.9%

2009

$2,075

0.0%

2.0%

2.4%

1.8%

1.1%

0.1%

9.8%

2010

$1,853

0.0%

2.1%

2.3%

1.1%

0.1%

7.9%

2011

$1,352

0.0%

1.6%

2.7%

1.2%

0.1%

5.6%

2012

$848

0.0%

1.7%

2.0%

0.1%

3.9%

2013

$404

0.0%

1.1%

0.2%

1.3%

Periodic Defaults by Years in Repayment

(2),(3)

Disbursed Principal

Entering

Repayment Year

Repayment ($m)

Total

1998

0.0%

0.2%

0.6%

0.4%

3.1%

0.2%

0.8%

0.7%

0.0%

0.2%

6.8%

1999

$14

0.0%

0.3%

1.3%

1.1%

1.9%

0.4%

0.3%

1.8%

0.6%

0.5%

1.4%

0.6%

0.1%

0.6%

10.9%

2000

$33

0.0%

0.8%

1.7%

2.1%

0.6%

1.5%

2.3%

2.0%

1.1%

0.7%

0.4%

0.3%

0.0%

14.1%

2001

$97

0.0%

0.1%

1.5%

1.9%

1.2%

2.3%

1.5%

2.9%

2.3%

1.8%

0.9%

0.7%

0.3%

0.0%

17.3%

2002

$190

0.0%

0.2%

1.6%

1.7%

2.3%

2.4%

2.8%

2.4%

1.5%

1.1%

0.6%

0.0%

17.4%

2003

$315

0.0%

0.2%

0.9%

1.4%

2.9%

2.3%

3.3%

3.0%

2.3%

1.5%

0.8%

0.5%

0.0%

19.2%

2004

$499

0.0%

0.3%

0.4%

3.1%

2.8%

4.1%

3.8%

2.3%

1.7%

1.3%

0.7%

0.1%

20.6%

2005

$694

0.0%

0.1%

0.7%

3.9%

5.3%

4.7%

2.7%

2.1%

1.6%

0.8%

0.1%

21.8%

2006

$892

0.0%

0.2%

2.7%

5.3%

5.4%

3.4%

2.3%

1.9%

1.0%

0.1%

22.3%

2007

$1,043

0.0%

0.8%

5.5%

6.9%

4.3%

2.8%

2.4%

1.4%

0.0%

24.1%

2008

$1,175

0.1%

4.0%

6.5%

5.9%

3.8%

3.0%

1.7%

0.1%

25.1%

2009

$1,165

0.0%

6.0%

5.7%

3.9%

2.2%

0.1%

23.9%

2010

$916

0.0%

6.7%

6.8%

6.0%

2.5%

0.1%

22.2%

2011

$518

0.0%

6.7%

9.0%

3.7%

0.3%

19.8%

2012

$252

0.1%

7.1%

7.2%

0.3%

14.7%

2013

$124

0.1%

4.0%

0.8%

4.9%

Periodic Defaults by Years in Repayment

(2),(3)

Confidential

and

proprietary

information

2014

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rights

reserved.

Cohort Default Triangles

Note: Data as of 6/30/14.

(1)

Undergraduate/Graduate loans marketed under the Signature Student Loan brand.

(2)

Periodic Defaults for the most recent two calendar Years in Repayment are for a partial year.

(3)

Numerator is the amount of principal in each cohort that defaulted in each Year in Repayment. Denominator is the amount of disbursed principal for that Repayment Year.

