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): November 4, 2014
Navient Corporation
(Exact name of registrant as specified in its charter)
| Delaware | 001-36228 | 46-4054283 | ||
| (State or other jurisdiction | (Commission | (I.R.S. Employer | ||
| of incorporation) | File Number) | 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 November 4, 2014, a presentation entitled “2014 3rd 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 3rd 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.
| NAVIENT CORPORATION | ||||||||
| Date: November 4, 2014 | By: | /s/ Somsak Chivavibul | ||||||
| Somsak Chivavibul | ||||||||
| Chief Financial Officer | ||||||||
EXHIBIT INDEX
| Exhibit Number |
Description | |
| 99.1* | 2014 3rd Quarter Investor Deck. |
| * | Furnished herewith. |
 2014
3 rd
Quarter
Investor Deck
November 4, 2014
Exhibit 99.1 |
 Confidential
and
proprietary
information
©
2014
Navient
Solutions,
Inc.
All
rights
reserved.
2
Forward-Looking Statements; Non-GAAP Financial
Measures
The following information is current as of November 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, as
well as 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
third
quarter
earnings
release
for
a
further
discussion
and
a
complete
reconciliation
between
GAAP net income and core earnings. |
 Confidential
and
proprietary
information
©
2014
Navient
Solutions,
Inc.
All
rights
reserved.
3
Navient
Corporation
Overview |
 Confidential
and
proprietary
information
©
2014
Navient
Solutions,
Inc.
All
rights
reserved.
4
We
are
the
leading
loan
management,
servicing
and
asset
recovery
company
Key Businesses
Highlights
Asset Management
•
FFELP Loan Portfolio
•
Private Education Loan Portfolio
•
$98 Billion FFELP Portfolio
•
$30 Billion Private Education Loan Portfolio
Servicing
•
FFELP Loans
•
Private Education Loans
•
Department of Education Servicing Contract
•
Guarantor Servicing
•
Over 12 Million Borrowers
•
Over $300 Billion of Education Loans
Asset Recovery
•
Education loans
•
Government receivables
•
Taxes
•
Court/Municipal
•
Schools
•
$16 Billion of Receivables
•
Consistent Top Performer on the
Department of Education Collections
Contract |
 Confidential
and
proprietary
information
©
2014
Navient
Solutions,
Inc.
All
rights
reserved.
5
Operating Results
“Core Earning”
Basis
(In millions, except per share amounts)
Q3 14
Q2 14
Q3 13
Net income
$218
$241
$259
EPS
$0.52
$0.56
$0.58
Operating expenses
$195
$195
$190
Provision
$140
$155
$187
Average student loans
$129,915
$131,875
$138,572 |
 Confidential
and
proprietary
information
©
2014
Navient
Solutions,
Inc.
All
rights
reserved.
6
FFELP Loans Segment
“Core Earnings”
Basis
(In millions)
Q3 14
Q2 14
Q3 13
Net income
$79
$72
$91
Average FFELP Loans
$98,736
$100,467
$106,316
FFELP Loan spread
1.02%
0.98%
1.03%
Annualized charge-off rate
0.08%
0.08%
0.07%
Greater than 90-day delinquency rate
7.6%
7.0%
8.8%
•
Acquired $1.8 billion of FFELP loans year to date |
 Confidential
and
proprietary
information
©
2014
Navient
Solutions,
Inc.
All
rights
reserved.
7
FFELP Loans Segment
Portfolio Characteristics
•
Largest holder of FFELP Loans, $98 billion portfolio
(1)
•
Portfolio is 97-98% government guaranteed
•
87% of portfolio funded to term with securitizations
•
Fully integrated servicing and asset recovery support operations
(1) Ending FFELP Loans, net, as of September 30, 2014 |
 8
Confidential
and
proprietary
information
©
2014
Navient
Solutions,
Inc.
All
rights
reserved.
FFELP Loans Segment
Credit Quality “Core Earnings”
Basis
($'s in millions)
FFELP Education Loan Portfolio
September 30, 2014
September 30, 2013
Balance
%
Balance
%
Loans in-school/grace/deferment
$10,868
$14,484
Loans in forbearance
14,452
13,004
Loans in repayment and percentage of each status
Loans current
60,693
84.9%
63,586
82.9%
Loans delinquent 31-60 days
3,538
4.9%
3,706
4.8%
Loans delinquent 61-90 days
1,878
2.6%
2,673
3.5%
Loans delinqent greater than 90 days
5,399
7.6%
6,751
8.8%
Total FFELP Loans in repayment
71,508
100%
76,716
100%
Total FFELP Loans, gross
$96,828
$104,204
Percentage of FFELP Loans in repayment
73.9%
73.6%
Delinquencies as a percentage of FFELP Loans in
repayment
15.1%
17.1%
Loans in forbearance as a percentage of loans in
repayment and forbearance
16.8%
14.5% |
 9
Confidential
and
proprietary
information
©
2014
Navient
Solutions,
Inc.
All
rights
reserved.
Federal Student Loan Market
Source: Department of Education, U.S. Department of Education FY 2013 Agency
Financial Report, Navient Outstanding Government Student Loan Market
Distribution FFYE 9/30/2013 ($ in billions) |
 10
Confidential
and
proprietary
information
©
2014
Navient
Solutions,
Inc.
All
rights
reserved.
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
$37
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
$79
*Source: Navient 9/30/2013 estimates based on US ED Top 100 Holder 2013 and
2012 report |
 11
Confidential
and
proprietary
information
©
2014
Navient
Solutions,
Inc.
All
rights
reserved.
Private Education Loans Segment
“Core Earnings”
Basis
($’s in millions)
Q3 14
Q2 14
Q3 13
Net income
$98
$86
$75
Average Private Education Loans
$31,179
$31,408
$32,256
Private Education Loan spread
4.06%
4.10%
4.12%
Provision for loan losses
$130
$145
$176
Charge-offs
$158
$166
$205
Annualized charge-off rate
2.3%
2.5%
2.9%
Total delinquency rate
7.9%
7.1%
9.8%
Greater than 90-day delinquency rate
3.4%
3.2%
4.2%
Forbearance rate
4.4%
4.2%
3.8%
•
Acquired $1.6 billion of Private Education Loans year to date
|
 12
Confidential
and
proprietary
information
©
2014
Navient
Solutions,
Inc.
All
rights
reserved.
Private Education Loans Segment
Portfolio Characteristics
•
$30 billion portfolio
(1)
•
24% of Navient’s total student loan portfolio
•
Approximately 64% of portfolio has a cosigner, typically a parent
•
Average FICO at origination of 718
•
Higher education loans typically non-dischargeable in bankruptcy
•
Integrated underwriting, servicing and collections
(1) Ending Private Education Loans, net, as of September 30, 2014
|
 13
Confidential
and
proprietary
information
©
2014
Navient
Solutions,
Inc.
All
rights
reserved.
Private Education Loans Segment
Credit Quality “Core Earnings”
Basis
($'s in millions)
Private Education Loan Portfolio
September 30, 2014
September 30, 2013
Balance
%
Balance
%
Loans in-school/grace/deferment
$3,436
$3,850
Loans in forbearance
1,258
1,103
Loans in repayment and percentage of each status
Loans current
24,963
92.1%
25,389
90.2%
Loans delinquent 31-60 days
732
2.7%
929
3.3%
Loans delinquent 61-90 days
468
1.8%
627
2.3%
Loans delinqent greater than 90 days
929
3.4%
1,187
4.2%
Total Private Education Loans in repayment
27,092
100%
28,132
100%
Total Private Education Loans, gross
$31,786
$33,085
Percentage of Private Education Loans in repayment
85.2%
85.0%
Delinquencies as a percentage of Private Education
Loans in repayment
7.9%
9.8%
Loans in forbearance as a percentage of loans in
repayment and forbearance
4.4%
3.8% |
 14
Confidential
and
proprietary
information
©
2014
Navient
Solutions,
Inc.
All
rights
reserved.
Private Education Loans Segment
High Quality Portfolio
Private Credit: % of Portfolio Outstanding by Segment
Private Credit Charge-Off Rate by Segment
Low Risk = Smart Option, Legacy Traditional Cosigned, and Law/MBA/MED/CT/Other
Moderate Risk = Legacy Traditional Non-Cosigned
Elevated Risk = Non-Traditional |
 15
Confidential
and
proprietary
information
©
2014
Navient
Solutions,
Inc.
All
rights
reserved.
