 2014
2 Investor Deck
August 4, 2014
nd
Exhibit 99.1
Quarter |
 Forward-Looking Statements; Non-GAAP Financial
Measures
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2
The following information is current as of August 4, 2014 (unless otherwise noted) and should be read
in connection with the Registration Statement on Form 10, as amended (the “Form 10”),
filed by Navient Corporation (“Navient”) with the Securities and Exchange Commission (the “SEC”) on April 10, 2014 and subsequent reports filed by Navient with the
SEC. Definitions for capitalized terms in this presentation not defined herein can be found in the
Form 10. This presentation contains forward-looking statements and information based
on management’s current expectations as of the date of this presentation. Statements that are not historical fact, including statements about the beliefs and expectations of
Navient and statements that assume or are dependent upon future events, are forward-looking
statements. Forward-looking statements are subject to risks, uncertainties,
assumptions and other factors that may cause actual results to be materially different from those
reflected in such forward-looking statements. These factors include, among others:
the risks and uncertainties set forth in Item 1A “Risk Factors” and elsewhere in the Form
10, and the subsequent filings of Navient with the SEC; increases in financing costs; limits on
liquidity; increases in costs associated with compliance with laws and regulations; changes in accounting standards and the impact of related changes in significant accounting
estimates; any adverse outcomes in any significant litigation to which Navient is a party; credit risk
associated with exposure to third parties, including counterparties to derivative transactions;
and changes in the terms of student loans and the educational credit marketplace (including changes resulting from new laws and the implementation of existing laws).
Navient could also be affected by, among other things: changes in its funding costs and reductions to
its credit ratings or the credit ratings of the United States of America; failures of its
operating systems or infrastructure, including those of third-party vendors; damage to its reputation; failures to successfully implement cost-cutting and adverse effects of such
initiatives on its business; risks associated with the recently completed separation of Navient from
SLM Corporation, including failure to achieve the expected benefits of the separation; changes
in law and regulations with respect to the student lending business and financial institutions generally; increased competition from other loan servicers; the
creditworthiness of its customers; changes in the general interest rate environment, including the
rate relationships among relevant money-market instruments and those of its earning assets
vs. its funding arrangements; changes in general economic conditions; the company’s ability to successfully effectuate any acquisitions and other strategic initiatives;
and changes in the demand for debt management services. The preparation
of Navient’s consolidated financial statements also requires management to make certain estimates and assumptions, including estimates and assumptions about
future events. These estimates or assumptions may prove to be incorrect. All
forward-looking statements contained in this release are qualified by these cautionary statements and
are made only as of the date of this release. Navient does not undertake any obligation to
update or revise these forward-looking statements to conform the statement to actual
results or changes in expectations. Navient reports
financial results on a GAAP basis and also provides certain core earnings performance measures. When compared to GAAP results, core earnings exclude the
impact of: (1) the financial results of the consumer banking business for historical periods
prior to the April 30, 2014 spin-off as well as related restructuring and reorganization
expenses incurred in connection with the spin-off; (2) unrealized, mark-to-market
gains/losses on derivatives; and (3) goodwill and acquired intangible asset amortization and
impairment. Navient provides core earnings measures because this is what management uses when
making management decisions regarding Navient’s performance and the allocation of
corporate resources. Navient core earnings are not defined terms within GAAP and may not be comparable to similarly titled measures reported by other companies.
For additional information, see “Core Earnings — Definition and Limitations” in
Navient’s second quarter earnings release for a further discussion and a complete reconciliation
between GAAP net income and core earnings. |
 Navient
Corporation
Overview
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3 |
 About
Us We are the leading education loan management, servicing and asset recovery
company Key Businesses
•
FFELP Loan Portfolio
•
Private Education Loan Portfolio
•
Largest Education Loan Servicer (FFELP, ED, private)
•
Asset Recovery Services
•
Guarantor Servicing
•
Student Assistance and Outreach Solutions
Financial Statistics
As of 06/30/14 ($ billions)
Assets
FFELP Loans
Private Loans
Secured Debt
Senior Unsecured Debt
Total Equity
$143.0
$99.7
$30.3
$115.6
$17.5
$4.0
Regulatory Status
Department of Education and CFPB supervision
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4 |
 Operating Results
“Core Earning”
Basis
(In millions, except per share amounts)
Q2 14
Q1 14
Q2 13
Net income
$241
$142
$447
EPS
$0.56
$0.33
$1.00
Adjusted EPS
1,2
$0.56
$0.49
$0.52
Operating expenses (excluding remediation reserve¹)
$195
$207
$185
Provision
$155
$146
$202
Average total student loans
$131,875
$133,854
$145,510
Gains from sales of residual interests
-
-
$257
Gains from sales of subsidiaries
-
-
$38
Debt repurchase gains
-
-
$19
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1 Excludes $0 million, $111 million, and $0 million, respectively, related to additional reserves
recorded for regulatory matters. 2
Excludes Q2 13 impact of items to improve shareholder value of $257 million of gains from sales of
residual interests in FFELP securitization trusts, $38 million after-tax gains from sales of subsidiaries, and $19 million of gains from debt
repurchases
|
 FFELP Loans Segment
“Core Earnings”
Basis
•
$257 million pre-tax gain from residual interest sales in Q2 13
(In millions)
Q2 14
Q1 14
Q2 13
Net income
$72
$64
$238
Average FFELP Loans
$100,467
$102,329
$112,891
FFELP Loan spread
0.98%
0.95%
0.97%
Charge-off rate
0.08%
0.12%
0.10%
Greater than 90-day delinquency rate
7.0%
7.3%
8.1%
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6 |
 FFELP Loans Segment
Portfolio Characteristics
•
Largest holder of FFELP Loans, $100 billion portfolio
•
97-98% of portfolio is government guaranteed
•
86% of portfolio funded to term with securitizations
•
Fully integrated servicing and asset recovery support operations
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7 |
 FFELP Loans Segment
Credit Quality “Core Earnings”
Basis
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FFELP Education Loan Portfolio
June 30, 2014
June 30, 2013
Balance
%
Balance
%
Loans in-school/grace/deferment
$11,794
$15,120
Loans in forbearance
14,929
15,018
Loans in repayment and percentage of each status
Loans current
61,438
85.2%
64,261
84.3%
Loans delinquent 31-60 days
3,531
4.9%
3,682
4.8%
Loans delinquent 61-90 days
2,112
2.9%
2,109
2.8%
Loans delinqent greater than 90 days
5,033
7.0%
6,186
8.1%
Total FFELP Loans in repayment
72,114
100%
76,238
100%
Total FFELP Loans, gross
$98,837
$106,376
Percentage of FFELP Loans in repayment
73.0%
71.7%
Delinquencies as a percentage of FFELP Loans in
repayment
14.8%
15.7%
Loans in forbearance as a percentage of loans in
repayment and forbearance
17.2%
16.5% |
 Federal Student Loan Market
Source: Department of Education, U.S. Department of Education FY 2013 Agency
Financial Report, Navient Outstanding Government Student Loan Market
Distribution FFYE 9/30/2013 ($ in billions)
FDLP, $614
FFELP Loans,
$158
FFELP owned
by Navient,
$106
FFELP owned
by ED, $146
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9 |
 Top
Holders of FFELP Loans Excluding Navient Top Ten Not-For-Profit Holders
of FFELP Loans Lender
$’s in Billions
Brazos
$8.7
PHEAA
$7.3
Access Group
$4.1
Northstar
$3.4