Undergraduate/Graduate

(1)

Non-Profit

Undergraduate/Graduate

(1)

For-Profit

Disbursed Principal

Entering

Repayment Year

Repayment ($m)

Total

1998

$11

0.0%

0.2%

0.4%

0.2%

1.1%

0.7%

0.3%

0.0%

0.1%

4.2%

1999

$26

0.0%

0.8%

0.5%

1.2%

0.4%

0.3%

1.0%

0.5%

0.2%

0.5%

0.4%

0.1%

0.3%

6.2%

2000

$68

0.0%

0.6%

1.0%

1.4%

0.5%

0.9%

1.4%

1.3%

1.0%

0.8%

0.5%

0.3%

0.0%

10.2%

2001

$180

0.0%

0.1%

1.0%

1.4%

0.9%

1.7%

1.2%

2.4%

1.8%

1.5%

0.8%

0.6%

0.3%

0.0%

13.5%

2002

$360

0.0%

0.2%

1.2%

1.0%

1.8%

1.6%

2.3%

2.0%

1.3%

0.9%

0.6%

0.5%

0.0%

13.6%

2003

$630

0.0%

0.2%

0.6%

0.8%

1.8%

1.6%

2.6%

2.4%

1.7%

1.1%

0.7%

0.5%

0.0%

14.0%

2004

$1,006

0.0%

0.2%

1.8%

1.6%

2.9%

2.6%

1.7%

1.3%

1.1%

0.5%

0.1%

14.1%

2005

$1,362

0.0%

0.4%

2.4%

3.5%

3.2%

2.0%

1.5%

1.2%

0.7%

0.0%

14.9%

2006

$1,766

0.0%

0.1%

1.5%

3.5%

3.6%

2.4%

1.7%

1.4%

0.8%

0.0%

15.0%

2007

$2,103

0.0%

0.4%

3.4%

4.3%

2.8%

2.0%

1.7%

1.1%

0.0%

15.7%

2008

$2,457

0.0%

2.2%

3.9%

3.6%

2.4%

2.1%

1.2%

0.1%

15.6%

2009

$2,686

0.0%

3.2%

3.4%

2.4%

1.4%

0.1%

14.0%

2010

$2,378

0.0%

3.4%

3.7%

3.3%

1.5%

0.1%

12.0%

2011

$1,664

0.0%

2.8%

4.2%

1.8%

0.1%

9.0%

2012

$1,002

0.0%

2.8%

3.0%

0.1%

6.0%

2013

$481

0.0%

1.7%

0.3%

2.0%

Periodic Defaults by Years in Repayment

(2),(3)

Disbursed Principal

Entering

Repayment Year

Repayment ($m)

Total

1998

$0.36

0.0%

13.6%

0.0%

12.6%

0.0%

5.1%

0.0%

0.4%

0.0%

31.7%

1999

0.0%

2.3%

1.4%

2.1%

4.8%

0.0%

0.9%

5.3%

0.0%

2.5%

19.3%

2000

0.0%

2.8%

0.7%

3.2%

3.7%

8.9%

0.0%

1.6%

0.0%

24.3%

2001

0.0%

0.1%

4.7%

2.2%

1.1%

4.3%

2.2%

0.8%

3.5%

1.5%

1.8%

0.4%

0.0%

22.8%

2002

$27

0.0%

0.3%

1.9%

2.2%

2.1%

2.0%

2.8%

1.8%

1.3%

0.8%

0.7%

0.6%

0.0%

16.6%

2003

$52

0.0%

0.2%

0.7%

2.4%

2.7%

2.2%

3.8%

3.0%

2.4%

1.6%

0.9%

0.5%

0.0%

20.5%

2004

$126

0.0%

0.3%

0.6%

3.2%

3.0%

3.9%

4.6%

2.3%

1.8%

1.4%

0.9%

0.1%

22.2%

2005

$175

0.0%

0.7%

3.7%

5.3%

4.9%

2.7%

1.9%

1.3%

1.0%

0.1%

21.7%

2006

$246

0.0%

0.2%

2.1%

4.9%

5.0%

3.2%

2.1%

1.9%

1.1%

0.0%

20.6%

2007

$348

0.0%

0.5%

4.3%

6.5%

4.0%

2.5%

2.1%

1.4%

0.1%

21.3%

2008

$475

0.0%

3.0%

5.9%

5.6%

3.1%

2.5%

1.6%

0.1%

21.7%

2009

$554

0.0%

4.3%

5.1%

4.3%

3.3%

1.9%

0.1%

19.0%

2010

$391

0.1%

4.7%

4.8%

2.2%

0.3%

16.7%

2011

$206

0.1%

4.5%

6.4%

2.7%

0.4%

14.0%

2012

$99

0.1%

4.1%

5.3%

0.4%

9.9%

2013

$47

0.2%

2.6%

0.5%

3.3%

Periodic Defaults by Years in Repayment

(2),(3)

Confidential

and

proprietary

information

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rights

reserved.