Private Education Loans Segment
Default Performance
Historical Defaults by Payments Made
•
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 |
 16
Confidential
and
proprietary
information
©
2014
Navient
Solutions,
Inc.
All
rights
reserved.
Loan Seasoning –
“Core Earnings”
Basis
September 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
$
-
$
-
$
-
$
-
$
- $ 3,128
Loans in Forbearance
466
17.8%
183
5.3%
157
3.8%
126
2.9%
177
1.5%
1,110
4.3%
Loans in Repayment-
Current
1,783
67.9%
2,920
85.0%
3,653
88.4%
3,927
91.0%
10,910
94.5%
23,193
89.0%
Loans in Repayment-
Delinq 31-60 days
131
5.0%
107
3.1%
109
2.6%
95
2.2%
178
1.6%
620
2.4%
Loans in Repayment-
Delinq 61-90 days
90
3.4%
70
2.1%
70
1.7%
58
1.3%
99
0.9%
386
1.5%
Loans in Repayment-
Delinq 90 + days
155
5.9%
155
4.5%
144
3.5%
111
2.6%
177
1.5%
742
2.8%
Total Loans in Repayment or Forbearance
$ 2,625
100%
$ 3,435
100%
$ 4,133
100%
$ 4,317
100%
$ 11,541
100%
$ 26,051
100%
Charge-offs as a % of loans in repayment
5.3%
3.5%
2.0%
1.4%
0.9%
1.9%
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
$
-
$
-
$
-
$
-
$
-
$ 308
Loans in Forbearance
75
21.8%
24
6.7%
17
4.9%
12
3.8%
20
2.2%
148
6.4%
Loans in Repayment-
Current
178
51.4%
253
70.7%
268
76.1%
256
80.7%
815
88.0%
1,770
77.0%
Loans in Repayment-
Delinq 31-60 days
27
7.8%
21
5.8%
20
5.5%
14
4.4%
30
3.2%
112
4.9%
Loans in Repayment-
Delinq 61-90 days
23
6.6%
16
4.5%
13
3.8%
10
3.2%
20
2.2%
82
3.6%
Loans in Repayment-
Delinq 90 + days
43
12.4%
44
12.3%
34
9.7%
25
7.9%
41
4.4%
187
8.1%
Total Loans in Repayment or Forbearance
$ 346
100%
$ 358
100%
$ 352
100%
$ 317
100%
$ 926
100%
$ 2,299
100%
Charge-offs as a % of loans in repayment
15.9%
11.6%
6.7%
5.1%
3.1%
7.0%
Total Managed
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
$
-
$
-
$
-
$
-
$
- $ 3,436
Loans in Forbearance
542
18.2%
207
5.5%
174
3.9%
138
3.0%
197
1.6%
1,258
4.4%
Loans in Repayment-
Current
1,961
66.0%
3,173
83.6%
3,921
87.4%
4,183
90.3%
11,725
94.0%
24,963
88.1%
Loans in Repayment-
Delinq 31-60 days
158
5.3%
128
3.4%
129
2.9%
109
2.3%
208
1.7%
732
2.6%
Loans in Repayment-
Delinq 61-90 days
112
3.8%
86
2.3%
83
1.8%
68
1.5%
119
1.0%
468
1.6%
Loans in Repayment-
Delinq 90 + days
198
6.7%
199
5.2%
178
4.0%
136
2.9%
218
1.8%
929
3.3%
Total Loans in Repayment or Forbearance
$ 2,971
100%
$ 3,793
100%
$ 4,485
100%
$ 4,634
100%
$ 12,467
100%
$ 28,350
100%
Charge-offs as a % of loans in repayment
6.6%
4.3%
2.4%
1.7%
1.1%
2.3% |
 17
Confidential
and
proprietary
information
©
2014
Navient
Solutions,
Inc.
All
rights
reserved.
Loan Seasoning –
“Core Earnings”
Basis
September 30, 2013
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
$
-
$
-
$
-
$
-
$
- $ 3,446
Loans in Forbearance
448
12.3%
165
3.7%
142
2.8%
88
2.0%
123
1.3%
966
3.6%
Loans in Repayment-
Current
2,546
70.2%
3,752
85.6%
4,548
89.2%
4,039
91.5%
8,692
94.2%
23,577
88.1%
Loans in Repayment-
Delinq 31-60 days
187
5.2%
154
3.5%
147
2.9%
112
2.5%
177
1.9%
777
2.9%
Loans in Repayment-
Delinq 61-90 days
161
4.4%
105
2.4%
88
1.7%
64
1.5%
88
1.0%
506
1.9%
Loans in Repayment-
Delinq 90 + days
285
7.9%
209
4.8%
172
3.4%
112
2.5%
145
1.6%
923
3.5%
Total Loans in Repayment or Forbearance
$ 3,627
100%
$ 4,385
100%
$ 5,097
100%
$ 4,415
100%
$ 9,225
100%
$ 26,749
100%
Charge-offs as a % of loans in repayment
5.0%
2.9%
1.9%
1.4%
1.0%
2.3%
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
$
-
$
-
$
-
$
-
$
-
$ 404
Loans in Forbearance
78
14.2%
21
4.9%
14
3.8%
9
2.7%
15
1.9%
137
5.5%
Loans in Repayment-
Current
290
52.6%
290
68.2%
279
74.2%
267
79.7%
686
85.9%
1,812
72.9%
Loans in Repayment-
Delinq 31-60 days
41
7.4%
31
7.3%
25
6.7%
20
6.0%
35
4.4%
152
6.1%
Loans in Repayment-
Delinq 61-90 days
44
8.0%
25
5.9%
18
4.7%
12
3.6%
22
2.7%
121
4.9%
Loans in Repayment-
Delinq 90 + days
98
17.8%
58
13.7%
40
10.6%
27
8.0%
41
5.1%
264
10.6%
Total Loans in Repayment or Forbearance
$ 551
100%
$ 425
100%
$ 376
100%
$ 335
100%
$ 799
100%
$ 2,486
100%
Charge-offs as a % of loans in repayment
16.4%
12.7%
7.4%
5.4%
3.6%
8.9%
Total Managed
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
$
-
$
-
$
-
$
-
$
- $ 3,850
Loans in Forbearance
526
12.6%
186
3.9%
156
2.8%
97
2.0%
138
1.4%
1,103
3.8%
Loans in Repayment-
Current
2,836
67.9%
4,042
84.0%
4,827
88.2%
4,306
90.7%
9,378
93.5%
25,389
86.8%
Loans in Repayment-
Delinq 31-60 days
228
5.4%
185
3.8%
172
3.1%
132
2.8%
212
2.1%
929
3.2%
Loans in Repayment-
Delinq 61-90 days
205
4.9%
130
2.7%
106
1.9%
76
1.6%
110
1.1%
627
2.1%
Loans in Repayment-
Delinq 90 + days
383
9.2%
267
5.6%
212
3.9%
139
2.9%
186
1.9%
1,187
4.1%
Total Loans in Repayment or Forbearance
$ 4,178
100%
$ 4,810
100%
$ 5,473
100%
$ 4,750
100%
$ 10,024
100%
$ 29,235
100%
Charge-offs as a % of loans in repayment
6.3%
3.8%
2.3%
1.8%
1.2%
2.9% |
 18
Confidential
and
proprietary
information
©
2014
Navient
Solutions,
Inc.
All
rights
reserved.
Business Services Segment
“Core Earnings”
Basis
(In millions)
Q3 14
Q2 14
Q3 13
Net income
$85
$130
$127
Federal Loans serviced ($’s in billions)
$277
$272
$262
Third-Party Loan servicing revenue
$46
$42
$39
Asset recovery revenue
$65
$132
$104
Department of Education accounts serviced
6.1
5.8
5.7
Contingency asset recovery receivables
$15,988
$16,298
$15,209
•
Asset recovery revenue in Q3 14 was reduced by $39 million from Q3 13
primarily due to The Bipartisan Budget Act of 2013. The Budget Act reduced
the amount paid to guaranty agencies for rehabilitating defaulted FFELP Loans
beginning on July 1, 2014 |
 19
Confidential
and
proprietary
information
©
2014
Navient
Solutions,
Inc.
All
rights
reserved.