MOHELA
$2.9
EdSouth
$2.4
College Foundation
$2.4
SC Student Loan
$2.4
Edsouth Services
$1.8
KHESLC
$1.3
Total Not-For-Profit
$34
Top Ten For-Profit Holders of FFELP Loans
Lender
$’s in Billions
Nelnet
$25.2
Wells Fargo
$12.9
Chase
$7.5
PNC
$6.1
CLC
$5.7
Goal Financial
$5.6
SunTrust
$5.5
Student Loan Express
$3.6
Bank of America
$3.6
U.S. Bank
$3.0
Total For-Profit
$75
*Source: Sallie Mae 9/30/2013 estimates based on US ED Top 100 Holder 2013 and
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10 |
 Private Education Loans Segment
“Core Earnings”
Basis
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(In millions, except FICO score)
Q2 14
Q1 14
Q2 13
Net income
$86
$74
$61
Average Private Education Loans
$31,408
$31,525
$32,619
Private Education Loan spread
4.10%
4.01%
4.10%
Provision for loan losses
$145
$136
$189
Charge-offs
$166
$218
$212
Charge-off rate
2.5%
3.3%
3.0%
Total delinquency rate
7.1%
7.8%
8.4%
Greater than 90-day delinquency rate
3.2%
3.9%
4.0%
Forbearance rate
4.2%
4.3%
3.9% |
 Private Education Loans Segment
Portfolio Characteristics
•
$30 billion portfolio
•
23% of Navient’s total student loan portfolio
•
Approximately 64% of portfolio has a cosigner, typically a parent
•
Average FICO at origination of 718
•
Higher education loans typically non-dischargeable in bankruptcy
•
Integrated underwriting, servicing and collections
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 Private Education Loans Segment
Credit Quality “Core Earnings”
Basis
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Private Education Loan Portfolio
June 30, 2014
June 30, 2013
Balance
%
Balance
%
Loans in-school/grace/deferment
$3,375
$3,599
Loans in forbearance
1,201
1,156
Loans in repayment and percentage of each status
Loans current
25,202
92.9%
26,141
91.6%
Loans delinquent 31-60 days
670
2.5%
774
2.7%
Loans delinquent 61-90 days
391
1.4%
486
1.7%
Loans delinqent greater than 90 days
873
3.2%
1,144
4.0%
Total Private Education Loans in repayment
27,136
100%
28,545
100%
Total Private Education Loans, gross
$31,712
$33,300
Percentage of Private Education Loans in repayment
85.6%
85.7%
Delinquencies as a percentage of Private Education
Loans in repayment
7.1%
8.4%
Loans in forbearance as a percentage of loans in
repayment and forbearance
4.2%
3.9% |
 Private Education Loans Segment
High Quality Portfolio
Private Credit: % of Portfolio Outstanding by Segment
Private Credit Charge-Off Rate by Segment
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2.7%
2.3%
2.1%
1.8%
1.8%
6.7%
6.8%
5.6%
5.4%
4.6%
3.9%
10.4%
21.3%
17.3%
12.6%
11.1%
9.4%
8.2%
6.3%
5.6%
4.3%
3.9%
3.1%
0%
5%
10%
15%
20%
25%
2008
2009
2010
2011
2012
2013
YTD 2014
Low Risk
Moderate Risk
Elevated Risk
Overall Portfolio
57%
59%
60%
61%
64%
66%
67%
28%
29%
29%
29%
27%
25%
25%
14%
13%
11%
11%
10%
9%
8%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Dec 08
Dec 09
Dec 10
Dec 11
Dec 12
Dec 13
Jun 14
Low Risk
Moderate Risk
Elevated Risk
2.8%
2.9%
1.0%
2.6%
2.9%
Low Risk = Smart Option, Legacy Traditional Cosigned, and Law/MBA/MED/CT/Other
Moderate Risk = Legacy Traditional
Non-Cosigned
Elevated Risk = Non-Traditional
|
 Private Education Loans Segment
Default Performance
•
Seasoned portfolio with 91% of loans having made more than 12 payments
•
The probability of default substantially diminishes as the number of payments
and years of seasoning increases
57%
11%
7%
5%
3%
3%
2%
2%
2%
2%
2%
2%
1%
1%
1%
57%
69%
76%
80%
84%
86%
88%
90%
92%
94%
96%
98%
99%
99%
100%
0%
50%
100%
12
24
36
48
60
72
84
96
108
120
132
144
156
168
180
# Payments Made
Defaults Per Payments Made
Cumulative Defaults
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Historical Defaults by Payments Made |
 Loan Seasoning –
“Core Earnings”
Basis
June 30, 2014
Traditional Portfolio
Monthly Scheduled Payments Due
Loan Status
0-12 payments
13-24 payments
25-36 payments
37-48 payments
More than 48 payments
Total
Not Yet in Repayment
3,036
Loans in Forbearance
461
17.5%
178
4.8%
153
3.6%
114
2.6%
153
1.4%
1,059
4.1%
Loans in Repayment-
Current
1,853
70.3%
3,187
86.2%
3,768
89.3%
3,971
91.9%
10,588
95.1%
23,367
89.8%
Loans in Repayment-
Delinq 31-60 days
114
4.3%
108
2.9%
103
2.5%
87
2.0%
149
1.3%
561
2.2%
Loans in Repayment-
Delinq 61-90 days
64
2.4%
66
1.8%
63
1.5%
47
1.1%
82
0.8%
322
1.2%
Loans in Repayment-
Delinq 90 + days
145
5.5%
160
4.3%
132
3.1%
103
2.4%
157
1.4%
697
2.7%
Total Loans in Repayment or Forbearance
$ 2,637
100%
$ 3,699
100%
$ 4,219
100%
$ 4,322
100%
$ 11,129
100%
$ 26,007
100%
Charge-offs as a % of loans in repayment
5.0%
3.8%
2.2%
1.8%
1.0%
2.1%
Non-Traditional Portfolio
Monthly Scheduled Payments Due
Loan Status
0-12 payments
13-24 payments
25-36 payments
37-48 payments
More than 48 payments
Total
Not Yet in Repayment
339
Loans in Forbearance
76
20.2%
22
5.7%
16
4.5%
11
3.4%
17
1.9%
142
6.1%
Loans in Repayment-
Current
216
57.7%
276
72.1%
280
78.3%
262
82.3%
801
89.2%
1,835
78.7%
Loans in Repayment-
Delinq 31-60 days
27
7.2%
23
5.9%
19
5.4%
13
4.2%
27
3.0%
109
4.7%
Loans in Repayment-
Delinq 61-90 days
16
4.3%
15
4.0%
12
3.3%
9
2.8%
17
1.9%
69
3.0%
Loans in Repayment-
Delinq 90 + days
40
10.6%
47
12.3%
30
8.5%
23
7.3%
36
4.0%
176
7.5%
Total Loans in Repayment or Forbearance
$ 375
100%
$ 383
100%
$ 357
100%
$ 318
100%
$ 898
100%
$ 2,331
100%
Charge-offs as a % of loans in repayment
12.8%
12.0%
6.7%
4.7%
3.3%
6.8%
Total
Monthly Scheduled Payments Due
Loan Status
0-12 payments
13-24 payments
25-36 payments
37-48 payments
More than 48 payments
Total
Not Yet in Repayment
3,375
Loans in Forbearance
537
17.8%
200
4.9%
169
3.7%
125
2.7%
170
1.4%
1,201
4.2%
Loans in Repayment-
Current
2,069
68.7%
3,463
84.8%
4,048
88.5%
4,233
91.2%
11,389
94.7%
25,202
88.9%
Loans in Repayment-
Delinq 31-60 days
141
4.7%
131
3.2%
122
2.7%
100
2.2%
176
1.5%
670
2.4%
Loans in Repayment-
Delinq 61-90 days
80
2.6%
81
2.0%
75
1.6%
56
1.2%
99
0.8%
391
1.4%
Loans in Repayment-
Delinq 90 + days
185
6.2%
207
5.1%
162
3.5%
126
2.7%
193
1.6%
873
3.1%
Total Loans in Repayment or Forbearance
$ 3,012
100%
$ 4,082
100%
$ 4,576
100%
$ 4,640
100%
$ 12,027
100%
$ 28,337
100%
Charge-offs as a % of loans in repayment
6.0%
4.6%
2.6%
2.0%
1.2%
2.5%
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16 |
 June 30,
2013 Traditional Portfolio
Monthly Scheduled Payments Due
Loan Status
0-12 payments
13-24 payments
25-36 payments
37-48 payments
More than 48 payments
Total
Not Yet in Repayment
3,203
Loans in Forbearance
496
10.2%
169
3.8%
148
3.0%
86
1.9%
113
1.3%
1,012
3.7%
Loans in Repayment-
Current
3,683
76.1%
3,860
87.4%
4,410
90.1%
4,134
93.0%
8,110
95.2%
24,197
89.2%
Loans in Repayment-
Delinq 31-60 days
193
4.0%
122
2.7%
113
2.3%
84
1.9%
121
1.4%
633
2.3%
Loans in Repayment-
Delinq 61-90 days
133
2.8%
74
1.7%
71
1.4%
45
1.0%
64
0.8%
387
1.5%
Loans in Repayment-
Delinq 90 + days
334
6.9%
194
4.4%
155
3.2%
95
2.2%
114
1.3%
892
3.3%
Total Loans in Repayment or Forbearance
$ 4,839
100%
$ 4,419
100%
$ 4,897
100%
$ 4,444
100%
$ 8,522
100%
$ 27,120
100%
Charge-offs as a % of loans in repayment
6.8%
2.8%
2.0%
1.2%
0.9%
2.4%
Non-Traditional Portfolio
Monthly Scheduled Payments Due
Loan Status
0-12 payments
13-24 payments
25-36 payments
37-48 payments
More than 48 payments
Total
Not Yet in Repayment
396
Loans in Forbearance
86
12.3%
22
5.2%
13
3.4%
10
2.8%
13
1.7%
144
5.6%
Loans in Repayment-
Current
409
58.5%
305
71.9%
298
78.7%
282
83.2%
650
87.8%
1,944
75.3%
Loans in Repayment-
Delinq 31-60 days
52
7.5%
26
6.1%
20
5.1%
15
4.4%
28
3.8%
141
5.5%
Loans in Repayment-
Delinq 61-90 days
43
6.2%
19
4.5%
13
3.5%
9
2.7%
15
2.1%
99
3.8%
Loans in Repayment-
Delinq 90 + days
108
15.5%
52
12.3%
35
9.3%
23
6.9%
34
4.6%
252
9.8%
Total Loans in Repayment or Forbearance
$ 698
100%
$ 424
100%
$ 379
100%
$ 339
100%
$ 740
100%
$ 2,580
100%
Charge-offs as a % of loans in repayment
17.3%
10.2%
6.9%
4.5%
3.0%
9.2%
Total
Monthly Scheduled Payments Due
Loan Status
0-12 payments
13-24 payments
25-36 payments
37-48 payments
More than 48 payments
Total
Not Yet in Repayment
3,599
Loans in Forbearance
582
10.5%
191
3.9%
161
3.1%
96
2.0%
126
1.4%
1,156
3.9%
Loans in Repayment-
Current
4,092
73.9%
4,165
86.0%
4,708
89.2%
4,416
92.3%
8,760
94.6%
26,141
88.0%
Loans in Repayment-
Delinq 31-60 days
245
4.4%
148
3.1%
133
2.5%
99
2.1%
149
1.6%
774
2.6%
Loans in Repayment-
Delinq 61-90 days
176
3.2%
93
1.9%
84
1.6%
54
1.1%
79
0.8%
486
1.6%
Loans in Repayment-
Delinq 90 + days