Undergraduate/Graduate

(1)

Loans, FICO 740-850

(2)

Undergraduate/Graduate

(1)

Loans, FICO 700-739

(2)

Note: Data as of 6/30/14.

(1)

Undergraduate/Graduate loans marketed under the Signature Student Loan brand.

(2)

FICO scores are based on the greater of the borrower and co-borrower scores as of a date near the loan application.

(3)

Periodic Defaults for the most recent two calendar Years in Repayment are for a partial year.

(4)

Numerator is the amount of principal in each cohort that defaulted in each Year in Repayment. Denominator is the amount of disbursed principal for that Repayment Year.

Disbursed Principal

Entering

Repayment Year

Repayment ($m)

Total

1998

0.0%

0.5%

2.2%

0.0%

0.1%

0.7%

0.0%

3.5%

1999

0.0%

0.5%

0.4%

0.7%

0.0%

0.3%

1.5%

0.7%

0.1%

0.8%

0.1%

0.0%

5.1%

2000

$20

0.0%

0.4%

0.7%

1.3%

0.8%

1.1%

0.8%

1.3%

0.7%

0.6%

0.4%

0.8%

0.2%

0.0%

9.0%

2001

$54

0.0%

0.1%

0.9%

1.2%

0.5%

1.4%

0.9%

1.9%

1.4%

1.2%

0.9%

0.5%

0.2%

0.0%

11.2%

2002

$111

0.0%

0.1%

1.1%

1.0%

1.7%

1.4%

2.2%

1.4%

1.3%

0.8%

0.5%

0.4%

0.0%

12.0%

2003

$194

0.0%

0.2%

0.5%

0.8%

1.5%

2.4%

1.9%

1.8%

1.2%

0.7%

0.5%

0.0%

13.0%

2004

$321

0.0%

0.2%

1.7%

1.5%

2.5%

2.8%

1.8%

1.4%

1.0%

0.5%

0.0%

13.8%

2005

$439

0.0%

0.4%

2.2%

3.3%

2.9%

2.1%

1.4%

1.1%

0.7%

0.0%

14.2%

2006

$553

0.0%

0.1%

1.3%

3.1%

3.4%

2.4%

1.7%

1.2%

0.8%

0.0%

14.0%

2007

$659

0.0%

0.3%

2.8%

4.1%

2.7%

1.7%

1.6%

1.1%

0.0%

14.4%

2008

$782

0.0%

2.0%

3.8%

3.5%

2.4%

2.0%

1.2%

0.1%

15.0%

2009

$875

0.0%

3.0%

3.5%

3.4%

2.6%

1.5%

0.1%

14.1%

2010

$731

0.0%

3.4%

3.8%

3.3%

1.5%

0.1%

12.2%

2011

$482

0.0%

2.8%

4.2%

1.8%

0.2%

9.1%

2012

$281

0.1%

2.7%

3.0%

0.2%

5.9%

2013

$134

0.0%

1.5%

0.3%

1.9%

Periodic Defaults by Years in Repayment

Disbursed Principal

Entering

Repayment Year

Repayment ($m)

