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): May 1, 2015
Navient Corporation
(Exact name of registrant as specified in its charter)
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| Delaware |
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001-36228 |
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46-4054283 |
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of incorporation) |
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(Commission
File Number) |
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(I.R.S. Employer
Identification No.) |
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| 123 Justison Street, Wilmington, Delaware |
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19801 |
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(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:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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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 May 1, 2015, a presentation entitled “2015 1st 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. |
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| Exhibit
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Description |
| 99.1* |
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2015 1st Quarter Investor Deck. |
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.
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NAVIENT CORPORATION |
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| Date: May 1, 2015 |
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By: |
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/s/ Mark L. Heleen |
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Mark L. Heleen |
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Executive Vice President, Chief Legal Officer and Secretary |
EXHIBIT INDEX
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Number |
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Description |
| 99.1* |
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2015 1st Quarter Investor Deck. |
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| Exhibit 99.1
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2015 1st Quarter Investor Deck
May 1, 2015
Forward-Looking Statements; Non-GAAP Financial
Measures
The following information is current as of May 1, 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, 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 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 first quarter earnings release for a further discussion and a complete reconciliation between GAAP net income
and core earnings.
Confidential and proprietary information © 2015 Navient Solutions, Inc. All rights
reserved. 2
Navient Corporation Overview
Confidential and
proprietary information © 2015 Navient Solutions, Inc. All rights reserved. 3
We are the leading loan management, servicing and asset recovery company
Key Businesses Highlights
Asset Management •
FFELP Loan Portfolio • $102 Billion FFELP Portfolio
• Private Education Loan Portfolio • $29
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 • $20 Billion of Receivables
• Government receivables • Over 1,800 clients
• Taxes
• Court/Municipal
• Schools
As of March 31, 2015
Confidential and proprietary information © 2015 Navient Solutions, Inc. All rights reserved. 4
Operating Results
“Core Earning” Basis
(In millions, except per share amounts) Q1 15 Q4 14 Q1 14
Adjusted Core EPS before regulatory matters $0.48 $0.54 $0.49
Expenses associated with regulatory matters — ($0.01) ($0.16)
Reported Core EPS $0.48 $0.53 $0.33
Operating expenses $230 $215 $318
Operating
expenses (excluding regulatory matters) $230 $206 $207
Net income $194 $217 $142
Provision $125 $138 $146
Average student loans $133,722 $130,192 $133,854
Confidential and proprietary information © 2015 Navient Solutions, Inc. All rights reserved. 5
Student Loan Market
Estimated Outstanding Student
Loan Market Distribution
$1.2 Trillion as of FFYE 9/30/2014 ($ in billions)
Private Loans, $62
Private Owned by Navient, $30
FFELP owned by
Navient, $98
FFELP Loans, $157
Federal Loans owned by ED, $875
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
Confidential and proprietary information © 2015 Navient Solutions, Inc. All rights
reserved. 6
High Quality Education Loan Portfolio
FFELP
Portfolio
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
Private Education 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
Private Education 22%
FFELP 78%
Total Education Loans: $131bn
FFELP Portfolio Statistics
Balance ($bn, net of allowance) $102
%
Consolidation Loans 61%
% Stafford & Other 39%
90+ Day Delinquent 8.4%
Private Education Portfolio Statistics
Balance
($bn, net of allowance) $29
Avg. Loan Size $10,133
Avg. FICO at Orig. 719
% Cosigner 64%
90+ Day Delinquent 3.6%
Note: Financial data as of 3/31/2015
Confidential and proprietary information © 2015 Navient Solutions, Inc. All rights reserved. 7
FFELP Loans Segment
“Core Earnings”
Basis
(In millions) Q1 15 Q4 14 Q1 14
Net income $85 $85 $64
Average FFELP Loans
$103,617 $99,323 $102,329
FFELP Loan spread 0.96% 1.00% 0.95%
Net interest margin 0.88% 0.91% 0.86%
Annualized charge-off rate 0.03% 0.05% 0.12%
Greater than 90-day delinquency rate 8.4% 8.5% 7.3%
Confidential and proprietary information © 2015 Navient Solutions, Inc. All rights reserved. 8
FFELP Loans Segment
Credit Quality “Core
Earnings” Basis
($‘s in millions) FFELP Education Loan Portfolio
March 31, 2015 March 31, 2014
Balance % Balance %
Loans
in-school/grace/deferment $10,555 $12,872
Loans in forbearance 14,037 15,395
Loans in repayment and percentage of each status
Loans current 64,522 84.1% 62,105 86.2%
Loans
delinquent 31-60 days 3,656 4.8% 2,952 4.1%
Loans delinquent 61-90 days 2,087 2.7% 1,719 2.4%
Loans delinqent greater than 90 days 6,490 8.4% 5,287 7.3%
Total FFELP Loans in repayment 76,755 100% 72,063 100%
Total FFELP Loans, gross $101,347 $100,330
