SEC Filing | Navient

NAVIENT CORPORATION

Date: March 2, 2015

/s/ Mark L. Heleen

Mark L. Heleen

Executive Vice President, Chief Legal Officer and Secretary

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Form 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): March 2, 2015

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.)


123 Justison Street, Wilmington, Delaware		19801
(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 March 2, 2015, a presentation entitled “2014 4^th 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

The information contained in, or incorporated into, this Item 7.01, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

ITEM 9.01

Financial Statements and Exhibits.

(d)

Exhibits


Exhibit Number		Description

99.1*		2014 4^th 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 4^th Quarter Investor Deck.

*	Furnished herewith.

EX-99.1

Exhibit 99.1

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2014 4th Quarter Investor Deck

March 2, 2015

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Forward-Looking Statements; Non-GAAP Financial Measures

The following information is current as of March 2, 2015 (unless otherwise noted) and should be read in connection with Navient Corporation’s (Navient) Annual Report on Form 10-K for the year ended December 31, 2014 (the “2014 Form 10-K”), filed by Navient with the Securities and Exchange Commission (the “SEC”) on February 27, 2015 and subsequent reports filed by Navient with the SEC. Definitions for capitalized terms in this presentation not defined herein can be found in our 2014 Form 10-K. 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 facts, including statements about the company’s beliefs or expectations 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 Navient’s 2014 Form 10-K; 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 the company is a party; credit risk associated with the company’s exposure to third parties, including counterparties to the company’s derivative transactions; risks inherent in the government contracting environment, including the possible loss of government contracts and potential civil and criminal penalties as a result of governmental investigations or audits; 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). The company could also be affected by, among other things: changes in its funding costs and availability; reductions to its credit ratings or the credit ratings of the United States of America; failures of its operating systems or infrastructure, or those of third-party vendors; risks related to cybersecurity including the potential disruption of our systems or potential disclosure of confidential customer information; damage to our reputation; failures to successfully implement cost-cutting and adverse effects of such initiatives on its business; failures or delays in the planned conversion to our servicing platform of the recently acquired Wells Fargo portfolio of Federal Family Education Loan Program (“FFELP”) loans or any other FFELP or Private Education Loan portfolio acquisitions; risks associated with restructuring initiatives, including the April 30, 2014 separation of Navient from SLM Corporation; 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 the company’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 presentation are qualified by these cautionary statements and are made only as of the date of this presentation. The company does not undertake any obligation to update or revise these forward-looking statements to conform the statement to actual results or changes in its 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 fourth quarter earnings release for a further discussion and a complete reconciliation between GAAP net income and core earnings.

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Navient Corporation Overview

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

Key Businesses Highlights

Asset Management • FFELP Loan Portfolio • $105 Billion FFELP Portfolio

• Private Education Loan Portfolio • $30 Billion Private Education Loan Portfolio

Servicing • FFELP Loans • Over 12 Million Borrowers

• Private Education Loans • Over $300 Billion of Education Loans

• Department of Education Servicing Contract

• Guarantor Servicing

Asset Recovery • Education loans • $15 Billion of Receivables

• Government receivables • Over 1,200 clients

• Taxes

• Court/Municipal

• Schools

As of December 31, 2014

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Operating Results “Core Earning” Basis

(In millions, except per share amounts) Q4 14 Q4 13 2014 2013

Adjusted Core EPS before regulatory matters and impact $0.54 $0.56 $2.10 $2.10

of 2013 transactions listed below

Gains from residual sales ——$0.44

Gains from sales of subsidiaries—$0.14—$0.24

Debt repurchase gains ——$0.07

Adjusted Core EPS before regulatory matters $0.54 $0.70 $2.10 $2.85

Expenses associated with regulatory matters ($0.01)($0.08)($0.17)($0.08)

Reported Core EPS $0.53 $0.62 $1.93 $2.77

Operating expenses $215 $233 $924 $788

Operating expenses (excluding regulatory matters) $206 $179 $804 $734

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FFELP Loans Segment “Core Earnings” Basis

(In millions) Q4 14 Q4 13 2014 2013

Net income $82 $81 $296 $513

Average FFELP Loans $99,323 $104,245 $100,202 $111,008

FFELP Loan spread 1.00% 1.01% 0.99% 0.98%

Annualized charge-off rate 0.05% 0.10% 0.08% 0.09%

Greater than 90-day delinquency rate 8.5% 9.3% 8.5% 9.3%

Acquired $11.3 billion of FFELP loans in 2014

$312 million of gains from residual interest sales in 2013

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FFELP Loans Segment Portfolio Characteristics

Largest holder of FFELP Loans, $105 billion portfolio(1)

Portfolio is 97-98% government guaranteed

80% of portfolio funded to term with securitizations

Fully integrated servicing and asset recovery support operations

(1) Ending FFELP Loans, net, as of December 31, 2014

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FFELP Loans Segment

Credit Quality “Core Earnings” Basis

($‘s in millions) FFELP Education Loan Portfolio

December 31, 2014 December 31, 2013

Balance% Balance%

Loans in-school/grace/deferment $10,861 $13,546

Loans in forbearance 14,366 13,219

Loans in repayment and percentage of each status

Loans current 65,221 83.4% 62,663 83.0%

Loans delinquent 31-60 days 3,942 5.0% 3,665 4.9%

Loans delinquent 61-90 days 2,451 3.1% 2,152 2.8%

Loans delinquent greater than 90 days 6,597 8.5% 7,000 9.3%

Total FFELP Loans in repayment 78,211 100% 75,480 100%

Total FFELP Loans, gross $103,438 $102,245

Percentage of FFELP Loans in repayment 75.6% 73.8%

Delinquencies as a percentage of FFELP Loans in

repayment 16.6% 17.0%

Loans in forbearance as a percentage of loans in

repayment and forbearance 15.5% 14.9%

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Federal Student Loan Market

Outstanding Government Student Loan Market Distribution FFYE 9/30/2014 ($ in billions)

FFELP owned by Navient, $98

FFELP Loans, $157

Federal Loans owned by ED, $875

Source: Department of Education, U.S. Department of Education FY 2014 Agency Financial Report, Navient

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Private Education Loans Segment “Core Earnings” Basis

(In millions, except FICO score) Q4 14 Q4 13 2014 2013

Net income $92 $86 $351 $269

Average Private Education Loans $30,869 $32,109 $31,243 $32,296

Private Education Loan spread 3.99% 4.04% 4.04% 4.09%

Provision for loan losses $128 $152 $539 $722

Charge-offs $174 $230 $717 $878

Annualized charge-off rate 2.5% 3.3% 2.6% 3.1%

Total delinquency rate 8.1% 9.3% 8.1% 9.3%

Greater than 90-day delinquency rate 3.8% 4.7% 3.8% 4.7%

Forbearance rate 3.8% 3.8% 3.8% 3.8%

Acquired $1.6 billion of Private Education Loans in 2014

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Private Education Loans Segment Portfolio Characteristics

$30 billion portfolio(1)

