Investor Presentaiton

Notes on Non-GAAP Financial Measures (Dollars in Millions) In addition to financial results reported on a GAAP basis, Navient also provides certain performance measures which are non-GAAP financial measures. The following non-GAAP financial measures are presented within this Presentation: 1. Core Earnings - The difference between the company's Core Earnings and its GAAP results is that Core Earnings excludes the impacts of: (1) mark-to-market gains/losses on derivatives and (2) goodwill and acquired intangible asset amortization and impairment. Management uses Core Earnings in making decisions regarding the company's performance and the allocation of corporate resources and, as a result, our segment results are presented using Core Earnings. In addition, Navient's equity investors, credit rating agencies and debt capital investors use these Core Earnings measures to monitor the company's business performance. For further detail and reconciliation, see page 51 of this presentation and pages 19 - 29 of Navient's fourth quarter 2020 earnings release. 2. Core Earnings Return on Equity (CEROE) - Core Earnings Return on Equity is calculated as Adjusted Core Net income, excluding restructuring and regulatory-related expenses, divided by the quarterly average of GAAP equity for the trailing four quarters. This measure allows management, as well as investors and analysts, to measure the company's use of its equity. The calculation for Q4 2020 & Full Year 2020 is as follows: Q4 2020 = Adjusted Core Earnings Net income Average Equity $182 (1) 33% (2) ($2,035 +2,115 + $2,254 + 2,433) / 4 $663 (1) 3. 2020 = Adjusted Core Earnings Net income Average Equity ($2,035 + 2,115 + $2,254 + 2,433) / 4 30% (2) Core Earnings Efficiency Ratio - The Core Earnings Efficiency Ratio measures the company's Core Earnings Expenses, excluding restructuring and regulatory-related expenses, relative to its Adjusted Core Earnings Revenue. This ratio can be calculated by dividing Core Earnings Expenses, excluding restructuring and regulatory- related expenses, by Adjusted Core Earnings Revenue. Adjusted Core Earnings Revenue is derived by adding provision for loan losses, and excluding gains or loss on debt repurchases, to Total Core Earnings Revenue. This is a useful measure to management as we plan and forecast, as it removes variables that cannot be easily predicted in advance. By using this measure, management can make better short-term and long-term decisions related to expense management and allocation. The calculations for Q4 2020 & Full Year 2020 are as follows: Q4 2020 == Adjusted Core Earnings Expense Adjusted Core Earnings Revenue Adjusted Core Earnings Expense 2020 = Adjusted Core Earnings Revenue $249 (1) $489 = 51% $931 (1) $1,953 1 Excludes $20 million and $42 million of net restructuring and regulatory-related expenses in fourth quarter 2020 and full year 2020, respectively. Return on Equity has been annualized. ©2021 Navient Solutions, LLC. All rights reserved. 48% ||| 49

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