Percentage of FFELP Loans in repayment 75.7% 71.8%
Delinquencies as a percentage of FFELP Loans in
repayment 15.9% 13.8%
Loans in forbearance as a
percentage of loans in
repayment and forbearance 15.5% 17.6%
Confidential and proprietary information © 2015 Navient Solutions, Inc. All rights reserved. 9
Private Education Loans Segment
“Core
Earnings” Basis
(In millions, except FICO score) Q1 15 Q4 14 Q1 14
Net income $77 $92 $74
Average Private Education Loans $30,105 $30,869 $31,525
Private Education Loan spread 3.87% 3.99% 4.01%
Net interest margin 3.74% 3.89% 3.91%
Provision for loan losses $120 $128 $136
Charge-offs $190 $174 $218
Annualized charge-off rate 2.9% 2.5% 3.3%
Total
delinquency rate 6.9% 8.1% 7.8%
Greater than 90-day delinquency rate 3.6% 3.8% 3.9%
Forbearance rate 3.8% 3.8% 4.3%
Confidential and proprietary information © 2015 Navient Solutions, Inc. All rights reserved. 10
Private Education Loans Segment
Credit Quality
“Core Earnings” Basis
($‘s in millions) Private Education Loan Portfolio
March 31, 2015 March 31, 2014
Balance % Balance %
Loans
in-school/grace/deferment $2,894 $4,090
Loans in forbearance 1,030 1,205
Loans in repayment and percentage of each status
Loans current 24,451 93.1% 24,912 92.2%
Loans
delinquent 31-60 days 528 2.0% 634 2.4%
Loans delinquent 61-90 days 341 1.3% 416 1.5%
Loans delinqent greater than 90 days 940 3.6% 1,068 3.9%
Total Private Education Loans in repayment 26,260 100% 27,030 100%
Total Private Education Loans, gross $30,184 $32,325
Percentage of Private Education Loans in repayment 87.0% 83.6%
Delinquencies as a percentage of Private Education
Loans in repayment 6.9% 7.8%
Loans in forbearance as a percentage of loans in
repayment and forbearance 3.8% 4.3%
Confidential and proprietary information © 2015 Navient Solutions, Inc. All rights reserved. 11
Private Education Loans Segment
High Quality
Portfolio
Private Credit: % of Portfolio Outstanding by Segment
100%
11% 11% 10% 9% 8% 14% 13% 90%
80% 25% 24% 27% 29%
29% 28% 29% 70%
60%
50%
40%
66% 68% 30% 61% 64% 57% 59% 60% 20%
10%
0%
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%
5% 6.3% 4.6% 3.6%
2.9% 5.6%
4.3% 3.9%
2.8% 2.6%
2.6% 3.1%
2.7% 2.3%
1.0% 2.1% 1.8% 1.7% 0% 2008 2009 2010
2011 2012 2013 2014
Low Risk Moderate Risk Elevated Risk Overall Portfolio
Charge-off Rate
Low Risk = Smart Option, Legacy Traditional Cosigned, and Law/MBA/MED/CT/Other Moderate Risk = Legacy Traditional Non-Cosigned Elevated Risk = Non-Traditional
Confidential and proprietary information © 2015 Navient Solutions, Inc. All rights reserved. 12
Private Education Loans Segment
High Quality
Portfolio
Private Education Loan Charge-Off Rate by Segment
16%
13.6%
14%
12% 10.5%
9.6% Rate 10% 8.9% off 8.1%
- 8%
6% 5.7%
Charge 4.9%
4.6% 4.6%
4.5% 4.2%
3.4%
4% 3.5% 3.3% 2.9%
2.3%
1.9% 1.9% 2.0% 1.8%
2%
0%
Q1 11 Q1 12 Q1 13 Q1 14 Q1 15
Low Risk Moderate
Risk Elevated Risk Overall Portfolio
Private Education Loan Portfolio
Losses continue to decline year over year
Seasoned portfolio with 93% of loans in repayment status having made more than 12 payments
Non-traditional loans declined to 8% of total portfolio
Low Risk = Smart Option, Legacy Traditional Cosigned, and Law/MBA/MED/CT/Other Moderate Risk = Legacy Traditional Non-Cosigned Elevated Risk = Non-Traditional
Confidential and proprietary information © 2015 Navient Solutions, Inc. All rights reserved. 13
Private Education Loans Segment
Default
Performance
Historical Defaults by Payments Made
94% 96% 97% 99% 99% 100% 100% 89% 91% 92% 81% 84% 87% 76% 69%
Defaults 57% 57% Total 50% of
12%
7% 5%
3% 2% 2% 2% 1% 2% 2% 1% 1% 1% 1%
0%
Percent 12 24 36 48 60 72 84 96 108 120 132
144 156 168 180
Defaults Per Payments Made Cumulative Defaults
# Payments Made
The probability of default substantially diminishes as the number of payments and years of seasoning increases
As of March 31, 2015
Confidential and
proprietary information © 2015 Navient Solutions, Inc. All rights reserved. 14
Loan Seasoning – “Core Earnings” Basis
March 31, 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 2,630
Loans in Forbearance
361 17.5% 138 5.5% 127 3.4% 109 2.8% 174 1.4% 909 3.6%
Loans in Repayment- Current 1,336 64.9% 2,103 84.0%
3,319 89.5% 3,597 91.8% 12,351 95.6% 22,706 90.5%
Loans in Repayment- Delinq 31-60 days 90 4.4% 69 2.8% 80
2.1% 69 1.8% 136 1.1% 444 1.8%
Loans in Repayment- Delinq 61-90 days 71 3.4% 49 1.9% 48 1.3% 40 1.0% 78 0.6%
286 1.1%
Loans in Repayment- Delinq 90 + days 202 9.8% 146 5.8% 136 3.7% 102 2.6% 168 1.3% 754 3.0%
Total Loans in Repayment or Forbearance $ 2,060 100% $ 2,505 100% $ 3,710 100% $ 3,917 100% $ 12,907 100% $
25,099 100%
Charge-offs as a % of loans in repayment 12.7% 4.3% 2.3% 1.6% 0.8% 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
264
Loans in Forbearance 58 19.8% 19 6.4% 14 4.4% 12 3.9% 18 1.9% 121 5.5%
Loans in Repayment- Current 146 49.4% 212 71.6% 265 79.6% 249 82.9% 873 90.3% 1,745 79.7%
Loans in Repayment- Delinq 31-60 days 21 7.1% 16 5.3% 14 4.2% 10 3.4% 23 2.4% 84 3.8%
Loans in Repayment- Delinq 61-90 days 15 5.1% 11 3.7% 9 2.6% 7 2.2% 13 1.4% 55 2.5%
Loans in Repayment- Delinq 90 + days 55 18.6% 38 13.0% 31 9.2% 23 7.6% 39 4.0% 186 8.5%
Total Loans in Repayment or Forbearance $ 295 100% $ 296 100% $ 333 100% $ 301 100% $ 966 100% $ 2,191 100%
Charge-offs as a % of loans in repayment 30.3% 11.0% 6.5% 5.0% 2.6% 8.1%
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
2,894
Loans in Forbearance 419 17.8% 157 5.6% 141 3.5% 121 2.8% 192 1.4% 1,030 3.8%
Loans in Repayment- Current 1,482 62.9% 2,315 82.7% 3,584 88.7% 3,846 91.2% 13,224 95.3% 24,451 89.6%
Loans in Repayment- Delinq 31-60 days 111 4.7% 85 3.0% 94 2.3% 79 1.9% 159 1.1% 528 1.9%
Loans in Repayment- Delinq 61-90 days 86 3.7% 60 2.1% 57 1.4% 47 1.1% 91 0.7% 341 1.3%
Loans in Repayment- Delinq 90 + days 257 10.9% 184 6.6% 167 4.1% 125 3.0% 207 1.5% 940 3.4%
Total Loans in Repayment or Forbearance $ 2,355 100% $ 2,801 100% $ 4,043 100% $ 4,218 100% $ 13,873 100% $ 27,290 100%