22% of Navient’s total student loan portfolio

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

Average FICO at origination of 719

Higher education loans typically non-dischargeable in bankruptcy

Integrated underwriting, servicing and collections

(1) Ending Private Education Loans, net, as of December 31, 2014

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Private Education Loans Segment Credit Quality “Core Earnings” Basis

($‘s in millions) Private Education Loan Portfolio

December 31, 2014 December 31, 2013

Balance% Balance%

Loans in-school/grace/deferment $3,053 $3,954

Loans in forbearance 1,059 1,085

Loans in repayment and percentage of each status

Loans current 24,761 91.9% 24,835 90.7%

Loans delinquent 31-60 days 734 2.7% 773 2.8%

Loans delinquent 61-90 days 436 1.6% 503 1.8%

Loans delinqent greater than 90 days 1,018 3.8% 1,287 4.7%

Total Private Education Loans in repayment 26,949 100% 27,398 100%

Total Private Education Loans, gross $31,061 $32,437

Percentage of Private Education Loans in repayment 86.8% 84.5%

Delinquencies as a percentage of Private Education

Loans in repayment 8.1% 9.3%

Loans in forbearance as a percentage of loans in

repayment and forbearance 3.8% 3.8%

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Private Education Loans Segment High Quality Portfolio

Private Credit: % of Portfolio Outstanding by Segment

100%

90% 14% 13% 11% 11% 10% 9% 8%

80% 27% 25% 24%

70% 28% 29% 29% 29%

60%

50%

40%

30% 57% 59% 60% 61% 64% 66% 68%

20%

10%

Dec 08 Dec 09 Dec 10 Dec 11 Dec 12 Dec 13 Dec 14

Low Risk Moderate Risk Elevated Risk

Private Credit Charge-Off Rate by Segment

25%

21.3%

20%

17.3%

15%

12.6%

10.4% 11.1%

- 9.4%

10%

7.7%

6.7% 6.8%

5.6% 5.4% 4.6%

5% 6.3% 5.6% 3.6%

2.9%

4.3%

2.8%

3.9% 2.6%

2.6%

3.1%

1.0%

2.7% 2.3% 2.1% 1.8% 1.7%

2008 2009 2010 2011 2012 2013 2014

Low Risk Moderate Risk Elevated Risk Overall Portfolio

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

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Private Education Loans Segment Default Performance

Historical Defaults by Payments Made

100% 87% 89% 90% 92% 94% 96% 97% 99% 99% 100%

81% 84%

76%

69%

57% 57%

50%

12%

7% 5% 3% 2% 2% 2% 2% 2% 2% 2% 1% 1% 1%

24 36 48 60 72 84 96 108 120 132 144 156 168 180

Percent

of total defaults

Defaults Per Payments Made Cumulative Defaults

# 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

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Loan Seasoning – “Core Earnings” Basis

December 31, 2014

Traditional Portfolio

Monthly Scheduled Payments Received

Loan Status 0-12 payments 13-24 payments 25-36 payments 37-48 payments More than 48 payments Total

Not Yet in Repayment 2,777

Loans in Forbearance 376 15.7% 149 5.2% 133 3.4% 111 2.7% 166 1.3% 935 3.6%

Loans in Repayment- Current 1,567 65.5% 2,354 83.1% 3,469 88.6% 3,732 91.0% 11,890 95.0% 23,012 89.4%

Loans in Repayment- Delinq 31-60 days 135 5.6% 101 3.6% 106 2.7% 94 2.3% 188 1.5% 624 2.4%

Loans in Repayment- Delinq 61-90 days 82 3.4% 67 2.4% 67 1.7% 52 1.3% 95 0.8% 363 1.4%

Loans in Repayment- Delinq 90 + days 233 9.8% 162 5.7% 141 3.6% 110 2.7% 170 1.4% 816 3.2%

Total Loans in Repayment or Forbearance $ 2,393 100% $ 2,833 100% $ 3,916 100% $ 4,099 100% $ 12,509 100% $ 25,750 100%

Charge-offs as a % of loans in repayment 8.7% 3.5% 2.2% 1.4% 0.7% 2.1%

Non-Traditional Portfolio

Monthly Scheduled Payments Received

Loan Status 0-12 payments 13-24 payments 25-36 payments 37-48 payments More than 48 payments Total

Not Yet in Repayment 276

Loans in Forbearance 62 18.3% 19 5.8% 15 4.3% 10 3.4% 18 2.0% 124 5.5%

Loans in Repayment- Current 165 48.3% 232 70.9% 265 77.4% 250 82.0% 837 88.9% 1,749 77.5%

Loans in Repayment- Delinq 31-60 days 28 8.2% 21 6.4% 18 5.2% 13 4.1% 30 3.2% 110 4.9%

Loans in Repayment- Delinq 61-90 days 20 5.9% 14 4.2% 11 3.3% 10 3.1% 18 1.9% 73 3.2%

Loans in Repayment- Delinq 90 + days 66 19.3% 42 12.7% 34 9.8% 22 7.4% 38 4.0% 202 8.9%

Total Loans in Repayment or Forbearance $ 341 100% $ 328 100% $ 343 100% $ 305 100% $ 941 100% $ 2,258 100%

Charge-offs as a % of loans in repayment 22.3% 10.7% 6.9% 4.2% 2.5% 7.3%

Total

Monthly Scheduled Payments Received

Loan Status 0-12 payments 13-24 payments 25-36 payments 37-48 payments More than 48 payments Total

Not Yet in Repayment 3,053

Loans in Forbearance 438 16.0% 168 5.3% 148 3.5% 121 2.8% 184 1.4% 1,059 3.8%

Loans in Repayment- Current 1,732 63.4% 2,586 81.8% 3,734 87.7% 3,982 90.4% 12,727 94.6% 24,761 88.4%

Loans in Repayment- Delinq 31-60 days 163 6.0% 122 3.9% 124 2.9% 107 2.4% 218 1.6% 734 2.6%

Loans in Repayment- Delinq 61-90 days 102 3.7% 81 2.5% 78 1.8% 62 1.4% 113 0.8% 436 1.6%

Loans in Repayment- Delinq 90 + days 299 10.9% 204 6.5% 175 4.1% 132 3.0% 208 1.6% 1,018 3.6%

Total Loans in Repayment or Forbearance $ 2,734 100% $ 3,161 100% $ 4,259 100% $ 4,404 100% $ 13,450 100% $ 28,008 100%

Charge-offs as a % of loans in repayment 10.3% 4.2% 2.6% 1.6% 0.9% 2.5%

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Loan Seasoning – “Core Earnings” Basis

December 31, 2013

Traditional Portfolio

Monthly Scheduled Payments Received

Loan Status 0-12 payments 13-24 payments 25-36 payments 37-48 payments More than 48 payments Total

Not Yet in Repayment 3,535

Loans in Forbearance 423 13.7% 165 4.1% 148 3.3% 94 2.2% 122 1.2% 952 3.6%

Loans in Repayment- Current 2,035 66.0% 3,395 85.2% 3,931 88.2% 4,010 91.9% 9,705 95.1% 23,076 88.4%

Loans in Repayment- Delinq 31-60 days 146 4.7% 132 3.3% 122 2.7% 97 2.2% 149 1.4% 646 2.5%