442
8.0%
246
5.1%
190
3.6%
118
2.5%
148
1.6%
1,144
3.9%
Total Loans in Repayment or Forbearance
$ 5,537
100%
$ 4,843
100%
$ 5,276
100%
$ 4,783
100%
$ 9,262
100%
$ 29,701
100%
Charge-offs as a % of loans in repayment
8.4%
3.5%
2.3%
1.5%
1.1%
3.0%
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17
Loan Seasoning –
“Core Earnings”
Basis |
 Business Services Segment
“Core Earnings”
Basis
•
Net income in Q2 13 includes $38 million after-tax gain recognized on the sale
of a subsidiary
(In millions)
Q2 14
Q1 14
Q2 13
Net income
$130
$116
$168
Federal loans serviced ($’s in billions)
$272
$271
$245
Third-party loan servicing revenue
$40
$40
$33
Asset recovery revenue
$132
$111
$109
Department of Education accounts serviced
5.8
5.8
5.2
Contingency asset recovery receivables
$16,298
$15,901
$14,607
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18 |
 Business Services Segment
Federal Loan Servicing & Customer Success
•
Largest servicer of federal student loans
•
Federal loans serviced by Navient have a 30%
better cohort default rate
•
Direct Loan borrowers serviced by Navient are
more likely to be in income-based repayment
plans
•
We promote awareness through more than 50
million communications annually
•
Every week we help nearly 1,200 borrowers
rehabilitate their loans
$300
$275
$250
$225
$200
$175
$150
2011
2012
2013
June 2014
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Federal Loans Serviced by Navient |
 Business Services Segment
Asset Recovery
•
Requires little capital and generates high returns
on equity
•
Consistent top performer on the Department of
Education collections contract
•
Successfully performing on over 300 state, local
and federal contracts
•
Providing collection services for over 1,000
schools
•
Multiple Asset Classes
-
Education loans
-
Government receivables
-
Taxes
-
Court/Municipal
-
Schools
Contingency Asset Recovery Receivables
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20
$0
$2
$4
$6
$8
$10
$12
$14
$16
$18
2011
2012
2013
June 2014
Student Loans
Other |
 Funding and
Liquidity
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21 |
 2014 Capital Markets Summary
•
Issued $2.7 billion of FFELP ABS
•
Closed on an $8 billion FFELP ABCP facility
•
Refinanced $1.1 billion of FFELP reset notes to term
•
Issued $1.1 billion of Private ABS
•
Closed on a $1 billion Private ABCP facility
•
Issued $850 million of long-term unsecured debt
•
Returned $392 million to shareholders through share repurchases and
dividends
(1)
•
Maintained strong capital position
(1) As of June 30, 2014
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22 |
 Secured Funding
•
Navient is among the largest issuers
of ABS globally, having issued over
$250 billion of Private and FFELP
ABS transactions to date
•
Over $107 billion of securitizations
on balance sheet
•
Additional capacity under FFELP
secured facilities is $10.7 billion
•
Additional capacity under Private
Education Loan secured facilities is
$1 billion
2013 Issuance
Issuer
Total ($mm)
Asset Class
1
Citi
12,325
Credit Card
2
Ford
12,080
Auto
3
Navient
(1)
9,600
Student Loan
4
Chase
7,685
Credit Card
5
Santander
7,567
Auto
6
Nissan
6,641
Auto
7
Hyundai
6,479
Auto
8
Honda
5,500
Auto
9
Ally Bank
5,202
Auto
10
AmeriCredit
5,080
Auto
11
Discover
4,550
Credit Card
12
GE
4,530
Credit Card / Equipment
13
Mercedes-Benz
4,302
Auto
14
Ally Financial
4,125
Auto
15
Volkswagen
4,000
Auto
16
CarMax
3,965
Auto
17
CNH
3,925
Equipment
18
Nelnet
3,220
Student Loan
19
Springleaf
3,204
Consumer Loan
20
World Omni
2,781
Auto
(1) Previous issuing entities: SLM Student Loan Trust and SLM Private
Education Loan Trust (Bloomberg ticker: SLMA)
Source: Informa Global
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23 |
 Recent FFELP ABS Transactions
Issue
$747M NAVSL Trust 2014-1
$992M SLM Trust 2014-2
$994M SLM Trust 2014-1
Pricing Date
May 20, 2014
March 18, 2014
January 15, 2014
Collateral
US Govt. Guaranteed or Insured
FFELP Stafford, Plus and
Consolidation Loans
US Govt. Guaranteed or Insured
FFELP Stafford and Plus Loans
US Govt. Guaranteed or Insured
FFELP Stafford and Plus Loans
Prepayment
Speed
(1)
6% CPR Stafford / 4% CPR
Consolidation
6% Constant Prepayment Rate
6% Constant Prepayment Rate
Tranching
Rating
Amt
WAL
(1)
Pricing
(2)
A-1 Aaa $216
1.3 L+25 A-2
Aaa $101 3.3 L+31
A-3 Aaa $350
6.8 L+51 A-4
Aaa $60 10.6 L+75
B Aa1
$20 10.6 L+190 Rating
Amt
WAL
(1)
Pricing
(2)
A-1 Aaa $268
1.3 L+25 A-2
Aaa $191 3.3 L+35
A-3 Aaa $506
6.8 L+59 B
Aa1 $27 9.1 L+190
Rating
Amt
WAL
(1)
Pricing
(2)
A-1 Aaa $272
1.3 L+28 A-2
Aaa $184 3.3 L+38
A-3 Aaa $511
6.8 L+60 B
Aa1 $27 9.2 L+210
(1)
Estimated based on a variety of assumptions concerning loan repayment behavior, as
more fully described in the related prospectus, which may be obtained at https://www.navient.com/about/investors/debtasset/. Actual average life
may vary significantly from estimates.
(2)
Pricing represents the yield to expected call.
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24 |
 Recent Private Education Loan ABS Transactions
Issue
$463M NAVSL Trust 2014-CT
$676M SLM Trust 2014-A
$624M SLM Trust 2013-C
Pricing Date
July 15, 2014
February 25, 2014
September 18, 2013
Collateral
Private Education Loans
Private Education Loans
Private Education Loans
Prepayment
Speed
(1)
6%
4%
4%
Tranching
Rating
Amt
WAL
(1)
Pricing
A-1 Aaa
B A
Total
Rating
Amt
WAL
(1)
Pricing
(2)
A-1 Aaa
A-2A Aaa
A-2B Aaa
A-3 Aaa
B A
Total
Rating
Amt
WAL
(1)
Pricing
(2)
A-1 Aaa
A-2A Aaa
A-2B Aaa
B A
Total
(1)
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 2.59% and 2.96% for 2014-A and
2013-C, respectively. Yield on fixed rate B tranches were 4.73% and 4.86% for 2014-A and 2013-C, respectively.
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$394
$69
$463
2.2
6.6
2.9
L+70
L+215
L+118
$355
$77
$77
$100
$67
$676
1.8
4.6
4.6
6.4
7.2
3.6
L+60
s+115
L+115
Not offered
s+225
L+132
$300
$131
$131
$67
$624
1.8
4.5
4.5
5.9
3.3
L+85
s+135
L+140
s+275
L+147
25 |
 Unsecured Debt
Fitch
Moody’s
S&P
Senior Unsecured Debt
BB
Ba3
BB
Outlook
Stable
Stable
Stable
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26
$0.6
$1.5
$2.3
$1.8
$2.8
$2.5
$1.6
$0.1
$4.5
2014
2015
2016
2017
2018
2019
2020
2021
2022+
Maturity Table
As of June 30, 2014
(par value, $ in billions) |
 Education Loan Portfolio Generates Significant
Cash Flows
*Floor
cash
flows
projected
using
6/30/14
yield
curve.
These
projections
are
based
on
internal
estimates
and
assumptions
and
are
subject
to
ongoing
review
and
modification.
These
projections
may
prove
to
be
incorrect.
•
Over $36 billion of estimated future cash flows
-
Highly predictable
-
Includes ~$11 billion of overcollateralization to
be released from residuals
-
Continuing low interest rate environment will
increase future floor revenue
•
~20 year remaining life
•
Significant pool of cash available for shareholder
distributions
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27
Projected Life of Loan Cash Flows*
As of June 30, 2014
FFELP Cash Flows
Secured
Residual (including O/C)
$7.1
Floor
1.9
Servicing
4.0
Total Secured
$13.0
Unencumbered
$1.9
Total FFELP Cash Flows
$14.9
Private Credit Cash Flows
Secured
Residual (including O/C)
$12.8
Servicing
1.3
$14.1
Unencumbered
$7.5
Total Private Cash Flows
$21.6
Combined Cash Flows
$36.5
Total Secured |
 FFELP Cash Flows Highly Predictable
as of 6/30/14
2H 2014
2015
2016
2017
2018
2019
2020
2021
Projected FFELP Average Balance
$95,247
$89,240
$80,752
$72,614
$65,178
$57,821
$50,777
$44,106
Projected Excess Spread
$406
$843
$800
$712
$646
$575
$501
$448
Projected Servicing Revenue
$256
$489
$451
$413
$377
$338
$297
$256
Projected Total Revenue
$662
$1,332
$1,251
$1,124
$1,023
$913
$798
$703
2022
2023
2024
2025
2026
2027
2028
2029+
Projected FFELP Average Balance
$37,831
$32,075
$26,858
$22,649
$18,940
$15,406
$12,060
$4,444
Projected Excess Spread
$403
$349
$292
$242
$215
$187
$156
$384
Projected Servicing Revenue
$216
$180
$148
$124
$104
$86
$68
$161
Projected Total Revenue
$620
$530
$440
$365
$319
$272
$224
$545
•
Total Cash Flows from Projected Excess Spread = $7.1 Billion
•
Total Cash Flows from Projected Servicing Revenues = $4.0 Billion
Assumptions
No Floor Income, CPR/CDR = Stafford & Plus (4.0%), Consolidation
(3.0%) * These projections are based on internal estimates and assumptions and
are subject to ongoing review and modification. These projections may prove to be incorrect.