Business Services Segment
Federal Loan Servicing & Customer Success
Federal Loans Serviced by Navient
•
Largest servicer of federal student loans
•
Federal loans serviced by Navient have a 40%
better cohort default rate
•
Federal borrowers serviced by Navient are less
likely to postpone paying their loans by using
forbearance
•
Every week we help nearly 1,200 borrowers
rehabilitate their loans
•
Direct Loan borrowers serviced by Navient are
more likely to be in income-based repayment
plans
•
We promote success through more than 50
million communications annually
Key Characteristics |
 20
Confidential
and
proprietary
information
©
2014
Navient
Solutions,
Inc.
All
rights
reserved.
Business Services Segment
Asset Recovery
Contingency Asset Recovery Receivables
•
Generated $308 million of revenue in the first
nine months of 2014
•
Consistent top performer on the Department of
Education collections contract
•
Strong compliance infrastructure
•
Opportunities to expand market share in student
loans and other asset classes
Key Characteristics |
 21
Confidential
and
proprietary
information
©
2014
Navient
Solutions,
Inc.
All
rights
reserved.
Funding and
Liquidity |
 22
Confidential
and
proprietary
information
©
2014
Navient
Solutions,
Inc.
All
rights
reserved.
2014 Capital Markets Summary
•
Issued $4.0 billion of FFELP ABS
•
Closed on an $8 billion FFELP ABCP facility
•
Refinanced $1.1 billion of FFELP reset notes to term
•
Issued $1.8 billion of Private ABS
•
Closed on a $1 billion Private ABCP facility
•
Issued $850 million of long-term unsecured debt
•
Returned $621 million to shareholders through share repurchases and
dividends
(1)
•
Maintained strong capital position
(1) As of September 30, 2014 |
 23
Confidential
and
proprietary
information
©
2014
Navient
Solutions,
Inc.
All
rights
reserved.
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 $105 billion of securitizations
on balance sheet
•
Additional capacity under FFELP
secured facilities is $11 billion
•
Maximum capacity under Private
Education Loan secured facilities is
$1 billion
2014 YTD Issuance
Issuer
Total ($mm)
Asset Class
1
Ally
12,239
Auto
2
Ford
9,381
Auto
3
Citigroup
9,050
Credit Card
4
Santander Drive
6,184
Auto
5
Chase
6,050
Credit Card
6
Navient
(1)
5,799
Student Loan
7
Discover
5,050
Credit Card
8
Volkswagen
4,999
Auto
9
Toyota
4,414
Auto
10
Capital One
4,300
Credit Card
11
Bank America
4,100
Credit Card
12
AMEX
3,887
Credit Card
13
Hyundai
3,821
Auto
14
Honda
3,500
Auto
15
GE Capital
3,267
Equipment
16
Nelnet
3,248
Student Loan
17
AmeriCredit
3,150
Auto
18
Mercedes-Benz
3,112
Auto
19
CNH
3,022
Equipment
20
CarMax
2,922
Auto
(1) Includes previous issuing entities: SLM Student Loan Trust and SLM Private
Education Loan Trust (Bloomberg ticker: SLMA)
Source: J.P. Morgan Research
As of September 30, 2014 |
 24
Confidential
and
proprietary
information
©
2014
Navient
Solutions,
Inc.
All
rights
reserved.
Recent FFELP ABS Transactions
(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.
NAVSL 2014-2 thru 2014-7
NAVSL 2014-1
SLM 2014-2
Priced Settled
August 7, 2014
August 14, 2014
May 20, 2014
May 29, 2014
March 18, 2014
March 27, 2014
Issuance Amount
$1,264M
$747M
$992M
Collateral
US Govt. Guaranteed or Insured
FFELP Consolidation loans
US Govt. Guaranteed or Insured
FFELP Stafford, Plus and
Consolidation Loans
US Govt. Guaranteed or Insured
FFELP Stafford and Plus Loans
Prepayment Speed
(1)
4% Constant Prepayment Rate
6% CPR Stafford / 4% CPR
Consolidation
6% Constant Prepayment Rate
Tranching
Rating
Amt
WAL
(1)
Pricing
(2)
A Aaa $1,230
8.4 L+62 B
Aa1 $34 18.4 L+220
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 |
 25
Confidential
and
proprietary
information
©
2014
Navient
Solutions,
Inc.
All
rights
reserved.
Recent Private Education Loan ABS Transactions
(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/slmsltrusts/. Actual
average life may vary significantly from estimates.
(2)
Yield on fixed rate A-2 tranches were 2.77% and 2.59% for NAVSL 2014-A and
SLM 2014-A, respectively. Yield on fixed rate B tranches were 4.65% and 4.73% for NAVSL 2014-A and SLM 2014-A, respectively.
NAVSL Trust 2014-A
NAVSL Trust 2014-CT
SLM Trust 2014-A
Priced Settled
October 15, 2014
October 23, 2014
July 15, 2014
July 24, 2014
February 25, 2014
March 6, 2014
Issuance Amount
$664M
$463M
$676M
Collateral
Private Education Loans
Private Education Loans
Private Education Loans
Prepayment Speed
(1)
4% Constant Prepayment Rate
6% Constant Prepayment Rate
4% Constant Prepayment Rate
Tranching
Rating
Amt
WAL
(1)
Pricing
(2)
A -1
Aaa $186 1.0 L+48
A-2A Aaa $168
5.8 s+115
A-2B Aaa $168
5.8 L+125
A-3 Aaa
$76 9.7 L+160
B
A $66 10.6 s+240
Rating
Amt
WAL
(1)
Pricing
A-1 Aaa
$394 2.2 L+70
B
A $69 6.6 L+215
Rating
Amt
WAL
(1)
Pricing
(2)
A -1
Aaa $355 1.8 L+60
A-2A Aaa $77
4.6 s+115
A-2B Aaa $77
4.6 L+115
A-3 Aaa
$100 6.4 Not offered
B
A $67 7.2
s+225 |
 26
Confidential
and
proprietary
information
©
2014
Navient
Solutions,
Inc.
All
rights
reserved.
Unsecured Debt
Fitch
Moody’s
S&P
Senior Unsecured Debt
BB
Ba3
BB
Outlook
Stable
Stable
Stable |
 27
Confidential
and
proprietary
information
©
2014
Navient
Solutions,
Inc.
All
rights
reserved.
Confidential and proprietary information ©
2012 Sallie Mae, Inc. All rights reserved.
Projected Life of Loan Cash Flows
*Floor income projected using 9/30/2014 yield curve. These projections are
based on internal estimates and assumptions and are subject to ongoing review
and modification. These projections may prove to be incorrect.
•
Since 12/31/13, we have added $2.9 billion of cash flows
through new loan acquisitions and improved portfolio
performance
•
$36 billion of estimated future cash flows over ~ 20 years
-
Highly predictable
-
Includes ~$11 billion of overcollateralization (O/C) to be
released from residuals
-
Continuing low interest rate environment will increase
future floor revenue
-
Acquisitions of additional education loan portfolios will
increase future cash flows
•
Significant pool of cash available for shareholder distributions
Key Portfolio Characteristics
Cash Flow Projection as of 12/31/13
$35.3 B
-
Sep YTD 2014 Cash Flows & Refinancing's
(2.2)B
+ Loan Acquisitions, net of Financings
2.3 B
+ Additional Floor Income
0.4 B
+ Credit Improvement
0.2 B
Total Additions
2.9 B
Cash Flow Projection as of 9/30/14
$36.0 B
Education Loan Portfolio Generates Significant
Cash Flows |
 28
Confidential
and
proprietary
information
©
2014
Navient
Solutions,
Inc.
All
rights
reserved.
FFELP Cash Flows Highly Predictable
•
Total Cash Flows from Projected Excess Spread = $7.0 Billion
•
Total Cash Flows from Projected Servicing Revenues = $3.9 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.
*Numbers may not add due to rounding
as of 9/30/14
4Q 2014
2015
2016
2017
2018
2019
2020
2021
Projected FFELP Average Balance
$94,471
$89,240
$80,752
$72,614
$65,178
$57,821
$50,777
$44,106
Projected Excess Spread
$223
$843
$800
$712
$646
$575
$501
$448
Projected Servicing Revenue
$178
$489
$451
$413
$377
$338
$297
$256
Projected Total Revenue
$401
$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 |
 29
Confidential
and
proprietary
information
©
2014
Navient
Solutions,
Inc.
All
rights
reserved.
