Profile: Navient Corp (NAVI.O)
23 May 2019
Navient Corporation, incorporated on November 7, 2013, provides asset management and business processing services to education, healthcare and government clients at the federal, state and local levels. The Company holds the portfolio of education loans insured or federally guaranteed under the Federal Family Education Loan Program (FFELP). The Company operates through four segments: FFELP Loans, Private Education Loans, Business Services and Other. It also holds the portfolio of Private Education Loans. The Company services its own portfolio of education loans, as well as education loans owned by the United States Department of Education (ED), financial institutions and nonprofit education lenders. The Company also provides business processing services to education-related clients, such as guaranty agencies and colleges and universities. It provides additional business processing services to a range of other clients, including federal agencies, state and local governments, regional authorities, courts, hospitals, healthcare systems and other healthcare providers, financial service providers and municipalities. As of December 31, 2016, the Company's principal assets consisted of $87.7 billion in FFELP Loans, with a net interest margin of 0.85% for the year ended December 31, 2016 and a weighted average life of 7.1 years; $23.3 billion in Private Education Loans, with a net interest margin of 3.41% for the year ended December 31, 2016 and a weighted average life of 6.4 years; an education loan servicing platform that services loans for Direct Student Loan Program (DSLP) Loan, FFELP Loan and Private Education Loan customers (including cosigners), and a business processing platform, through which it provides services for clients in the education, healthcare and public sectors.
FFELP Loans Segment
The Company's FFELP Loans segment acquires and finances FFELP Loans. The Company generates revenue primarily through net interest income on the FFELP Loan portfolio (after provision for loan losses). Its portfolio of FFELP Loans as of December 31, 2016 was $87.7 billion. As of December 31, 2016, approximately 81% of the FFELP Loans held by Navient were funded to term with non-recourse, long-term securitization debt.
Private Education Loans Segment
The Company's Private Education Loans segment acquires, finances and services Private Education Loans. In this segment, the Company generates revenue primarily through net interest income on the Private Education Loan portfolio (after provision for loan losses). The Company's portfolio of Private Education Loans, as of December 31, 2016 was $23.3 billion. As of December 31, 2016, approximately 61% of the Private Education Loans held by Navient were funded to term with non-recourse, long-term securitization debt.
Business Services Segment
The Company's Business Services segment generates its revenue from business processing services related to servicing, asset recovery and other business processing activities. Within this segment, it generates revenue primarily through servicing its FFELP Loan portfolio, as well as servicing education loans for Guarantors of FFELP Loans and other institutions, including ED. It provides asset recovery services for loans and receivables on behalf of Guarantors of FFELP Loans and higher education institutions. In addition, it provides asset recovery and other business processing services for federal, state, court, and municipal clients, public authorities, and healthcare organizations. As of December 31, 2016, it provides asset recovery (default aversion, post-default collections and claims processing) to 11 of the 26 Guarantor agencies that serve as intermediaries between the United States federal government and FFELP lenders and are responsible for paying the claims made on defaulted loans.
The Company's Other segment primarily consists of activities of its holding company, including the repurchase of debt and its corporate liquidity portfolio. The Company also includes results from certain smaller wind-down operations within this segment.
123 S Justison St Ste 300
WILMINGTON DE 19801-5134