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28 |
 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 Confidential
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Servicing (Cash Paid)
Net Residual* (Excess Distributions)
Net Cash Flow
Servicing (Cash Paid)
Total Proceeds from Residual Sales
Total Private Credit
Total FFELP and Private Credit
Term FFELP
Other Secured FFELP
Total FFELP
Term Private Credit
Other Secured Financings
FFELP
FFELP
Term Securitized
Other Secured FFELP
Total FFELP
Other Secured Financings
Total Private Credit
Total FFELP and Private Credit
Average Principal Balances
$ in Millions
Residual (Excess Distribution)
Net Cash Flow
Private Credit
Private Credit
Term Securitized
2Q14 YTD
2013
2012
2011
2Q14 YTD
2013
2012
2011
170
$ 95,055
11,085
$ 106,140
$ 26,037
1,106
$
507 476
$
2,182
$
198 9
$
377
$
3,148 1,199
$
589
$ 27,143
$ 133,283
$
563 568
$
189 28
2
$
2,065 715
$
1,846
$
219
$ 109,509
29,466
$ 138,975
$ 25,619
233
$ 25,853
$ 164,828
$
526
$
2,088
$
181 103
22
$
2,394 628
934
$
306
$ 104,913
$ 127,184
$ 25,111
$ 26,987
$ 154,171
22,271
1,875
$
95
$
244 319
66
117
6
$
218
$
847
$
629
$ 89,887
6,340
$ 96,227
$ 24,623
1,446
$ 122,296
$ 26,069
|
 FFELP ABS
Appendix
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30 |
 Recent FFELP ABS Issuance Characteristics
•
Issue size of $500M to $1.5B
•
Tranches or pass-through denominated in
US$
•
Triple-A rated senior notes make up to
97% of issue structure
•
Floating rate tied to 1 month LIBOR
•
Amortizing tranches with 1 to 15(+) year
average lives
•
Navient Solutions, Inc. is servicer or
master servicer
•
Insurance or guarantee of underlying
collateral insulates bondholders from
virtually any loss of principal
(1)
•
Typically non-dischargeable in bankruptcy
•
Formerly a 20% risk-weighted asset, now
a <10% risk-weighted under Basel II’s
IRB methodology
•
Offer significantly higher yields than
government agency securities with
comparable risk profiles
(1) Principal and accrued interest on underlying FFELP loan collateral carry
insurance or guarantee of 97%-100% dependent on origination year and on
meeting the servicing requirements of the U.S. Department of Education.
Collateral Characteristics
FFELP ABS Transaction Features
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31 |
 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
Student
Parents or Graduate
Students
Student or Parents
Student or Parents
Needs Based
Yes
No
No
N/A
N/A
Federal Guarantee of
Principal and Accrued
Interest
97 -
100%
97 -
100%
97 -
100%
97 -
100%
97 -
100%
Interest Subsidy
Payments
Yes
No
No
Yes
No
Special Allowance
Payments (SAP)
Yes
Yes
If cap is reached
Yes
Yes
Repayment Term
120 months
120 months
120 months
Up to 360 months
Up to 360 months
Aggregate Loan Limit
Undergraduate: $23,000
Graduate: $65,500
Undergraduate¹: $57,500
Graduate: $138,500
None
None
None
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32
Subsidized Consolidation |
 •
Annualized CPRs for Stafford/PLUS ABS trusts have decreased significantly as
incentives for borrowers to consolidate have declined
•
After
a
temporary
increase
in
mid
2012
due
to
the
Special
Direct
Consolidation
Loan
program, CPRs decreased in the fourth quarter
Navient Stafford & PLUS Loan Prepayments
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33
-10%
0%
10%
20%
30%
40%
50%
60%
70%
Historical Stafford/PLUS ABS CPRs
by Issuance Vintage
2002
2003
2004
2005
2006
2007
2008
2010
2012
2013
2014
*
Quarterly CPR assumes School and Grace loans are not scheduled to make payments. Deferment, Forbearance
and Repayment loans are scheduled to make payments.
|
 Navient Consolidation Loan Prepayments
•
CPRs for Consolidation ABS trusts declined significantly following legislation
effective in 2006
that
prevented
in-school
and
re-consolidation
of
borrowers’
loans
•
After
a
temporary
increase
in
mid
2012
due
to
the
Special
Direct
Consolidation
Loan
program, CPRs decreased in the fourth quarter
*
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
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34
25%
20%
15%
10%
5%
0%
-5%
2002
2003
2004
2005
2006
2007
2009
2011
2012 |
 Confidential
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35
Private Education
Loan ABS
Appendix |
 Confidential
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information
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36
Recent Private Education Loan ABS Issuance
Characteristics
Private Education Loan ABS Transaction Features
Collateral Characteristics
•
Issue size of $500M to $1.5B
•
Triple-A rated senior notes, Single-A
rated subordinated notes
•
20-30% Triple-A overcollateralization
•
Amortizing tranches with 1 to 10 year
average lives
•
Fixed rate or floating rate tied to 1 month
LIBOR
•
Complies with European risk retention
(5% retention)
•
Navient Solutions, Inc. is servicer or
master servicer
•
Collateralized by loans made to students
and parents to fund college tuition, room
and board
•
Underwritten using FICO, Custom
Scorecard & judgmental criteria w/risk
based pricing
•
70-80% with cosigners, typically a parent
•
Many seasoned assets benefiting from
proven payment history
•
Typically non-dischargeable in bankruptcy |
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37
Navient Private Education Loan Programs
Smart Option
Undergraduate/Graduate/
Med/Law/MBA
Direct-to-Consumer
(DTC)
Consolidation
Career Training
Origination Channel
School
School
Direct-to-Consumer
Lender
School
Typical Borrower
Student
Student
Student
College Graduates
Student
Typical Co-signer
Parent
Parent
Parent
Parent
Parent, Spouse
Typical Loan
$10k avg orig bal, 10 yr avg
term, in-school payments of
interest only, $25 or fully
deferred
$10k avg orig bal, 15 yr term,
deferred payments
$12k avg orig bal, 15 yr term,
deferred payments
$43k avg orig bal, 15-30 year
term depending on balance,
immediate repayment
$9k avg orig bal, up to 15 yr
term, immediate payments
Origination Period
March 2009 to April 2014
All history through 2014
2004 through 2008
2006 through 2008
1998 through 2014
Certification and Disbursement
School certified and disbursed
School certified and disbursed
Borrower self-certified, disbursed
to borrower
Proceeds to lender to pay off
loans being consolidated
School certified and disbursed
Borrower Underwriting
FICO,
custom credit score model, and
judgmental underwriting
Primarily FICO
Primarily FICO
FICO and Debt-to-Income
FICO, Debt-to-Income and
judgmental underwriting
Borrowing Limits
$200,000
$100,000 Undergraduate, $150,000
Graduate
$130,000
$400,000
Cost of attendance plus up to
$6,000 for expenses
Current ABS Sec. Criteria
For-Profit; FICO
670
For-Profit; FICO
670
FICO
670
For-Profit; FICO
670
FICO
670
Non-Profit; FICO
640
Non-Profit; FICO
640
Non-Profit; FICO
640
School UW
No
No
No
No
Yes
Historical Risk-Based Pricing
L + 2% to L + 14%
P-1.5% to P+7.5%
P+1% to P+6.5%
P -
0.5% to P + 6.5%
P+0% to P+9%
L+0% to L+15%
L+6% to L+12%
L+6.5% to L+14%
Dischargeable in Bankruptcy
No
No
No
No
Yes
Additional Characteristics
Made to students and parents
primarily through college
financial aid offices to fund 2-
year, 4-year and graduate
school college tuition, room and
board
Also available on a limited
basis to students and parents to
fund non-degree granting
secondary education, including
community college, part time,
technical and trade school
programs
Both Title IV and non-Title IV
schools
(1)
Made to students and parents
through college financial aid
offices to fund 2-year, 4-year and
graduate school college tuition,
room and board
Signature, Excel, Law, Med
and MBA Loan brands
Title IV schools only
(1)
Freshmen must have a co-
signer with limited exceptions
Co-signer stability test
(minimum 3 year repayment
history)
Terms and underwriting
criteria similar to
Undergraduate, Graduate,
Med/Law/MBA with primary
differences being:
Marketing channel
No school certification
Disbursement of proceeds
directly to borrower
Title IV schools only
(1)
Freshmen must have a co-
signer with limited exceptions
Co-signer stability test
(minimum 3 year repayment
history)
Loans made to students and
parents to refinance one or
more private education loans
Student must provide proof of
graduation in order to obtain
loan
Loans made to students and
parents to fund non-degree
granting secondary education,
including community college,
part time, technical, trade
school and tutorial programs
Both Title IV and non-Title IV
schools
(1)
(1)
Title IV Institutions are post-secondary institutions that have a written
agreement with the Secretary of Education that allows the institution to participate in any of the Title IV federal student financial
assistance programs and the National Early Intervention Scholarship and Partnership
(NEISP) programs. |
 Navient Private Education Trusts
(1) Smart Option loans subject to interim interest only and $25 fixed monthly
payments are classified as in Repayment. (2) Assumes Prime/LIBOR spread of
3.00% for all transactions. Confidential
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09-CT
10-A
10-B
10-C
11-A
11-B
11-C
12-A
12-B
12-C
12-D
12-E
13-A
13-B
13-C
14-A
14-CT
Bond Amount ($mil)
590
1,550
869
1,701
562
825
721
547
891
1,135
640
976
1,108
1,135
624
676
463
Initial AAA Enhancement (%)
37%
23%
45%
37%
21%
18%
24%
27%
26%
25%
25%
21%
26%
22%
28%
24%
30%
Total Enhancement (%)
37%
23%
45%
37%
21%
18%
24%
27%
26%
25%
25%
21%
15%
13%
20%
15%
17%
Loan Program (%)
Signature/Law/MBA/Med
--
76%
46%
89%
88%
91%
71%
61%
48%
43%
37%
35%
26%
29%
26%
19%
--
Smart Option
--
--
--
--
--
--
10%
20%
30%
40%
45%
48%
63%
63%
64%
63%
--
Consolidation
--
1%
8%
11%
--
--
7%
6%
9%
5%
5%
5%
3%
5%
--
6%
--
Direct to Consumer
--
10%
20%
--
9%
6%
12%
12%
12%
12%
12%
12%
8%
3%
10%
12%
--
Career Training
100%
13%
26%
--
3%
3%
0%
1%
1%
--
--
--
--
--
--
--
100%
Total
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Payment Status (%)
(1)
School, Grace, Deferment
0%
63%
12%
36%
55%
55%
45%
37%
38%
40%
39%
44%
59%
62%
63%
49%
0%
Repayment
98%
32%
85%
60%
43%
43%
52%
60%
60%
57%
59%
54%
39%
36%
36%
50%
99%
Forbearance
2%
5%
3%
3%
2%
3%
2%
2%
2%
3%
2%
2%
2%
2%
1%
1%
1%
Wtd Avg Term to Maturity (Mo.)