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 3Q14 YTD
2013
2012
2011
Servicing (Cash Paid)
$
363
$ 507
$
526
$ 563
Net Residual* (Excess Distributions)
512
476
628
715 Net Cash Flow
134
1,199
934
568
$ 1,008
$ 2,182
$ 2,088
$ 1,846
Servicing (Cash Paid)
$
142
$ 198
$
181
$ 189
Residual (Excess Distribution)
171
170
103
28 Net Cash Flow
11
9
22
2
$ 325
$
377
$ 306
$
219 Total Proceeds from Residual Sales
$
589 $ 1,333
$ 3,148
$ 2,394
$ 2,065
3Q14 YTD
2013
2012
2011
$ 89,256
$ 95,055
$ 104,913
$ 109,509
6,091
11,085
22,271
29,466 $ 95,347
$ 106,140
$ 127,184
$ 138,975
$ 24,512
$ 26,037
$ 25,111
$ 25,619
1,541
1,106
1,875
233 $ 26,053
$ 27,143
$ 26,987
$ 25,853
$ 121,400
$ 133,283
$ 154,171
$ 164,828
Total Private Credit
Total FFELP and Private Credit
Term FFELP
Other Secured FFELP
Total FFELP
Private Credit
Term Private Credit
Other Secured Financings
FFELP
FFELP
Term Securitized
Other Secured FFELP
Total FFELP
Private Credit
Term Securitized
Other Secured Financings
Total Private Credit
Total FFELP and Private Credit
Average Principal Balances
$ in Millions |
 30
Confidential
and
proprietary
information
©
2014
Navient
Solutions,
Inc.
All
rights
reserved.
FFELP ABS
Appendix |
 31
Confidential
and
proprietary
information
©
2014
Navient
Solutions,
Inc.
All
rights
reserved.
Recent FFELP ABS Issuance Characteristics
FFELP ABS Transaction Features
Collateral 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. |
 32
Confidential
and
proprietary
information
©
2014
Navient
Solutions,
Inc.
All
rights
reserved.
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
Subsidized Consolidation
Unsubsidized
Consolidation
Borrower
Student
Student
Parents or Graduate
Students
Student or Parents
Student or Parents
Needs Based
Yes
No
No
N/A
N/A
Federal Guarantee of
Principal and Accrued
Interest
97 -
100%
97 -
100%
97 -
100%
97 -
100%
97 -
100%
Interest Subsidy
Payments
Yes
No
No
Yes
No
Special Allowance
Payments (SAP)
Yes
Yes
If cap is reached
Yes
Yes
Repayment Term
120 months
120 months
120 months
Up to 360 months
Up to 360 months
Aggregate Loan Limit
Undergraduate: $23,000
Graduate: $65,500
Undergraduate¹: $57,500
Graduate: $138,500
None
None
None |
 33
Confidential
and
proprietary
information
©
2014
Navient
Solutions,
Inc.
All
rights
reserved.
Navient Stafford & PLUS Loan Prepayments
•
Annualized CPRs for Stafford/PLUS ABS trusts have decreased significantly as
incentives for borrowers to consolidate have declined
•
After
a
temporary
increase
in
mid
2012
due
to
the
Special
Direct
Consolidation
Loan
program, CPRs decreased in the fourth quarter of 2012
* Quarterly CPR assumes School and Grace loans are not scheduled
to make payments. Deferment, Forbearance and Repayment loans are scheduled to make
payments. |
 34
Confidential
and
proprietary
information
©
2014
Navient
Solutions,
Inc.
All
rights
reserved.
Navient Consolidation Loan Prepayments
•
CPRs for Consolidation ABS trusts declined significantly following legislation
effective in 2006 that prevented in-school and re-consolidation of
borrowers’ loans
•
After
a
temporary
increase
in
mid
2012
due
to
the
Special
Direct
Consolidation
Loan
program, CPRs decreased in the fourth quarter of 2012
* Quarterly CPR assumes School and Grace loans are not scheduled
to make payments. Deferment, Forbearance and Repayment loans are scheduled to make
payments. |
 35
Confidential
and
proprietary
information
©
2014
Navient
Solutions,
Inc.
All
rights
reserved.
Private Education
Loan ABS
Appendix |
 36
Confidential
and
proprietary
information
©
2014
Navient
Solutions,
Inc.
All
rights
reserved.
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 |
 37
Confidential
and
proprietary
information
©
2014
Navient
Solutions,
Inc.
All
rights
reserved.
Navient Private Education Loan Programs
Smart Option
Undergraduate/Graduate/
Med/Law/MBA
Direct-to-Consumer (DTC)
Consolidation
Career Training
Origination Channel
School
School
Direct-to-Consumer
Lender
School
Typical Borrower
Student
Student
Student
College Graduates
Student
Typical Co-signer
Parent
Parent
Parent
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
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
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
No
No
No
No
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
No
No
No
No
Yes
Additional Characteristics
Made to students and
parents primarily through
college financial aid offices to financial aid offices to fund 2-
fund 2-year, 4-year and
graduate school college
tuition, room and board
Also available on a limited
basis to students and parents Med and MBA Loan brands
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
year, 4-year and graduate
school college tuition, room
and board
Signature, Excel, Law,
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 community college, part time,
of graduation in order to
obtain loan
Loans made to students
and parents to fund non-
degree granting secondary
education, including
technical, trade school and
tutorial programs
Both Title IV and non-Title
IV schools
(1)
(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. |
 38
Confidential
and
proprietary
information
©
2014
Navient
Solutions,
Inc.
All
rights
reserved.
Navient Private Education Trusts
(1) Smart Option loans subject to interim interest only and $25 fixed monthly
payments are classified as in Repayment. (2) Assumes Prime/LIBOR spread of
3.00% for all transactions. Summary Information
11-A
11-B
11-C
12-A
12-B
12-C
12-D
12-E
13-A
13-B
13-C
14-A
14-CT
14-A
Bond Amount ($mil)
562
825
721
547
891
1,135
640
976
1,108
1,135
624
676
463
664
Initial AAA Enhancement (%)
21%
18%
24%
27%
26%
25%
25%
21%
26%
22%
28%
24%
30%
30%
Total Enhancement (%)
21%
18%
24%
27%
26%
25%
25%
21%
15%
13%
20%
15%
17%
22%
Loan Program (%)
Signature/Law/MBA/Med
88%
91%
71%
61%
48%
43%
37%
35%
26%
29%
26%
19%
0%
26%
Smart Option
--
--
10%
20%
30%
40%
45%
48%
63%
63%
64%
63%
0%
50%
Consolidation
0%
0%
7%
6%
9%
5%
5%
5%
3%
5%
0%
6%
0%
9%
Direct to Consumer
9%
6%
12%
12%
12%
12%
12%
12%
8%
3%
10%
12%
0%
15%
Career Training
3%
3%
0%
1%
1%
0%
0%
0%
0%
0%
0%
0%
100%
0%
Total
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Payment Status (%)
School, Grace, Deferment
55%
55%
45%
37%
38%
40%
39%
44%
59%
62%
63%
49%
0%
46%
Repayment
43%
43%
52%
60%
60%
57%
59%
54%
39%
36%
36%
50%
99%
53%
Forbearance
2%
3%
2%
2%
2%
3%
2%
2%
2%
2%
1%
1%
1%
1%
Wtd Avg Term to Maturity (Mo.)
192
189
182
171
164
151
144
148
144
146
143
150
104
161
% Loans with Cosigner
72%
75%
71%
75%
77%
79%
80%
80%
80%
80%
81%
82%
71%
79%
% Loans with No Cosigner
28%
25%
29%
25%
23%
21%
20%
20%
20%
20%
19%
18%
29%
21%
Wtd Avg FICO at Origination
737
736
733
735
736
737
740
733
741
740
740
742
743
739
Wtd Avg Recent FICO at Issuance
723
722
720
724
726
728
730
722
733
734
733
741
726
737
WA FICO (Cosigner at Origination)
747
745
744
745
745
745
748
741
751
750
749
750
749
748
WA FICO (Cosigner at Rescored)
736
731
734
732
734
735
738
728
745
746
745
750
735
746
WA FICO (Borrower at Origination)
709
710
704
705
705
707
710
702
703
702
705
707
728
707
WA FICO (Borrower at Rescored)
690
695
688
700
700
702
698
696
683
684
682
701
701
701
Wtd Avg LIBOR Equivalent Margin
(1)
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%
6.66%
2011-2014YTD Issuance Program
Navient |
 39
Confidential
and
proprietary
information
©
2014
Navient
Solutions,
Inc.
All
rights
reserved.