Loans in Repayment- Delinq 61-90 days 112 3.7% 86 2.2% 77 1.8% 53 1.2% 82 0.8% 410 1.6%

Loans in Repayment- Delinq 90 + days 366 11.9% 209 5.2% 177 4.0% 110 2.5% 150 1.5% 1,012 3.9%

Total Loans in Repayment or Forbearance $ 3,082 100% $ 3,987 100% $ 4,455 100% $ 4,364 100% $ 10,208 100% $ 26,096 100%

Charge-offs as a % of loans in repayment 7.5% 4.0% 2.5% 1.8% 1.1% 2.7%

Non-Traditional Portfolio

Monthly Scheduled Payments Received

Loan Status 0-12 payments 13-24 payments 25-36 payments 37-48 payments More than 48 payments Total

Not Yet in Repayment 419

Loans in Forbearance 70 14.2% 21 5.2% 15 4.2% 11 3.4% 16 1.9% 133 5.6%

Loans in Repayment- Current 239 48.3% 278 70.0% 266 75.1% 258 81.0% 718 87.5% 1,759 73.7%

Loans in Repayment- Delinq 31-60 days 37 7.6% 27 6.7% 20 5.5% 14 4.3% 29 3.5% 127 5.3%

Loans in Repayment- Delinq 61-90 days 32 6.4% 18 4.6% 15 4.2% 11 3.5% 17 2.1% 93 3.9%

Loans in Repayment- Delinq 90 + days 116 23.5% 54 13.5% 39 11.0% 25 7.9% 41 5.0% 275 11.5%

Total Loans in Repayment or Forbearance $ 494 100% $ 398 100% $ 355 100% $ 319 100% $ 821 100% $ 2,387 100%

Charge-offs as a % of loans in repayment 20.4% 13.7% 8.5% 7.2% 3.7% 10.0%

Total

Monthly Scheduled Payments Received

Loan Status 0-12 payments 13-24 payments 25-36 payments 37-48 payments More than 48 payments Total

Not Yet in Repayment 3,954

Loans in Forbearance 493 13.8% 186 4.2% 163 3.4% 105 2.2% 138 1.3% 1,085 3.8%

Loans in Repayment- Current 2,274 63.6% 3,673 83.8% 4,197 87.2% 4,268 91.1% 10,423 94.5% 24,835 87.2%

Loans in Repayment- Delinq 31-60 days 183 5.1% 159 3.6% 142 3.0% 111 2.4% 178 1.6% 773 2.7%

Loans in Repayment- Delinq 61-90 days 144 4.0% 104 2.4% 92 1.9% 64 1.4% 99 0.9% 503 1.8%

Loans in Repayment- Delinq 90 + days 482 13.5% 263 6.0% 216 4.5% 135 2.9% 191 1.7% 1,287 4.5%

Total Loans in Repayment or Forbearance $ 3,576 100% $ 4,385 100% $ 4,810 100% $ 4,683 100% $ 11,029 100% $ 28,483 100%

Charge-offs as a % of loans in repayment 9.2% 4.8% 2.9% 2.1% 1.3% 3.3%

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Business Services Segment “Core Earnings” Basis

(In millions) Q4 14 Q4 13 2014 2013

Net income $98 $187 $428 $609

Federal Loans serviced ($’s in billions) $276 $265 $276 $265

Third-Party Loan servicing revenue $46 $42 $176 $138

Asset recovery revenue $80 $108 $388 $420

Department of Education accounts serviced 6.2 5.7 6.2 5.7

Contingency asset recovery receivables ($’s in billions) $15.4 $16.2 $15.4 $16.2

Asset recovery revenue in 2014 was reduced by $78 million from 2013 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

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Business Services Segment

Federal Loan Servicing & Customer Success

Federal Loans Serviced by Navient

$ 300

$ 275

$ 250

in billions $ 225

$ 200

$ 175

$ 150

2011 2012 2013 2014

Reducing Student Loan Default

Largest servicer of federal student loans with over $275 billion

We promote success through more than 50 million communications annually

Federal loans serviced by Navient have a 40% better cohort default rate

Every week we help nearly 1,200 borrowers rehabilitate their loans

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Business Services Segment Asset Recovery

2014 Asset Recovery Revenues

Other Revenues -Not student loan related FFELP

12% Related Revenues 71%

ED Related Revenues 17%

Key Characteristics

Generated $388 million of revenue in 2014

Strong compliance infrastructure

Opportunities to expand into state, court and municipality asset recovery

Non-ED government asset recovery provide additional growth opportunity

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Funding and Liquidity

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2014 Capital Markets Summary

Acquired $13 billion of student loans

Issued $6.8 billion of ABS

Refinanced $1.1 billion of FFELP reset notes to term

Issued $1.9 billion of long-term unsecured debt

Closed on $18 billion in FFELP Loan ABCP facilities

Closed on a $1 billion Private Loan ABCP facility

Returned $849 million to shareholders through share repurchases and dividends

Maintained strong capital position

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Secured Funding

2014 Issuance

Ally 14,252 Auto / Floorplans

Ford 13,423 Auto / Floorplans

Citigroup 10,600 Credit Card

Chase 8,350 Credit Card

Santander Drive 6,921 Auto

Navient 6,816 Student Loan

AMEX 5,447 Credit Card

Discover 5,050 Credit Card

9 Volkswagen 4,999 Auto / Floorplans

10 Honda 4,500 Auto

11 Toyota 4,414 Auto

12 Capital One 4,300 Credit Card

13 AmeriCredit 4,150 Auto

14 Bank America 4,100 Credit Card

15 CarMax 4,087 Auto

16 Hyundai 3,821 Auto

17 Fifth Third 3,750 Auto

18 Nissan 3,646 Auto

19 GE Capital 3,267 Equipment / Floorplans

20 Nelnet 3,248 Student Loan

Navient is among the largest issuers of ABS globally, having issued over $250 billion of Private and FFELP ABS transactions to date

Over $104 billion of securitizations on balance sheet

Additional capacity under FFELP secured facilities is $13 billion

Maximum capacity under Private Education Loan secured facilities is $1 billion

(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 December 31, 2014

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Recent FFELP ABS Transactions

NAVSL 2015-1 NAVSL 2014-8

Priced: February 18, 2015 November 19, 2014

Settled: February 26, 2015 November 25, 2014

Issuance Amount: $1,000M $1,017M

US Govt. Guaranteed US Govt. Guaranteed

Collateral:

FFELP Stafford, Plus and Consolidation Loans FFELP Stafford and Plus Loans

Prepayment Speed (1): 6% CPR Stafford / 4% CPR Consolidation 6% Constant Prepayment Rate

Tranching: Class Rating Amt. WAL (1) Pricing (2) Class Rating Amt. WAL (1) Pricing (2)

(M)($M)(M)($M)