Charge-offs as a % of loans in repayment 15.2% 5.0% 2.7% 1.9% 0.9% 2.9%
Confidential and proprietary information © 2015 Navient Solutions, Inc. All rights reserved. 15
Loan Seasoning – “Core Earnings” Basis
March 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 3,672
Loans in Forbearance
474 17.3% 182 4.7% 159 3.7% 109 2.5% 135 1.3% 1,059 4.1%
Loans in Repayment- Current 1,782 65.0% 3,295 85.9%
3,827 89.0% 3,980 92.2% 10,263 95.6% 23,147 89.3%
Loans in Repayment- Delinq 31-60 days 127 4.6% 106 2.7% 99
2.3% 76 1.8% 121 1.1% 529 2.0%
Loans in Repayment- Delinq 61-90 days 89 3.2% 72 1.9% 63 1.5% 46 1.1% 70 0.7%
340 1.3%
Loans in Repayment- Delinq 90 + days 271 9.9% 183 4.8% 149 3.5% 103 2.4% 143 1.3% 849 3.3%
Total Loans in Repayment or Forbearance $ 2,743 100% $ 3,838 100% $ 4,297 100% $ 4,314 100% $ 10,732 100% $
25,924 100%
Charge-offs as a % of loans in repayment 12.8% 3.3% 2.1% 1.4% 0.8% 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
418
Loans in Forbearance 78 18.7% 24 6.2% 17 5.0% 11 3.6% 16 1.8% 146 6.3%
Loans in Repayment- Current 203 48.7% 272 71.2% 268 77.3% 260 83.0% 762 89.5% 1,765 76.4%
Loans in Repayment- Delinq 31-60 days 30 7.3% 23 6.0% 17 4.8% 11 3.4% 24 2.8% 105 4.5%
Loans in Repayment- Delinq 61-90 days 23 5.5% 17 4.3% 12 3.3% 9 2.9% 15 1.8% 76 3.3%
Loans in Repayment- Delinq 90 + days 82 19.8% 47 12.3% 33 9.6% 22 7.1% 35 4.1% 219 9.5%
Total Loans in Repayment or Forbearance $ 416 100% $ 383 100% $ 347 100% $ 313 100% $ 852 100% $ 2,311 100%
Charge-offs as a % of loans in repayment 29.4% 10.4% 7.1% 4.9% 2.8% 9.6%
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
4,090
Loans in Forbearance 552 17.5% 206 4.9% 176 3.8% 120 2.6% 151 1.3% 1,205 4.3%
Loans in Repayment- Current 1,985 62.8% 3,567 84.5% 4,095 88.2% 4,240 91.6% 11,025 95.2% 24,912 88.2%
Loans in Repayment- Delinq 31-60 days 157 5.0% 129 3.0% 116 2.5% 87 1.9% 145 1.3% 634 2.2%
Loans in Repayment- Delinq 61-90 days 112 3.5% 89 2.1% 75 1.6% 55 1.2% 85 0.7% 416 1.5%
Loans in Repayment- Delinq 90 + days 353 11.2% 230 5.5% 182 3.9% 125 2.7% 178 1.5% 1,068 3.8%
Total Loans in Repayment or Forbearance $ 3,159 100% $ 4,221 100% $ 4,644 100% $ 4,627 100% $ 11,584 100% $ 28,235 100%
Charge-offs as a % of loans in repayment 15.2% 4.0% 2.5% 1.7% 1.0% 3.3%
Confidential and proprietary information © 2015 Navient Solutions, Inc. All rights reserved. 16
Business Services Segment
“Core
Earnings” Basis
(In millions) Q1 15 Q4 14 Q1 14
Net income $86 $95 $116
Federal Loans serviced ($’s in billions) $297 $276 $271
Third-Party Loan servicing revenue $44 $46 $40
Asset recovery revenue $89 $80 $111
Department of Education accounts serviced 6.2 6.2 5.8
Contingency asset recovery receivables ($’s in billions) $20.2 $15.4 $15.9
Asset recovery revenue in Q1 2015 was reduced by $40 million from Q1 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
Confidential and proprietary
information © 2015 Navient Solutions, Inc. All rights reserved. 17
Business Services Segment
Federal Loan Servicing
Total Federal Loans Serviced
$325
$300
$275 billions $250 in
’s $225 $
$200
$175
$150
2011 2012 2013 2014 Q1 15
Confidential and proprietary information © 2015 Navient Solutions, Inc. All rights reserved. 18
Business Services Segment
Asset Recovery
Q1 2015 Contingent Asset Recovery Receivables
Student Loan Related 54%
Other 46%
Key Characteristics
Generated $89 million of revenue in Q1 15
Strong compliance infrastructure
Opportunities to
expand into state, court and municipality asset recovery
Non-ED government asset recovery provide additional
growth opportunity
Confidential and proprietary information © 2015 Navient Solutions, Inc. All rights
reserved. 19
Funding and Liquidity
Confidential and
proprietary information © 2015 Navient Solutions, Inc. All rights reserved. 20
2015 Capital Markets Summary
Acquired $830
million1 of student loans
Issued $2 billion of FFELP ABS
Issued $689 million of Private Education Loan ABS
Issued $500 million of long-term unsecured debt
Repurchased $1 billion of long-term unsecured debt
Returned $363 million1 to shareholders through share repurchases and dividends
Maintained strong capital position
1 As of March 31, 2015
Confidential and
proprietary information © 2015 Navient Solutions, Inc. All rights reserved. 21
Secured Funding
2014 Issuance
1 Ally 14,252 Auto / Floorplans
2 Ford 13,423 Auto / Floorplans
3 Citigroup
10,600 Credit Card
4 Chase 8,350 Credit Card
5 Santander Drive 6,921 Auto
6 Navient 6,816 Student Loan
7 AMEX 5,447 Credit
Card
8 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
13AmeriCredit
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
(1) Includes previous issuing entities: SLM Student Loan Trust and SLM Private
Education Loan Trust (Bloomberg ticker: SLMA) Source: J.P. Morgan Research
Navient is among the largest
issuers of ABS globally, having issued over $250 billion of Private and FFELP ABS transactions to date
Over
$102 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
As of March 31, 2015
Confidential and proprietary information © 2015 Navient Solutions, Inc. All rights reserved. 22
Recent FFELP ABS Transactions
NAVSL 2015-2 NAVSL
2015-1
Priced: April 14, 2015 February 18, 2015
Settled: April 23, 2015 February 26, 2015
Issuance Amount: $997M $1,000M
US Govt. Guaranteed US Govt. Guaranteed
Collateral:
FFELP Stafford and Plus Loans FFELP Stafford, Plus and Consolidation Loans
Prepayment Speed (1): 6% Constant Prepayment Rate 6% CPR Stafford / 4% CPR Consolidation
Tranching: Class Rating Amt. WAL (1) Pricing (2) Class Rating Amt. WAL (1) Pricing (2)
(M) ($M) (M) ($M)
A-1 Aaa $337 1.3 L+28 A-1
Aaa $344 1.5 L+30
A-2 Aaa $157 3.3 L+42 A-2 Aaa $630 7.1 L+60
A-3 Aaa $476 6.4 L+57 B Aa1 $27 11.8 L+220
B Aa2 $28 8.4 L+195
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.
Pricing represents the yield to expected call.
Confidential and proprietary information © 2015 Navient Solutions, Inc. All rights reserved. 23
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.