Navient Private Education Loan Trusts –
Prepayment Analysis
•
Constant prepayment rates increased in 2007 due to the introduction of Private
Education Consolidation loans, then declined following our decision to
suspend our consolidation loan program in 2008
|
 40
Confidential
and
proprietary
information
©
2014
Navient
Solutions,
Inc.
All
rights
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 at not-for-profit schools: >
640
•
Undergraduate/Graduate at 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 as a whole or 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. |
 41
Confidential
and
proprietary
information
©
2014
Navient
Solutions,
Inc.
All
rights
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 of principal entering repayment in a given year, based
on disbursed principal prior to any interest capitalization
-
Years in Repayment –
Measured in 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 of Periodic Defaults across Years in Repayment for each
Repayment Year |
  42
Confidential
and
proprietary
information
©
2014
Navient
Solutions,
Inc.
All
rights
reserved.
Cohort Default Triangles
Note: Data as of 9/30/14.
(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)
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Total
1998
$11
0.0%
0.0%
0.0%
0.0%
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%
0.0%
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%
7.0%
2000
$70
0.0%
0.0%
0.0%
0.6%
1.1%
1.3%
0.6%
0.9%
1.5%
1.5%
1.0%
0.8%
0.4%
0.4%
0.3%
0.0%
10.6%
2001
$187
0.0%
0.0%
0.1%
1.1%
1.4%
0.9%
1.8%
1.3%
2.3%
1.8%
1.5%
0.8%
0.6%
0.3%
0.0%
13.9%
2002
$386
0.0%
0.2%
0.2%
1.2%
1.1%
1.8%
1.6%
2.3%
1.9%
1.3%
0.9%
0.6%
0.5%
0.1%
13.9%
2003
$682
0.0%
0.2%
0.6%
0.9%
1.9%
1.6%
2.7%
2.4%
1.8%
1.2%
0.8%
0.6%
0.1%
14.6%
2004
$1,132
0.0%
0.2%
0.3%
1.9%
1.8%
3.0%
2.9%
1.8%
1.4%
1.1%
0.7%
0.1%
15.2%
2005
$1,537
0.0%
0.0%
0.4%
2.5%
3.7%
3.4%
2.1%
1.6%
1.2%
0.8%
0.1%
15.9%
2006
$2,013
0.0%
0.1%
1.6%
3.7%
3.7%
2.5%
1.8%
1.4%
1.0%
0.1%
15.9%
2007
$2,451
0.0%
0.4%
3.5%
4.6%
3.0%
2.0%
1.7%
1.3%
0.1%
16.7%
2008
$2,933
0.0%
2.3%
4.2%
3.9%
2.6%
2.2%
1.5%
0.2%
16.9%
2009
$3,241
0.0%
3.4%
3.7%
3.6%
2.6%
1.7%
0.2%
15.2%
2010
$2,769
0.0%
3.6%
3.8%
3.5%
1.8%
0.2%
13.0%
2011
$1,870
0.0%
3.0%
4.5%
2.1%
0.3%
9.9%
2012
$1,101
0.0%
2.9%
3.6%
0.5%
7.0%
2013
$528
0.0%
2.4%
0.6%
3.0%
Periodic Defaults by Years in Repayment
(2),(3) |
   43
Confidential
and
proprietary
information
©
2014
Navient
Solutions,
Inc.
All
rights
reserved.
Cohort Default Triangles
Undergraduate/Graduate
(1)
Without Co-signer
Undergraduate/Graduate
(1)
With Co-signer
Note: Data as of 9/30/14.
(1)
Undergraduate/Graduate loans marketed under the Signature Student Loan brand.
(2)
Periodic Defaults for the most recent two calendar Years in Repayment are for a
partial year. (3)
Numerator is the amount of principal in each cohort that defaulted in each Year in
Repayment. Denominator is the amount of disbursed principal for that Repayment Year.
Disbursed Principal
Entering
Repayment Year
Repayment ($m)
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Total
1998
$6
0.0%
0.0%
0.0%
0.0%
0.0%
0.1%
0.6%
1.0%
0.4%
0.0%
0.2%
1.1%
0.1%
0.0%
0.0%
0.1%
3.6%
1999
$14
0.0%
0.0%
0.0%
0.0%
0.4%
0.1%
0.9%
0.4%
0.2%
0.1%
0.4%
0.0%
0.1%
0.1%
0.1%
0.2%
3.0%
2000
$37
0.0%
0.0%
0.0%
0.5%
0.5%
0.7%
0.7%
0.4%
0.7%
1.2%
0.8%
0.9%
0.2%
0.4%
0.2%
0.0%
7.3%
2001
$90
0.0%
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%
0.5%
0.0%
10.3%
2003
$367
0.0%
0.1%
0.3%
0.5%
0.9%
1.1%
2.2%
1.9%
1.3%
0.9%
0.7%
0.6%
0.1%
10.6%
2004
$632
0.0%
0.2%
0.2%
1.0%
1.0%
2.2%
2.2%
1.4%
1.1%
0.9%
0.6%
0.1%
10.8%
2005
$843
0.0%
0.0%
0.2%
1.4%
2.4%
2.3%
1.6%
1.2%
0.9%
0.7%
0.1%
10.9%
2006
$1,121
0.0%
0.0%
0.7%
2.4%
2.4%
1.8%
1.3%
1.1%
0.9%
0.1%
10.6%
2007
$1,408
0.0%
0.2%
2.0%
2.9%
2.0%
1.5%
1.3%
1.0%
0.1%
11.0%
2008
$1,758
0.0%
1.2%
2.6%
2.7%
1.7%
1.6%
1.1%
0.2%
11.1%
2009
$2,075
0.0%
2.0%
2.4%
2.4%
1.8%
1.3%
0.2%
10.0%
2010
$1,853
0.0%
2.1%
2.3%
2.3%
1.3%
0.2%
8.2%
2011
$1,352
0.0%
1.6%
2.7%
1.3%
0.2%
5.9%
2012
$848
0.0%
1.7%
2.3%
0.3%
4.4%
2013
$404
0.0%
1.5%
0.3%
1.8%
Periodic Defaults by Years in Repayment
(2),(3)
Disbursed Principal
Entering
Repayment Year
Repayment ($m)
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Total
1998
$5
0.0%
0.0%
0.0%
0.0%
0.0%
0.2%
0.2%
0.6%
0.4%
0.4%
3.1%
0.2%
0.8%
0.7%
0.0%
0.2%
6.8%
1999
$14
0.0%
0.0%
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%
0.0%
0.0%
0.8%
1.7%
2.0%
0.6%
1.5%
2.3%
2.0%
1.1%
0.7%
0.7%
0.4%
0.5%
0.0%
14.2%
2001
$97
0.0%
0.0%
0.1%
1.5%
1.9%
1.2%
2.2%
1.5%
2.9%
2.3%
1.8%
0.9%
0.7%
0.4%
0.0%
17.4%
2002
$190
0.0%
0.2%
0.2%
1.6%
1.7%
2.3%
2.3%
2.8%
2.4%
1.5%
1.1%
0.6%
0.6%
0.1%
17.5%
2003
$315
0.0%
0.2%
0.9%
1.4%
2.9%
2.3%
3.3%
3.0%
2.3%
1.5%
0.8%
0.6%
0.0%
19.3%
2004
$499
0.0%
0.3%
0.4%
3.1%
2.8%
4.1%
3.8%
2.3%
1.7%
1.3%
0.8%
0.2%
20.8%
2005
$694
0.0%
0.1%
0.7%
3.9%
5.3%
4.7%
2.7%
2.1%
1.6%
0.9%
0.2%
22.0%
2006
$892
0.0%
0.2%
2.7%
5.3%
5.4%
3.4%
2.4%
1.9%
1.2%
0.2%
22.6%
2007
$1,043
0.0%
0.8%
5.5%
6.9%
4.3%
2.8%
2.4%
1.6%
0.2%
24.4%
2008
$1,175
0.0%
4.0%
6.5%
5.8%
3.7%
3.0%
2.0%
0.2%
25.5%
2009
$1,165
0.0%
6.0%
6.0%
5.7%
3.9%
2.5%
0.3%
24.4%
2010
$916
0.0%
6.7%
6.8%
6.0%
2.9%
0.3%
22.8%
2011
$518
0.0%
6.7%
9.0%
4.2%
0.6%
20.5%
2012
$252
0.1%
7.1%
7.9%
1.0%
16.0%
2013
$124
0.1%
5.2%
1.5%
6.8%
Periodic Defaults by Years in Repayment
(2),(3) |
   44
Confidential
and
proprietary
information
©
2014
Navient
Solutions,
Inc.
