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Investor Presentaiton

Billions, $ At $1.5 trillion in student loans, the federal government is the largest non-mortgage consumer lender Federal loan interest rates, limits and terms are set by Congress. All federal loans are issued directly by the U.S. Department of Education since 2010 when federally guaranteed loans ended. Federal loans have no traditional underwriting, and no truth in lending disclosures. In AY 19-20, ED disbursed $88B in student loans, a decline from peak of $125B in AY 10-11. The number of federal borrowers is up by 52% since 2007. Total student loan originations, by type 110 Federal 100 student 90 loans 80 70 60 50 40 30 20 10 0 2006 2007 2008 2009 2010 2011 2012 2013 Private education loans 2014 2015 Academic year ending in... 2016 2017 2018 2019 2020 Ownership distribution of student loans The increasing dominance of federal student loan originations versus private FFELP guarantors 1.7% Private 8% FFELP loans reflects the federal owned government's massive privately 8.9% involvement in student Perkins loans: it owns or guarantees 92% of the $1.6 trillion outstanding in student loans. 0.4% Dept of Education loan 81% Source: Outstanding data as of 9/30/19 from FSA Data Center and Federal Reserve, Consumer Credit-G. 19, Nov. 2019, originations from College Board, "Trends in Student Aid 2019" ©2021 Navient Solutions, LLC. All rights reserved. 92% of student loans outstanding are owned or guaranteed by the federal government. ||| 33
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