Total

1998

0.0%

0.2%

0.0%

0.4%

0.9%

0.0%

2.8%

1999

0.0%

0.5%

0.3%

1.7%

0.5%

0.2%

0.0%

0.2%

0.0%

0.4%

0.0%

0.8%

4.9%

2000

$22

0.0%

0.3%

0.4%

0.2%

0.3%

1.0%

0.4%

0.5%

0.0%

0.2%

0.1%

0.0%

4.9%

2001

$64

0.0%

0.5%

0.4%

1.1%

0.8%

1.0%

0.7%

0.6%

0.7%

0.4%

0.2%

0.0%

6.8%

2002

$137

0.0%

0.2%

0.1%

0.5%

0.4%

0.8%

0.6%

1.1%

0.9%

0.6%

0.5%

0.4%

0.2%

0.0%

6.4%

2003

$248

0.0%

0.1%

0.2%

0.4%

0.6%

0.7%

1.2%

1.4%

0.8%

0.7%

0.6%

0.3%

0.0%

7.1%

2004

$424

0.0%

0.1%

0.7%

1.4%

1.3%

0.9%

0.8%

0.7%

0.4%

0.0%

7.2%

2005

$574

0.0%

0.2%

1.0%

1.5%

1.1%

0.9%

0.6%

0.5%

0.0%

7.2%

2006

$761

0.0%

0.5%

1.4%

1.5%

1.1%

0.8%

0.7%

0.5%

0.0%

6.5%

2007

$937

0.0%

0.1%

1.2%

1.6%

1.1%

1.0%

0.8%

0.6%

0.0%

6.4%

2008

$1,130

0.0%

0.7%

1.5%

1.4%

1.0%

0.6%

0.0%

6.3%

2009

$1,325

0.0%

1.2%

1.4%

1.2%

0.7%

0.0%

6.0%

2010

$1,186

0.0%

1.4%

1.5%

1.6%

0.9%

0.0%

5.4%

2011

$831

0.0%

1.1%

1.8%

0.8%

0.1%

3.8%

2012

$506

0.0%

1.3%

0.1%

2.7%

2013

$245

0.0%

0.8%

0.2%

1.0%

Periodic Defaults by Years in Repayment

(3),(4)

Cohort Default Triangles

Cohort Default Triangles

Note: Data as of 6/30/14.

(1)

Undergraduate/Graduate loans marketed under the Signature Student Loan brand.

(2)

FICO scores are based on the greater of the borrower and co-borrower scores as of a date near the loan application.

(3)

Periodic Defaults for the most recent two calendar Years in Repayment are for a partial year.

(4)

Numerator is the amount of principal in each cohort that defaulted in each Year in Repayment. Denominator is the amount of disbursed principal for that Repayment Year.

Undergraduate/Graduate

(1)

Loans, FICO 670-699

(2)

Undergraduate/Graduate

(1)

Loans, FICO 640-669

(2)

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Disbursed Principal

Entering

Repayment Year

Repayment ($m)

