SEC Filing | Navient

NAVIENT CORPORATION

Date: August 4, 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): August 4, 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 August 4, 2015, a presentation entitled “2015 2^nd Quarter Investor Deck” was made available on the Company’s website at https://www.navient.com/about/investors/webcasts/. In addition, the presentation is being furnished herewith as Exhibit 99.1

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*		2015 2^nd Quarter Investor Deck.

*	Furnished herewith.

SIGNATURES

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

EXHIBIT INDEX


Exhibit Number		Description

99.1*		2015 2^nd Quarter Investor Deck.

*	Furnished herewith.

EX-99.1

2015

Quarter

Investor Deck

August 4, 2015

Exhibit 99.1

Forward-Looking Statements; Non-GAAP

Financial

Measures

The following information is current as of August 4, 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 the company’s 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, opinions 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 and subsequent filings 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 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 its systems or potential disclosure of confidential customer information; damage to its reputation;

failures to successfully implement cost-cutting initiatives and adverse effects of such initiatives on its business; failures or delays in the planned conversion to its 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; risks associated with the April 30, 2014 separation of Navient and SLM Corporation into two distinct, publicly traded companies, including

failure to achieve the expected benefits of the separation; changes in the demand for educational financing or in financing preferences of lenders, educational institutions, students and

their families; changes in law and regulations with respect to the student lending business and financial institutions generally; increased competition including from banks, other

consumer lenders and 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 non-GAAP 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, including the restructuring initiated in the second quarter of 2015; (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 is not a defined term within GAAP and may not be

comparable to similarly titled measures reported by other companies. For additional information, see “Core Earnings — Definition and Limitations” in Navient’s second quarter

earnings release for a further discussion and a complete reconciliation between GAAP net income and core earnings.

Navient

Corporation

Overview

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

Key Businesses

Highlights

Asset

Management

•

FFELP

Loan Portfolio

•

Private Education Loan Portfolio

•

$100 Billion

FFELP

Portfolio

•

$28 Billion Private Education Loan Portfolio

Servicing

•

FFELP

Loans

•

Private Education Loans

•

Department of Education Servicing Contract

•

Guarantor Servicing

•

Over

Million Borrowers

•

Over $300 Billion of Education Loans

Asset

Recovery

•

Education loans

•

Government receivables

•

Taxes

•

Court/Municipal

•

Schools

•

$20

Billion of Receivables

•

Over 1,800 clients

As of June 30, 2015

Operating Results

“Core Earnings” Basis

(In

millions, except per share amounts)

Reported

Core EPS

$0.40

$0.48

$0.56

Operating

expenses

$225

$230

$195

Net income

$154

$194

$241

Provision

$198

$125

$155

Average student

loans

$130,512

$133,722

$131,875

Student Loan Market

Source: Navient estimates for total outstanding FFELP and federally-owned based on FSA Data Center, Portfolio Summary, September 30, 2014, and Federal Student Aid Annual Report, November 2014; MeasureOne, Private Student

Loan Performance Report,

Q3 2014; Navient 10Q filings

Estimated Outstanding Student Loan Market Distribution

$1.2 Trillion as of FFYE

9/30/2014 ($ in billions)

Federal Loans

owned by ED, $875

FFELP Loans,

$157

FFELP owned by

Navient, $98

Private Owned by

Navient, $30

Private Loans, $62

High Quality Education Loan Portfolio

Note: Financial data as of 6/30/2015

Private Education Portfolio

Balance ($bn, net of allowance)

$28

Avg. Loan Size

$10,091

Avg. FICO at Orig.

719

% Cosigner

65%

90+ Day Delinquent

3.3%

•

Largest holder of FFELP

loans

•

97-98% of portfolio is government

guaranteed

•

80% of portfolio funded to term with

securitizations

•

Fully integrated servicing and asset

recovery support operations

FFELP Portfolio

•

Largest holder of Private Education loans

•

Seasoned portfolio with 93% of loans in

repayment status having made more than

12 payments

•

Typically non-dischargeable in bankruptcy

Balance ($bn, net of allowance)

$100

% Consolidation Loans

61%

% Stafford & Other

39%

90+ Day Delinquent

8.4%

FFELP Portfolio Statistics

Private Education Portfolio Statistics

Total Education Loans: $128bn

Private

Education

22%

FFELP

78%

FFELP

Loans Segment

“Core Earnings” Basis

(In

millions)

Net income

$93

$85

$72

Average FFELP

Loans

$101,305

$103,617

$100,467

FFELP

Loan

spread

0.91%

0.96%

0.98%

Net interest

margin

0.81%

0.88%

0.89%

Annualized charge-off rate

0.05%

0.03%

0.08%

Greater than 90-day delinquency rate

8.4%

7.0%

FFELP

Loans Segment

Credit Quality “Core Earnings” Basis

($'s in millions)

FFELP Education Loan Portfolio

June 30, 2015

June 30, 2014

Balance

Loans in-school/grace/deferment

$9,760

$11,794

Loans in forbearance

14,203

14,929

Loans in repayment and percentage of each status

Loans current

63,363

84.2%

61,438

85.2%

Loans delinquent 31-60 days

3,367

4.5%

3,531

4.9%

Loans delinquent 61-90 days

2,186

2.9%

2,112

2.9%

Loans delinqent greater than 90 days

6,328

8.4%

5,033

7.0%

Total FFELP Loans in repayment

75,244

100%

72,114

100%

Total FFELP Loans, gross

$99,207

$98,837

Percentage of FFELP Loans in repayment

75.8%

73.0%

Delinquencies as a percentage of FFELP Loans in

repayment

15.8%

14.8%

Loans in forbearance as a percentage of loans in

repayment and forbearance

15.9%

17.2%

Private Education Loans Segment

“Core Earnings” Basis

(In

millions, except FICO score)

Net income

$22

$77

$86

Average Private Education

Loans

$29,207

$30,105

$31,408

Private Education Loan

spread

3.66%

3.87%

4.10%

Net interest

margin

3.55%

3.74%

4.00%

Provision for loan losses

$191

$120

$145

Charge-offs

$179

$190

$166

Charge-off rate

2.7%

2.9%

2.5%

Total delinquency

rate

6.8%

6.9%

7.1%

Greater than 90-day delinquency rate

3.3%

3.6%

3.2%

Forbearance rate

3.7%

3.8%

4.2%

In the second quarter of 2015, the portion of the loan amount charged off at default increased from 73 percent to 79 percent. This change resulted in a $330 million reduction to the balance of the receivable for partially charged-off loans

which is not included in the charge-off disclosures above. Including this amount the charge-offs total $509 million for the second quarter of 2015.

Private Education Loans Segment

Credit Quality “Core Earnings” Basis

($'s in millions)

Private Education Loan Portfolio

June 30, 2015

June 30, 2014

Balance

Loans in-school/grace/deferment

$2,439

$3,375

Loans in forbearance

998

1,201

Loans in repayment and percentage of each status

Loans current

24,100

93.2%

25,202

92.9%

Loans delinquent 31-60 days

544

2.1%

670

2.5%

Loans delinquent 61-90 days

369

1.4%

391

1.4%

Loans delinqent greater than 90 days

852

3.3%

873

3.2%

Total Private Education Loans in repayment

25,865

100%

27,136

100%

Total Private Education Loans, gross

$29,302

$31,712

Percentage of Private Education Loans in repayment

88.3%

85.6%

Delinquencies as a percentage of Private Education

Loans in repayment

6.8%

7.1%

Loans in forbearance as a percentage of loans in

repayment and forbearance

3.7%

4.2%

Private Education Loans Segment

High Quality Portfolio

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

Moderate Risk = Legacy Traditional Non-Cosigned

Elevated Risk = Non-Traditional

the

second

quarter

2015,

the

portion

the

loan

amount

charged

off

default

increased

from

percent

percent.

This

change

resulted

$330

million

reduction

the

balance

the

receivable

for

partially

charged-off

loans

which is not included in the charge-off disclosures above.