Confidential and proprietary information
© 2015 Navient Solutions, Inc. All rights reserved. 24
Unsecured Debt
As of March 31, 2015 (par
value, $ in billions)
$4.2
$2.8
$2.5
$2.1
$1.7 $1.8
$1.0
$0.8
$0.6
2015 2016 2017 2018 2019 2020 2021 2022
2023+
Fitch Moody’s S&P
Senior Unsecured Debt BB Ba3 BB
Outlook Stable
Stable Stable
Confidential and proprietary information © 2015 Navient Solutions, Inc. All rights
reserved. 25
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
$40 $38.0 $39.4 1.20 $30.2 $28.0
$30 1.15 $24.0
$22.4 $23.0 $21.8 $22.1 $21.7 $20.1 $17.0 $17.8 $18.3 $17.5 $17.4
$20 1.10
$10 1.05
$0 1.00 2006 2007 2008 2009 2010 2011 2012 2013 2014 Q1 15* Unsecured Debt Outstanding Tangible Net Assets Tangible Net Asset Ratio
December 31, 2006 December 31, 2010 March 31, 2015
Total Managed Student Loans $142.1 Billion $184.3 Billion $131.4 Billion
Unsecured Debt Outstanding (par value) $48.7 Billion $20.1 Billion $17.4 Billion
Tangible Equity Ratio 1.9% 2.2% 2.5%
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
* Quarter ending March 31, 2015
Confidential and proprietary information © 2015 Navient Solutions, Inc. All rights reserved. 26
Education Loan Portfolio Generates Significant
Cash Flows
Projected Life of Loan Cash Flows over ~20 Years
$’s in Billions
FFELP Cash Flows 3/31/15 12/31/14
Secured
Residual (including O/C) $6.9 $7.3
Floor Income 2.3 1.9
Servicing 3.8 3.8
Total Secured $13.0 $13.0
Unencumbered 2.0 1.9
Total FFELP Cash Flows $15.0
$14.9
Private Credit Cash Flows
Secured
Residual (including O/C) $13.0 $13.2
Servicing 1.3 1.3
Total Secured $14.3 $14.5
Unencumbered 5.8 6.8
Total Private Cash Flows $20.1 $21.3
Combined Cash Flows
before Unsecured Debt $35.1
$36.2
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
Cash Flow Projection as of 12/31/14 $ 36.2 B
- Cash Flows Realized from Loan Portfolio (0.8) B
- Cash Flows Realized from New Financings (1.4) B
+ Loan Acquisitions, Net of Financings 0.5 B
+ Additional Floor Income 0.4 B
+ Credit
Improvements/Other 0.2 B
Total Additions 1.1 B
Cash Flow Projection as of 3/31/15 $35.1 B
Since 12/31/14, we have added $1.1 billion of cash flows
Cash flows realized include $1.2 billion from the financing
of previously unencumbered loans
$35 billion of
estimated future cash flows over ~ 20 years
— Highly predictable
— Includes ~$11.6 billion of overcollateralization (O/C) to
be released from residuals
Confidential and proprietary information © 2015 Navient Solutions, Inc. All rights reserved. 27
FFELP Cash Flows Highly Predictable
as of 3/31/15
Q2-Q4 2015 2016 2017 2018 2019 2020 2021 2022
Projected FFELP Average Balance $96,741 $89,610 $80,938 $72,667
$64,743 $56,776 $49,192 $42,020
Projected Excess Spread $645 $853 $759 $681 $619 $541 $477 $423
Projected Servicing Revenue $372 $470 $434 $400 $365 $327 $285 $244
Projected Total Revenue $1,017 $1,324 $1,193 $1,082 $984 $868 $762 $668
2023 2024 2025 2026 2027 2028 2029 2030+
Projected FFELP Average Balance $35,374 $29,368 $24,166 $20,065 $16,314 $12,803 $9,541 $3,752
Projected Excess Spread $368 $314 $260 $220 $194 $168 $133 $266
Projected Servicing Revenue $201 $164 $128 $106 $87 $69 $53 $113
Projected Total Revenue $569 $478 $388 $326 $281 $237 $186 $380
Total Cash Flows from Projected Excess Spread = $6.9 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
Confidential and proprietary information © 2015 Navient Solutions, Inc. All rights reserved. 28
Secured Cash Flow
$ in Millions
1Q 2015 2014 2013 2012
FFELP
Term Securitized
Servicing (Cash Paid) $ 100 $ 407 $ 507 $ 526
Net Residual* (Excess Distributions) 182 680 476 628
Other Secured FFELP
Net Cash Flow 85 216 1,199
934
Total FFELP $ 367 $ 1,302 $ 2,182 $ 2,088
Private Credit
Term Securitized
Servicing (Cash Paid) $ 48 $ 189
$ 198 $ 181
Residual (Excess Distribution) 53 226 170 103
Other Secured Financings
Net Cash Flow 12 26 9 22
Total Private Credit $
113 $ 441 $ 377 $ 306
Total Proceeds from Residual Sales $ 589
Total FFELP and Private Credit $ 480 $ 1,743 $ 3,148 $ 2,394
Average Principal Balances 1Q 2015 2014 2013 2012
FFELP
Term FFELP $ 85,023 $ 88,554 $ 95,055 $
104,913
Other Secured FFELP 13,256 6,525 11,085 22,271
Total FFELP $ 98,279 $ 95,079 $ 106,140 $ 127,184
Private Credit
Term Private Credit $ 24,689 $
24,499 $ 26,037 $ 25,111
Other Secured Financings 1,245 1,523 1,106 1,875
Total Private Credit $ 25,934 $ 26,022 $ 27,143 $ 26,987
Total FFELP and Private Credit $ 124,213 $ 121,101 $ 133,283 $ 154,171
Note: Totals may not add due to rounding
* Net residual represents excess distribution, net of payments on floor contracts and receipts from basis swaps
Confidential and proprietary information © 2015 Navient Solutions, Inc. All rights reserved. 29
FFELP ABS Appendix
Confidential and proprietary
information © 2015 Navient Solutions, Inc. All rights reserved. 30
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.
Confidential and proprietary information © 2015 Navient Solutions, Inc. All rights reserved. 31
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 Yes Yes If cap is reached Yes Yes
Payments (SAP)
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
.
Confidential and proprietary information © 2015 Navient Solutions, Inc. All rights reserved. 32
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 40%
CPR* 2005 30% 2006
Quarterly 20% 2007 10% 2008 2010
0% 2012 -10% 2013 2014
2Q2002 4Q2002
2Q2003 4Q2003
2Q2004 4Q2004
2Q2005 4Q2005
2Q2006 4Q2006
2Q2007 4Q2007
2Q2008 4Q2008
2Q2009 4Q2009
2Q2010 4Q2010
2Q2011 4Q2011
2Q2012 4Q2012
2Q2013 4Q2013
2Q2014 4Q2014
* Quarterly CPR assumes School and Grace loans are not scheduled to make payments. Deferment, Forbearance and Repayment
loans are scheduled to make payments.
Confidential and proprietary information © 2015 Navient Solutions,
Inc. All rights reserved. 33
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 CPR* 15% 2004 2005 10% 2006
Quarterly 5% 2007 2009
0% 2011 -5% 2012
2012Q2003 4Q2003
2Q2004 4Q2004
2Q2005 4Q2005
2Q2006 4Q2006
2Q2007 4Q2007
2Q2008 4Q2008
2Q2009 4Q2009
2Q2010 4Q2010
2Q2011 4Q2011
2Q2012 4Q2012
2Q2013 4Q2013
2Q2014 4Q2014* Quarterly CPR assumes School and Grace loans are not scheduled to make payments. Deferment, Forbearance and Repayment loans are scheduled to make payments.