Total

1998

0.0%

0.6%

0.3%

0.5%

0.3%

2.8%

0.0%

0.5%

0.3%

0.1%

0.3%

6.2%

1999

0.0%

0.5%

1.4%

0.5%

1.3%

0.3%

0.1%

0.7%

0.5%

1.3%

0.4%

0.0%

0.3%

7.6%

2000

$14

0.0%

0.9%

1.4%

1.9%

0.2%

1.0%

0.9%

1.4%

1.0%

0.9%

0.4%

0.6%

0.0%

12.0%

2001

$37

0.0%

0.1%

1.3%

2.1%

1.5%

1.9%

1.6%

2.7%

2.9%

2.0%

0.8%

0.6%

0.3%

0.0%

17.8%

2002

$77

0.0%

0.2%

0.3%

1.6%

1.8%

2.4%

2.9%

2.7%

1.6%

1.1%

0.7%

0.6%

0.0%

18.4%

2003

$134

0.0%

0.1%

0.8%

1.3%

2.8%

2.2%

3.7%

3.3%

2.2%

1.3%

0.7%

0.5%

0.0%

18.9%

2004

$222

0.0%

0.3%

0.5%

2.9%

2.6%

4.2%

3.8%

2.3%

1.7%

1.3%

0.6%

0.1%

20.3%

2005

$298

0.0%

0.1%

0.7%

3.8%

5.2%

4.9%

2.7%

1.9%

1.5%

0.8%

0.1%

21.8%

2006

$402

0.0%

0.2%

2.6%

5.5%

5.6%

3.6%

2.4%

1.9%

1.1%

0.1%

22.9%

2007

$504

0.0%

0.7%

5.6%

7.4%

4.8%

3.0%

2.4%

1.4%

0.0%

25.3%

2008

$623

0.0%

3.8%

6.9%

6.4%

3.8%

3.1%

1.9%

0.1%

26.0%

2009

$662

0.1%

5.7%

6.1%

6.0%

3.9%

2.3%

0.1%

24.2%

2010

$543

0.0%

6.2%

5.7%

2.4%

0.1%

20.7%

2011

$355

0.0%

5.0%

7.8%

3.2%

0.3%

16.3%

2012

$199

0.1%

4.8%

5.7%

0.2%

10.9%

2013

$94

0.0%

3.3%

0.5%

3.8%

Periodic Defaults by Years in Repayment

(3),(4)

Disbursed Principal

Entering

Repayment Year

Repayment ($m)

Total

1998

0.0%

0.3%

0.5%

0.9%

0.0%

2.9%

2.3%

1.3%

0.2%

0.0%

0.3%

8.6%

1999

0.0%

1.1%

1.3%

2.3%

0.9%

0.3%

2.1%

0.5%

0.1%

0.7%

0.5%

0.4%

0.5%

10.7%

2000

$14

0.0%

1.3%

2.5%

2.3%

1.4%

1.6%

3.8%

3.0%

1.9%

1.5%

0.7%

0.5%

0.2%

0.0%

20.7%

2001

$32

0.0%

0.1%

2.3%

2.9%

2.0%

3.4%

2.6%

5.2%

3.8%

2.8%

1.1%

1.0%

0.5%

0.0%

27.7%

2002

$61

0.0%

0.2%

0.4%

2.7%

2.3%

3.9%

3.1%

4.6%

4.2%

2.4%

1.8%

1.2%

1.1%

0.0%

27.9%

2003

$107

0.0%

0.3%

1.3%

2.1%

4.1%

3.3%

5.4%

4.6%

3.5%

2.1%

1.4%

0.8%

0.0%

29.0%

2004

$165

0.0%

0.5%

4.4%

3.9%

6.4%

5.7%

3.5%

2.4%

2.0%

1.1%

0.1%

30.6%

2005

$226

0.0%

0.1%

0.9%

5.4%

8.2%

7.0%

3.8%

3.3%

2.3%

1.3%

0.0%

32.2%

2006

$296

0.0%

0.2%

3.7%

8.1%

7.8%

4.8%

3.5%

2.9%

1.5%

0.1%

32.7%

2007

$351

0.0%

1.1%

8.0%

9.8%

6.0%

4.0%

3.4%

2.0%

0.1%

34.3%

2008

$398

0.0%

5.4%

8.5%

8.1%

5.3%

4.2%

2.5%

0.1%

34.1%

2009

$378

0.0%

8.2%

8.0%

7.3%

4.9%

2.9%

0.1%

31.4%

2010

$310

0.0%

8.0%

8.4%

7.8%

3.0%

0.1%

27.3%

2011

$202

0.0%

7.7%

10.2%

4.2%

0.1%

22.3%

2012

$114

0.0%

7.5%

8.0%

0.3%

15.8%

2013

$54

0.0%

4.4%

0.6%

5.0%

Periodic Defaults by Years in Repayment

(3),(4)

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Cohort Default Triangles

Private Consolidation Loans Without Co-signer

Private Consolidation Loans With Co-signer

Note: Data as of 6/30/14.

(1)

Periodic Defaults for the most recent two calendar Years in Repayment are for a partial year.

(2)

Numerator is the amount of principal in each cohort that defaulted in each Year in Repayment. Denominator is the amount of disbursed principal for that Repayment Year.