1.0%

2.6%

2.7%

2.3%

2.1%

1.8%

1.7%

1.8%

6.7%

6.8%

5.6%

5.4%

4.6%

3.6%

4.0%

10.4%

21.3%

17.3%

12.6%

11.1%

9.4%

7.7%

7.5%

10%

15%

20%

25%

2008

2009

2010

2011

2012

2013

2014

YTD 2015

Low Risk

Moderate Risk

Elevated Risk

Overall Portfolio

2.8%

2.9%

6.3%

5.6%

4.3%

3.9%

3.1%

2.6%

2.8%

57%

59%

60%

61%

64%

66%

68%

28%

29%

27%

25%

24%

14%

13%

11%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Dec 08

Dec 09

Dec 10

Dec 11

Dec 12

Dec 13

Dec 14

Jun 15

Low Risk

Moderate Risk

Elevated Risk

Private Education Loan % of Portfolio Outstanding by Segment

Private

Education

Loan

Charge-Off

Rate

Segment

Private Education Loans Segment

High Quality Portfolio

Private

Education

Loan

Charge-Off

Rate

Segment

Private Education Loan Portfolio

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

Moderate Risk = Legacy Traditional Non-Cosigned

Elevated Risk = Non-Traditional

•

Seasoned portfolio with 93% of loans in

repayment status having made more than 12

payments

•

Non-traditional loans declined to 8% of total

portfolio

•

Expected annualized charge-offs to range

between 2.2% and 2.4% for the second half of

2015

the

second

quarter

2015,

the

portion

the

loan

amount

charged

off

default

increased

from

percent

percent.

This

change

resulted

$330

million

reduction

the

balance

the

receivable

for

partially

charged-off

loans

which is not included in the charge-off disclosures above.

2.2%

1.9%

1.7%

1.6%

1.8%

5.4%

4.9%

4.4%

3.4%

3.8%

12.7%

9.9%

9.2%

6.8%

6.9%

4.3%

3.6%

3.0%

2.5%

2.7%

10%

12%

14%

Q2 11

Q2 12

Q2 13

Q2 14

Q2 15

Low Risk

Moderate Risk

Elevated Risk

Overall Portfolio

Private Education Loans Segment

Default Performance

Historical Defaults by Payments Made

•

The probability of default substantially diminishes as the number of payments

and years of seasoning increases

As of June 30, 2015

57%

12%

57%

69%

76%

81%

85%

87%

89%

91%

92%

94%

96%

97%

99%

100%

50%

100%

108

120

132

144

156

168

180

# Payments Made

Defaults Per Payments Made

Cumulative Defaults

Loan Seasoning –

“Core Earnings” Basis

June 30, 2015

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

2,218

Loans in Forbearance

332

17.3%

131

5.6%

122

3.5%

108

2.9%

187

1.4%

880

3.6%

Loans in Repayment-

Current

1,277

66.3%

1,968

83.8%

3,144

89.2%

3,471

91.3%

12,510

95.4%

22,370

90.5%

Loans in Repayment-

Delinq

31-60 days

4.1%

3.0%

2.3%

1.9%

158

1.2%

463

1.9%

Loans in Repayment-

Delinq

61-90 days

3.4%

2.2%

1.5%

1.3%

0.7%

307

1.2%

Loans in Repayment-

Delinq

90 + days

171

8.9%

127

5.4%

124

3.5%

2.6%

168

1.3%

688

2.8%

Total Loans in Repayment or Forbearance

$ 1,925

100%

$ 2,347

100%

$ 3,526

100%

$ 3,800

100%

$ 13,110

100%

$ 24,708

100%

Charge-offs as a % of loans in repayment

12.3%

4.7%

2.5%

1.8%

0.9%

2.4%

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

221

Loans in Forbearance

20.1%

7.0%

4.3%

3.5%

1.9%

118

5.4%

Loans in Repayment-

Current

141

51.5%

190

70.4%

258

79.4%

250

83.1%

891

90.5%

1,730

80.3%

Loans in Repayment-

Delinq

31-60 days

5.9%

5.4%

4.3%

4.0%

2.6%

3.8%

Loans in Repayment-

Delinq

61-90 days

5.3%

4.4%

3.5%

2.6%

1.6%

2.9%

Loans in Repayment-

Delinq

90 + days

17.2%

12.8%

8.5%

6.8%

3.4%

164

7.6%

Total Loans in Repayment or Forbearance

$ 274

100%

$ 270

100%

$ 325

100%

$ 301

100%

$ 985

100%

$ 2,155

100%

Charge-offs as a % of loans in repayment

24.4%

9.9%

6.3%

5.1%

2.7%

6.9%

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

2,439

Loans in Forbearance

387

17.6%

150

5.7%

136

3.5%

119

2.9%

206

1.5%

998

3.7%

Loans in Repayment-

Current

1,418

64.5%

2,158

82.5%

3,402

88.3%

3,721

90.7%

13,401

95.1%

24,100

89.7%

Loans in Repayment-

Delinq

31-60 days

4.3%

3.2%

2.5%

2.1%

183

1.3%

544

2.0%

Loans in Repayment-

Delinq

61-90 days

3.7%

2.4%

1.7%

1.4%

103

0.7%

369

1.4%

Loans in Repayment-

Delinq

90 + days

218

9.9%

162

6.2%

152

4.0%

118

2.9%

202

1.4%

852

3.2%

Total Loans in Repayment or Forbearance

$ 2,199

100%

$ 2,617

100%

$ 3,851

100%

$ 4,101

100%

$ 14,095

100%

$ 26,863

100%

Charge-offs as a % of loans in repayment

13.6%

5.1%

2.8%

2.0%

1.0%

2.7%

the

second

quarter

2015,

the

portion

the

loan

amount

charged

off

default

increased

from

percent

percent.

This

change

resulted

$330

million

reduction

the

balance

the

receivable

for

partially

charged-off

loans

which is not included in the charge-off disclosures above.

Loan Seasoning –

“Core Earnings” Basis

June 30, 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

3,036

Loans in Forbearance

461

16.8%

178

4.8%

153

3.6%

114

2.7%

153

1.4%

1,059

4.1%

Loans in Repayment-

Current

1,872

68.0%

3,194

86.4%

3,767

89.6%

3,967

92.4%

10,567

95.6%

23,367

89.8%

Loans in Repayment-

Delinq 31-60 days

129

4.7%

110

3.0%

101

2.4%

1.9%

138

1.2%

561

2.2%

Loans in Repayment-

Delinq 61-90 days

2.8%

1.8%

1.4%

1.0%

0.7%

322

1.2%

Loans in Repayment-

Delinq 90 + days

211

7.7%

148

4.0%

124

3.0%

2.0%

127

1.1%

697

2.7%

Total Loans in Repayment or Forbearance

$ 2,751

100%

$ 3,695

100%

$ 4,206

100%

$ 4,296

100%

$ 11,058

100%

$ 26,006

100%

Charge-offs as a % of loans in repayment

6.4%

2.8%

2.0%

1.3%

0.8%

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

339

Loans in Forbearance

18.8%

5.8%

4.6%

3.6%

1.9%

142

6.1%

Loans in Repayment-

Current

219

54.3%

277

73.3%

279

79.2%

262

84.1%

798

90.1%

1,835

78.7%

Loans in Repayment-

Delinq

31-60 days

7.2%

6.1%

5.1%

4.2%

2.9%

109

4.7%

Loans in Repayment-

Delinq 61-90 days

4.9%

4.0%

3.2%

2.6%

1.7%

3.0%

Loans in Repayment-

Delinq 90 + days

14.8%

10.8%

7.9%

5.5%

3.4%

176

7.5%

Total Loans in Repayment or Forbearance

$ 404

100%

$ 378

100%

$ 352

100%

$ 311

100%

$ 886

100%

$ 2,331

100%

Charge-offs as a % of loans in repayment

21.4%

7.4%

5.2%

4.5%

2.3%

6.8%

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

3,375

Loans in Forbearance

537

17.0%

200

4.9%

169

3.7%

125

2.7%

170

1.4%

1,201

4.2%

Loans in Repayment-

Current

2,091

66.3%

3,471

85.2%

4,046

88.8%

4,229

91.8%

11,365

95.2%

25,202

88.9%

Loans in Repayment-

Delinq 31-60 days

158

5.0%

133

3.3%

119

2.6%

2.1%

164

1.4%

670

2.4%

Loans in Repayment-

Delinq 61-90 days

3.1%

2.0%

1.6%

1.1%

0.7%

391

1.4%

Loans in Repayment-

Delinq 90 + days

271

8.6%

189

4.6%

152

3.3%

104

2.3%

157

1.3%

873

3.1%

Total Loans in Repayment or Forbearance

$ 3,155

100%

$ 4,073

100%

$ 4,558

100%

$ 4,607

100%

$ 11,944

100%

$ 28,337

100%

Charge-offs as a % of loans in repayment

7.9%

3.2%

2.3%

1.6%

0.9%

2.5%

Business Services Segment

“Core Earnings” Basis

(In

millions)