All
rights
reserved.
Cohort Default Triangles
Note: Data as of 9/30/14.
(1)
Undergraduate/Graduate loans marketed under the Signature Student Loan brand.
(2)
Periodic Defaults for the most recent two calendar Years in Repayment are for a
partial year. (3)
Numerator is the amount of principal in each cohort that defaulted in each Year in
Repayment. Denominator is the amount of disbursed principal for that Repayment Year.
Undergraduate/Graduate
(1)
Non-Profit
Undergraduate/Graduate
(1)
For-Profit
Disbursed Principal
Entering
Repayment Year
Repayment ($m)
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Total
1998
$11
0.0%
0.0%
0.0%
0.0%
0.0%
0.2%
0.4%
0.4%
0.4%
0.2%
1.1%
0.7%
0.3%
0.3%
0.0%
0.1%
4.2%
1999
$26
0.0%
0.0%
0.0%
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%
0.0%
0.0%
0.6%
1.0%
1.4%
0.5%
0.9%
1.4%
1.3%
1.0%
0.8%
0.5%
0.4%
0.3%
0.0%
10.2%
2001
$180
0.0%
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%
0.2%
1.2%
1.0%
1.8%
1.6%
2.3%
2.0%
1.3%
0.9%
0.6%
0.5%
0.1%
13.7%
2003
$630
0.0%
0.2%
0.6%
0.8%
1.8%
1.6%
2.6%
2.4%
1.7%
1.1%
0.7%
0.6%
0.1%
14.1%
2004
$1,006
0.0%
0.2%
0.2%
1.8%
1.6%
2.9%
2.6%
1.7%
1.3%
1.1%
0.7%
0.1%
14.3%
2005
$1,362
0.0%
0.0%
0.4%
2.4%
3.5%
3.2%
2.0%
1.5%
1.2%
0.8%
0.1%
15.1%
2006
$1,766
0.0%
0.1%
1.5%
3.5%
3.6%
2.4%
1.7%
1.4%
1.0%
0.1%
15.3%
2007
$2,103
0.0%
0.4%
3.4%
4.3%
2.8%
2.0%
1.7%
1.2%
0.1%
15.9%
2008
$2,457
0.0%
2.2%
3.9%
3.6%
2.4%
2.1%
1.4%
0.2%
15.9%
2009
$2,686
0.0%
3.2%
3.4%
3.4%
2.4%
1.6%
0.2%
14.3%
2010
$2,378
0.0%
3.4%
3.7%
3.3%
1.7%
0.2%
12.3%
2011
$1,664
0.0%
2.8%
4.2%
2.0%
0.3%
9.4%
2012
$1,002
0.0%
2.8%
3.4%
0.4%
6.7%
2013
$481
0.0%
2.3%
0.6%
2.9%
Periodic Defaults by Years in Repayment
(2),(3)
Disbursed Principal
Entering
Repayment Year
Repayment ($m)
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Total
1998
$0.36
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
13.6%
0.0%
0.0%
12.6%
0.0%
5.1%
0.0%
0.4%
0.0%
31.7%
1999
$2
0.0%
0.0%
0.0%
2.3%
1.4%
2.1%
4.8%
0.0%
0.0%
0.0%
0.0%
0.9%
5.3%
0.0%
0.0%
2.5%
19.3%
2000
$2
0.0%
0.0%
0.0%
0.0%
2.8%
0.7%
3.2%
3.2%
3.7%
8.9%
0.0%
1.6%
0.0%
0.0%
0.0%
0.0%
24.3%
2001
$7
0.0%
0.1%
0.1%
4.7%
2.2%
1.1%
4.3%
2.2%
0.8%
3.5%
1.5%
1.8%
0.4%
0.1%
0.1%
22.8%
2002
$27
0.0%
0.0%
0.3%
1.9%
2.2%
2.1%
1.8%
2.7%
1.8%
1.3%
0.8%
0.7%
0.6%
0.0%
16.3%
2003
$52
0.0%
0.2%
0.7%
2.4%
2.7%
2.2%
3.8%
2.9%
2.4%
1.6%
1.0%
0.7%
0.0%
20.7%
2004
$126
0.0%
0.3%
0.6%
3.2%
3.0%
3.9%
4.6%
2.4%
1.8%
1.4%
0.9%
0.1%
22.2%
2005
$175
0.0%
0.0%
0.7%
3.7%
5.2%
4.9%
2.7%
1.9%
1.3%
1.1%
0.2%
21.9%
2006
$246
0.0%
0.2%
2.1%
4.9%
5.0%
3.2%
2.1%
1.9%
1.3%
0.1%
20.9%
2007
$348
0.0%
0.5%
4.3%
6.5%
4.0%
2.5%
2.1%
1.5%
0.2%
21.6%
2008
$475
0.0%
3.0%
5.9%
5.6%
3.1%
2.5%
1.8%
0.2%
22.1%
2009
$554
0.0%
4.3%
5.1%
4.3%
3.3%
2.0%
0.4%
19.4%
2010
$391
0.1%
4.7%
4.7%
4.8%
2.4%
0.6%
17.3%
2011
$206
0.1%
4.5%
6.4%
2.9%
0.7%
14.6%
2012
$99
0.1%
4.1%
5.8%
0.8%
10.9%
2013
$47
0.2%
3.2%
0.8%
4.1%
Periodic Defaults by Years in Repayment
(2),(3) |
   45
Confidential
and
proprietary
information
©
2014
Navient
Solutions,
Inc.
All
rights
reserved.
Cohort Default Triangles
Undergraduate/Graduate
(1)
Loans, FICO 740-850
(2)
Undergraduate/Graduate
(1)
Loans, FICO 700-739
(2)
Note: Data as of 9/30/14.
(1)
Undergraduate/Graduate loans marketed under the Signature Student Loan brand.
(2)
FICO scores are based on the greater of the borrower and co-borrower scores as
of a date near the loan application. (3)
Periodic Defaults for the most recent two calendar Years in Repayment are for a
partial year. (4)
Numerator is the amount of principal in each cohort that defaulted in each Year in
Repayment. Denominator is the amount of disbursed principal for that Repayment Year.