Confidential and proprietary information © 2015 Navient Solutions, Inc. All rights reserved. 34
4
Private Education Loan ABS
Appendix
Confidential and proprietary information © 2015 Navient Solutions, Inc. All rights reserved. 35
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
Confidential and proprietary information © 2015 Navient Solutions, Inc. All rights reserved. 36
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.
Confidential and proprietary information © 2015 Navient Solutions, Inc. All rights reserved. 37
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.
Confidential and proprietary information © 2015 Navient Solutions, Inc. All rights reserved. 38
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 March 2015, the private securitized loan portfolio is approximately 66 months into repayment; about 65% of total
expected defaults have already occurred
Distribution of Defaults by Months Since Repayment Begin Date
30% 50
Trust Portfolio Average Time in Repayment as of each Year 45
25%
40
2011 2012 2013 2014 2015TD
35
Defaults 20%
30
Total 15% 25 of
20 10% 15
Percent 10 5% 5
0% 0
12 24 36 48 60 72 84 96 108 120 132 144 156
168
Months Since Repayment Begin Date
Defaults Per Month Since Repayment Begin Date (Managed Portfolio)
Confidential and proprietary information © 2015 Navient Solutions, Inc. All rights reserved. 39
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
14
12 t Rate 10 an nt t e 8 n s m CPR) Co ay ( 6 Prep 4 2 0
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
2014-CT NAVI 2014-A
Confidential and proprietary information © 2015 Navient Solutions, Inc. All rights
reserved. 40
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.
Confidential and proprietary information © 2015 Navient Solutions, Inc. All rights reserved. 41
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
Confidential and proprietary information © 2015 Navient Solutions, Inc. All rights reserved. 42
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% 0.5% 0.4% 0.2% 0.0% 14.1%
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% 0.3% 0.0% 14.1%
2003 $682 0.0% 0.2% 0.6% 0.9% 1.9% 1.6% 2.7% 2.4% 1.8% 1.2% 0.7% 0.6% 0.4% 0.0% 14.9%
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% 0.4% 0.0% 15.6%
2005 $1,537 0.0% 0.0% 0.4% 2.5% 3.7% 3.3% 2.1% 1.6% 1.2% 0.9% 0.4% 0.0% 16.3%
2006 $2,013 0.0% 0.1% 1.6% 3.7% 3.7% 2.5% 1.8% 1.4% 1.1% 0.5% 0.0% 16.5%
2007 $2,452 0.0% 0.4% 3.5% 4.6% 3.0% 2.0% 1.8% 1.4% 0.7% 0.0% 17.4%
2008 $2,933 0.0% 2.3% 4.2% 3.9% 2.6% 2.2% 1.6% 0.9% 0.0% 17.7%
2009 $3,241 0.0% 3.4% 3.7% 3.6% 2.6% 1.8% 1.0% 0.0% 16.1%
2010 $2,769 0.0% 3.6% 3.8% 3.5% 2.0% 1.1% 0.0% 14.1%
2011 $1,870 0.0% 3.0% 4.5% 2.2% 1.2% 0.0% 11.0%
2012 $1,102 0.0% 3.0% 3.7% 1.5% 0.1% 8.2%
2013
$499 0.0% 2.9% 2.3% 0.1% 5.3%
2014 $227 0.0% 2.1% 0.0% 2.2%
Note: Data as of 3/31/15. (1) Undergraduate/Graduate loans marketed under the Signature Student Loan brand.
(2) Periodic Defaults for the most recent two calendar Years in Repayment are for a partial year.
(3) Numerator is the amount of principal in each cohort that defaulted in each Year in Repayment. Denominator is the
amount of disbursed principal for that Repayment Year.
Confidential and proprietary information © 2015
Navient Solutions, Inc. All rights reserved. 43
Cohort Default Triangles
Undergraduate/Graduate(1) With Co-signer
Disbursed Principal
Entering Periodic Defaults by
Years in Repayment (2),(3)
Repayment Year Repayment ($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% 3.0%
2000 $37 0.0% 0.0% 0.0% 0.5% 0.5% 0.7% 0.7% 0.4% 0.7% 1.2% 0.8% 0.8% 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% 0.1% 0.0% 10.3%
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% 0.2% 0.0% 10.5%
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% 0.4% 0.0% 10.9%
2004 $632 0.0% 0.2% 0.2% 1.0% 1.0% 2.2% 2.1% 1.4% 1.1% 0.9% 0.7% 0.3% 0.0% 11.1%
2005 $844 0.0% 0.0% 0.2% 1.4% 2.4% 2.3% 1.6% 1.2% 0.9% 0.8% 0.4% 0.0% 11.1%
2006 $1,121 0.0% 0.0% 0.7% 2.4% 2.4% 1.8% 1.3% 1.1% 1.0% 0.4% 0.0% 11.1%
2007 $1,408 0.0% 0.2% 2.0% 2.9% 2.0% 1.5% 1.3% 1.1% 0.6% 0.0% 11.5%
2008 $1,758 0.0% 1.2% 2.6% 2.6% 1.8% 1.6% 1.2% 0.7% 0.0% 11.8%
2009 $2,075 0.0% 2.0% 2.4% 2.4% 1.8% 1.3% 0.7% 0.0% 10.7%
2010 $1,853 0.0% 2.1% 2.3% 2.3% 1.4% 0.9% 0.0% 9.0%
2011 $1,353 0.0% 1.6% 2.7% 1.4% 0.8% 0.0% 6.6%
2012 $849 0.0% 1.7% 2.4% 1.0% 0.0% 5.2%
2013 $386
0.0% 1.8% 1.4% 0.1% 3.3%
2014 $175 0.0% 1.3% 0.0% 1.4%
Undergraduate/Graduate(1) Without Co-signer
Disbursed Principal
Entering Periodic Defaults by
Years in Repayment (2),(3)
Repayment Year Repayment ($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% 0.2% 0.0% 17.6%
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% 0.4% 0.0% 17.8%
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% 0.4% 0.0% 19.6%
2004 $499 0.0% 0.3% 0.4% 3.1% 2.8% 4.1% 3.8% 2.3% 1.7% 1.3% 0.8% 0.5% 0.0% 21.3%
2005 $694 0.0% 0.1% 0.7% 3.9% 5.3% 4.6% 2.7% 2.1% 1.6% 1.1% 0.6% 0.0% 22.5%
2006 $892 0.0% 0.2% 2.7% 5.3% 5.4% 3.4% 2.4% 1.9% 1.3% 0.7% 0.0% 23.2%
2007 $1,044 0.0% 0.8% 5.5% 6.9% 4.3% 2.8% 2.5% 1.8% 0.8% 0.0% 25.2%
2008 $1,175 0.0% 4.0% 6.5% 5.9% 3.7% 3.1% 2.1% 1.1% 0.0% 26.5%
2009 $1,165 0.0% 6.0% 6.0% 5.7% 3.9% 2.6% 1.4% 0.0% 25.7%
2010 $916 0.0% 6.7% 6.8% 6.1% 3.2% 1.5% 0.1% 24.4%
2011 $518 0.0% 6.7% 9.0% 4.4% 2.3% 0.1% 22.5%
2012 $252 0.1% 7.1% 8.1% 3.0% 0.2% 18.5%
2013
$113 0.1% 6.7% 5.1% 0.2% 12.0%
2014 $51 0.1% 4.8% 0.1% 4.9%
Note: Data as of 3/31/15.