Net income

$90

$86

$130

Federal Loans serviced ($’s in billions)

$281

$282

$272

Third-Party Loan servicing revenue

$47

$44

$42

Asset recovery revenue

$99

$89

$132

Department

of Education accounts serviced

6.1

6.2

5.8

Contingency

asset recovery receivables ($’s in billions)

$20.1

$20.2

$16.3

•

Asset recovery revenue in Q2

2015 was reduced by $33 million from Q2

2014

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

Business Services Segment

Federal Loan Servicing

$150

$175

$200

$225

$250

$275

$300

2011

2012

2013

2014

Q2 15

Total Federal Loans Serviced

Business Services Segment

Asset Recovery

Contingent Asset Recovery Receivables

•

Generated

$188

million

revenue

YTD

•

Strong compliance infrastructure

•

Opportunities to expand into state, court and

municipality asset recovery

•

Non-ED government asset recovery provide

additional growth opportunity

Key Characteristics

As of June 30, 2015

Student

Loan

54%

Other

46%

$20.1 billion as of June 30, 2015

Student

Loan

83%

Other

17%

$16.3 billion as of June 30, 2014

Funding and

Liquidity

2015 Capital Markets Summary

•

Acquired

$1.8

billion

student

loans

•

Issued $2.8 billion of FFELP

ABS

•

Issued $689 million of Private Education Loan ABS

•

Issued $500 million of long-term unsecured debt

•

Repurchased over $1 billion of long-term unsecured debt

•

Returned

$724

million

shareholders

through

repurchases

and

dividends

•

Maintained strong capital position

As of June 30, 2015

Secured Funding

•

Navient is among the largest issuers

of ABS globally, having issued over

$275 billion of Private and FFELP

ABS transactions to date

•

Over $100 billion of securitizations

on balance sheet

•

Additional capacity under FFELP

secured facilities is $12 billion

•

Maximum capacity under Private

Education Loan secured facilities is

$1 billion

(1)

Includes

issuing

entities:

SLM

Student

Loan

Trust

and

SLM

Private

Education

Loan

Trust

(Bloomberg ticker: SLMA)

Source: J.P. Morgan

As of June 30, 2015

2015 YTD Issuance

Ford

7,607

Auto / Floorplans

Chase

6,125

Credit

Card

Ally

4,800

Auto/

Floorplans

Hyundai

4,132

Auto

Santander Drive

3,621

Auto

Navient

3,444

Student Loan

Nissan

3,051

Auto

Mercedes

3,015

Auto

2,762

Auto / Floorplans

Honda

2,606

Auto

Dunkin’ Brands

2,600

Franchise

Onemain

2,479

Consumer

Wendy

2,425

Whole Bus

Toyota

2,364

Auto / Floorplans

Capital

One

2,325

Credit Card

AmeriCredit

2,300

Auto

Bank

America

2,300

Credit Card

CarMax

2,165

Auto

CNH

1,800

Equipment

Drive

1,792

Auto

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

2015-3

NAVSL

2015-2

Priced:

Settled:

June 10, 2015

June 18, 2015

April 14, 2015

April 23, 2015

Issuance Amount:

$758M

$997M

Collateral:

US Govt. Guaranteed

FFELP

Stafford, Plus and Consolidation Loans

US Govt. Guaranteed

FFELP

Stafford and Plus Loans

Prepayment Speed

(1)

6% CPR Stafford / 4% CPR Consolidation

6% Constant Prepayment Rate

Tranching:

Class

Rating

(M)

Amt.

($M)

WAL

(1)

Pricing

(2)

Class

Rating

(M)

Amt.

($M)

WAL

(1)

Pricing

(2)

A-1

Aaa

$252

1.5

L+32

A-1

Aaa

$337

1.3

L+28

A-2

Aaa

$486

7.7

L+67

A-2

Aaa

$157

3.3

L+42

Aa1

$20

13.4

L+250

A-3

Aaa

$476

6.4

L+57

Aa2

$28

8.4

L+195

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 2.67% 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.

NAVSL

Trust 2015-A

NAVSL

Trust 2014-A

Priced:

Settled:

January 13, 2015

January 22, 2015

October 15, 2014

October 23, 2014

Issuance Amount:

$689M

$664M

Collateral:

Private Education Loans

Prepayment Speed

(1)

4% Constant Prepayment Rate

Tranching:

Class

Rating

(M)

Amt.

($M)

WAL

(1)

Pricing

(2)

Class

Rating

(M)

Amt.

($M)

WAL

(1)

Pricing

(2)

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

Aaa

$75

8.8

L+170

Aaa

$76

9.7

L+160

Aa3

$83

9.9

S+210

Aa1

$66

10.6

S+240

Unsecured Debt Maturities

$0.5

$1.2

$1.8

$2.8

$2.5

$2.1

$0.6

$0.8

$4.2

2015

2016

2017

2018

2019

2020

2021

2022

2023+

As of June 30, 2015

(par value, $ in billions)

Fitch

Moody’s

S&P

Senior

Unsecured Debt

Ba3

Outlook

Stable

Conservative Unsecured Debt Profile

December

31, 2006

December

31, 2010

June 30, 2015

Total Managed Student Loans

$142.1 Billion

$184.3 Billion

$128.4 Billion

Unsecured Debt Outstanding (par value)

$48.7 Billion

$20.1 Billion

$16.2 Billion

Tangible Equity Ratio

1.9%

2.2%

2.4%

Tangible Net Asset Ratio

1.06x

1.19x

1.25x

Unsecured Debt Rating (F / M / S)

A+ / A2

/ A

BBB-

/ Ba1

/ BBB-

BB / Ba3

/ BB

$48.7

$45.1

$38.0

$28.0

$20.1

$17.0

$17.8

$18.3

$17.5

$16.2

$51.7

$47.2

$39.4

$30.2

$24.0

$21.8

$22.4

$23.0

$22.1

$20.3

1.00

1.05

1.10

1.15

1.20

1.25

1.30

1.35

$10

$20

$30

$40

$50

$60

$70

2006

2007

2008

2009

2010

2011

2012

2013

2014

Q2 15*

Years Ending December 31

(par value, $ in billions)

Unsecured Debt Outstanding

Tangible Net Assets

Tangible Net Asset Ratio

* Quarter ending June 30, 2015

Tangible net assets equal tangible assets less secured debt

Projected Life of Loan Cash Flows over ~20 Years

These projections are based on internal estimates and assumptions and are subject to ongoing

review and modification. These projections may prove to be incorrect.