141
190
169
194
192
189
182
171
164
151
144
148
144
146
143
150
104
% Loans with Cosigner
70%
72%
65%
62%
72%
75%
71%
75%
77%
79%
80%
80%
80%
80%
81%
82%
71%
% Loans with No Cosigner
30%
28%
35%
38%
28%
25%
29%
25%
23%
21%
20%
20%
20%
20%
19%
18%
29%
Wtd Avg FICO at Origination
747
739
734
727
737
736
733
735
736
737
740
733
741
740
740
742
743
Wtd Avg Recent FICO at Issuance
725
725
732
713
723
722
720
724
726
728
730
722
733
734
733
741
726
WA FICO (Cosigner at Origination)
753
749
744
742
747
745
744
745
745
745
748
741
751
750
749
750
749
WA FICO (Cosigner at Rescored)
734
739
740
733
736
731
734
732
734
735
738
728
745
746
745
750
735
WA FICO (Borrower at Origination)
734
714
712
701
709
710
704
705
705
707
710
702
703
702
705
707
728
WA FICO (Borrower at Rescored)
703
691
716
679
690
695
688
700
700
702
698
696
683
684
682
701
701
Wtd Avg LIBOR Equivalent Margin
(2)
7.19%
7.09%
5.48%
4.89%
7.40%
7.21%
6.37%
6.74%
6.98%
7.14%
7.18%
7.46%
6.63%
6.64%
6.88%
6.60%
7.01% |
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39
•
Constant prepayment rates increased in 2007 due to the introduction of Private
Education Consolidation loans, then declined following SLM’s decision
to suspend its consolidation loan program in 2008
0
2
4
6
8
10
12
14
2002-A
2003-A
2003-B
2003-C
2004-A
2004-B
2005-A
2005-B
2006-A
2006-B
2006-C
2007-A
2010-A
2010-B
2010-C
2011-A
2011-B
2011-C
2012-A
2012-B
2012-C
2012-D
2012-E
2013-A
2013-B
2013-C
Navient Private Education Loan Trusts –
Prepayment Analysis |
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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. |
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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 |
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42
Cohort Default Triangles
Note: Data as of 6/30/14.
(1)
Undergraduate/Graduate loans marketed under the Signature Student Loan brand.
(2)
Periodic Defaults for the most recent two calendar Years in Repayment are for a
partial year. (3)
Numerator is the amount of principal in each cohort that defaulted in each Year in
Repayment. Denominator is the amount of disbursed principal for that Repayment Year.
Undergraduate/Graduate
(1)
Disbursed Principal
Entering
Repayment Year
Repayment ($m)
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%
6.9%
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%
0.5%
0.2%
0.0%
10.6%
2001
$187
0.0%
0.0%
0.1%
1.1%
1.4%
0.9%
1.8%
1.3%
2.3%
1.9%
1.5%
0.8%
0.6%
0.3%
0.0%
13.8%
2002
$386
0.0%
0.2%
0.2%
1.2%
1.1%
1.8%
1.6%
2.3%
1.9%
1.3%
0.9%
0.6%
0.5%
0.0%
13.8%
2003
$682
0.0%
0.2%
0.6%
0.9%
1.9%
1.6%
2.7%
2.4%
1.8%
1.2%
0.8%
0.5%
0.0%
14.5%
2004
$1,132
0.0%
0.2%
0.3%
1.9%
1.8%
3.0%
2.9%
1.8%
1.4%
1.1%
0.6%
0.1%
15.0%
2005
$1,537
0.0%
0.0%
0.4%
2.5%
3.7%
3.4%
2.1%
1.6%
1.2%
0.7%
0.0%
15.7%
2006
$2,013
0.0%
0.1%
1.6%
3.7%
3.7%
2.5%
1.8%
1.4%
0.8%
0.0%
15.7%
2007
$2,451
0.0%
0.4%
3.5%
4.6%
3.0%
2.0%
1.7%
1.1%
0.0%
16.4%
2008
$2,933
0.0%
2.3%
4.2%
3.9%
2.6%
2.2%
1.3%
0.1%
16.6%
2009
$3,241
0.0%
3.4%
3.7%
3.6%
2.6%
1.5%
0.1%
14.9%
2010
$2,769
0.0%
3.6%
3.8%
3.5%
1.6%
0.1%
12.6%
2011
$1,870
0.0%
3.0%
4.5%
1.9%
0.1%
9.5%
2012
$1,101
0.0%
2.9%
3.2%
0.2%
6.4%
2013
$528
0.0%
1.8%
0.3%
2.1%
Periodic Defaults by Years in Repayment
(2),(3) |
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43
Cohort Default Triangles
Undergraduate/Graduate
(1)
Without
Co-signer
Undergraduate/Graduate
(1)
With
Co-signer
Note: Data as of 6/30/14.
(1)
Undergraduate/Graduate loans marketed under the Signature Student Loan brand.
(2)
Periodic Defaults for the most recent two calendar Years in Repayment are for a
partial year. (3)
Numerator is the amount of principal in each cohort that defaulted in each Year in
Repayment. Denominator is the amount of disbursed principal for that Repayment Year.