(1) Undergraduate/Graduate loans marketed under the Signature Student Loan brand.
(2) Periodic Defaults for the most recent two calendar Years in Repayment are for a partial year.
(3) Numerator is the amount of principal in each cohort that defaulted in each Year in Repayment. Denominator is the amount of disbursed principal for that Repayment Year.
Confidential and proprietary information © 2015 Navient Solutions, Inc. All rights reserved. 44
Cohort Default Triangles
Undergraduate/Graduate(1) Non-Profit
Disbursed Principal
Entering Periodic Defaults by
Years in Repayment (2),(3)
Repayment Year Repayment ($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% 0.2% 0.0% 13.7%
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% 0.3% 0.0% 13.9%
2003 $630 0.0% 0.2% 0.6% 0.8% 1.8% 1.6% 2.6% 2.3% 1.7% 1.1% 0.7% 0.6% 0.4% 0.0% 14.4%
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% 0.4% 0.0% 14.7%
2005 $1,362 0.0% 0.0% 0.4% 2.4% 3.5% 3.1% 2.0% 1.5% 1.2% 0.9% 0.4% 0.0% 15.5%
2006 $1,766 0.0% 0.1% 1.5% 3.5% 3.6% 2.4% 1.7% 1.4% 1.1% 0.5% 0.0% 15.8%
2007 $2,104 0.0% 0.4% 3.4% 4.3% 2.8% 2.0% 1.7% 1.3% 0.7% 0.0% 16.6%
2008 $2,458 0.0% 2.2% 3.9% 3.6% 2.4% 2.1% 1.5% 0.8% 0.0% 16.7%
2009 $2,686 0.0% 3.2% 3.4% 3.4% 2.4% 1.7% 0.9% 0.0% 15.1%
2010 $2,378 0.0% 3.4% 3.7% 3.3% 1.9% 1.0% 0.0% 13.4%
2011 $1,664 0.0% 2.8% 4.2% 2.1% 1.2% 0.0% 10.4%
2012 $1,003 0.0% 2.8% 3.5% 1.4% 0.1% 7.8%
2013
$458 0.0% 2.8% 2.2% 0.1% 5.1%
2014 $209 0.0% 2.1% 0.0% 2.1%
Undergraduate/Graduate(1) For-Profit
Disbursed Principal
Entering Periodic Defaults by
Years in Repayment (2),(3)
Repayment Year Repayment ($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% 0.0% 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% 0.6% 0.0% 17.0%
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% 0.3% 0.0% 21.0%
2004 $126 0.0% 0.3% 0.6% 3.2% 3.0% 3.9% 4.6% 2.4% 1.9% 1.4% 1.0% 0.3% 0.0% 22.6%
2005 $175 0.0% 0.0% 0.7% 3.7% 5.2% 4.9% 2.7% 1.9% 1.3% 1.2% 0.5% 0.0% 22.2%
2006 $246 0.0% 0.2% 2.1% 4.9% 5.0% 3.2% 2.2% 1.9% 1.4% 0.6% 0.0% 21.4%
2007 $348 0.0% 0.5% 4.3% 6.5% 4.0% 2.5% 2.1% 1.6% 0.7% 0.0% 22.2%
2008 $475 0.0% 3.0% 5.8% 5.5% 3.2% 2.5% 1.9% 1.0% 0.0% 22.9%
2009 $554 0.0% 4.3% 5.1% 4.3% 3.3% 2.1% 1.4% 0.0% 20.5%
2010 $391 0.1% 4.7% 4.7% 4.8% 2.6% 1.7% 0.0% 18.6%
2011 $206 0.1% 4.5% 6.4% 3.0% 1.9% 0.0% 15.9%
2012 $99 0.1% 4.1% 5.9% 2.2% 0.0% 12.3%
2013 $41
0.2% 3.8% 3.5% 0.2% 7.7%
Note: Data as of 3/31/15. 2014 $17 0.4% 2.7% 0.0% 3.0%
(1) Undergraduate/Graduate loans marketed under the Signature Student Loan brand.
(2) Periodic Defaults for the most recent two calendar Years in Repayment are for a partial year.
(3) Numerator is the amount of principal in each cohort that defaulted in each Year in Repayment. Denominator is the
amount of disbursed principal for that Repayment Year.
Confidential and proprietary information © 2015
Navient Solutions, Inc. All rights reserved. 45
Cohort Default Triangles
Undergraduate/Graduate(1) Loans, FICO 740-850(2)
Disbursed Principal
Entering Periodic Defaults by
Years in Repayment (3),(4)
Repayment Year Repayment ($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% 4.9%
2000 $22 0.0% 0.0% 0.0% 0.3% 0.4% 0.4% 0.2% 0.3% 1.0% 1.0% 0.4% 0.5% 0.0% 0.1% 0.1% 0.1% 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% 0.1% 0.0% 7.0%
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% 0.2% 0.0% 6.6%
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% 0.2% 0.0% 7.4%
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% 0.0% 7.5%
2005 $574 0.0% 0.0% 0.2% 1.0% 1.5% 1.5% 1.1% 0.9% 0.6% 0.6% 0.3% 0.0% 7.6%
2006 $761 0.0% 0.0% 0.5% 1.4% 1.5% 1.1% 0.8% 0.7% 0.6% 0.3% 0.0% 6.9%
2007 $937 0.0% 0.1% 1.2% 1.5% 1.1% 1.0% 0.8% 0.7% 0.4% 0.0% 6.9%
2008 $1,130 0.0% 0.7% 1.5% 1.4% 1.1% 1.0% 0.7% 0.4% 0.0% 6.8%
2009 $1,325 0.0% 1.2% 1.4% 1.4% 1.2% 0.9% 0.4% 0.0% 6.5%
2010 $1,186 0.0% 1.4% 1.5% 1.5% 1.0% 0.6% 0.0% 6.1%
2011 $831 0.0% 1.1% 1.8% 0.9% 0.7% 0.0% 4.5%
2012 $507 0.0% 1.3% 1.5% 0.7% 0.0% 3.5%
2013 $233
0.0% 1.3% 1.1% 0.0% 2.4%
2014 $104 0.0% 0.9% 0.0% 0.9%
Undergraduate/Graduate(1) Loans, FICO 700-739(2)
Disbursed Principal
Entering Periodic Defaults by
Years in Repayment (3),(4)
Repayment Year Repayment ($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% 0.1% 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% 0.3% 0.0% 12.3%
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% 0.3% 0.0% 13.4%
2004 $321 0.0% 0.2% 0.2% 1.7% 1.5% 2.5% 2.9% 1.8% 1.4% 1.1% 0.7% 0.3% 0.0% 14.2%
2005 $439 0.0% 0.0% 0.4% 2.2% 3.3% 2.9% 2.1% 1.4% 1.1% 0.8% 0.4% 0.0% 14.7%
2006 $553 0.0% 0.1% 1.3% 3.1% 3.4% 2.4% 1.7% 1.2% 1.0% 0.5% 0.0% 14.7%
2007 $659 0.0% 0.3% 2.8% 4.0% 2.7% 1.8% 1.6% 1.3% 0.5% 0.0% 15.2%
2008 $782 0.0% 2.0% 3.8% 3.5% 2.4% 2.0% 1.5% 0.8% 0.0% 16.0%
2009 $875 0.0% 3.0% 3.5% 3.4% 2.6% 1.8% 0.9% 0.0% 15.2%
2010 $731 0.0% 3.4% 3.8% 3.3% 1.9% 1.0% 0.0% 13.5%
2011 $482 0.0% 2.9% 4.2% 2.2% 1.3% 0.0% 10.6%
2012 $282 0.1% 2.7% 3.5% 1.4% 0.0% 7.7%
2013 $126
0.0% 2.4% 2.1% 0.1% 4.7%
Note: Data as of 3/31/15. 2014 $58 0.1% 1.9% 0.0% 2.1%
(1) Undergraduate/Graduate loans marketed under the Signature Student Loan brand.