Enhancing Cash Flows

Education Loan Portfolio Generates Significant

Cash Flows

$’s in Billions

FFELP Cash Flows

6/30/15

12/31/14

Secured

Residual (including O/C)

$6.5

$7.3

Floor Income

2.0

1.9

Servicing

3.8

Total

Secured

$12.3

$13.0

Unencumbered

1.4

1.9

Total

FFELP Cash Flows

$13.7

$14.9

Private

Credit Cash Flows

Secured

Residual (including O/C)

$12.6

$13.2

Servicing

1.2

1.3

Total

Secured

$13.8

$14.5

Unencumbered

5.7

6.8

Total

Private Cash Flows

$19.5

$21.3

Combined Cash Flows

before Unsecured Debt

$33.2

$36.2

•

Since 12/31/14, we have repaid $1.7B of unsecured debt,

returned $0.7 billion to shareholders through share

repurchases and dividends, and acquired $1.8 billion of

student loans

•

$33 billion of estimated future cash flows over ~ 20 years

Highly predictable

Includes ~$11 billion of overcollateralization (O/C) to be

released from residuals

Cash Flow Projection as of 12/31/14

$36.2 B

Cash Flows Realized from Loan Portfolio

(1.6) B

Cash Flows from Financing Transactions

(1.9) B

Additional Cash Flows from Loans Acquired

0.3 B

Other

0.2 B

Cash Flow Projection as of 6/30/15

$33.2 B

FFELP

Cash Flows Highly Predictable

•

Total Cash Flows from Projected Excess Spread = $6.5 Billion

•

Total Cash Flows from Projected Servicing Revenues = $3.8 Billion

Assumptions

No Floor Income, CPR/CDR = Stafford & Plus (3%), Consolidation (3%)

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 6/30/15

Q3-Q4 2015

2016

2017

2018

2019

2020

2021

2022

Projected FFELP Average Balance

$95,924

$89,958

$81,400

$73,052

$65,223

$57,360

$49,792

$42,626

Projected Excess Spread

$431

$829

$738

$655

$590

$518

$456

$404

Projected Servicing Revenue

$251

$479

$443

$407

$373

$334

$292

$250

Projected Total Revenue

$683

$1,308

$1,182

$1,063

$963

$851

$748

$655

2023

2024

2025

2026

2027

2028

2029

2030+

Projected FFELP Average Balance

$35,940

$29,885

$24,562

$20,355

$16,595

$13,051

$9,754

$3,833

Projected Excess Spread

$354

$304

$260

$221

$192

$164

$121

$256

Projected Servicing Revenue

$206

$169

$132

$108

$89

$71

$54

$113

Projected Total Revenue

$560

$473

$391

$329

$281

$234

$175

$369

$’s in millions

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

2Q15 YTD

2014

2013

2012

Servicing (Cash Paid)

$ 199

$ 407

$ 507

$ 526

Net Residual* (Excess Distributions)

375

680

476

628

Net Cash Flow

170

216

1,199

934

$ 744

$ 1,302

$ 2,182

$ 2,088

Servicing (Cash Paid)

$ 96

$ 189

$ 198

$ 181

Residual (Excess Distribution)

107

226

170

103

Net Cash Flow

$ 230

$ 441

$ 377

$ 306

Total Proceeds from Residual Sales

$ 589

$ 974

$ 1,743

$ 3,148

$ 2,394

2Q15 YTD

2014

2013

2012

$ 84,362

$ 88,554

$ 95,055

$ 104,913

12,975

6,525

11,085

22,271

$ 97,338

$ 95,079

$ 106,140

$ 127,184

$ 24,417

$ 24,499

$ 26,037

$ 25,111

1,029

1,523

1,106

1,875

$ 25,446

$ 26,022

$ 27,143

$ 26,987

$ 122,783

$ 121,101

$ 133,283

$ 154,171

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

Total Private Credit

Total FFELP and Private Credit

Term FFELP

Other Secured FFELP

Total FFELP

Private Credit

Term Private Credit

Other Secured Financings

FFELP

ABS

Appendix

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 master servicer

•

Insurance or guarantee of underlying

collateral insulates bondholders from

virtually any loss of principal

(1)

•

Typically non-dischargeable in bankruptcy

•

Offer significantly higher yields than

government agency securities with

comparable risk profiles

(1)

Principal

and

accrued

interest

underlying

FFELP

loan

collateral

carry

insurance

guarantee

97%-100%

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

FFELP

Loan Program Characteristics

(1)

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

Note: As of July 1, 2011

Parameter

Subsidized Stafford

Unsubsidized Stafford

PLUS/Grad PLUS

Unsubsidized

Consolidation

Borrower

Student

Parents

or Graduate

Students

Student or Parents

Needs Based

Yes

N/A

Federal Guarantee of

Principal and Accrued

Interest

97 -

100%

97 -

100%

97 -

100%

97 -

100%

97 -

100%

Interest Subsidy

Payments

Yes

Special Allowance

Payments (SAP)

Yes

If cap is reached

Yes

Repayment

Term

120 months

Up to

360 months

to 360 months

Aggregate Loan Limit

Undergraduate: $23,000

Graduate: $65,500

Undergraduate

$57,500

Graduate: $138,500

None

Subsidized

Consolidation

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

•

Prepayments increased beginning in 2014 as we purchased assets from selected transactions to

mitigate the risk that certain tranches might remain outstanding past their legal final maturity dates

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

-10%

10%

20%

30%

40%

50%

60%

70%

Historical Stafford/PLUS ABS CPRs

by Issuance Vintage

2002

2003

2004

2005

2006

2007

2008

2010

2012

2013

2014

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

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

Historical Consolidation ABS CPRs by Issuance Vintage

Private Education

Loan ABS

Appendix

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

•

20-40% 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 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

Navient Private Education Loan Programs

Smart Option

Undergraduate/Graduate/

Med/Law/MBA

Direct-to-Consumer (DTC)

Consolidation

Career Training

Origination Channel

School

Direct-to-Consumer

Lender

School

Typical Borrower

Student

College Graduates

Student

Typical Co-signer

Parent

Parent, Spouse

Typical Loan

$10k avg orig bal, 10 yr avg

term, in-school payments of

interest only, $25 or fully

deferred

$10k avg orig bal, 15 yr term,

deferred payments

$12k avg orig bal, 15 yr term,

deferred payments

$43k avg orig bal, 15-30 year

term depending on balance,

immediate repayment

$9k avg orig bal, up to 15 yr

term, immediate payments

Origination Period

March 2009 to April 2014

All history through 2014

2004 through 2008

2006 through 2008

1998 through 2014

Certification and Disbursement

School certified and disbursed

Borrower self-certified,

disbursed to borrower

Proceeds to lender to pay off

loans being consolidated

School certified and disbursed

Borrower Underwriting

FICO,

custom credit score model, and

judgmental underwriting

Primarily FICO

FICO and Debt-to-Income

FICO, Debt-to-Income and

judgmental underwriting

Borrowing Limits

$200,000

$100,000 Undergraduate,

$150,000 Graduate

$130,000

$400,000

Cost of attendance plus up to

$6,000 for expenses

Typical ABS Sec. Criteria

For-Profit; FICO

670

For-Profit; FICO

670

FICO

670

For-Profit; FICO

670

FICO

670

Non-Profit; FICO

640

Non-Profit; FICO

640

Non-Profit; FICO

640

School UW

Yes

Historical Risk-Based Pricing

L + 2% to L + 14%

P-1.5% to P+7.5%

P+1% to P+6.5%

P -

0.5% to P + 6.5%

P+0% to P+9%

L+0% to L+15%

L+6% to L+12%

L+6.5% to L+14%

Dischargeable in Bankruptcy

Yes

Additional Characteristics

Made to students and

parents primarily through

college financial aid offices to

fund 2-year, 4-year and

graduate school college tuition,

room and board

Also available on a limited

basis to students and parents

to fund non-degree granting

secondary education, including

community college, part time,

technical and trade school

programs

Both Title IV and non-Title

IV schools

(1)

Made to students and

parents through college

financial aid offices to fund 2-

year, 4-year and graduate

Signature, Excel, Law, Med

and MBA Loan brands

Title IV schools only

(1)

Freshmen must have a co-

signer with limited exceptions

Co-signer stability test

(minimum 3 year repayment

history)

Terms and underwriting

criteria similar to

Undergraduate, Graduate,

Med/Law/MBA with primary

differences being:

Marketing channel

No school certification

Disbursement of proceeds

directly to borrower

Title IV schools only

(1)

Freshmen must have a co-

signer with limited exceptions

Co-signer stability test

(minimum 3 year repayment

history)

Loans made to students and

parents to refinance one or

more private education loans

Student must provide proof

of graduation in order to

obtain loan

Loans made to students and

parents to fund non-degree

granting secondary education,

including community college,

Both Title IV and non-Title

IV schools

(1)

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

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

part time, technical, trade

school and tutorial programs

school college tuition,

room and board

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

NAV

14-CT

NAV

14-A

NAV

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%

21%

26%

22%

28%

24%

30%

32%

Total Enhancement (%)

21%

18%

24%

27%

26%

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%

26%

27%

Smart Option

10%

20%

30%

40%

45%

48%

63%

64%

63%

50%

51%

Consolidation

Direct to Consumer

12%

10%

12%

15%

20%

Career Training

100%

Total

100%

Payment Status (%)