Disbursed Principal
Entering
Repayment Year
Repayment ($m)
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Total
1998
$6
0.0%
0.0%
0.0%
0.0%
0.0%
0.1%
0.6%
1.0%
0.4%
0.0%
0.2%
1.1%
0.1%
0.0%
0.0%
0.1%
3.6%
1999
$14
0.0%
0.0%
0.0%
0.0%
0.4%
0.1%
0.9%
0.4%
0.2%
0.1%
0.4%
0.0%
0.1%
0.1%
0.1%
0.2%
3.0%
2000
$37
0.0%
0.0%
0.0%
0.5%
0.5%
0.7%
0.7%
0.4%
0.7%
1.2%
0.8%
0.9%
0.2%
0.5%
0.2%
0.0%
7.4%
2001
$90
0.0%
0.0%
0.1%
0.7%
0.9%
0.6%
1.2%
1.0%
1.7%
1.4%
1.1%
0.8%
0.4%
0.2%
0.0%
10.1%
2002
$196
0.0%
0.2%
0.1%
0.8%
0.6%
1.4%
0.8%
1.9%
1.5%
1.1%
0.7%
0.6%
0.4%
0.0%
10.3%
2003
$367
0.0%
0.1%
0.3%
0.6%
0.9%
1.1%
2.2%
1.9%
1.4%
0.9%
0.7%
0.4%
0.0%
10.5%
2004
$632
0.0%
0.2%
0.2%
1.0%
1.0%
2.2%
2.1%
1.4%
1.1%
0.9%
0.5%
0.0%
10.6%
2005
$844
0.0%
0.0%
0.2%
1.4%
2.4%
2.3%
1.6%
1.2%
0.9%
0.6%
0.0%
10.7%
2006
$1,121
0.0%
0.0%
0.7%
2.4%
2.4%
1.8%
1.3%
1.1%
0.7%
0.0%
10.4%
2007
$1,408
0.0%
0.2%
2.0%
2.9%
2.0%
1.5%
1.2%
0.9%
0.0%
10.8%
2008
$1,758
0.0%
1.2%
2.6%
2.7%
1.8%
1.6%
1.0%
0.1%
10.9%
2009
$2,075
0.0%
2.0%
2.4%
2.4%
1.8%
1.1%
0.1%
9.8%
2010
$1,853
0.0%
2.1%
2.3%
2.3%
1.1%
0.1%
7.9%
2011
$1,352
0.0%
1.6%
2.7%
1.2%
0.1%
5.6%
2012
$848
0.0%
1.7%
2.0%
0.1%
3.9%
2013
$404
0.0%
1.1%
0.2%
1.3%
Periodic Defaults by Years in Repayment
(2),(3)
Disbursed Principal
Entering
Repayment Year
Repayment ($m)
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Total
1998
$5
0.0%
0.0%
0.0%
0.0%
0.0%
0.2%
0.2%
0.6%
0.4%
0.4%
3.1%
0.2%
0.8%
0.7%
0.0%
0.2%
6.8%
1999
$14
0.0%
0.0%
0.0%
0.3%
1.3%
1.1%
1.9%
0.4%
0.3%
1.8%
0.6%
0.5%
1.4%
0.6%
0.1%
0.6%
10.9%
2000
$33
0.0%
0.0%
0.0%
0.8%
1.7%
2.1%
0.6%
1.5%
2.3%
2.0%
1.1%
0.7%
0.7%
0.4%
0.3%
0.0%
14.1%
2001
$97
0.0%
0.0%
0.1%
1.5%
1.9%
1.2%
2.3%
1.5%
2.9%
2.3%
1.8%
0.9%
0.7%
0.3%
0.0%
17.3%
2002
$190
0.0%
0.2%
0.2%
1.6%
1.7%
2.3%
2.4%
2.8%
2.4%
1.5%
1.1%
0.6%
0.6%
0.0%
17.4%
2003
$315
0.0%
0.2%
0.9%
1.4%
2.9%
2.3%
3.3%
3.0%
2.3%
1.5%
0.8%
0.5%
0.0%
19.2%
2004
$499
0.0%
0.3%
0.4%
3.1%
2.8%
4.1%
3.8%
2.3%
1.7%
1.3%
0.7%
0.1%
20.6%
2005
$694
0.0%
0.1%
0.7%
3.9%
5.3%
4.7%
2.7%
2.1%
1.6%
0.8%
0.1%
21.8%
2006
$892
0.0%
0.2%
2.7%
5.3%
5.4%
3.4%
2.3%
1.9%
1.0%
0.1%
22.3%
2007
$1,043
0.0%
0.8%
5.5%
6.9%
4.3%
2.8%
2.4%
1.4%
0.0%
24.1%
2008
$1,175
0.1%
4.0%
6.5%
5.9%
3.8%
3.0%
1.7%
0.1%
25.1%
2009
$1,165
0.0%
6.0%
6.0%
5.7%
3.9%
2.2%
0.1%
23.9%
2010
$916
0.0%
6.7%
6.8%
6.0%
2.5%
0.1%
22.2%
2011
$518
0.0%
6.7%
9.0%
3.7%
0.3%
19.8%
2012
$252
0.1%
7.1%
7.2%
0.3%
14.7%
2013
$124
0.1%
4.0%
0.8%
4.9%
Periodic Defaults by Years in Repayment
(2),(3) |
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44
Cohort Default Triangles
Note: Data as of 6/30/14.
(1)
Undergraduate/Graduate loans marketed under the Signature Student Loan brand.
(2)
Periodic Defaults for the most recent two calendar Years in Repayment are for a
partial year. (3)
Numerator is the amount of principal in each cohort that defaulted in each Year in
Repayment. Denominator is the amount of disbursed principal for that Repayment Year.
Undergraduate/Graduate
(1)
Non-Profit
Undergraduate/Graduate
(1)
For-Profit
Disbursed Principal
Entering
Repayment Year
Repayment ($m)
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Total
1998
$11
0.0%
0.0%
0.0%
0.0%
0.0%
0.2%
0.4%
0.4%
0.4%
0.2%
1.1%
0.7%
0.3%
0.3%
0.0%
0.1%
4.2%
1999
$26
0.0%
0.0%
0.0%
0.0%
0.8%
0.5%
1.2%
0.4%
0.3%
1.0%
0.5%
0.2%
0.5%
0.4%
0.1%
0.3%
6.2%
2000
$68
0.0%
0.0%
0.0%
0.6%
1.0%
1.4%
0.5%
0.9%
1.4%
1.3%
1.0%
0.8%
0.5%
0.5%
0.3%
0.0%
10.2%
2001
$180
0.0%
0.0%
0.1%
1.0%
1.4%
0.9%
1.7%
1.2%
2.4%
1.8%
1.5%
0.8%
0.6%
0.3%
0.0%
13.5%
2002
$360
0.0%
0.2%
0.2%
1.2%
1.0%
1.8%
1.6%
2.3%
2.0%
1.3%
0.9%
0.6%
0.5%
0.0%
13.6%
2003
$630
0.0%
0.2%
0.6%
0.8%
1.8%
1.6%
2.6%
2.4%
1.7%
1.1%
0.7%
0.5%
0.0%
14.0%
2004
$1,006
0.0%
0.2%
0.2%
1.8%
1.6%
2.9%
2.6%
1.7%
1.3%
1.1%
0.5%
0.1%
14.1%
2005
$1,362
0.0%
0.0%
0.4%
2.4%
3.5%
3.2%
2.0%
1.5%
1.2%
0.7%
0.0%
14.9%
2006
$1,766
0.0%
0.1%
1.5%
3.5%
3.6%
2.4%
1.7%
1.4%
0.8%
0.0%
15.0%
2007
$2,103
0.0%
0.4%
3.4%
4.3%
2.8%
2.0%
1.7%
1.1%
0.0%
15.7%
2008
$2,457
0.0%
2.2%
3.9%
3.6%
2.4%
2.1%
1.2%
0.1%
15.6%
2009
$2,686
0.0%
3.2%
3.4%
3.4%
2.4%
1.4%
0.1%
14.0%
2010
$2,378
0.0%
3.4%
3.7%
3.3%
1.5%
0.1%
12.0%
2011
$1,664
0.0%
2.8%
4.2%
1.8%
0.1%
9.0%
2012
$1,002
0.0%
2.8%
3.0%
0.1%
6.0%
2013
$481
0.0%
1.7%
0.3%
2.0%
Periodic Defaults by Years in Repayment
(2),(3)
Disbursed Principal
Entering
Repayment Year
Repayment ($m)
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%
0.0%
22.8%
2002
$27
0.0%
0.0%
0.3%
1.9%
2.2%
2.1%
2.0%
2.8%
1.8%
1.3%
0.8%
0.7%
0.6%
0.0%
16.6%
2003
$52
0.0%
0.2%
0.7%
2.4%
2.7%
2.2%
3.8%
3.0%
2.4%
1.6%
0.9%
0.5%
0.0%
20.5%
2004
$126
0.0%
0.3%
0.6%
3.2%
3.0%
3.9%
4.6%
2.3%
1.8%
1.4%
0.9%
0.1%
22.2%
2005
$175
0.0%
0.0%
0.7%
3.7%
5.3%
4.9%
2.7%
1.9%
1.3%
1.0%
0.1%
21.7%
2006
$246
0.0%
0.2%
2.1%
4.9%
5.0%
3.2%
2.1%
1.9%
1.1%
0.0%
20.6%
2007
$348
0.0%
0.5%
4.3%
6.5%
4.0%
2.5%
2.1%
1.4%
0.1%
21.3%
2008
$475
0.0%
3.0%
5.9%
5.6%
3.1%
2.5%
1.6%
0.1%
21.7%
2009
$554
0.0%
4.3%
5.1%
4.3%
3.3%
1.9%
0.1%
19.0%
2010
$391
0.1%
4.7%
4.7%
4.8%
2.2%
0.3%
16.7%
2011
$206
0.1%
4.5%
6.4%
2.7%
0.4%
14.0%
2012
$99
0.1%
4.1%
5.3%
0.4%
9.9%
2013
$47
0.2%
2.6%
0.5%
3.3%
Periodic Defaults by Years in Repayment
(2),(3) |
 45
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and
proprietary
information
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2014
Navient
Solutions,
Inc.
All
rights
reserved.
Undergraduate/Graduate
(1)
Loans, FICO 740-850
(2)
Undergraduate/Graduate
(1)
Loans, FICO 700-739
(2)
Note: Data as of 6/30/14.
(1)
Undergraduate/Graduate loans marketed under the Signature Student Loan brand.
(2)
FICO scores are based on the greater of the borrower and co-borrower scores as
of a date near the loan application. (3)
Periodic Defaults for the most recent two calendar Years in Repayment are for a
partial year. (4)
Numerator is the amount of principal in each cohort that defaulted in each Year in
Repayment. Denominator is the amount of disbursed principal for that Repayment Year.