(2) FICO scores are based on the greater of the borrower and co-borrower scores as of a date near the loan application.
(3) Periodic Defaults for the most recent two calendar Years in Repayment are for a partial year.
(4) Numerator is the amount of principal in each cohort that defaulted in each Year in Repayment. Denominator is the
amount of disbursed principal for that Repayment Year.
Confidential and proprietary information © 2015
Navient Solutions, Inc. All rights reserved. 46
Cohort Default Triangles
Undergraduate/Graduate(1) Loans, FICO 670-699(2)
Disbursed Principal
Entering Periodic Defaults by
Years in Repayment (3),(4)
Repayment Year Repayment ($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% 12.3%
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% 0.3% 0.0% 18.1%
2002 $77 0.0% 0.2% 0.3% 1.6% 1.8% 2.4% 2.4% 2.9% 2.7% 1.6% 1.1% 0.7% 0.6% 0.6% 0.0% 18.8%
2003 $134 0.0% 0.1% 0.8% 1.3% 2.8% 2.2% 3.7% 3.2% 2.2% 1.3% 0.7% 0.7% 0.4% 0.0% 19.4%
2004 $222 0.0% 0.3% 0.5% 2.9% 2.6% 4.2% 3.7% 2.3% 1.7% 1.3% 0.9% 0.5% 0.0% 20.9%
2005 $298 0.0% 0.1% 0.7% 3.8% 5.2% 4.9% 2.7% 1.9% 1.5% 1.1% 0.6% 0.0% 22.5%
2006 $402 0.0% 0.2% 2.6% 5.5% 5.5% 3.6% 2.4% 1.9% 1.5% 0.7% 0.0% 24.0%
2007 $504 0.0% 0.7% 5.6% 7.4% 4.7% 3.0% 2.4% 1.8% 0.8% 0.0% 26.4%
2008 $623 0.0% 3.8% 6.9% 6.4% 3.8% 3.1% 2.3% 1.2% 0.0% 27.6%
2009 $662 0.1% 5.7% 6.1% 6.0% 4.0% 2.7% 1.6% 0.0% 26.2%
2010 $543 0.0% 6.2% 6.2% 5.8% 3.0% 1.7% 0.0% 22.9%
2011 $355 0.0% 5.0% 7.9% 3.9% 1.9% 0.1% 18.7%
2012 $199 0.1% 4.8% 6.6% 2.5% 0.2% 14.1%
2013 $89
0.0% 5.1% 3.8% 0.2% 9.2%
2014 $41 0.0% 3.7% 0.0% 3.7%
Undergraduate/Graduate(1) Loans, FICO 640-669(2)
Disbursed Principal
Entering Periodic Defaults by
Years in Repayment (3),(4)
Repayment Year Repayment ($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% 20.7%
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% 0.3% 0.0% 28.1%
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% 0.4% 0.0% 28.4%
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% 0.7% 0.0% 29.7%
2004 $165 0.0% 0.5% 0.5% 4.4% 3.9% 6.4% 5.7% 3.5% 2.5% 2.1% 1.5% 0.9% 0.0% 31.7%
2005 $226 0.0% 0.1% 0.9% 5.4% 8.2% 6.9% 3.8% 3.3% 2.3% 1.6% 0.8% 0.0% 33.3%
2006 $296 0.0% 0.2% 3.7% 8.1% 7.8% 4.8% 3.6% 3.0% 2.1% 1.0% 0.0% 34.2%
2007 $352 0.0% 1.1% 8.0% 9.8% 6.0% 4.0% 3.5% 2.5% 1.3% 0.0% 36.2%
2008 $398 0.0% 5.4% 8.5% 8.1% 5.2% 4.3% 3.1% 1.7% 0.0% 36.4%
2009 $378 0.0% 8.2% 7.9% 7.3% 4.9% 3.5% 1.9% 0.0% 33.8%
2010 $310 0.0% 8.0% 8.4% 7.9% 3.9% 2.2% 0.1% 30.5%
2011 $202 0.0% 7.7% 10.3% 4.8% 2.2% 0.1% 25.1%
2012 $114 0.0% 7.6% 9.2% 3.3% 0.2% 20.2%
2013 $51
0.0% 7.4% 5.2% 0.3% 12.9%
Note: Data as of 3/31/15. 2014 $23 0.1% 5.2% 0.0% 5.2%
(1) Undergraduate/Graduate loans marketed under the Signature Student Loan brand.
(2) FICO scores are based on the greater of the borrower and co-borrower scores as of a date near the loan application.
(3) Periodic Defaults for the most recent two calendar Years in Repayment are for a partial year.
(4) Numerator is the amount of principal in each cohort that defaulted in each Year in Repayment. Denominator is the
amount of disbursed principal for that Repayment Year.