A-1 Aaa $344 1.5 L+30 A-1 Aaa $285 1.0 L+28

A-2 Aaa $630 7.1 L+60 A-2 Aaa $235 3.0 L+44

B Aa1 $27 11.8 L+220 A-3 Aaa $469 6.3 L+60

B A1 $28 8.3 L+190

(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

NAVSL Trust 2015-A NAVSL Trust 2014-A

Priced: January 13, 2015 October 15, 2014

Settled: January 22, 2015 October 23, 2014

Issuance Amount: $689M $664M

Collateral: Private Education Loans Private Education Loans

Prepayment Speed(1): 4% Constant Prepayment Rate 4% Constant Prepayment Rate

Tranching: Class Rating Amt. WAL (1) Pricing (2) Class Rating Amt. WAL (1) Pricing (2)

(M)($M)(M)($M)

A-1 Aaa $224 1.0 L+50 A-1 Aaa $186 1.0 L+48

A-2A Aaa $154 5.5 S+110 A-2A Aaa $168 5.8 S+115

A-2B Aaa $154 5.5 L+120 A-2B Aaa $168 5.8 L+125

A3 Aaa $75 8.8 L+170 A3 Aaa $76 9.7 L+160

B Aa3 $83 9.9 S+210 B Aa1 $66 10.6 S+240

(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 2.67% for 2014-A and 2015-A, respectively. Yield on fixed rate B tranches were 4.65% and 4.10% for 2014-A and 2015-A, respectively.

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Unsecured Debt

As of December 31, 2014 (par value, $ in billions)

$4.2

$2.8

$2.5

$2.2

$2.1

$1.8

$1.1

$0.8

$0.1

2015 2016 2017 2018 2019 2020 2021 2022 2023+

Fitch Moody’s S&P

Senior Unsecured Debt BB Ba3 BB

Outlook Stable Stable Stable

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Conservative Unsecured Debt Profile

$70 Years Ending December 31 1.35

(par value, $ in billions)

$60 1.30

$51.7

$48.7

$47.2

$50 $45.1 1.25

$38.0

$39.4

$40 1.20

$30.2

$28.0

$30 1.15

$24.0

$21.8 $22.4 $23.0 $22.1

$20.1

$20 $17.0 $17.8 $18.3 $17.5 1.10

$10 1.05

$0 1.00

2006 2007 2008 2009 2010 2011 2012 2013 2014

Unsecured Debt Outstanding Tangible Net Assets Tangible Net Asset Ratio

December 31, 2006 December 31, 2010 December 31, 2014

Total Managed Student Loans $142.1 Billion $184.3 Billion $134.3 Billion

Unsecured Debt Outstanding $48.7 Billion $20.1 Billion $17.5 Billion

Tangible Equity Ratio 1.9% 2.2% 2.6%

Tangible Net Asset Ratio 1.06x 1.19x 1.27x

Unsecured Debt Rating (F / M / S) A+ / A2 / A BBB- / Ba1 / BBB- BB / Ba3 / BB

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Education Loan Portfolio Generates Significant Cash Flows

Projected Life of Loan Cash Flows over ~20 Years

$’s in Billions

FFELP Cash Flows

12/31/14

12/31/13

Secured

Residual (including O/C)

$7.3

$7.1

Floor Income

1.9

Servicing

3.8

4.2

Total Secured

$13.0

$13.2

Unencumbered

1.9

1.3

Total FFELP Cash Flows

$14.9

$14.5

Private Credit Cash Flows

Secured

Residual (including O/C)

$13.2

$12.5

Servicing

1.3

1.4

Total Secured

$14.5

$13.9

Unencumbered

6.8

6.9

Total Private Cash Flows

$21.3

$20.8

Combined Cash Flows

before Unsecured Debt

$36.2

$35.3

Enhancing Cash Flows

Cash Flow Projection as of 12/31/13 $35.3 B

- 2014 Portfolio Cash Flows Realized(2.7)B

+ Wells Fargo, Net of Financings 0.8 B

+ Loan Acquisitions, Net of Financings 2.2 B

+ Additional Floor Income 0.4 B

+ Credit Improvement 0.2 B

Total Additions 3.6 B

Cash Flow Projection as of 12/31/14 $36.2 B

Since 12/31/13, we have added $3.6 billion of cash flows through new loan acquisitions and improved portfolio performance Wells Fargo acquisition of $8.5 billion added $0.8 billion of projected cash flows $36 billion of estimated future cash flows over ~ 20 years

- Highly predictable

- Includes ~$11 billion of overcollateralization (O/C) to be released from residuals

- In Q4 14 the company locked in $0.7 billion of future floor income through hedges

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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FFELP Cash Flows Highly Predictable

as of 12/31/14 2015 2016 2017 2018 2019 2020 2021 2022

Projected FFELP Average Balance $98,095 $88,959 $79,751 $71,251 $63,000 $55,043 $47,595 $40,633

Projected Excess Spread $896 $841 $754 $680 $621 $544 $486 $438

Projected Servicing Revenue $506 $469 $428 $390 $350 $306 $263 $221

Projected Total Revenue $1,402 $1,309 $1,182 $1,071 $971 $850 $748 $659

2023 2024 2025 2026 2027 2028 2029 2030+

Projected FFELP Average Balance $34,264 $28,532 $23,787 $19,871 $16,177 $12,711 $9,496 $3,755

Projected Excess Spread $379 $322 $260 $231 $205 $175 $140 $333

Projected Servicing Revenue $183 $149 $122 $102 $84 $66 $50 $108

Projected Total Revenue $562 $470 $382 $333 $288 $241 $190 $441

Total Cash Flows from Projected Excess Spread = $7.3 Billion

Total Cash Flows from Projected Servicing Revenues = $3.8 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

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Secured Cash Flow

$ in Millions 2014 2013 2012 2011

FFELP

Term Securitized

Servicing (Cash Paid) $ 407 $ 507 $ 526 $ 563

Net Residual* (Excess Distributions) 680 476 628 715

Other Secured FFELP

Net Cash Flow 216 1,199 934 568

Total FFELP $ 1,302 $ 2,182 $ 2,088 $ 1,846

Private Credit

Term Securitized

Servicing (Cash Paid) $ 189 $ 198 $ 181 $ 189

Residual (Excess Distribution) 226 170 103 28

Other Secured Financings

Net Cash Flow 26 9 22 2

Total Private Credit $ 441 $ 377 $ 306 $ 219

Total Proceeds from Residual Sales $ 589

Total FFELP and Private Credit $ 1,743 $ 3,148 $ 2,394 $ 2,065

Average Principal Balances 2014 2013 2012 2011

FFELP

Term FFELP $ 88,554 $ 95,055 $ 104,913 $ 109,509

Other Secured FFELP 6,525 11,085 22,271 29,466

Total FFELP $ 95,079 $ 106,140 $ 127,184 $ 138,975

Private Credit

Term Private Credit $ 24,499 $ 26,037 $ 25,111 $ 25,619

Other Secured Financings 1,523 1,106 1,875 233

Total Private Credit $ 26,022 $ 27,143 $ 26,987 $ 25,853

Total FFELP and Private Credit $ 121,101 $ 133,283 $ 154,171 $ 164,828

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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FFELP ABS Appendix

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Recent FFELP ABS Issuance Characteristics

FFELP ABS Transaction Features

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

Collateral Characteristics

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.