Disbursed Principal
Entering
Repayment Year
Repayment ($m)
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Total
1998
$3
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.2%
0.0%
0.4%
0.4%
0.9%
0.9%
0.0%
0.0%
0.0%
0.0%
2.8%
1999
$6
0.0%
0.0%
0.0%
0.0%
0.5%
0.3%
1.7%
0.5%
0.2%
0.2%
0.0%
0.2%
0.0%
0.4%
0.0%
0.8%
4.9%
2000
$22
0.0%
0.0%
0.0%
0.3%
0.4%
0.4%
0.2%
0.3%
1.0%
1.0%
0.4%
0.5%
0.0%
0.1%
0.1%
0.0%
4.8%
2001
$64
0.0%
0.0%
0.0%
0.5%
0.4%
0.4%
1.1%
0.8%
1.0%
0.7%
0.7%
0.7%
0.4%
0.3%
0.0%
6.9%
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%
0.3%
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%
0.4%
0.0%
7.2%
2004
$424
0.0%
0.1%
0.1%
0.7%
0.7%
1.4%
1.3%
0.9%
0.8%
0.7%
0.4%
0.1%
7.3%
2005
$574
0.0%
0.0%
0.2%
1.0%
1.5%
1.5%
1.1%
0.9%
0.6%
0.5%
0.1%
7.4%
2006
$761
0.0%
0.0%
0.5%
1.4%
1.5%
1.1%
0.8%
0.7%
0.6%
0.1%
6.6%
2007
$937
0.0%
0.1%
1.2%
1.6%
1.1%
1.0%
0.8%
0.7%
0.1%
6.5%
2008
$1,130
0.0%
0.7%
1.5%
1.4%
1.0%
1.0%
0.7%
0.1%
6.4%
2009
$1,325
0.0%
1.2%
1.4%
1.4%
1.2%
0.8%
0.1%
6.1%
2010
$1,186
0.0%
1.4%
1.5%
1.5%
1.0%
0.1%
5.6%
2011
$831
0.0%
1.1%
1.8%
0.9%
0.2%
4.0%
2012
$506
0.0%
1.3%
1.5%
0.2%
3.0%
2013
$245
0.0%
1.0%
0.3%
1.3%
Periodic Defaults by Years in Repayment
(3),(4)
Disbursed Principal
Entering
Repayment Year
Repayment ($m)
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Total
1998
$3
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.5%
2.2%
0.0%
0.0%
0.0%
0.0%
0.1%
0.7%
0.0%
0.0%
3.5%
1999
$8
0.0%
0.0%
0.0%
0.0%
0.5%
0.4%
0.7%
0.0%
0.3%
1.5%
0.7%
0.1%
0.8%
0.1%
0.0%
0.0%
5.1%
2000
$20
0.0%
0.0%
0.0%
0.4%
0.7%
1.3%
0.8%
1.1%
0.8%
1.3%
0.7%
0.6%
0.4%
0.7%
0.2%
0.0%
8.9%
2001
$54
0.0%
0.0%
0.1%
0.9%
1.2%
0.5%
1.4%
0.9%
1.9%
1.3%
1.2%
0.9%
0.5%
0.2%
0.0%
11.2%
2002
$111
0.0%
0.1%
0.1%
1.1%
1.0%
1.7%
1.3%
2.2%
1.4%
1.3%
0.8%
0.5%
0.5%
0.1%
12.2%
2003
$194
0.0%
0.2%
0.5%
0.8%
1.5%
1.5%
2.4%
1.9%
1.8%
1.2%
0.7%
0.6%
0.0%
13.1%
2004
$321
0.0%
0.2%
0.2%
1.7%
1.5%
2.5%
2.9%
1.8%
1.4%
1.0%
0.6%
0.1%
14.0%
2005
$439
0.0%
0.0%
0.4%
2.2%
3.3%
2.9%
2.1%
1.4%
1.1%
0.8%
0.1%
14.4%
2006
$553
0.0%
0.1%
1.3%
3.1%
3.4%
2.4%
1.7%
1.2%
0.9%
0.1%
14.2%
2007
$659
0.0%
0.3%
2.8%
4.1%
2.7%
1.7%
1.6%
1.2%
0.1%
14.7%
2008
$782
0.0%
2.0%
3.8%
3.5%
2.4%
2.0%
1.4%
0.2%
15.3%
2009
$875
0.0%
3.0%
3.5%
3.4%
2.5%
1.7%
0.2%
14.4%
2010
$731
0.0%
3.4%
3.8%
3.4%
1.7%
0.2%
12.5%
2011
$482
0.0%
2.8%
4.2%
2.0%
0.3%
9.5%
2012
$281
0.1%
2.7%
3.4%
0.4%
6.6%
2013
$134
0.0%
1.9%
0.6%
2.6%
Periodic Defaults by Years in Repayment
(3),(4) |
   46
Confidential
and
proprietary
information
©
2014
Navient
Solutions,
Inc.
All
rights
reserved.
Cohort Default Triangles
Note: Data as of 9/30/14.
(1)
Undergraduate/Graduate loans marketed under the Signature Student Loan brand.
(2)
FICO scores are based on the greater of the borrower and co-borrower scores as
of a date near the loan application. (3)
Periodic Defaults for the most recent two calendar Years in Repayment are for a
partial year. (4)
Numerator is the amount of principal in each cohort that defaulted in each Year in
Repayment. Denominator is the amount of disbursed principal for that Repayment Year.
Undergraduate/Graduate
(1)
Loans, FICO 670-699
(2)
Undergraduate/Graduate
(1)
Loans, FICO 640-669
(2)
Disbursed Principal
Entering
Repayment Year
Repayment ($m)
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Total
1998
$3
0.0%
0.0%
0.0%
0.0%
0.0%
0.6%
0.6%
0.3%
0.5%
0.3%
2.8%
0.0%
0.5%
0.3%
0.1%
0.3%
6.2%
1999
$7
0.0%
0.0%
0.0%
0.5%
1.4%
0.5%
1.3%
0.3%
0.3%
0.1%
0.7%
0.5%
1.3%
0.4%
0.0%
0.4%
7.7%
2000
$14
0.0%
0.0%
0.0%
0.9%
1.4%
1.9%
0.2%
1.0%
0.9%
1.4%
1.4%
0.9%
0.9%
0.4%
0.9%
0.0%
12.2%
2001
$37
0.0%
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%
2.4%
2.9%
2.7%
1.5%
1.1%
0.7%
0.6%
0.1%
18.3%
2003
$134
0.0%
0.1%
0.8%
1.3%
2.8%
2.2%
3.7%
3.3%
2.1%
1.3%
0.7%
0.7%
0.1%
19.1%
2004
$222
0.0%
0.3%
0.5%
2.9%
2.6%
4.3%
3.8%
2.3%
1.7%
1.3%
0.8%
0.1%
20.5%
2005
$298
0.0%
0.1%
0.7%
3.8%
5.2%
4.9%
2.7%
1.9%
1.5%
1.0%
0.2%
22.0%
2006
$402
0.0%
0.2%
2.6%
5.5%
5.5%
3.6%
2.4%
1.9%
1.3%
0.2%
23.2%
2007
$504
0.0%
0.7%
5.6%
7.4%
4.7%
3.0%
2.4%
1.6%
0.1%
25.6%
2008
$623
0.0%
3.8%
6.9%
6.4%
3.8%
3.1%
2.2%
0.2%
26.4%
2009
$662
0.1%
5.7%
6.1%
6.0%
3.9%
2.5%
0.3%
24.7%
2010
$543
0.0%
6.2%
6.2%
5.7%
2.7%
0.3%
21.2%
2011
$355
0.0%
5.0%
7.8%
3.7%
0.5%
17.0%
2012
$199
0.1%
4.8%
6.4%
0.7%
12.0%
2013
$94
0.0%
4.3%
1.1%
5.4%
Periodic Defaults by Years in Repayment
(3),(4)
Disbursed Principal
Entering
Repayment Year
Repayment ($m)
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Total
1998
$2
0.0%
0.0%
0.0%
0.0%
0.0%
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
$6
0.0%
0.0%
0.0%
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%
0.0%
0.0%
1.3%
2.5%
2.3%
1.4%
1.6%
3.8%
3.0%
1.9%
1.5%
0.7%
0.5%
0.3%
0.0%
20.8%
2001
$32
0.0%
0.0%
0.1%
2.3%
2.9%
2.0%
3.4%
2.5%
5.2%
3.8%
2.8%
1.1%
1.0%
0.6%
0.1%
27.9%
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%
1.3%
0.1%
28.1%
2003
$107
0.0%
0.3%
1.3%
2.1%
4.1%
3.3%
5.3%
4.6%
3.5%
2.1%
1.4%
0.9%
0.1%
29.1%
2004
$165
0.0%
0.5%
0.5%
4.4%
3.9%
6.4%
5.7%
3.5%
2.4%
2.0%
1.4%
0.2%
31.0%
2005
$226
0.0%
0.1%
0.9%
5.4%
8.2%
7.0%
3.8%
3.3%
2.3%
1.4%
0.2%
32.5%
2006
$296
0.0%
0.2%
3.7%
8.1%
7.8%
4.8%
3.6%
2.9%
1.8%
0.3%
33.2%
2007
$351
0.0%
1.1%
8.0%
9.8%
6.0%
4.0%
3.4%
2.3%
0.2%
34.8%
2008
$398
0.0%
5.4%
8.5%
8.1%
5.2%
4.2%
2.8%
0.3%
34.7%
2009
$378
0.0%
8.2%
8.0%
7.3%
4.9%
3.4%
0.3%
32.1%
2010
$310
0.0%
8.0%
8.4%
7.8%
3.5%
0.5%
28.2%
2011
$202
0.0%
7.7%
10.2%
4.6%
0.5%
23.1%
2012
$114
0.0%
7.5%
8.8%
1.0%
17.4%
2013
$54
0.0%
6.2%
1.1%
7.3%
Periodic Defaults by Years in Repayment
(3),(4) |
 47
Confidential
and
proprietary
information
©
2014
Navient
Solutions,
Inc.
All
rights
reserved.
Cohort Default Triangles
Private Consolidation Loans Without Co-signer
Private Consolidation Loans With Co-signer
Note: Data as of 9/30/14.
(1)
Periodic Defaults for the most recent two calendar Years in Repayment are for a
partial year. (2)
Numerator is the amount of principal in each cohort that defaulted in each Year in
Repayment. Denominator is the amount of disbursed principal for that Repayment Year.