Confidential and proprietary information © 2015
Navient Solutions, Inc. All rights reserved. 47
Cohort Default Triangles
Private Consolidation
Loans With Co-signer
Disbursed Principal
Entering Periodic Defaults by Years in Repayment (1),(2)
Repayment Year Repayment ($m) 0 1 2 3 4 5 6 7 8 9 10 Total
2006 $249 0.0% 0.1% 0.1% 0.5% 0.6% 0.6% 0.4% 0.3% 0.4% 0.2% 0.0% 3.1%
2007 $675 0.0% 0.0% 0.2% 0.4% 0.6% 0.4% 0.4% 0.4% 0.2% 0.0% 2.7%
2008 $376 0.0% 0.1% 0.4% 0.7% 0.6% 0.6% 0.5% 0.2% 0.0% 3.1%
Private Consolidation Loans Without Co-signer
Disbursed Principal
Entering Periodic Defaults by
Years in Repayment (1),(2)
Repayment Year Repayment ($m) 0 1 2 3 4 5 6 7 8 9 10 Total
2006 $125 0.0% 0.4% 0.9% 1.5% 1.6% 1.5% 1.0% 1.1% 1.0% 0.1% 0.0% 9.3%
2007 $295 0.0% 0.0% 0.9% 0.9% 1.3% 1.0% 1.0% 0.8% 0.3% 0.0% 6.2%
2008 $133 0.0% 0.2% 1.7% 2.1% 1.8% 1.8% 1.9% 1.0% 0.1% 10.6%
Note: Data as of 3/31/15.
(1) Periodic Defaults for the most recent two calendar Years in Repayment are for a partial year.
(2) Numerator is the amount of principal in each cohort that defaulted in each Year in Repayment. Denominator is the amount of disbursed principal for that Repayment Year.
Confidential and proprietary information © 2015 Navient Solutions, Inc. All rights reserved. 48
Cohort Default Triangles
DTC With Co-signer, FICO
? 670(1)
Disbursed Principal
Entering Periodic Defaults by Years in Repayment (2),(3)
Repayment Year Repayment ($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% 0.4% 0.0% 9.4%
2006 $139 0.0% 0.7% 1.8% 4.4% 4.8% 2.4% 2.0% 2.0% 1.2% 0.7% 0.0% 20.0%
2007 $245 0.0% 0.6% 4.7% 6.2% 4.2% 2.7% 2.6% 2.0% 0.9% 0.0% 23.9%
2008 $369 0.0% 2.9% 5.8% 4.9% 3.6% 2.9% 2.4% 1.3% 0.0% 23.8%
2009 $396 0.0% 3.6% 4.1% 4.0% 3.2% 2.5% 1.4% 0.0% 18.8%
2010 $314 0.0% 3.5% 4.1% 4.6% 2.9% 1.9% 0.0% 17.1%
2011 $192 0.1% 3.7% 5.2% 3.5% 2.0% 0.1% 14.7%
2012 $104 0.0% 3.3% 5.3% 3.7% 0.1% 12.4%
2013 $23
0.0% 1.2% 2.1% 0.5% 3.8%
DTC Without Co-signer, FICO ? 670(1)
Disbursed Principal
Entering Periodic Defaults by Years in Repayment (2),(3)
Repayment Year Repayment ($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% 0.5% 0.0% 23.2%
2006 $66 0.0% 1.4% 2.5% 6.5% 6.4% 4.0% 2.7% 2.5% 1.6% 0.8% 0.0% 28.6%
2007 $158 0.0% 1.0% 5.8% 8.1% 4.6% 3.8% 3.4% 2.3% 0.7% 0.0% 29.7%
2008 $255 0.0% 3.7% 7.9% 7.3% 4.2% 4.0% 2.5% 1.2% 0.0% 30.8%
2009 $235 0.0% 6.7% 6.3% 6.9% 5.1% 3.2% 2.2% 0.0% 30.4%
2010 $152 0.1% 8.3% 7.0% 8.8% 4.1% 2.4% 0.1% 30.7%
2011 $88 0.1% 7.8% 10.1% 5.5% 4.1% 0.0% 27.7%
2012 $47 0.0% 6.2% 8.4% 6.1% 0.1% 20.9%
2013 $5
0.0% 3.2% 3.4% 0.9% 7.5%
Note: Data as of 3/31/15.
(1) FICO scores are based on the greater of the borrower and co-borrower scores as of a date near the loan application.
(2) Periodic Defaults for the most recent two calendar Years in Repayment are for a partial year.
(3) Numerator is the amount of principal in each cohort that defaulted in each Year in Repayment. Denominator is the
amount of disbursed principal for that Repayment Year.
Confidential and proprietary information © 2015
Navient Solutions, Inc. All rights reserved. 49
Cohort Default Triangles
Career Training Loans,
670+ FICO(1)
Disbursed Principal
Entering Periodic Defaults by Years in Repayment (2),(3)
Repayment Year Repayment ($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% 11.1%
2004 $382 0.0% 0.4% 1.5% 2.3% 1.7% 1.8% 1.7% 1.1% 0.8% 0.5% 0.4% 0.2% 0.0% 12.5%
2005 $513 0.0% 0.3% 2.2% 2.2% 2.5% 2.1% 1.5% 1.0% 0.7% 0.6% 0.3% 0.0% 13.5%
2006 $630 0.0% 0.4% 2.5% 3.5% 3.2% 2.2% 1.5% 1.0% 0.8% 0.4% 0.0% 15.6%
2007 $672 0.0% 0.5% 3.5% 3.9% 2.9% 1.8% 1.2% 1.0% 0.6% 0.0% 15.5%
2008 $581 0.0% 0.6% 4.3% 3.6% 2.2% 1.5% 1.3% 0.7% 0.0% 14.2%
2009 $169 0.0% 0.2% 2.1% 2.1% 1.5% 1.1% 0.8% 0.1% 7.9%
2010 $19 0.0% 0.6% 1.2% 1.0% 0.5% 0.6% 0.0% 3.7%
Note: Data as of 3/31/15.
(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.
Confidential and proprietary information © 2015
Navient Solutions, Inc. All rights reserved. 50
Navient
Corporation
Appendix
Confidential and proprietary information © 2015 Navient Solutions, Inc. All rights reserved. 51
GAAP Results
(In millions, except per share
amounts) Q1 15 Q4 14 Q1 14
Net income $292 $263 $219
EPS $0.72 $0.64 $0.49
Operating expenses $230 $215 $366
Provision $125
$138 $185
Average Student Loans $133,722 $130,192 $142,679
Confidential and proprietary information © 2015 Navient Solutions, Inc. All rights reserved. 52
Differences between “Core Earnings” and GAAP
Quarter ended March 31, 2015
($ in millions)
“Core Earnings” adjustments to GAAP:
GAAP net income $ 292
Net impact of SLM BankCo1 3
Net impact of
derivative accounting (166)
Net impact of goodwill and acquired intangible assets 1
Net income tax effect 64
Total “Core Earnings” adjustments to GAAP (98)
“Core Earnings” net income $194
1
Includes restructuring and other reorganization expenses incurred in connection with the spin-off.
Confidential and proprietary information © 2015 Navient Solutions, Inc. All rights reserved. 53
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
Confidential and proprietary information © 2015 Navient Solutions, Inc. All rights reserved. 54
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