Disbursed Principal

Entering

Repayment Year

Repayment ($m)

Total

2006

$125

0.0%

0.4%

0.9%

1.5%

1.7%

1.5%

1.0%

1.1%

0.8%

0.0%

9.0%

2007

$295

0.0%

0.9%

1.0%

1.3%

1.0%

0.7%

0.1%

5.9%

2008

$133

0.0%

0.2%

1.7%

2.1%

1.8%

1.7%

1.9%

0.2%

9.5%

Periodic Defaults by Years in Repayment

(1),(2)

Disbursed Principal

Entering

Repayment Year

Repayment ($m)

Total

2006

$249

0.0%

0.1%

0.5%

0.6%

0.4%

0.3%

0.0%

2.9%

2007

$675

0.0%

0.2%

0.4%

0.6%

0.4%

0.0%

2.4%

2008

$376

0.0%

0.1%

0.4%

0.7%

0.6%

0.5%

0.1%

2.9%

Periodic Defaults by Years in Repayment

(1),(2)

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Note: Data as of 6/30/14.

(1)

FICO scores are based on the greater of the borrower and co-borrower scores as of a date near the loan application.

(2)

Periodic Defaults for the most recent two calendar Years in Repayment are for a partial year.

(3)

Numerator is the amount of principal in each cohort that defaulted in each Year in Repayment. Denominator is the amount of disbursed principal for that Repayment Year.

DTC With Co-signer, FICO

670

(1)

DTC Without Co-signer, FICO

670

(1)

Disbursed Principal

Entering

Repayment Year

Repayment ($m)

Total

2004

0.0%

0.2%

0.1%

0.4%

0.0%

0.2%

0.0%

0.9%

2005

$65

0.0%

0.1%

0.8%

0.7%

1.4%

2.1%

1.2%

0.9%

0.8%

0.9%

0.0%

9.0%

2006

$139

0.0%

0.7%

1.8%

4.4%

4.8%

2.4%

2.0%

1.0%

0.1%

19.2%

2007

$245

0.0%

0.6%

4.7%

6.2%

4.2%

2.7%

2.6%

1.7%

0.0%

22.7%

2008

$369

0.0%

2.8%

5.9%

4.9%

3.6%

2.8%

2.0%

0.1%

22.1%

2009

$396

0.0%

3.7%

4.1%

4.0%

3.2%

2.1%

0.1%

17.1%

2010

$314

0.0%

3.6%

4.1%

4.7%

2.5%

0.3%

15.1%

2011

$192

0.1%

3.7%

5.2%

3.3%

0.3%

12.6%

2012

$104

0.0%

3.3%

5.0%

0.6%

8.8%

2013

$23

0.0%

1.2%

0.5%

1.7%

Periodic Defaults by Years in Repayment

(2),(3)

Disbursed Principal

Entering

Repayment Year

Repayment ($m)

Total

2004

0.0%

1.6%

1.2%

0.6%

4.7%

2.2%

3.0%

1.2%

4.2%

0.0%

18.8%

2005

$19

0.0%

1.0%

2.1%

2.4%

4.1%

6.5%

2.8%

1.6%

1.0%

1.2%

0.0%

22.7%

2006

$66

0.0%

1.4%

2.5%

6.6%

6.4%

4.0%

2.7%

2.6%

1.2%

0.0%

27.4%

2007

$158

0.0%

1.0%

5.8%

8.1%

4.6%

3.8%

3.3%

1.9%

0.0%

28.5%

2008

$255

0.0%

3.7%

7.9%

7.3%

4.2%

4.0%

2.2%

0.1%

29.4%

2009

$234

0.0%

6.7%

6.3%

6.9%

5.1%

2.8%

0.1%

28.0%

2010

$152

0.1%

8.3%

7.0%

8.7%

3.6%

0.3%

28.0%

2011

$88

0.1%

7.8%

10.1%

5.1%

0.5%

23.7%

2012

$47

0.0%

6.2%

7.7%

0.8%

14.7%

2013

0.0%

3.2%

0.6%

3.8%

Periodic Defaults by Years in Repayment

(2),(3)

Cohort Default Triangles

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Cohort Default Triangles

Note: Data as of 6/30/14.