School, Grace, Deferment

55%

45%

37%

38%

40%

39%

44%

59%

62%

63%

49%

46%

24%

Repayment

43%

52%

60%

57%

59%

54%

39%

36%

50%

99%

53%

68%

Forbearance

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%

81%

82%

71%

79%

80%

% Loans with No Cosigner

28%

25%

29%

25%

23%

21%

20%

19%

18%

29%

21%

20%

Wtd Avg FICO at Origination

737

736

733

735

736

737

740

733

741

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

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

707

710

702

703

702

705

707

728

707

701

WA FICO (Borrower at Rescored)

690

695

688

700

702

698

696

683

684

682

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%

2011-2015YTD Issuance Program

Navient

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

Navient Private Education Trusts

Navient Portfolio Transition to Seasoned Collateral

•

Securitized collateral will continue to season as the company transitions from

originations to portfolio acquisition and management

•

Most defaults occur early in repayment; loan performance improves as loans season

•

As of June 2015, the private securitized loan portfolio is approximately 69 months into

repayment; about 70% of total expected defaults have already occurred

Trust Portfolio Average Time in Repayment as of each Year

2011

2012

2013

2014

2015

10%

15%

20%

25%

30%

Months Since Repayment Begin Date

Distribution of Defaults by Months Since Repayment Begin Date

Defaults Per Month Since Repayment Begin Date (Managed Portfolio)

108

120

132

144

156

168

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

Cohort Default Triangles

•

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

Navient

Corporation and its consolidated subsidiaries that meet such subsidiaries’ current securitization criteria

(including those criteria listed below):

Program

types

include

Undergraduate/Graduate

(1)

Direct-to-Consumer

(“DTC”)

(2)

Career

Training

(3)

and

Private Consolidation Loans

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

application and must be at least:

•

Undergraduate/Graduate

not-for-profit

schools:

640

•

Undergraduate/Graduate

for-profit

schools:

670

•

DTC

loans:

670

•

Career

Training

loans:

670

•

Private

Consolidation

loans:

640

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

•

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

Navient

Corporation and its consolidated subsidiaries 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.

Cohort Default Triangles

•

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

status, and school type

•

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

Repayment

Year

–

The

calendar

year

loans

entered

repayment

Disbursed

Principal

Entering

Repayment

–

The

amount

principal

entering

repayment

given

year,

based

on disbursed principal prior to any interest capitalization

Years

Repayment

–

Measured

years

between

repayment

start

date

and

default

date.

Zero

represents

defaults that occurred prior to the start of repayment.

Periodic

Defaults

–

Defaulted

principal

each

Year

Repayment

percentage

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

Cohort Default Triangles

Note: Data as of 6/30/15.

(1)

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

(2)

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

(3)

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

Undergraduate/Graduate

(1)

Disbursed Principal

Entering

Repayment Year

Repayment ($m)

Total

1998

$11

0.0%

0.1%

0.4%

0.8%

0.4%

0.2%

1.5%

0.7%

0.4%

0.3%

0.0%

0.1%

5.0%

1999

$28

0.0%

0.1%

0.9%

0.6%

1.4%

0.4%

0.3%

1.0%

0.5%

0.2%

0.7%

0.3%

0.1%

0.4%

7.0%

2000

$70

0.0%

0.6%

1.1%

1.3%

0.6%

0.9%

1.5%

1.0%

0.8%

0.5%

0.4%

0.3%

0.1%

10.7%

2001

$187

0.0%

0.1%

1.1%

1.4%

0.9%

1.8%

1.3%

2.3%

1.8%

1.5%

0.9%

0.6%

0.4%

0.3%

0.0%

14.2%

2002

$386

0.0%

0.2%

1.2%

1.1%

1.9%

1.6%

2.3%

2.0%

1.3%

0.9%

0.6%

0.4%

0.0%

14.3%

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%

0.5%

0.0%

15.2%

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%

0.6%

0.0%

15.9%

2005

$1,537

0.0%

0.4%

2.5%

3.7%

3.4%

2.1%

1.6%

1.2%

0.9%

0.6%

0.0%

16.6%

2006

$2,013

0.0%

0.1%

1.6%

3.7%

3.8%

2.5%

1.8%

1.5%

1.1%

0.7%

0.0%

16.8%

2007

$2,452

0.0%

0.4%

3.5%

4.6%

3.0%

2.1%

1.8%

1.4%

0.9%

0.1%

17.8%

2008

$2,933

0.0%

2.3%

4.2%

4.0%

2.6%

2.2%

1.6%

1.3%

0.1%

18.3%

2009

$3,241

0.0%

3.4%

3.7%

3.6%

2.6%

1.8%

1.4%

0.1%

16.7%

2010

$2,769

0.0%

3.6%

3.9%

3.6%

2.0%

1.5%

0.1%

14.7%

2011

$1,871

0.0%

3.0%

4.5%

2.3%

1.7%

0.1%

11.7%

2012

$1,102

0.0%

3.0%

3.8%

2.0%

0.2%

9.0%

2013

$499

0.0%

2.9%

3.1%

0.4%

6.4%

2014

$227

0.0%

2.6%

0.5%

3.2%

Periodic

Defaults

Years

Repayment

(2),(3)

Cohort Default Triangles

Undergraduate/Graduate

(1)

Without Co-signer

Undergraduate/Graduate

(1)

With Co-signer

Note: Data as of 6/30/15.

(1)

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

(2)

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

(3)

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

Disbursed Principal

Entering

Repayment Year

Repayment ($m)

Total

1998

0.0%

0.1%

0.6%

1.0%

0.4%

0.0%

0.2%

1.1%

0.1%

0.0%

0.1%

3.6%

1999

$14

0.0%

0.4%

0.1%

0.9%

0.4%

0.2%

0.1%

0.4%

0.0%

0.1%

0.2%

3.0%

2000

$37

0.0%

0.5%

0.7%

0.4%

0.7%

1.2%

0.8%

0.9%

0.2%

0.4%

0.2%

0.1%

7.3%

2001

$90

0.0%

0.1%

0.7%

0.9%

0.6%

1.2%

1.0%

1.7%

1.4%

1.1%

0.9%

0.4%

0.3%

0.0%

10.5%

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%

0.3%

0.0%

10.7%

2003

$367

0.0%

0.1%

0.3%

0.6%

0.9%

1.1%

2.2%

1.9%

1.4%

0.9%

0.7%

0.6%

0.5%

0.0%

11.2%

2004

$632

0.0%

0.2%

1.0%

2.2%

1.4%

1.1%

1.0%

0.7%

0.4%

0.0%

11.3%

2005

$844

0.0%

0.2%

1.4%

2.5%

2.3%

1.6%

1.2%

0.9%

0.8%

0.5%

0.0%

11.4%

2006

$1,121

0.0%

0.7%

2.4%

1.8%

1.3%

1.1%

1.0%

0.6%

0.0%

11.4%

2007

$1,408

0.0%

0.2%

2.0%

2.9%

2.0%

1.5%

1.3%

1.1%

0.8%

0.0%

11.9%

2008

$1,758

0.0%

1.2%

2.6%

2.7%

1.8%

1.6%

1.2%

1.0%

0.1%

12.2%

2009

$2,076

0.0%

2.0%

2.4%

1.9%

1.4%

1.1%

0.1%

11.2%

2010

$1,854

0.0%

2.1%

2.4%

2.3%

1.4%

1.2%

0.1%

9.5%

2011

$1,353

0.0%

1.6%

2.8%

1.4%

1.2%

0.1%

7.2%

2012

$849

0.0%

1.7%

2.4%

1.4%

0.1%

5.7%

2013

$387

0.0%

1.8%

2.0%

0.3%

4.1%

2014

$176

0.0%

1.8%

0.5%

2.3%

Periodic Defaults by Years in Repayment

(2),(3)

Disbursed Principal

Entering

Repayment Year

Repayment ($m)

