Investor Presentaiton
Originating Education Loans is An Attractive
Opportunity
Sizable Market With Attractive Yields¹
Estimated Total Market Annual Originations and Yields ($'s in billions)
Grad PLUS
■In-School Private Education Loans
■Private Education Refinance Loans
$11
$14
$14
•
Leveraging Our Existing Infrastructure to Generate Value
Private Education Refinance Loans:
Using our data and expertise to deploy capital
at mid-teens ROE
Life of loan loss expectation of 1.25% 2
Weighted average life of ~3.5 years
In-School Private Education Loans:
Using our data and expertise to deploy capital
at high-teens ROE
Life of loan loss expectations of 6% 2
Weighted average life of ~8 years
Estimated 2020 Originations
-5%
-8%
Estimated Average Yield
Typical Refi Borrower Profile 3
Borrower Age
33
Months since Graduation
72
Education
63% advanced degrees
-4%
FICO
764
Income
$133,354
Monthly Real Free Cash Flow
$4,333
Original Loan Amount
$70,989
1 Source: Navient estimates for total originations based on "Jennifer Ma, Matea Pender, and CJ Libassi (2020), Trends in
Student Aid 2020, New York: The College Board"; Navient estimates for average yields based on FSA Data Center and
third-party company filings.
©2021 Navient Solutions, LLC. All rights reserved.
2 Life of loan loss expectations are on a gross basis.
3 Weighted average.
III
=
7View entire presentation