(1)

FICO scores are based on the greater of the borrower and co-borrower scores as of a date near the loan application.

(2)

Periodic Defaults for the most recent two calendar Years in Repayment are for a partial year.

(3)

Numerator is the amount of principal in each cohort that defaulted in each Year in Repayment. Denominator is the amount of disbursed principal for that Repayment Year.

Career Training Loans, 670+ FICO

(1)

Disbursed Principal

Entering

Repayment Year

Repayment ($m)

Total

2003

$291

0.0%

0.4%

1.4%

1.6%

1.8%

1.4%

1.3%

1.0%

0.8%

0.5%

0.4%

0.2%

0.0%

11.0%

2004

$382

0.0%

0.4%

1.5%

2.3%

1.7%

1.8%

1.7%

1.1%

0.8%

0.5%

0.3%

0.0%

12.2%

2005

$513

0.0%

0.3%

2.2%

2.5%

2.1%

1.5%

1.0%

0.8%

0.5%

0.1%

13.2%

2006

$630

0.0%

0.4%

2.5%

3.5%

3.2%

2.2%

1.5%

1.0%

0.7%

0.1%

15.2%

2007

$672

0.0%

0.5%

3.5%

3.9%

3.0%

1.8%

1.3%

0.9%

0.1%

15.0%

2008

$581

0.0%

0.6%

4.3%

3.6%

2.2%

1.5%

1.1%

0.1%

13.4%

2009

$169

0.0%

0.2%

2.1%

1.5%

1.0%

0.2%

7.1%

2010

$19

0.0%

0.6%

1.2%

1.0%

0.5%

0.2%

3.4%

Periodic Defaults by Years in Repayment

(2),(3)

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Appendix

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GAAP Results

(In millions, except per share amounts)

Q2 14

Q1 14

Q2 13

Net income

$307

$219

$543

EPS

$0.71

$0.49

$1.20

Operating expenses

$211

$366

$244

Provision

$165

$185

$201

Average total student loans

$134,737

$142,679

$152,135

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Differences

between

“Core

Earnings”

and

GAAP

“Core Earnings”

adjustments to GAAP:

GAAP net income

$ 307

Net impact of SLM BankCo

Net impact of derivative accounting

(150)

Net impact of goodwill and acquired intangible assets

Net income tax effect

Total “Core Earnings”

adjustments to GAAP

(66)

“Core Earnings”

net income

$241

Quarter ended June 30, 2014

($ in millions)

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Changes for Investors

A consistent platform, team, and management

Source: Navient, Navient Form 10 filed April 10, 2014.

Before Separation

After Separation

Parent Company

SLM Corporation

Navient Corporation

Headquarters

Newark, DE

Issuing Entity

SLM Student Loan

Trust 201X-A

Navient Student Loan

Trust 201X-A

SLABS Bloomberg Ticker

SLMA

NAVSL

Depositor

SLM Funding LLC

Navient Funding, LLC

Sponsor, Servicer, and

Administrator

Sallie Mae, Inc.

Navient Solutions, Inc.

Servicing Employees

~2,100

Customers Serviced (mm)

13+

12+

Total Loans Serviced ($ bn)

~300

Investment Corp Holding

Residual Interests

Sallie Mae Investment

Corporation

Navient Investment

Corporation

https://www.navient.com/about/investors/

Investor Relations Website

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SLM / NAVI student loan trust data (Debt/asset backed securities – SLM / NAVI Student Loan Trusts)

SLM / NAVI student loan performance by trust – Issue details

Archived and historical webcasts, transcripts and investor presentations

Additional information (Webcasts and presentations)

Prospectus for public transactions and Rule 144A transactions are available through underwriters

Current rates

Distribution factors

Current and historical monthly distribution reports

Since issued CPR – monthly CPR data by trust since issuance

Historical trust performance – monthly charge-off, delinquency, loan status, CPR, etc. by trust

Quarterly distribution factors

Accrued interest factors

Static pool information – detailed portfolio stratifications by trust as of the cutoff date