Disbursed Principal
Entering
Repayment Year
Repayment ($m)
0
1
2
3
4
5
6
7
8
9
Total
2006
$249
0.0%
0.1%
0.1%
0.5%
0.6%
0.6%
0.4%
0.3%
0.4%
0.0%
2.9%
2007
$675
0.0%
0.0%
0.2%
0.4%
0.6%
0.4%
0.4%
0.4%
0.1%
2.5%
2008
$376
0.0%
0.1%
0.4%
0.7%
0.6%
0.6%
0.5%
0.1%
2.9%
Periodic Defaults by Years in Repayment
(1),(2)
Disbursed Principal
Entering
Repayment Year
Repayment ($m)
0
1
2
3
4
5
6
7
8
9
Total
2006
$125
0.0%
0.4%
0.9%
1.5%
1.7%
1.5%
1.0%
1.1%
1.0%
0.0%
9.2%
2007
$295
0.0%
0.0%
0.9%
1.0%
1.3%
1.0%
1.0%
0.8%
0.2%
6.1%
2008
$133
0.0%
0.2%
1.7%
2.1%
1.8%
1.7%
1.9%
0.6%
9.9%
Periodic Defaults by Years in Repayment
(1),(2) |
   48
Confidential
and
proprietary
information
©
2014
Navient
Solutions,
Inc.
All
rights
reserved.
Cohort Default Triangles
Note: Data as of 9/30/14.
(1)
FICO scores are based on the greater of the borrower and co-borrower scores as
of a date near the loan application. (2)
Periodic Defaults for the most recent two calendar Years in Repayment are for a
partial year. (3)
Numerator is the amount of principal in each cohort that defaulted in each Year in
Repayment. Denominator is the amount of disbursed principal for that Repayment Year.
DTC With Co-signer, FICO
670
(1)
DTC Without Co-signer, FICO
670
(1)
Disbursed Principal
Entering
Repayment Year
Repayment ($m)
0
1
2
3
4
5
6
7
8
9
10
11
Total
2004
$8
0.0%
0.0%
0.0%
0.0%
0.0%
0.2%
0.1%
0.4%
0.0%
0.2%
0.0%
0.0%
0.9%
2005
$65
0.0%
0.1%
0.8%
0.7%
1.4%
2.1%
1.2%
0.9%
0.8%
1.0%
0.0%
9.1%
2006
$139
0.0%
0.7%
1.8%
4.4%
4.8%
2.4%
2.0%
2.0%
1.2%
0.2%
19.4%
2007
$245
0.0%
0.6%
4.7%
6.2%
4.2%
2.7%
2.6%
1.9%
0.2%
23.0%
2008
$369
0.0%
2.9%
5.8%
4.9%
3.6%
2.9%
2.2%
0.3%
22.6%
2009
$396
0.0%
3.7%
4.1%
4.0%
3.1%
2.4%
0.3%
17.6%
2010
$314
0.0%
3.6%
4.1%
4.6%
2.8%
0.6%
15.7%
2011
$192
0.1%
3.7%
5.2%
3.4%
0.7%
13.1%
2012
$104
0.0%
3.2%
5.3%
1.4%
9.9%
2013
$23
0.0%
1.2%
0.9%
2.1%
Periodic Defaults by Years in Repayment
(2),(3)
Disbursed Principal
Entering
Repayment Year
Repayment ($m)
0
1
2
3
4
5
6
7
8
9
10
11
Total
2004
$2
0.0%
0.0%
1.6%
1.2%
0.6%
4.7%
2.2%
3.0%
1.2%
4.2%
0.0%
0.0%
18.8%
2005
$19
0.0%
1.0%
2.0%
2.4%
4.0%
6.5%
2.8%
1.6%
1.0%
1.2%
0.0%
22.6%
2006
$66
0.0%
1.4%
2.5%
6.6%
6.4%
4.0%
2.7%
2.5%
1.3%
0.1%
27.6%
2007
$158
0.0%
1.0%
5.8%
8.1%
4.6%
3.8%
3.3%
2.2%
0.1%
28.9%
2008
$255
0.0%
3.7%
7.9%
7.3%
4.2%
4.0%
2.4%
0.2%
29.8%
2009
$235
0.0%
6.7%
6.3%
6.8%
5.2%
3.0%
0.6%
28.6%
2010
$152
0.1%
8.3%
7.0%
8.7%
3.9%
0.7%
28.8%
2011
$88
0.1%
7.8%
10.1%
5.5%
1.3%
24.9%
2012
$47
0.0%
6.2%
8.1%
1.8%
16.1%
2013
$5
0.0%
3.2%
1.1%
4.2%
Periodic Defaults by Years in Repayment
(2),(3) |
  49
Confidential
and
proprietary
information
©
2014
Navient
Solutions,
Inc.
All
rights
reserved.
Cohort Default Triangles
Note: Data as of 9/30/14.
(1)
FICO scores are based on the greater of the borrower and co-borrower scores as
of a date near the loan application. (2)
Periodic Defaults for the most recent two calendar Years in Repayment are for a
partial year. (3)
Numerator is the amount of principal in each cohort that defaulted in each Year in
Repayment. Denominator is the amount of disbursed principal for that Repayment Year.
Career Training Loans, 670+ FICO
(1)
Disbursed Principal
Entering
Repayment Year
Repayment ($m)
0
1
2
3
4
5
6
7
8
9
10
11
12
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%
0.3%
0.1%
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%
0.1%
12.3%
2005
$513
0.0%
0.3%
2.2%
2.2%
2.5%
2.1%
1.5%
1.0%
0.8%
0.6%
0.1%
13.2%
2006
$630
0.0%
0.4%
2.5%
3.5%
3.2%
2.2%
1.5%
1.0%
0.8%
0.1%
15.3%
2007
$672
0.0%
0.5%
3.5%
3.9%
2.9%
1.8%
1.2%
1.0%
0.2%
15.1%
2008
$581
0.0%
0.6%
4.3%
3.6%
2.2%
1.5%
1.2%
0.3%
13.6%
2009
$169
0.0%
0.2%
2.1%
2.1%
1.5%
1.1%
0.3%
7.3%
2010
$19
0.0%
0.6%
1.2%
1.0%
0.5%
0.3%
3.5%
Periodic Defaults by Years in Repayment
(2),(3) |
 50
Confidential
and
proprietary
information
©
2014
Navient
Solutions,
Inc.
All
rights
reserved.
Navient
Corporation
Appendix |
 51
Confidential
and
proprietary
information
©
2014
Navient
Solutions,
Inc.
All
rights
reserved.
GAAP Results
(In millions, except per share amounts)
Q3 14
Q2 14
Q3 13
Net income
$359
$307
$260
EPS
$0.85
$0.71
$0.57
Operating expenses
$195
$211
$257
Provision
$140
$165
$207
Average Student Loans
$129,915
$134,737
$145,585 |
 52
Confidential
and
proprietary
information
©
2014
Navient
Solutions,
Inc.
All
rights
reserved.
“Core Earnings”
adjustments to GAAP:
GAAP net income
$ 359
Net impact of SLM BankCo
1
14
Net impact of derivative accounting
(226)
Net impact of goodwill and acquired intangible assets
2
Net income tax effect
69
Total “Core Earnings”
adjustments to GAAP
(141)
“Core Earnings”
net income
$218
Quarter ended September 30, 2014
($ in millions)
1 Includes restructuring and other reorganization expenses incurred in connection
with the spin-off. Differences between “Core Earnings”
and GAAP |
 53
Confidential
and
proprietary
information
©
2014
Navient
Solutions,
Inc.
All
rights
reserved.
•
SLM
/
NAVI
student
loan
trust
data
(Debt/asset
backed
securities
–
SLM
/
NAVI
Student
Loan
Trusts)
-
Static pool information –
detailed portfolio stratifications by trust as of the cutoff date
-
Accrued interest factors
-
Quarterly distribution factors
-
Historical trust performance –
monthly charge-off, delinquency, loan status, CPR, etc. by trust
-
Since issued CPR –
monthly CPR data by trust since issuance
•
SLM
/
NAVI
student
loan
performance
by
trust
–
Issue
details
-
Current and historical monthly distribution reports
-
Distribution factors
-
Current rates
-
Prospectus for public transactions and Rule 144A transactions are available through
underwriters •
Additional information (Webcasts and presentations)
-
Archived and historical webcasts, transcripts and investor presentations
https://www.navient.com/about/investors/
Investor Relations Website |
 *************************************
*
*
*
*
*
*
* |