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FFELP Loan Program Characteristics

Parameter Subsidized Stafford Unsubsidized Stafford PLUS/Grad PLUS Subsidized Consolidation Unsubsidized

Consolidation

Parents or Graduate

Borrower Student Student Student or Parents Student or Parents

Students

Needs Based Yes No No N/A N/A

Federal Guarantee of

Principal and Accrued 97—100% 97—100% 97—100% 97—100% 97—100%

Interest

Interest Subsidy Yes No No Yes No

Payments

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

Undergraduate: $23,000 Undergraduate1: $57,500

Aggregate Loan Limit None None None

Graduate: $65,500 Graduate: $138,500

(1)

Aggregate loan limit for a Dependent Undergraduate is $31,000 Note: As of July 1, 2011

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Navient Stafford & PLUS Loan Prepayments

Annualized CPRs for Stafford/PLUS ABS trusts have decreased from pre-2008 levels as incentives for borrowers to consolidate have declined

Higher prepayment activity in mid 2012 was related to the short term availability of the Special Direct Consolidation Loan program

Historical Stafford/PLUS ABS CPRs by Issuance Vintage

70%

60% 2002

2003

50%

* 2004

CPR 40% 2005

30% 2006

Quarterly 20% 2007

2008

10%

2010

0% 2012

-10% 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.

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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

Higher prepayment activity in mid 2012 was related to the short term availability of the Special Direct Consolidation Loan program

Historical Consolidation ABS CPRs by Issuance Vintage

25%

20% 2002 2003

* 15%

CPR 2004 2005 10% 2006

Quarterly 5% 2007 2009

0% 2011 2012 -5% 2014

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

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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

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

Collateral Characteristics

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

Undergraduate/Graduate/

Smart Option Direct-to-Consumer (DTC) Consolidation Career Training

Med/Law/MBA

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

$10k avg orig bal, 10 yr avg $43k avg orig bal, 15-30 year

term, in-school payments of $10k avg orig bal, 15 yr term, $12k avg orig bal, 15 yr term, $9k avg orig bal, up to 15 yr

Typical Loan term depending on balance,

interest only, $25 or fully deferred payments deferred payments term, immediate payments

deferred immediate repayment

Origination Period March 2009 to April 2014 All history through 2014 2004 through 2008 2006 through 2008 1998 through 2014

Certification and School certified and School certified and Borrower self-certified, Proceeds to lender to pay off School certified and

Disbursement disbursed disbursed disbursed to borrower loans being consolidated disbursed

FICO, FICO, Debt-to-Income and

Borrower Underwriting custom credit score model, Primarily FICO Primarily FICO FICO and Debt-to-Income judgmental underwriting

and judgmental underwriting

$100,000 Undergraduate, Cost of attendance plus up to

Borrowing Limits $200,000 $130,000 $400,000

$150,000 Graduate $6,000 for expenses

For-Profit; FICO ? 670 For-Profit; FICO ? 670 For-Profit; FICO ? 670

Current ABS Sec. Criteria FICO ? 670 FICO ? 670

Non-Profit; FICO ? 640 Non-Profit; FICO ? 640 Non-Profit; FICO ? 640

School UW No No No No Yes

P-1.5%

to P+7.5% P+1% to P+6.5% P+0% to P+9%

Historical Risk-Based Pricing L + 2% to L + 14% P—0.5% to P + 6.5%

L+0% to L+15% L+6% to L+12% L+6.5% to L+14%

Dischargeable in Bankruptcy No No No No Yes

?Made to students and ? Made to students and ?Terms and underwriting ?Loans made to students ?Loans made to students

parents primarily through parents through college criteria similar to and parents to refinance one and parents to fund non-

college financial aid offices to financial aid offices to fund 2- Undergraduate, Graduate, or more private education degree granting secondary

fund 2-year, 4-year and year, 4-year and graduate Med/Law/MBA with primary loans education, including

graduate school college school college tuition, room differences being: ?Student must provide proof community college, part time,

tuition, room and board and board Marketing channel of graduation in order to technical, trade school and

? Also available on a limited ? Signature, Excel, Law, No school certification obtain loan tutorial programs

basis to students and parents Med and MBA Loan brands Disbursement of ?Both Title IV and non-Title

Additional Characteristics to fund non-degree granting ? Title IV schools only (1) proceeds IV schools(1)

secondary education, ? Freshmen must have a co- directly to borrower

including community college, signer with limited exceptions ?Title IV schools only(1)

part time, technical and trade ? Co-signer stability test ?Freshmen must have a co-

school programs(minimum 3 year repayment signer with limited exceptions

? Both Title IV and non-Title history) ?Co-signer stability test

IV schools (1)(minimum 3 year repayment

history)

(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.

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Navient Private Education Trusts

Summary Information

2011- 2015YTD Issuance Program Navient

NAV NAV NAV

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 15-A

Bond Amount ($mil) 562 825 721 547 891 1,135 640 976 1,108 1,135 624 676 463 664 689

Initial AAA Enhancement (%) 21% 18% 24% 27% 26% 25% 25% 21% 26% 22% 28% 24% 30% 30% 32%

Total Enhancement (%) 21% 18% 24% 27% 26% 25% 25% 21% 15% 13% 20% 15% 17% 22% 23%

Loan Program (%)

Signature/Law/MBA/Med 88% 91% 71% 61% 48% 43% 37% 35% 26% 29% 26% 19% 0% 26% 27%

Smart Option — — 10% 20% 30% 40% 45% 48% 63% 63% 64% 63% 0% 50% 51%

Consolidation 0% 0% 7% 6% 9% 5% 5% 5% 3% 5% 0% 6% 0% 9% 2%

Direct to Consumer 9% 6% 12% 12% 12% 12% 12% 12% 8% 3% 10% 12% 0% 15% 20%

Career Training 3% 3% 0% 1% 1% 0% 0% 0% 0% 0% 0% 0% 100% 0% 0%

Total 100% 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% 24%

Repayment 43% 43% 52% 60% 60% 57% 59% 54% 39% 36% 36% 50% 99% 53% 68%

Forbearance 2% 3% 2% 2% 2% 3% 2% 2% 2% 2% 1% 1% 1% 1% 8%

Wtd Avg Term to Maturity (Mo.) 192 189 182 171 164 151 144 148 144 146 143 150 104 161 155

% Loans with Cosigner 72% 75% 71% 75% 77% 79% 80% 80% 80% 80% 81% 82% 71% 79% 80%

% Loans with No Cosigner 28% 25% 29% 25% 23% 21% 20% 20% 20% 20% 19% 18% 29% 21% 20%

Wtd Avg FICO at Origination 737 736 733 735 736 737 740 733 741 740 740 742 743 739 731

Wtd Avg Recent FICO at Issuance 723 722 720 724 726 728 730 722 733 734 733 741 726 737 714

WA FICO (Cosigner at Origination) 747 745 744 745 745 745 748 741 751 750 749 750 749 748 738

WA FICO (Cosigner at Rescored) 736 731 734 732 734 735 738 728 745 746 745 750 735 746 724

WA FICO (Borrower at Origination) 709 710 704 705 705 707 710 702 703 702 705 707 728 707 701

WA FICO (Borrower at Rescored) 690 695 688 700 700 702 698 696 683 684 682 701 701 701 672

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% 7.38%

(1)

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

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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

Prepayment (CPR) 8

ant Rate 6

Const 4

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 2014-A

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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.

