Investor Presentaiton

There are solutions to many of the challenges faced by borrowers 5 recommendations to improve student loan program success: 1 Provide more front-end resources to improve decision making. Students and their families need tools to understand how much they'll need to borrow to earn the degree-not simply the current semester-and to assess the likely economic benefits of a chosen field. This kind of information will help students and parents make a more informed assessment about what they can afford. 2 Improve the college completion rate Just 6 out of 10 bachelor's degree students graduate in six years. Borrowers who struggle the most are often non-completers with low levels of debt. Schools should have some skin in the game when students do not complete and are unable to repay. Many colleges are experimenting with novel approaches to improve graduation rates and should be encouraged and rewarded. 3 Simplify repayment. Currently, the government offers 16 repayment plans, 9 forgiveness programs, and 33 deferment and forbearance options-each with its own nuances, payment schedules, qualifications, and complex enrollment criteria. They should be and can be simplified. For example, collapsing the multiple income-driven repayment options into one plan with the most appropriate borrower-friendly terms would be a good start. 4 Help borrowers pay off early. In the rush to help student borrowers, too many have trumpeted lower payments over longer periods as the universal solution despite the higher interest costs many borrowers will pay. We need programs that help struggling borrowers through short-term and long-term challenges, but anyone enrolling should understand the trade-offs to be able to make the right choice for their financial circumstances. 5 Encourage borrowers to engage with their loan servicers. Default is avoidable, but borrower contact is key. As a servicer, we've found that nine times out of 10, when we reach struggling federal loan borrowers we are able to help them avoid default by getting them into a repayment plan that works for them. Contact works; let's encourage it. navient.com/views © 2021 Navient Solutions, LLC. All rights reserved. ||| 35

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