Disbursed Principal
Entering
Repayment Year
Repayment ($m)
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Total
1998
$3
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.5%
2.2%
0.0%
0.0%
0.0%
0.0%
0.1%
0.7%
0.0%
0.0%
3.5%
1999
$8
0.0%
0.0%
0.0%
0.0%
0.5%
0.4%
0.7%
0.0%
0.3%
1.5%
0.7%
0.1%
0.8%
0.1%
0.0%
0.0%
5.1%
2000
$20
0.0%
0.0%
0.0%
0.4%
0.7%
1.3%
0.8%
1.1%
0.8%
1.3%
0.7%
0.6%
0.4%
0.8%
0.2%
0.0%
9.0%
2001
$54
0.0%
0.0%
0.1%
0.9%
1.2%
0.5%
1.4%
0.9%
1.9%
1.4%
1.2%
0.9%
0.5%
0.2%
0.0%
11.2%
2002
$111
0.0%
0.1%
0.1%
1.1%
1.0%
1.7%
1.4%
2.2%
1.4%
1.3%
0.8%
0.5%
0.4%
0.0%
12.0%
2003
$194
0.0%
0.2%
0.5%
0.8%
1.5%
1.5%
2.4%
1.9%
1.8%
1.2%
0.7%
0.5%
0.0%
13.0%
2004
$321
0.0%
0.2%
0.2%
1.7%
1.5%
2.5%
2.8%
1.8%
1.4%
1.0%
0.5%
0.0%
13.8%
2005
$439
0.0%
0.0%
0.4%
2.2%
3.3%
2.9%
2.1%
1.4%
1.1%
0.7%
0.0%
14.2%
2006
$553
0.0%
0.1%
1.3%
3.1%
3.4%
2.4%
1.7%
1.2%
0.8%
0.0%
14.0%
2007
$659
0.0%
0.3%
2.8%
4.1%
2.7%
1.7%
1.6%
1.1%
0.0%
14.4%
2008
$782
0.0%
2.0%
3.8%
3.5%
2.4%
2.0%
1.2%
0.1%
15.0%
2009
$875
0.0%
3.0%
3.5%
3.4%
2.6%
1.5%
0.1%
14.1%
2010
$731
0.0%
3.4%
3.8%
3.3%
1.5%
0.1%
12.2%
2011
$482
0.0%
2.8%
4.2%
1.8%
0.2%
9.1%
2012
$281
0.1%
2.7%
3.0%
0.2%
5.9%
2013
$134
0.0%
1.5%
0.3%
1.9%
Periodic Defaults by Years in Repayment
Disbursed Principal
Entering
Repayment Year
Repayment ($m)
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%
0.2%
0.1%
0.0%
4.9%
2001
$64
0.0%
0.0%
0.0%
0.5%
0.4%
0.4%
1.1%
0.8%
1.0%
0.7%
0.6%
0.7%
0.4%
0.2%
0.0%
6.8%
2002
$137
0.0%
0.2%
0.1%
0.5%
0.4%
0.8%
0.6%
1.1%
0.9%
0.6%
0.5%
0.4%
0.2%
0.0%
6.4%
2003
$248
0.0%
0.1%
0.2%
0.4%
0.6%
0.7%
1.2%
1.4%
0.8%
0.7%
0.6%
0.3%
0.0%
7.1%
2004
$424
0.0%
0.1%
0.1%
0.7%
0.7%
1.4%
1.3%
0.9%
0.8%
0.7%
0.4%
0.0%
7.2%
2005
$574
0.0%
0.0%
0.2%
1.0%
1.5%
1.5%
1.1%
0.9%
0.6%
0.5%
0.0%
7.2%
2006
$761
0.0%
0.0%
0.5%
1.4%
1.5%
1.1%
0.8%
0.7%
0.5%
0.0%
6.5%
2007
$937
0.0%
0.1%
1.2%
1.6%
1.1%
1.0%
0.8%
0.6%
0.0%
6.4%
2008
$1,130
0.0%
0.7%
1.5%
1.4%
1.0%
1.0%
0.6%
0.0%
6.3%
2009
$1,325
0.0%
1.2%
1.4%
1.4%
1.2%
0.7%
0.0%
6.0%
2010
$1,186
0.0%
1.4%
1.5%
1.6%
0.9%
0.0%
5.4%
2011
$831
0.0%
1.1%
1.8%
0.8%
0.1%
3.8%
2012
$506
0.0%
1.3%
1.3%
0.1%
2.7%
2013
$245
0.0%
0.8%
0.2%
1.0%
Periodic Defaults by Years in Repayment
(3),(4)
(3),(4)
Cohort Default Triangles |
 46
Cohort Default Triangles
Note: Data as of 6/30/14.
(1)
Undergraduate/Graduate loans marketed under the Signature Student Loan brand.
(2)
FICO scores are based on the greater of the borrower and co-borrower scores as
of a date near the loan application. (3)
Periodic Defaults for the most recent two calendar Years in Repayment are for a
partial year. (4)
Numerator is the amount of principal in each cohort that defaulted in each Year in
Repayment. Denominator is the amount of disbursed principal for that Repayment Year.
Undergraduate/Graduate
(1)
Loans, FICO 670-699
(2)
Undergraduate/Graduate
(1)
Loans, FICO 640-669
(2)
Confidential
and
proprietary
information
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2014
Navient
Solutions,
Inc.
All
rights
reserved.
Disbursed Principal
Entering
Repayment Year
Repayment ($m)
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Total
1998
$3
0.0%
0.0%
0.0%
0.0%
0.0%
0.6%
0.6%
0.3%
0.5%
0.3%
2.8%
0.0%
0.5%
0.3%
0.1%
0.3%
6.2%
1999
$7
0.0%
0.0%
0.0%
0.5%
1.4%
0.5%
1.3%
0.3%
0.3%
0.1%
0.7%
0.5%
1.3%
0.4%
0.0%
0.3%
7.6%
2000
$14
0.0%
0.0%
0.0%
0.9%
1.4%
1.9%
0.2%
1.0%
0.9%
1.4%
1.4%
1.0%
0.9%
0.4%
0.6%
0.0%
12.0%
2001
$37
0.0%
0.0%
0.1%
1.3%
2.1%
1.5%
1.9%
1.6%
2.7%
2.9%
2.0%
0.8%
0.6%
0.3%
0.0%
17.8%
2002
$77
0.0%
0.2%
0.3%
1.6%
1.8%
2.4%
2.4%
2.9%
2.7%
1.6%
1.1%
0.7%
0.6%
0.0%
18.4%
2003
$134
0.0%
0.1%
0.8%
1.3%
2.8%
2.2%
3.7%
3.3%
2.2%
1.3%
0.7%
0.5%
0.0%
18.9%
2004
$222
0.0%
0.3%
0.5%
2.9%
2.6%
4.2%
3.8%
2.3%
1.7%
1.3%
0.6%
0.1%
20.3%
2005
$298
0.0%
0.1%
0.7%
3.8%
5.2%
4.9%
2.7%
1.9%
1.5%
0.8%
0.1%
21.8%
2006
$402
0.0%
0.2%
2.6%
5.5%
5.6%
3.6%
2.4%
1.9%
1.1%
0.1%
22.9%
2007
$504
0.0%
0.7%
5.6%
7.4%
4.8%
3.0%
2.4%
1.4%
0.0%
25.3%
2008
$623
0.0%
3.8%
6.9%
6.4%
3.8%
3.1%
1.9%
0.1%
26.0%
2009
$662
0.1%
5.7%
6.1%
6.0%
3.9%
2.3%
0.1%
24.2%
2010
$543
0.0%
6.2%
6.2%
5.7%
2.4%
0.1%
20.7%
2011
$355
0.0%
5.0%
7.8%
3.2%
0.3%
16.3%
2012
$199
0.1%
4.8%
5.7%
0.2%
10.9%
2013
$94
0.0%
3.3%
0.5%
3.8%
Periodic Defaults by Years in Repayment
(3),(4)
Disbursed Principal
Entering
Repayment Year
Repayment ($m)
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Total
1998
$2
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.3%
0.5%
0.9%
0.0%
2.9%
2.3%
1.3%
0.2%
0.0%
0.3%
8.6%
1999
$6
0.0%
0.0%
0.0%
0.0%
1.1%
1.3%
2.3%
0.9%
0.3%
2.1%
0.5%
0.1%
0.7%
0.5%
0.4%
0.5%
10.7%
2000
$14
0.0%
0.0%
0.0%
1.3%
2.5%
2.3%
1.4%
1.6%
3.8%
3.0%
1.9%
1.5%
0.7%
0.5%
0.2%
0.0%
20.7%
2001
$32
0.0%
0.0%
0.1%
2.3%
2.9%
2.0%
3.4%
2.6%
5.2%
3.8%
2.8%
1.1%
1.0%
0.5%
0.0%
27.7%
2002
$61
0.0%
0.2%
0.4%
2.7%
2.3%
3.9%
3.1%
4.6%
4.2%
2.4%
1.8%
1.2%
1.1%
0.0%
27.9%
2003
$107
0.0%
0.3%
1.3%
2.1%
4.1%
3.3%
5.4%
4.6%
3.5%
2.1%
1.4%
0.8%
0.0%
29.0%
2004
$165
0.0%
0.5%
0.5%
4.4%
3.9%
6.4%
5.7%
3.5%
2.4%
2.0%
1.1%
0.1%
30.6%
2005
$226
0.0%
0.1%
0.9%
5.4%
8.2%
7.0%
3.8%
3.3%
2.3%
1.3%
0.0%
32.2%
2006
$296
0.0%
0.2%
3.7%
8.1%
7.8%
4.8%
3.5%
2.9%
1.5%
0.1%
32.7%
2007
$351
0.0%
1.1%
8.0%
9.8%
6.0%
4.0%
3.4%
2.0%
0.1%
34.3%
2008
$398
0.0%
5.4%
8.5%
8.1%
5.3%
4.2%
2.5%
0.1%
34.1%
2009
$378
0.0%
8.2%
8.0%
7.3%
4.9%
2.9%
0.1%
31.4%
2010
$310
0.0%
8.0%
8.4%
7.8%
3.0%
0.1%
27.3%
2011
$202
0.0%
7.7%
10.2%
4.2%
0.1%
22.3%
2012
$114
0.0%
7.5%
8.0%
0.3%
15.8%
2013
$54
0.0%
4.4%
0.6%
5.0%
Periodic Defaults by Years in Repayment
(3),(4) |
 Confidential
and
proprietary
information
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2014
Navient
Solutions,
Inc.