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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

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Cohort Default Triangles

Undergraduate/Graduate(1)

Disbursed Principal

Entering Periodic Defaults by Years in Repayment (2),(3)

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% 0.4% 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% 0.4% 0.1% 14.0%

2002 $386 0.0% 0.2% 0.2% 1.2% 1.1% 1.8% 1.6% 2.3% 2.0% 1.3% 0.9% 0.6% 0.5% 0.2% 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% 0.2% 14.8%

2004 $1,132 0.0% 0.2% 0.3% 1.9% 1.8% 3.0% 2.9% 1.8% 1.4% 1.1% 0.8% 0.2% 15.4%

2005 $1,537 0.0% 0.0% 0.4% 2.5% 3.7% 3.4% 2.1% 1.6% 1.2% 0.9% 0.3% 16.1%

2006 $2,013 0.0% 0.1% 1.6% 3.7% 3.7% 2.5% 1.8% 1.4% 1.1% 0.3% 16.2%

2007 $2,451 0.0% 0.4% 3.5% 4.6% 3.0% 2.0% 1.8% 1.4% 0.3% 17.0%

2008 $2,933 0.0% 2.3% 4.2% 3.9% 2.6% 2.2% 1.6% 0.4% 17.3%

2009 $3,241 0.0% 3.4% 3.7% 3.6% 2.6% 1.8% 0.5% 15.6%

2010 $2,769 0.0% 3.6% 3.8% 3.5% 2.0% 0.6% 13.5%

2011 $1,870 0.0% 3.0% 4.5% 2.2% 0.7% 10.4%

2012 $1,101 0.0% 2.9% 3.7% 0.9% 7.6%

2013 $499 0.0% 2.9% 1.2% 4.2%

2014 $227 0.0% 1.0% 1.0%

Note: Data as of 12/31/14.

(1) Undergraduate/Graduate loans marketed under the Signature Student Loan brand. (2) Periodic Defaults for the most recent calendar Year 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.

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Cohort Default Triangles

Undergraduate/Graduate(1) With Co-signer

Disbursed Principal

Entering Periodic Defaults by Years in Repayment (2),(3)

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% 30%.

2000 $37 0.0% 0.0% 0.0% 0.5% 0.5% 0.7% 0.7% 0.4% 0.7% 1.2% 0.8% 0.8% 0.2% 0.4% 0.2% 0.0% 7.2%

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% 0.3% 0.0% 10.2%

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% 0.1% 10.4%

2003 $367 0.0% 0.1% 0.3% 0.5% 0.9% 1.1% 2.2% 1.9% 1.4% 0.9% 0.7% 0.6% 0.1% 10.7%

2004 $632 0.0% 0.2% 0.2% 1.0% 1.0% 2.2% 2.1% 1.4% 1.1% 0.9% 0.7% 0.2% 10.9%

2005 $843 0.0% 0.0% 0.2% 1.4% 2.4% 2.3% 1.6% 1.2% 0.9% 0.8% 0.2% 11.0%

2006 $1,121 0.0% 0.0% 0.7% 2.4% 2.4% 1.8% 1.3% 1.1% 1.0% 0.2% 10.9%

2007 $1,408 0.0% 0.2% 2.0% 2.9% 2.0% 1.5% 1.3% 1.1% 0.3% 11.3%

2008 $1,758 0.0% 1.2% 2.6% 2.6% 1.8% 1.6% 1.2% 0.3% 11.4%

2009 $2,075 0.0% 2.0% 2.4% 2.4% 1.8% 1.3% 0.4% 10.3%

2010 $1,853 0.0% 2.1% 2.3% 2.3% 1.4% 0.5% 8.6%

2011 $1,353 0.0% 1.6% 2.7% 1.4% 0.5% 6.2%

2012 $849 0.0% 1.7% 2.4% 0.6% 4.8%

2013 $387 0.0% 1.8% 0.8% 2.6%

2014 $176 0.0% 0.7% 0.7%

Undergraduate/Graduate(1) Without Co-signer

Disbursed Principal

Entering Periodic Defaults by Years in Repayment (2),(3)

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% 0.7% 11.0%

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% 14.3%

2001 $97 0.0% 0.0% 0.1% 1.5% 1.9% 1.2% 2.2% 1.5% 2.9% 2.2% 1.8% 0.9% 0.7% 0.4% 0.1% 17.5%

2002 $190 0.0% 0.2% 0.2% 1.6% 1.7% 2.3% 2.3% 2.8% 2.5% 1.5% 1.1% 0.6% 0.6% 0.2% 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% 0.7% 0.2% 19.5%

2004 $499 0.0% 0.3% 0.4% 3.1% 2.8% 4.1% 3.8% 2.3% 1.7% 1.3% 0.8% 0.3% 21.0%

2005 $694 0.0% 0.1% 0.7% 3.9% 5.3% 4.7% 2.7% 2.1% 1.6% 1.0% 0.4% 22.3%

2006 $892 0.0% 0.2% 2.7% 5.3% 5.4% 3.4% 2.4% 1.9% 1.3% 0.4% 22.9%

2007 $1,044 0.0% 0.8% 5.5% 6.9% 4.3% 2.8% 2.4% 1.8% 0.4% 24.8%

2008 $1,175 0.0% 4.0% 6.5% 5.9% 3.8% 3.1% 2.2% 0.6% 26.0%

2009 $1,165 0.0% 6.0% 6.0% 5.7% 3.9% 2.6% 0.7% 25.0%

2010 $916 0.0% 6.7% 6.8% 6.1% 3.2% 0.8% 23.6%

2011 $518 0.0% 6.7% 9.0% 4.4% 1.2% 21.4%

2012 $252 0.1% 7.1% 8.1% 1.9% 17.2%

2013 $113 0.1% 6.7% 2.7% 9.5%

2014 $51 0.1% 2.0% 2.0%

Note: Data as of 12/31/14.

(1) Undergraduate/Graduate loans marketed under the Signature Student Loan brand. (2) Periodic Defaults for the most recent calendar Year 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.