Total

1998

0.0%

0.2%

0.6%

0.4%

3.1%

0.2%

0.8%

0.0%

0.2%

6.8%

1999

$14

0.0%

0.3%

1.3%

1.1%

1.9%

0.4%

0.3%

1.8%

0.6%

0.5%

1.4%

0.6%

0.1%

0.7%

11.0%

2000

$33

0.0%

0.8%

1.7%

2.0%

0.6%

1.5%

2.3%

2.0%

1.1%

0.7%

0.4%

0.5%

0.2%

14.5%

2001

$97

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%

0.3%

0.0%

17.7%

2002

$190

0.0%

0.2%

1.6%

1.7%

2.3%

2.8%

2.5%

1.5%

1.2%

0.7%

0.6%

0.5%

0.0%

18.0%

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%

0.5%

0.0%

19.9%

2004

$499

0.0%

0.3%

0.4%

3.1%

2.8%

4.1%

3.8%

2.3%

1.8%

1.3%

0.9%

0.8%

0.0%

21.7%

2005

$694

0.0%

0.1%

0.7%

3.9%

5.3%

4.7%

2.7%

2.1%

1.6%

1.1%

0.8%

0.0%

22.9%

2006

$892

0.0%

0.2%

2.7%

5.3%

5.4%

3.4%

2.4%

1.9%

1.3%

0.9%

0.1%

23.6%

2007

$1,044

0.0%

0.8%

5.5%

6.9%

4.3%

2.8%

2.5%

1.8%

1.1%

0.1%

25.7%

2008

$1,175

0.0%

4.0%

6.5%

5.9%

3.8%

3.1%

2.2%

1.7%

0.1%

27.4%

2009

$1,165

0.0%

6.0%

5.7%

4.0%

2.7%

2.0%

0.1%

26.6%

2010

$916

0.0%

6.7%

6.9%

6.1%

3.2%

2.2%

0.2%

25.3%

2011

$518

0.0%

6.7%

9.1%

4.4%

3.1%

0.2%

23.5%

2012

$253

0.1%

7.1%

8.2%

4.2%

0.6%

20.3%

2013

$113

0.1%

6.7%

0.9%

14.3%

2014

$51

0.1%

5.6%

0.6%

6.2%

Periodic Defaults by Years in Repayment

(2),(3)

Cohort Default Triangles

Note: Data as of 6/30/15.

(1)

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

(2)

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

(3)

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

Undergraduate/Graduate

(1)

Non-Profit

Undergraduate/Graduate

(1)

For-Profit

Disbursed Principal

Entering

Repayment Year

Repayment ($m)

Total

1998

$11

0.0%

0.2%

0.4%

0.2%

1.1%

0.7%

0.3%

0.4%

0.0%

0.1%

4.2%

1999

$26

0.0%

0.8%

0.5%

1.2%

0.4%

0.3%

1.0%

0.5%

0.2%

0.5%

0.4%

0.1%

0.3%

6.3%

2000

$68

0.0%

0.6%

1.0%

1.4%

0.5%

0.9%

1.4%

1.3%

1.0%

0.8%

0.5%

0.4%

0.3%

0.1%

10.3%

2001

$180

0.0%

0.1%

1.0%

1.4%

0.9%

1.7%

1.2%

2.4%

1.8%

1.5%

0.8%

0.6%

0.4%

0.3%

0.0%

13.9%

2002

$360

0.0%

0.2%

1.2%

1.0%

1.8%

1.6%

2.3%

2.0%

1.3%

1.0%

0.6%

0.4%

0.0%

14.1%

2003

$630

0.0%

0.2%

0.6%

0.8%

1.8%

1.6%

2.6%

2.4%

1.7%

1.2%

0.8%

0.6%

0.5%

0.0%

14.7%

2004

$1,006

0.0%

0.2%

1.8%

1.6%

2.9%

2.6%

1.7%

1.3%

1.1%

0.7%

0.6%

0.0%

15.0%

2005

$1,362

0.0%

0.4%

2.4%

3.5%

3.2%

2.0%

1.6%

1.2%

0.9%

0.6%

0.0%

15.8%

2006

$1,767

0.0%

0.1%

1.5%

3.5%

3.6%

2.4%

1.7%

1.4%

1.1%

0.7%

0.0%

16.1%

2007

$2,104

0.0%

0.4%

3.4%

4.3%

2.8%

2.0%

1.7%

1.3%

0.9%

0.0%

17.0%

2008

$2,458

0.0%

2.2%

3.9%

3.6%

2.5%

2.1%

1.6%

1.3%

0.1%

17.3%

2009

$2,687

0.0%

3.2%

3.4%

2.5%

1.8%

1.4%

0.1%

15.8%

2010

$2,378

0.0%

3.4%

3.7%

3.4%

1.9%

1.4%

0.1%

14.0%

2011

$1,664

0.0%

2.8%

4.3%

2.2%

1.6%

0.1%

11.1%

2012

$1,003

0.0%

2.9%

3.5%

2.0%

0.2%

8.6%

2013

$459

0.0%

2.8%

3.0%

0.4%

6.2%

2014

$210

0.0%

2.5%

0.4%

3.0%

Periodic Defaults by Years in Repayment

(2),(3)

Disbursed Principal

Entering

Repayment Year

Repayment ($m)

Total

1998

$0.36

0.0%

13.6%

0.0%

12.6%

0.0%

5.1%

0.0%

0.4%

0.0%

31.7%

1999

0.0%

2.3%

1.4%

2.1%

4.8%

0.0%

0.9%

5.3%

0.0%

2.5%

19.3%

2000

0.0%

2.8%

0.7%

3.2%

3.7%

8.9%

0.0%

1.6%

0.0%

24.3%

2001

0.0%

0.1%

4.7%

2.2%

1.1%

4.3%

2.2%

0.8%

3.5%

1.5%

1.8%

0.4%

0.0%

0.6%

0.0%

23.4%

2002

$27

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%

17.1%

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%

0.5%

0.0%

21.1%

2004

$126

0.0%

0.3%

0.6%

3.2%

3.0%

3.9%

4.6%

2.4%

1.9%

1.4%

1.0%

0.5%

0.1%

23.0%

2005

$175

0.0%

0.7%

3.7%

5.2%

4.9%

2.7%

1.9%

1.4%

1.2%

0.8%

0.1%

22.6%

2006

$246

0.0%

0.2%

2.1%

4.9%

5.0%

3.2%

2.2%

2.0%

1.4%

0.8%

0.1%

21.9%

2007

$348

0.0%

0.5%

4.3%

6.5%

4.0%

2.5%

2.2%

1.6%

0.9%

0.1%

22.6%

2008

$475

0.0%

3.0%

5.9%

5.6%

3.2%

2.6%

1.9%

1.4%

0.1%

23.6%

2009

$554

0.0%

4.3%

5.1%

4.4%

3.3%

2.1%

1.8%

0.1%

21.2%

2010

$392

0.1%

4.7%

4.9%

2.7%

2.0%

0.2%

19.3%

2011

$206

0.1%

4.5%

6.5%

3.0%

2.4%

0.2%

16.7%

2012

$99

0.1%

4.2%

5.9%

2.8%

0.2%

13.1%

2013

$41

0.2%

3.8%

4.5%

0.7%

9.2%

2014

$17

0.4%

3.9%

1.1%

5.3%

Periodic Defaults by Years in Repayment

(2),(3)

Cohort Default Triangles

Undergraduate/Graduate

(1)

Loans, FICO 740-850

(2)

Undergraduate/Graduate

(1)

Loans, FICO 700-739

(2)

Note: Data as of 6/30/15.