All
rights
reserved.
47
Cohort Default Triangles
Private Consolidation Loans Without Co-signer
Private Consolidation Loans With Co-signer
Note: Data as of 6/30/14.
(1)
Periodic Defaults for the most recent two calendar Years in Repayment are for a
partial year. (2)
Numerator is the amount of principal in each cohort that defaulted in each Year in
Repayment. Denominator is the amount of disbursed principal for that Repayment Year.
Disbursed Principal
Entering
Repayment Year
Repayment ($m)
0
1
2
3
4
5
6
7
8
9
Total
2006
$125
0.0%
0.4%
0.9%
1.5%
1.7%
1.5%
1.0%
1.1%
0.8%
0.0%
9.0%
2007
$295
0.0%
0.0%
0.9%
1.0%
1.3%
1.0%
1.0%
0.7%
0.1%
5.9%
2008
$133
0.0%
0.2%
1.7%
2.1%
1.8%
1.7%
1.9%
0.2%
9.5%
Periodic Defaults by Years in Repayment
(1),(2)
Disbursed Principal
Entering
Repayment Year
Repayment ($m)
0
1
2
3
4
5
6
7
8
9
Total
2006
$249
0.0%
0.1%
0.1%
0.5%
0.6%
0.6%
0.4%
0.3%
0.3%
0.0%
2.9%
2007
$675
0.0%
0.0%
0.2%
0.4%
0.6%
0.4%
0.4%
0.4%
0.0%
2.4%
2008
$376
0.0%
0.1%
0.4%
0.7%
0.6%
0.6%
0.5%
0.1%
2.9%
Periodic Defaults by Years in Repayment
(1),(2) |
 Confidential
and
proprietary
information
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2014
Navient
Solutions,
Inc.
All
rights
reserved.
48
Note: Data as of 6/30/14.
(1)
FICO scores are based on the greater of the borrower and co-borrower scores as
of a date near the loan application. (2)
Periodic Defaults for the most recent two calendar Years in Repayment are for a
partial year. (3)
Numerator is the amount of principal in each cohort that defaulted in each Year in
Repayment. Denominator is the amount of disbursed principal for that Repayment Year.
DTC With Co-signer, FICO
670
(1)
DTC Without Co-signer, FICO
670
(1)
Disbursed Principal
Entering
Repayment Year
Repayment ($m)
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%
0.9%
0.0%
9.0%
2006
$139
0.0%
0.7%
1.8%
4.4%
4.8%
2.4%
2.0%
2.0%
1.0%
0.1%
19.2%
2007
$245
0.0%
0.6%
4.7%
6.2%
4.2%
2.7%
2.6%
1.7%
0.0%
22.7%
2008
$369
0.0%
2.8%
5.9%
4.9%
3.6%
2.8%
2.0%
0.1%
22.1%
2009
$396
0.0%
3.7%
4.1%
4.0%
3.2%
2.1%
0.1%
17.1%
2010
$314
0.0%
3.6%
4.1%
4.7%
2.5%
0.3%
15.1%
2011
$192
0.1%
3.7%
5.2%
3.3%
0.3%
12.6%
2012
$104
0.0%
3.3%
5.0%
0.6%
8.8%
2013
$23
0.0%
1.2%
0.5%
1.7%
Periodic Defaults by Years in Repayment
(2),(3)
Disbursed Principal
Entering
Repayment Year
Repayment ($m)
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%
2.1%
2.4%
4.1%
6.5%
2.8%
1.6%
1.0%
1.2%
0.0%
22.7%
2006
$66
0.0%
1.4%
2.5%
6.6%
6.4%
4.0%
2.7%
2.6%
1.2%
0.0%
27.4%
2007
$158
0.0%
1.0%
5.8%
8.1%
4.6%
3.8%
3.3%
1.9%
0.0%
28.5%
2008
$255
0.0%
3.7%
7.9%
7.3%
4.2%
4.0%
2.2%
0.1%
29.4%
2009
$234
0.0%
6.7%
6.3%
6.9%
5.1%
2.8%
0.1%
28.0%
2010
$152
0.1%
8.3%
7.0%
8.7%
3.6%
0.3%
28.0%
2011
$88
0.1%
7.8%
10.1%
5.1%
0.5%
23.7%
2012
$47
0.0%
6.2%
7.7%
0.8%
14.7%
2013
$5
0.0%
3.2%
0.6%
3.8%
Periodic Defaults by Years in Repayment
(2),(3)
Cohort Default Triangles |
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49
Cohort Default Triangles
Note: Data as of 6/30/14.
(1)
FICO scores are based on the greater of the borrower and co-borrower scores as
of a date near the loan application. (2)
Periodic Defaults for the most recent two calendar Years in Repayment are for a
partial year. (3)
Numerator is the amount of principal in each cohort that defaulted in each Year in
Repayment. Denominator is the amount of disbursed principal for that Repayment Year.
Career Training Loans, 670+ FICO
(1)
Disbursed Principal
Entering
Repayment Year
Repayment ($m)
0
1
2
3
4
5
6
7
8
9
10
11
12
Total
2003
$291
0.0%
0.4%
1.4%
1.6%
1.8%
1.4%
1.3%
1.0%
0.8%
0.5%
0.4%
0.2%
0.0%
11.0%
2004
$382
0.0%
0.4%
1.5%
2.3%
1.7%
1.8%
1.7%
1.1%
0.8%
0.5%
0.3%
0.0%
12.2%
2005
$513
0.0%
0.3%
2.2%
2.2%
2.5%
2.1%
1.5%
1.0%
0.8%
0.5%
0.1%
13.2%
2006
$630
0.0%
0.4%
2.5%
3.5%
3.2%
2.2%
1.5%
1.0%
0.7%
0.1%
15.2%
2007
$672
0.0%
0.5%
3.5%
3.9%
3.0%
1.8%
1.3%
0.9%
0.1%
15.0%
2008
$581
0.0%
0.6%
4.3%
3.6%
2.2%
1.5%
1.1%
0.1%
13.4%
2009
$169
0.0%
0.2%
2.1%
2.1%
1.5%
1.0%
0.2%
7.1%
2010
$19
0.0%
0.6%
1.2%
1.0%
0.5%
0.2%
3.4%
Periodic Defaults by Years in Repayment
(2),(3) |
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Navient
Corporation
Appendix |
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GAAP Results
(In millions, except per share amounts)
Q2 14
Q1 14
Q2 13
Net income
$307
$219
$543
EPS
$0.71
$0.49
$1.20
Operating expenses
$211
$366
$244
Provision
$165
$185
$201
Average total student loans
$134,737
$142,679
$152,135 |
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Differences
between
“Core
Earnings”
and
GAAP
“Core Earnings”
adjustments to GAAP:
GAAP net income
$ 307
Net impact of SLM BankCo
36
Net impact of derivative accounting
(150)
Net impact of goodwill and acquired intangible assets
2
Net income tax effect
46
Total “Core Earnings”
adjustments to GAAP
(66)
“Core Earnings”
net income
$241
Quarter ended June 30, 2014
($ in millions) |
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Changes for Investors
A consistent platform, team, and management
Source: Navient, Navient Form 10 filed April 10, 2014.
Before Separation
After Separation
Parent Company
SLM Corporation
Navient Corporation
Headquarters
Newark, DE
Newark, DE
Issuing Entity
SLM Student Loan
Trust 201X-A
Navient Student Loan
Trust 201X-A
SLABS Bloomberg Ticker
SLMA
NAVSL
Depositor
SLM Funding LLC
Navient Funding, LLC
Sponsor, Servicer, and
Administrator
Sallie Mae, Inc.
Navient Solutions, Inc.
Servicing Employees
~2,100
~2,100
Customers Serviced (mm)
13+
12+
Total Loans Serviced ($ bn)
~300
~300
Investment Corp Holding
Residual Interests
Sallie Mae Investment
Corporation
Navient Investment
Corporation |
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https://www.navient.com/about/investors/
Investor Relations Website
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SLM / NAVI student loan trust data (Debt/asset backed securities – SLM / NAVI Student Loan
Trusts) SLM / NAVI student
loan performance by trust – Issue details
Archived and historical webcasts, transcripts and investor presentations Additional information (Webcasts and
presentations) Prospectus
for public transactions and Rule 144A transactions are available through underwriters
Current rates
Distribution factors
Current and historical monthly distribution reports
Since issued CPR – monthly CPR data by trust since issuance Historical trust performance – monthly
charge-off, delinquency, loan status, CPR, etc. by trust
Quarterly distribution factors
Accrued interest factors
Static pool information – detailed portfolio stratifications by trust as of the cutoff date |
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