Navient Corporation (NAVI) will divest its healthcare revenue cycle management business to CorroHealth. The move aligns with NAVI's plan to streamline its business operations. Doing business as Xtend Healthcare, Navient's healthcare revenue cycle management organization is headquartered in Hendersonville, TN. CorroHealth will continue to operate Xtend from its Hendersonville offices. Financial Details: NAVI's Healthcare Services Arm Divestiture Per the agreement signed in August 2024, the purchase price for ...

Investors in Navient Corporation (NAVI) need to pay close attention to the stock based on moves in the options market lately. That is because the Dec 20, 2024 $12.50 Call had some of the highest implied volatility of all equity options today. What is Implied Volatility? Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could ...

A proposed order has been filed by the U.S. Consumer Financial Protection Bureau ("CFPB") against Navient Corporation (NAVI) , according to which the student loan servicer will be permanently banned from servicing federal direct loans and directly servicing or acquiring most loans under the Federal Family Education Loan Program. NAVI will have to pay $120 million for years of student lending failures, which includes $100 million in restitution and a $20-million civil penalty. The CFPB's Remarks About Navien ...

Navient is exiting the federal student loan business as a regulator prepares to fine it $120 million. The company, formerly known as Sallie Mae, was sued in 2017 by the Consumer Financial Protection Bureau (CFPB) over its lending practices. Now, the regulator has filed an order that would ban Navient from servicing federal direct loans and bar the company from directly servicing or acquiring most loans under the Federal Family Education Loan Program, the CFPB said in a Thursday (Sept. 12) press release. "Th ...

HERNDON, Va., Sept. 12, 2024 (GLOBE NEWSWIRE) -- Navient (Nasdaq: NAVI) today released the following statement after reaching an agreement with the Consumer Financial Protection Bureau to resolve previously disclosed litigation and investigations: This agreement puts these decade-old issues behind us. While we do not agree with the CFPB's allegations, this resolution is consistent with our go-forward activities and is an important positive milestone in our transformation of the company. Navient is no longer ...

HERNDON, Va., Aug. 14, 2024 (GLOBE NEWSWIRE) -- Navient (Nasdaq: NAVI) announced that its board of directors approved a 2024 third quarter dividend of $0.16 per share on the company's common stock. The third quarter 2024 dividend will be paid on Sept. 20, 2024, to shareholders of record at the close of business on Sept. 6, 2024. About Navient Navient (Nasdaq: NAVI) provides technology-enabled education finance and business processing solutions that simplify complex programs and help millions of people achie ...

HERNDON, Va., Aug. 13, 2024 (GLOBE NEWSWIRE) -- Navient (Nasdaq: NAVI) announced today that it had reached an agreement to sell its Healthcare Services business to CorroHealth, a leading health technology company. "This transaction is an important achievement in our initiative to explore strategic options for our Business Processing Solutions division and our strategic objectives to simplify our company, reduce our expense base, and enhance our flexibility," said Dave Yowan, president and CEO of Navient. "C ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-36228 Navient Corporation (Exact name of registrant as specified in its charter) Delaware 46-4054283 (State or other jurisdictio ...

Financial Data and Key Metrics Changes - The company reported GAAP EPS of $0.32 and core EPS of $0.29 for the second quarter, reflecting a strong performance despite regulatory and restructuring expenses [33][37] - The adjusted tangible equity ratio stands at 8.2%, with a tangible book value of $18.81 per share, indicating a 20% discount to market value [23][36] - Total expenses for the quarter, excluding regulatory and restructuring expenses, decreased nearly 15% to $154 million [66] Business Line Data and Key Metrics Changes - In the federal education loan segment, the net interest margin declined by 36 basis points to 55 basis points, driven by increased prepayments [25] - The consumer lending segment saw originations grow over 40% to $278 million, with a net interest margin of 289 basis points [64] - The business processing segment achieved total fee revenue of $81 million with an improved EBITDA margin of 25% compared to 10% a year ago [65] Market Data and Key Metrics Changes - The company experienced elevated levels of FFELP prepayment activity, with prepayments increasing to $2.5 billion in the quarter [25] - Greater than 90-day delinquency rates improved to 7%, and the charge-off rate improved to 14 basis points [25] - The allowance for loan loss for the entire education loan portfolio is $898 million, with a release of $2 million for FFELP loans during the quarter [35] Company Strategy and Development Direction - The company is focused on achieving significant expense reductions, with expectations of hundreds of millions of dollars annually [29] - The divestment of the business processing solutions division is underway, with the goal of maximizing shareholder value [30] - The company aims to maintain a variable cost structure through outsourcing agreements, which will facilitate expense reductions [21][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving expense reduction goals within the original 18 to 24-month timeframe [29] - The company anticipates a substantial amount of cash flow from loan portfolios and the divestment of the business processing division [23] - Management noted that the current macro environment is supportive for exploring strategic options and divestment [72] Other Important Information - The company has transferred nearly 900 employees to MOHELA as part of its outsourcing agreement [21] - The restructuring expenses were primarily driven by transfers and job eliminations related to organizational changes [60] - The company is actively evaluating options for the use of cash proceeds from the BPS divestment, including investments, debt reduction, or shareholder distributions [72] Q&A Session All Questions and Answers Question: What is the outlook for growth at Navient? - Management emphasized the importance of completing expense reduction initiatives before focusing on growth opportunities, particularly within the Earnest business [40] Question: How many rate cuts are contemplated in the updated FFELP NIM? - Management indicated one rate cut is forecasted for the second half of the year, but the main pressure on NIM is from continued prepayments [42] Question: What are the risks associated with the decline in consolidation requests? - Management acknowledged the volatility in consolidation requests and the potential for reacceleration if new proposals or extensions are introduced [46] Question: What is the status of the CFPB accrual? - Management reported a total reserve exceeding $100 million related to ongoing discussions with the CFPB [72] Question: What is the timeline for achieving the expense reductions? - Management stated that the timeline for expense reductions is dependent on the nature and timing of the BPS transaction, with a significant reduction expected by 2025 [82]

Federal Education Loans – Projected Cash Flows• FFELP portfolio of $33 billion $800 ($ in millions) 5-Year Projected Annual FFELP Cash Flows 2 $279 $587 $561 $511 $469 $0 $200 $400 $600 Remaining 2024 2025 2026 2027 2028 - no newly originated FFELP loans since 2010 - 97-100% of principal and interest guaranteed by U.S. government • Holding 50 basis points of equity capital against portfolio • Projected cash flows from this portfolio are based on: - cash flows from loans net of secured financing costs - assu ...