(1)

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

(2)

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

(3)

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

(4)

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

Disbursed Principal

Entering

Repayment Year

Repayment ($m)

Total

1998

0.0%

0.2%

0.0%

0.4%

0.9%

0.0%

2.8%

1999

0.0%

0.5%

0.3%

1.7%

0.5%

0.2%

0.0%

0.2%

0.0%

0.4%

0.0%

0.8%

4.9%

2000

$22

0.0%

0.3%

0.4%

0.2%

0.3%

1.0%

0.4%

0.5%

0.0%

0.1%

4.9%

2001

$64

0.0%

0.1%

0.5%

0.4%

1.1%

0.8%

1.0%

0.7%

0.4%

0.3%

0.2%

0.0%

7.1%

2002

$137

0.0%

0.2%

0.1%

0.5%

0.4%

0.8%

0.6%

1.2%

0.9%

0.6%

0.5%

0.4%

0.3%

0.2%

0.0%

6.7%

2003

$248

0.0%

0.1%

0.2%

0.4%

0.6%

0.7%

1.2%

1.4%

0.9%

0.7%

0.6%

0.4%

0.3%

0.0%

7.5%

2004

$424

0.0%

0.1%

0.7%

1.4%

1.3%

0.9%

0.8%

0.7%

0.5%

0.4%

0.0%

7.7%

2005

$574

0.0%

0.2%

1.0%

1.5%

1.1%

0.9%

0.6%

0.4%

0.0%

7.8%

2006

$761

0.0%

0.5%

1.4%

1.5%

1.1%

0.8%

0.6%

0.4%

0.0%

7.1%

2007

$937

0.0%

0.1%

1.2%

1.6%

1.1%

1.0%

0.8%

0.6%

0.0%

7.2%

2008

$1,130

0.0%

0.7%

1.5%

1.1%

1.0%

0.8%

0.6%

0.0%

7.1%

2009

$1,325

0.0%

1.2%

1.4%

1.2%

0.9%

0.7%

0.0%

6.8%

2010

$1,186

0.0%

1.4%

1.5%

1.6%

1.1%

0.8%

0.0%

6.4%

2011

$831

0.0%

1.2%

1.8%

1.0%

0.9%

0.1%

4.9%

2012

$507

0.0%

1.3%

1.5%

0.9%

0.1%

3.9%

2013

$233

0.0%

1.2%

1.5%

0.2%

2.9%

2014

$104

0.0%

1.1%

0.3%

1.4%

Periodic Defaults by Years in Repayment

(3),(4)

Disbursed Principal

Entering

Repayment Year

Repayment ($m)

Total

1998

0.0%

0.5%

2.2%

0.0%

0.1%

0.8%

0.0%

3.6%

1999

0.0%

0.5%

0.4%

0.7%

0.0%

0.3%

1.5%

0.7%

0.1%

0.8%

0.1%

0.0%

0.1%

5.1%

2000

$20

0.0%

0.4%

0.7%

1.3%

0.8%

1.1%

0.8%

1.3%

0.7%

0.6%

0.4%

0.7%

0.2%

0.0%

8.9%

2001

$54

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%

11.7%

2002

$111

0.0%

0.1%

1.1%

1.0%

1.7%

1.3%

2.2%

1.4%

1.3%

0.9%

0.5%

0.4%

0.3%

0.0%

12.4%

2003

$194

0.0%

0.2%

0.5%

0.8%

1.6%

1.5%

2.4%

1.9%

1.8%

1.2%

0.7%

0.6%

0.5%

0.0%

13.7%

2004

$321

0.0%

0.2%

1.7%

1.5%

2.5%

2.9%

1.8%

1.4%

1.1%

0.7%

0.5%

0.0%

14.6%

2005

$439

0.0%

0.4%

2.2%

3.3%

2.9%

2.1%

1.4%

1.1%

0.8%

0.5%

0.0%

14.9%

2006

$553

0.0%

0.1%

1.3%

3.1%

3.4%

2.4%

1.7%

1.2%

1.0%

0.7%

0.0%

15.0%

2007

$659

0.0%

0.3%

2.8%

4.1%

2.7%

1.8%

1.7%

1.3%

0.8%

0.1%

15.6%

2008

$782

0.0%

2.0%

3.8%

3.5%

2.4%

2.0%

1.5%

1.2%

0.1%

16.5%

2009

$876

0.0%

3.0%

3.5%

2.6%

1.8%

1.4%

0.1%

15.9%

2010

$731

0.0%

3.4%

3.8%

3.4%

2.0%

1.4%

0.1%

14.2%

2011

$482

0.0%

2.9%

4.3%

2.2%

1.8%

0.1%

11.3%

2012

$282

0.1%

2.8%

3.5%

2.0%

0.2%

8.5%

2013

$126

0.0%

2.4%

2.8%

0.4%

5.7%

2014

$58

0.1%

2.5%

0.3%

3.0%

Periodic Defaults by Years in Repayment

(3),(4)

Cohort Default Triangles

Note: Data as of 6/30/15.

(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)

Total

1998

0.0%

0.6%

0.3%

0.5%

0.3%

2.8%

0.0%

0.5%

0.3%

0.1%

0.3%

6.2%

1999

0.0%

0.5%

1.4%

0.5%

1.3%

0.3%

0.1%

0.7%

0.5%

1.3%

0.4%

0.0%

0.5%

7.8%

2000

$14

0.0%

0.9%

1.4%

1.9%

0.2%

1.0%

0.9%

1.4%

0.9%

0.4%

0.7%

0.0%

12.2%

2001

$37

0.0%

0.1%

1.3%

2.1%

1.5%

1.9%

1.6%

2.7%

2.9%

2.0%

0.8%

0.6%

0.3%

0.4%

0.0%

18.2%

2002

$77

0.0%

0.2%

0.3%

1.6%

1.8%

2.4%

2.9%

2.7%

1.6%

1.2%

0.8%

0.6%

0.0%

18.9%

2003

$134

0.0%

0.1%

0.8%

1.3%

2.8%

2.2%

3.7%

3.3%

2.2%

1.3%

0.8%

0.7%

0.6%

0.0%

19.8%

2004

$222

0.0%

0.3%

0.5%

2.9%

2.6%

4.3%

3.8%

2.3%

1.7%

1.3%

0.9%

0.7%

0.0%

21.3%

2005

$298

0.0%

0.1%

0.7%

3.8%

5.3%

4.9%

2.8%

1.9%

1.5%

1.2%

0.8%

0.0%

22.9%

2006

$402

0.0%

0.2%

2.6%

5.5%

5.6%

3.6%

2.4%

1.9%

1.5%

1.0%

0.1%

24.4%

2007

$504

0.0%

0.7%

5.6%

7.4%

4.8%

3.1%

2.5%

1.8%

1.2%

0.1%

27.0%

2008

$623

0.0%

3.8%

6.9%

6.4%

3.8%

3.2%

2.4%

1.8%

0.1%

28.4%

2009

$662

0.1%

5.7%

6.1%

6.0%

4.0%

2.8%

2.3%

0.1%

27.2%

2010

$543

0.0%

6.2%

6.3%

5.8%

3.0%

2.4%

0.1%

23.8%

2011

$355

0.0%

5.0%

7.9%

3.9%

2.6%

0.2%

19.6%

2012

$199

0.1%

4.9%

6.6%

3.4%

0.4%

15.4%

2013

$89

0.0%

5.1%

5.4%

0.8%

11.3%

2014

$41

0.0%

4.3%

0.9%

5.2%

Periodic Defaults by Years in Repayment

(3),(4)

Disbursed Principal

Entering

Repayment Year

Repayment ($m)

Total

1998

0.0%

0.3%

0.5%

0.9%

0.0%

2.9%

2.3%

1.3%

0.2%

0.0%

0.3%

8.6%

1999

0.0%

1.1%

1.3%

2.3%

0.9%

0.3%

2.1%

0.5%

0.1%

0.7%

0.5%

0.4%

0.5%

10.7%

2000

$14

0.0%

1.3%

2.5%

2.3%

1.4%

1.6%

3.8%

3.0%

1.9%

1.5%

0.7%

0.5%

0.4%

0.3%

21.2%

2001

$32

0.0%

0.1%

2.3%

2.9%

2.0%

3.4%

2.5%

5.2%

3.7%

2.9%

1.2%

1.0%

0.6%

0.4%

0.0%

28.3%

2002

$61

0.0%

0.2%

0.4%

2.7%

2.3%

3.9%

3.1%

4.6%

4.3%

2.4%

1.8%

1.2%

1.4%

0.6%

0.0%

29.0%

2003

$107

0.0%

0.3%

1.3%

2.1%

4.1%

3.3%

5.3%

4.6%

3.5%

2.2%

1.4%

1.1%

0.8%

0.0%

30.0%

2004

$165

0.0%

0.5%

4.4%

3.9%

6.4%

5.7%

3.5%

2.5%

2.1%

1.5%

1.3%

0.0%

32.3%

2005

$226

0.0%

0.1%

0.9%

5.4%

8.2%

7.0%

3.9%

3.3%

2.3%

1.6%

1.1%

0.1%

33.7%

2006

$296

0.0%

0.2%

3.7%

8.2%

7.8%

4.8%

3.6%

3.0%

2.1%

1.4%

0.1%

34.8%

2007

$352

0.0%

1.1%

8.0%

9.8%

6.0%

4.0%

3.6%

2.6%

1.7%

0.1%

36.9%

2008

$398

0.0%

5.4%

8.5%

8.1%

5.3%

4.3%

3.1%

2.6%

0.1%

37.5%

2009

$378

0.0%

8.2%

8.0%

7.4%

5.0%

3.5%

2.8%

0.2%

35.1%

2010

$310

0.0%

8.0%

8.5%

7.9%

3.9%

3.1%

0.3%

31.8%

2011

$202

0.0%

7.7%

10.3%

4.8%

3.3%

0.3%

26.4%

2012

$114

0.0%

7.6%

9.3%

4.6%

0.6%

22.1%

2013

$51

0.0%

7.4%

7.0%

1.0%

15.4%

2014

$23

0.1%

6.6%

0.9%

7.6%

Periodic Defaults by Years in Repayment

(3),(4)