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Cohort Default Triangles

Undergraduate/Graduate(1) Non-Profit

Disbursed Principal

Entering Periodic Defaults by Years in Repayment (2),(3)

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% 6.3%

2000 $68 0.0% 0.0% 0.0% 0.6% 1.0% 1.4% 0.5% 0.9% 1.4% 1.3% 1.0% 0.7% 0.5% 0.4% 0.4% 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% 0.4% 0.1% 13.6%

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% 0.2% 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% 14.3%

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% 0.2% 14.5%

2005 $1,362 0.0% 0.0% 0.4% 2.4% 3.5% 3.2% 2.0% 1.5% 1.2% 0.9% 0.3% 15.4%

2006 $1,767 0.0% 0.1% 1.5% 3.5% 3.6% 2.4% 1.7% 1.4% 1.1% 0.3% 15.5%

2007 $2,103 0.0% 0.4% 3.4% 4.3% 2.8% 2.0% 1.7% 1.3% 0.3% 16.2%

2008 $2,458 0.0% 2.2% 3.9% 3.6% 2.4% 2.1% 1.5% 0.4% 16.2%

2009 $2,686 0.0% 3.2% 3.4% 3.4% 2.4% 1.7% 0.4% 14.7%

2010 $2,378 0.0% 3.4% 3.7% 3.3% 1.9% 0.5% 12.8%

2011 $1,664 0.0% 2.8% 4.2% 2.1% 0.6% 9.8%

2012 $1,003 0.0% 2.8% 3.5% 0.8% 7.2%

2013 $458 0.0% 2.8% 1.1% 3.9%

2014 $210 0.0% 0.9% 0.9%

Undergraduate/Graduate(1) For-Profit

Disbursed Principal

Entering Periodic Defaults by Years in Repayment (2),(3)

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% 0.0% 0.2% 23.0%

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% 0.7% 0.1% 16.5%

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% 0.2% 20.9%

2004 $126 0.0% 0.3% 0.6% 3.2% 3.0% 3.9% 4.6% 2.4% 1.8% 1.4% 1.0% 0.2% 22.5%

2005 $175 0.0% 0.0% 0.7% 3.7% 5.2% 4.9% 2.7% 1.9% 1.3% 1.2% 0.4% 22.1%

2006 $246 0.0% 0.2% 2.1% 4.9% 5.0% 3.2% 2.2% 1.9% 1.4% 0.4% 21.2%

2007 $348 0.0% 0.5% 4.3% 6.5% 4.0% 2.5% 2.1% 1.6% 0.4% 21.9%

2008 $475 0.0% 3.0% 5.8% 5.5% 3.2% 2.5% 1.9% 0.6% 22.5%

2009 $554 0.0% 4.3% 5.1% 4.3% 3.3% 2.1% 0.9% 20.0%

2010 $391 0.1% 4.7% 4.7% 4.8% 2.6% 1.1% 18.0%

2011 $206 0.1% 4.5% 6.4% 3.0% 1.1% 15.1%

2012 $99 0.1% 4.1% 5.9% 1.4% 11.5%

2013 $41 0.2% 3.8% 2.7% 6.7%

2014 $17 0.4% 1.7% 2.0%

Note: Data as of 12/31/14.

(1) Undergraduate/Graduate loans marketed under the Signature Student Loan brand. (2) Periodic Defaults for the most recent calendar Year 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.

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Cohort Default Triangles

Undergraduate/Graduate(1) Loans, FICO 740-850(2)

Disbursed Principal

Entering Periodic Defaults by Years in Repayment (3),(4)

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% 49%.

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% 0.1% 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% 0.1% 6.5%

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% 0.1% 7.3%

2004 $424 0.0% 0.1% 0.1% 0.7% 0.7% 1.4% 1.3% 0.9% 0.8% 0.7% 0.5% 0.2% 7.4%

2005 $574 0.0% 0.0% 0.2% 1.0% 1.5% 1.5% 1.1% 0.9% 0.6% 0.6% 0.2% 7.5%

2006 $762 0.0% 0.0% 0.5% 1.4% 1.5% 1.1% 0.8% 0.7% 0.6% 0.2% 6.8%

2007 $937 0.0% 0.1% 1.2% 1.6% 1.1% 1.0% 0.8% 0.8% 0.2% 6.7%

2008 $1,130 0.0% 0.7% 1.5% 1.4% 1.1% 1.0% 0.7% 0.2% 6.6%

2009 $1,325 0.0% 1.2% 1.4% 1.4% 1.2% 0.9% 0.2% 6.3%

2010 $1,186 0.0% 1.4% 1.5% 1.5% 1.0% 0.3% 5.8%

2011 $831 0.0% 1.1% 1.8% 0.9% 0.4% 4.3%

2012 $507 0.0% 1.3% 1.5% 0.4% 3.3%

2013 $233 0.0% 1.3% 0.6% 1.9%

2014 $104 0.0% 0.4% 0.4%

Undergraduate/Graduate(1) Loans, FICO 700-739(2)

Disbursed Principal

Entering Periodic Defaults by Years in Repayment (3),(4)

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% 0.1% 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% 0.3% 0.0% 11.3%

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% 0.4% 0.2% 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% 0.2% 13.3%

2004 $321 0.0% 0.2% 0.2% 1.7% 1.5% 2.5% 2.9% 1.8% 1.4% 1.1% 0.7% 0.2% 14.1%

2005 $439 0.0% 0.0% 0.4% 2.2% 3.3% 2.9% 2.1% 1.4% 1.1% 0.8% 0.2% 14.6%

2006 $553 0.0% 0.1% 1.3% 3.1% 3.4% 2.4% 1.7% 1.2% 1.0% 0.3% 14.5%

2007 $659 0.0% 0.3% 2.8% 4.1% 2.7% 1.7% 1.6% 1.3% 0.3% 14.9%

2008 $782 0.0% 2.0% 3.8% 3.5% 2.4% 2.0% 1.5% 0.4% 15.6%

2009 $875 0.0% 3.0% 3.5% 3.4% 2.5% 1.8% 0.5% 14.8%

2010 $731 0.0% 3.4% 3.8% 3.4% 1.9% 0.5% 13.0%

2011 $482 0.0% 2.9% 4.2% 2.2% 0.7% 10.0%

2012 $282 0.1% 2.7% 3.5% 0.9% 7.1%

2013 $126 0.0% 2.4% 1.1% 3.6%

2014 $58 0.1% 1.2% 1.3%

Note: Data as of 12/31/14. 2014 $58 0.1% 1.2% 1.3% (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 calendar Year 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.

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Cohort Default Triangles

Undergraduate/Graduate(1) Loans, FICO 670-699(2)

Disbursed Principal

Entering Periodic Defaults by Years in Repayment (3),(4)

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% 0.5% 7.8%

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% 0.2% 17.9%

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% 18.4%

2003 $134 0.0% 0.1% 0.8% 1.3% 2.8% 2.2% 3.7% 3.3% 2.2% 1.3% 0.7% 0.7% 0.1% 19.2%

2004 $222 0.0% 0.3% 0.5% 2.9% 2.6% 4.3% 3.7% 2.3% 1.7% 1.3% 0.9% 0.3% 20.7%

2005 $298 0.0% 0.1% 0.7% 3.8% 5.2% 4.9% 2.7% 1.9% 1.5% 1.1% 0.4% 22.3%

2006 $402 0.0% 0.2% 2.6% 5.5% 5.5% 3.6% 2.4% 1.9% 1.5% 0.4% 23.7%

2007 $504 0.0% 0.7% 5.6% 7.4% 4.7% 3.0% 2.4% 1.8% 0.4% 26.0%

2008 $623 0.0% 3.8% 6.9% 6.4% 3.8% 3.1% 2.3% 0.6% 27.0%

2009 $662 0.1% 5.7% 6.1% 6.0% 4.0% 2.7% 0.8% 25.4%

2010 $543 0.0% 6.2% 6.2% 5.7% 3.0% 0.9% 22.1%

2011 $355 0.0% 5.0% 7.8% 3.9% 1.0% 17.7%

2012 $199 0.1% 4.8% 6.6% 1.4% 12.8%

2013 $89 0.0% 5.1% 2.2% 7.4%

2014 $41 0.0% 1.2% 1.3%

Undergraduate/Graduate(1) Loans, FICO 640-669(2)

