Investor Presentaiton

Notes on Non-GAAP Financial Measures (Dollars in Millions) 4. Earnings before Interest, Taxes, Depreciation and Amortization Expense ("EBITDA") - This metric measures the operating performance of the Business Processing segment and is used by management and our equity investors to monitor operating performance and determine the value of those businesses. For further detail and reconciliation, see page 29 of Navient's fourth quarter earnings release. 5. Adjusted Tangible Equity Ratio (ATE) - The Adjusted Tangible Equity Ratio measures Navient's tangible equity, relative to its tangible assets. We adjust this ratio to exclude the assets and equity associated with our FFELP portfolio because FFELP Loans are no longer originated and the FFELP portfolio bears a 3% maximum loss exposure under the terms of the federal guaranty. Management believes that excluding this portfolio from the ratio enhances its usefulness to investors. To determine Adjusted Tangible Equity Ratios, we calculate the Adjusted Tangible Equity, (GAAP Total Equity less Goodwill & Acquired Intangible Assets less Equity held for FFELP Loans), and divide by Adjusted Tangible Assets (Total Assets less Goodwill & Acquired Intangible Assets less FFELP Loans). For further detail, see page 29 of Navient's fourth quarter 2020 earnings release. The calculation for Q4 2020 is as follows: Adjusted Tangible Equity = (Equity - Goodwill & Intangibles) - Equity held for FFELP Loans Adjusted Tangible Assets = Total Assets - Goodwill & Intangibles - FFELP Loans Adjusted Tangible Equity = ($2,433 - $735) - (0.005*$58,284) = $1,407 Adjusted Tangible Assets = $87,412 - $735 - $58,284 = $28,393 Adjusted Tangible Equity Adjusted Tangible Assets i. $1,407 $28,393 = 5.0% Pro Forma Adjusted Tangible Equity Ratio - The following provides a pro forma of what the Adjusted Tangible Equity Ratio would be if the cumulative net mark-to-market losses related to derivative accounting under GAAP were excluded. These cumulative losses reverse to $0 upon the maturity of the individual derivative instruments. As these losses are temporary, we believe this pro forma presentation is a useful basis for management and investors to further analyze the Adjusted Tangible Equity Ratio. The pro forma calculation for Q4 2020 is as follows: = Pro Forma Adjusted Tangible Equity Adjusted Tangible Assets - Ending impact of derivative accounting on GAAP equity Pro Forma Adjusted Tangible Equity Adjusted Tangible Assets © 2021 Navient Solutions, LLC. All rights reserved. $1,407 - ($616) $28,393 $2,023 $28,393 = 7.1% ||| 50 50

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