Cohort Default Triangles

Private Consolidation Loans Without Co-signer

Private Consolidation Loans With Co-signer

Note: Data as of 6/30/15.

(1)

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

(2)

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

Disbursed Principal

Entering

Repayment Year

Repayment ($m)

Total

2006

$249

0.0%

0.1%

0.5%

0.6%

0.4%

0.3%

0.4%

0.3%

0.0%

3.2%

2007

$675

0.0%

0.2%

0.4%

0.6%

0.5%

0.4%

0.5%

0.3%

0.0%

2.8%

2008

$376

0.0%

0.1%

0.4%

0.7%

0.6%

0.5%

0.3%

0.1%

3.3%

Periodic

Defaults

Years

Repayment

(1),(2)

Disbursed Principal

Entering

Repayment Year

Repayment ($m)

Total

2006

$125

0.0%

0.4%

0.9%

1.5%

1.7%

1.5%

1.0%

1.1%

1.0%

0.3%

0.0%

9.5%

2007

$295

0.0%

0.9%

1.0%

1.3%

1.0%

0.8%

0.4%

0.1%

6.5%

2008

$133

0.0%

0.2%

1.7%

2.1%

1.8%

1.9%

1.1%

0.4%

10.9%

Periodic

Defaults

Years

Repayment

(1),(2)

Cohort Default Triangles

Note: Data as of 6/30/15.

(1)

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

(2)

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

(3)

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

DTC

With

Co-signer,

FICO

670

(1)

DTC

Without

Co-signer,

FICO

670

(1)

Disbursed Principal

Entering

Repayment Year

Repayment ($m)

Total

2004

0.0%

0.2%

0.1%

0.4%

0.0%

0.2%

0.0%

0.9%

2005

$65

0.0%

0.1%

0.8%

0.7%

1.4%

2.1%

1.1%

0.9%

1.0%

0.6%

0.0%

9.8%

2006

$139

0.0%

0.7%

1.8%

4.4%

4.8%

2.5%

2.0%

2.1%

1.3%

0.9%

0.0%

20.4%

2007

$245

0.0%

0.6%

4.7%

6.2%

4.2%

2.7%

2.1%

1.3%

0.0%

24.5%

2008

$369

0.0%

2.9%

5.9%

4.9%

3.7%

2.9%

2.5%

1.8%

0.1%

24.6%

2009

$396

0.0%

3.7%

4.1%

4.0%

3.2%

2.6%

2.0%

0.2%

19.8%

2010

$314

0.0%

3.6%

4.2%

4.7%

2.9%

2.3%

0.3%

18.0%

2011

$192

0.1%

3.8%

5.2%

3.7%

2.6%

0.5%

15.8%

2012

$104

0.0%

3.3%

5.4%

4.6%

0.8%

14.1%

2013

$23

0.0%

1.2%

2.6%

1.1%

4.9%

Periodic Defaults by Years in Repayment

(2),(3)

Disbursed Principal

Entering

Repayment Year

Repayment ($m)

Total

2004

0.0%

1.6%

1.2%

0.6%

4.7%

2.2%

3.0%

1.2%

4.2%

0.0%

18.8%

2005

$19

0.0%

1.0%

2.1%

2.4%

4.0%

6.5%

2.8%

1.6%

1.0%

1.4%

0.5%

0.0%

23.3%

2006

$66

0.0%

1.4%

2.5%

6.6%

6.4%

4.1%

2.8%

2.6%

1.7%

0.9%

0.1%

29.2%

2007

$158

0.0%

1.0%

5.8%

8.1%

4.6%

3.8%

3.4%

2.4%

1.2%

0.1%

30.5%

2008

$255

0.0%

3.7%

7.9%

7.3%

4.3%

4.0%

2.6%

1.8%

0.1%

31.8%

2009

$234

0.0%

6.7%

6.3%

6.9%

5.2%

3.2%

3.0%

0.1%

31.5%

2010

$152

0.1%

8.3%

7.0%

8.8%

4.2%

3.3%

0.4%

32.1%

2011

$88

0.1%

7.8%

10.2%

5.7%

4.9%

0.5%

29.2%

2012

$47

0.0%

6.2%

8.5%

7.1%

1.4%

23.2%

2013

0.0%

3.2%

3.4%

2.4%

9.0%

Periodic Defaults by Years in Repayment

(2),(3)

Cohort Default Triangles

Note: Data as of 6/30/15.

(1)

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

(2)

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

(3)

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

Career Training Loans, 670+ FICO

(1)

Disbursed Principal

Entering

Repayment Year

Repayment ($m)

Total

2003

$291

0.0%

0.4%

1.4%

1.6%

1.7%

1.4%

1.0%

0.8%

0.5%

0.4%

0.3%

0.1%

11.1%

2004

$382

0.0%

0.4%

1.5%

2.3%

1.7%

1.8%

1.7%

1.1%

0.8%

0.5%

0.4%

0.3%

0.0%

12.6%

2005

$513

0.0%

0.3%

2.2%

2.5%

2.1%

1.5%

1.0%

0.8%

0.6%

0.4%

0.0%

13.6%

2006

$630

0.0%

0.4%

2.5%

3.5%

3.2%

2.2%

1.5%

1.0%

0.8%

0.6%

0.1%

15.9%

2007

$672

0.0%

0.5%

3.5%

3.9%

2.9%

1.8%

1.3%

1.0%

0.7%

0.1%

15.8%

2008

$581

0.0%

0.6%

4.3%

3.6%

2.3%

1.5%

1.3%

0.9%

0.1%

14.5%

2009

$169

0.0%

0.2%

2.1%

1.5%

1.1%

0.9%

0.2%

8.2%

2010

$19

0.0%

0.6%

1.2%

1.0%

0.5%

0.6%

0.0%

3.8%

Periodic

Defaults

Years

Repayment

(2),(3)

Navient

Corporation

Appendix

GAAP

Results

(In

millions, except per share amounts)

Net income

$182

$292

$307

EPS

$0.47

$0.72

$0.71

Operating

expenses

$225

$230

$211

Provision

$198

$125

$165

Average Student

Loans

$130,512

$133,722

$134,737

“Core Earnings” adjustments to GAAP:

GAAP

net income

$ 182

Net impact

of SLM BankCo

Net impact of derivative accounting

(83)

Net impact

of goodwill and acquired intangible assets

Net

income tax effect

Total

“Core Earnings” adjustments to GAAP

(28)

“Core Earnings” net income

$154

Quarter ended June 30, 2015

($ in millions)

Differences between “Core Earnings” and GAAP

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

•

SLM

NAVI

student

loan

trust

data

(Debt/asset

backed

securities

–

SLM

NAVI

Student

Loan

Trusts)

Static

pool

information

–

detailed

portfolio

stratifications

trust

the

cutoff

date

Accrued interest factors

Quarterly distribution factors

Historical

trust

performance

–

monthly

charge-off,

delinquency,

loan

status,

CPR,

etc.

trust

Since issued CPR –

monthly CPR data by trust since issuance

•

SLM

NAVI

student

loan

performance

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