Disbursed Principal

Entering Periodic Defaults by Years in Repayment (3),(4)

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% 1.3% 0.7% 0.5% 0.4% 0.0% 20.6%

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% 0.2% 28.0%

2002 $61 0.0% 0.2% 0.4% 2.7% 2.3% 3.9% 3.1% 4.6% 4.3% 2.4% 1.8% 1.1% 1.3% 0.2% 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% 1.1% 0.3% 29.4%

2004 $165 0.0% 0.5% 0.5% 4.4% 3.9% 6.4% 5.7% 3.5% 2.5% 2.1% 1.5% 0.4% 31.3%

2005 $226 0.0% 0.1% 0.9% 5.4% 8.2% 7.0% 3.8% 3.3% 2.3% 1.5% 0.5% 32.9%

2006 $296 0.0% 0.2% 3.7% 8.1% 7.8% 4.8% 3.6% 3.0% 2.1% 0.6% 33.8%

2007 $352 0.0% 1.1% 8.0% 9.8% 6.0% 4.0% 3.5% 2.5% 0.6% 35.5%

2008 $398 0.0% 5.4% 8.5% 8.1% 5.3% 4.3% 3.1% 0.8% 35.4%

2009 $378 0.0% 8.2% 8.0% 7.3% 4.9% 3.5% 0.9% 32.8%

2010 $310 0.0% 8.0% 8.4% 7.8% 3.9% 1.1% 29.3%

2011 $202 0.0% 7.7% 10.2% 4.8% 1.2% 24.0%

2012 $114 0.0% 7.5% 9.2% 2.1% 18.8%

2013 $51 0.0% 7.4% 2.7% 10.1%

2014 $23 0.1% 2.7% 2.8%

Note: Data as of 12/31/14. 2014 $23 0.1% 2.7% 2.8% (1) Undergraduate/Graduate loans marketed under the Signature Student Loan brand.

(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.

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Cohort Default Triangles

Private Consolidation Loans With Co-signer

Disbursed Principal

Entering Periodic Defaults by Years in Repayment (1),(2)

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% 3.0%

2007 $675 0.0% 0.0% 0.2% 0.4% 0.6% 0.4% 0.4% 0.4% 0.2% 2.6%

2008 $376 0.0% 0.1% 0.4% 0.7% 0.6% 0.6% 0.5% 0.2% 3.0%

Private Consolidation Loans Without Co-signer

Disbursed Principal

Entering Periodic Defaults by Years in Repayment (1),(2)

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% 0.1% 9.3%

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% 0.9% 10.3%

Note: Data as of 12/31/14.

(1) Periodic Defaults for the most recent calendar Year 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.

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Cohort Default Triangles

DTC With Co-signer, FICO ? 670(1)

Disbursed Principal

Entering Periodic Defaults by Years in Repayment (2),(3)

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% 0.1% 9.1%

2006 $139 0.0% 0.7% 1.8% 4.4% 4.8% 2.4% 2.0% 2.0% 1.2% 0.4% 19.7%

2007 $245 0.0% 0.6% 4.7% 6.2% 4.2% 2.7% 2.6% 2.0% 0.5% 23.4%

2008 $369 0.0% 2.9% 5.8% 4.9% 3.6% 2.9% 2.4% 0.7% 23.2%

2009 $396 0.0% 3.7% 4.1% 4.0% 3.2% 2.5% 0.8% 18.2%

2010 $314 0.0% 3.5% 4.1% 4.6% 2.9% 1.1% 16.3%

2011 $192 0.1% 3.7% 5.2% 3.5% 1.2% 13.6%

2012 $104 0.0% 3.2% 5.4% 2.4% 11.0%

2013 $23 0.0% 1.2% 1.5% 2.7%

DTC Without Co-signer, FICO ? 670(1)

Disbursed Principal

Entering Periodic Defaults by Years in Repayment (2),(3)

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% 1.3% 0.1% 22.8%

2006 $66 0.0% 1.4% 2.5% 6.5% 6.4% 4.0% 2.7% 2.5% 1.6% 0.4% 28.2%

2007 $158 0.0% 1.0% 5.8% 8.1% 4.6% 3.8% 3.4% 2.3% 0.3% 29.3%

2008 $255 0.0% 3.7% 7.9% 7.3% 4.2% 4.0% 2.5% 0.6% 30.3%

2009 $235 0.0% 6.7% 6.3% 6.9% 5.2% 3.2% 1.1% 29.3%

2010 $152 0.1% 8.3% 7.0% 8.7% 4.1% 1.4% 29.6%

2011 $88 0.1% 7.8% 10.1% 5.5% 2.5% 26.1%

2012 $47 0.0% 6.2% 8.4% 4.2% 18.9%

2013 $5 0.0% 3.2% 3.4% 6.5%

Note: Data as of 12/31/14.

(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 calendar Year 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.

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Cohort Default Triangles

Career Training Loans, 670+ FICO(1)

Disbursed Principal

Entering Periodic Defaults by Years in Repayment (2),(3)

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% 1.7% 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% 0.4% 0.1% 12.4%

2005 $513 0.0% 0.3% 2.2% 2.2% 2.5% 2.1% 1.5% 1.0% 0.8% 0.6% 0.2% 13.4%

2006 $630 0.0% 0.4% 2.5% 3.5% 3.2% 2.2% 1.5% 1.0% 0.8% 0.3% 15.5%

2007 $672 0.0% 0.5% 3.5% 3.9% 2.9% 1.8% 1.2% 1.0% 0.4% 15.3%

2008 $581 0.0% 0.6% 4.3% 3.6% 2.2% 1.5% 1.3% 0.5% 13.9%

2009 $169 0.0% 0.2% 2.1% 2.1% 1.5% 1.1% 0.6% 7.6%

2010 $19 0.0% 0.6% 1.2% 1.0% 0.5% 0.4% 3.6%

Note: Data as of 12/31/14.

(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.

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Navient Corporation Appendix

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GAAP Results

(In millions, except per share amounts) Q4 14 Q4 13 2014 2013

Net income $263 $270 $1,149 $1,418

EPS $0.64 $0.60 $2.69 $3.12

Operating expenses $215 $305 $987 $1,042

Provision $138 $190 $628 $839

Average Student Loans $130,192 $144,026 $134,334 $150,444

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Differences between “Core Earnings” and GAAP

Year ended December 31, 2014 ($ in millions)

“Core Earnings” adjustments to GAAP:

GAAP net income $ 1,149

Net impact of SLM BankCo1 25

Net impact of derivative accounting(573)

Net impact of goodwill and acquired intangible assets 9

Net income tax effect 208

Total “Core Earnings” adjustments to GAAP(331)

“Core Earnings” net income $818

1 Includes restructuring and other reorganization expenses incurred in connection with the spin-off.

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Investor Relations Website

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

• 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

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