Navient Corporation · NASDAQ:NAVI

Navient — Debt Investor Presentation (October 2021)

32 slides from Navient's debt investor presentation, October 2021

1. Slide 1: SFVegas 2021 - Investor Presentation

   SFVegas 2021 - Investor Presentation October 2021

2. Slide 2: Forward-Looking Statements; Non-GAAP Financial Measures

   Forward-Looking Statements; Non-GAAP Financial Measures The following information is current as of June 30, 2021 (unless otherwise noted) and should be read in connection with Navient Corporation’s “Navient” Annual Report on Form 10-K for the year ended December 31, 2020 (the “2020 Form 10-K”), file

3. Slide 3: We are the leader in education loan management and business processing solutions

   We are the leader in education loan management and business processing solutions for education, healthcare and government clients at the federal, state and local levels We help our clients and millions of Americans achieve financial success through our services and support, leveraging our 45+ years

4. Slide 4: Delivering Long-term Value

   Delivering Long-term Value Federal Education Loans Consumer Lending Business Processing Segment Segment Segment  Providing payment relief to  Originated $1.3 billion of high-  Over 3,600 Navient employees borrowers impacted by quality Private Education support our state and municipal COVID-19 Loa

5. Slide 5: Federal Education Loans Segment “Core Earnings” Basis

   Federal Education Loans Segment “Core Earnings” Basis Selected Financial Information and Ratios 2nd Quarter Highlights ($ In millions) Q2 21 Q1 21 Q2 20 Federal Education Segment net interest margin 0.97% 0.97% 1.07% • Q2 21 Net Interest Margin: 97 basis points • Q2 21 Annualized Charge-off Rate: 4

6. Slide 6: Consumer Lending Segment “Core Earnings” Basis

   Consumer Lending Segment “Core Earnings” Basis Selected Financial Information and Ratios 2nd Quarter Highlights ($ In millions) Q2 21 Q1 21 Q2 20 Consumer Lending • Q2 21 Net Interest Margin: 295 basis points Segment net interest margin 2.95% 2.99% 3.20% • Q2 21 Annualized Charge-off Rate: 71 basis

7. Slide 7: Originating Education Loans is An Attractive Opportunity

   Originating Education Loans is An Attractive Opportunity Sizable Market With Attractive Yields1 Leveraging Our Existing Infrastructure to Generate Value Estimated Total Market Annual Originations and Yields ($’s in billions) • Private Education Refinance Loans: Grad PLUS - Using our data and experti

8. Slide 8: Business Processing Segment “Core Earnings” Basis

   Business Processing Segment “Core Earnings” Basis Selected Financial Information and Ratios 2nd Quarter Highlights ($ In millions) Q2 21 Q1 21 Q2 20 Business Processing Government Services $66 $63 $43 • Q2 21 EBITDA Margin 1: 30% Healthcare RCM Services $64 $62 $21 • Revenue increased $66 million or

9. Slide 9: Funding & Liquidity

   Funding & Liquidity © 2021 Navient Solutions, LLC. All rights reserved. 9

10. Slide 10: Financing and Capital Management

    Financing and Capital Management Capital Management Financing ✓ Returned $227 million through share  Issued $7.5 billion of Term Education Loan repurchases and dividends ABS transactions • Paid dividends of $27 million • On September 21, priced $991 million • Repurchased 11.8 million shares for of

11. Slide 11: Education Loan Portfolio Generates Meaningful Cash Flows Over the Next Five Years

    Education Loan Portfolio Generates Meaningful Cash Flows Over the Next Five Years Projected Annual Private Education Loan Cash Flows Projected Annual FFELP Loan Cash Flows Cash Flows assuming call option can be exercised at 10% Cash Flows assuming trusts run to maturity $1.2 $1.2 $1.1 $1.0 $1.0 $1.0

12. Slide 12: Managing Unsecured Debt Maturities

    Managing Unsecured Debt Maturities (par value, $ in billions) As of July 12th, called $750 million of unsecured debt that would have matured in January of 2022, reducing 2022 maturities to under $1 billion $1.8 $1.7 $1.5 $1.5 $1.4 $1.4 $1.1 $1.1 $0.7 $0.7 $0.6 $0.6 $0.6 $0.5 $0.5 $0.5 $0.2 $0.2 $0.0

13. Slide 13: Secured Funding

    Secured Funding 2021 YTD ABS Issuance ($’s in millions) • 2021 YTD Issuance 1 Santander $15,631 Auto • FFELP ABS Financing 2 GM Financial $11,371 Auto • Issued 2 transactions for $2.0B 3 Toyota $9,350 Auto • Private Education ABS Financing 4 Navient $7,463 Student Loan • Issued 6 transactions for $5

14. Slide 14: Private Education Loan ABS Issuance Characteristics

    Private Education Loan ABS Issuance Characteristics Private Education Loan ABS Transaction Features Collateral Characteristics • Issue size of $500M+ • Collateralized by loans made to students and parents to fund college tuition, room • Senior and subordinate notes and board - Seasoned assets benefi

15. Slide 15: Private Education Loan ABS Transactions

    Private Education Loan ABS Transactions NAVSL 2021-F NAVSL 2021-E Pricing Date: September 21, 2021 July 19, 2021 Settlement Date: September 28, 2021 July 29, 2021 Issuance $991,300,000 $1,019,000,000 Amount: Collateral: Private Education Refi Loans Private Education Refi Loans Prepayment 15% CPR 15%

16. Slide 16: Navient Private Education Loan Programs

    Navient Private Education Loan Programs Smart Option Undergrad/Grad/ Med/Law/MBA Direct-to-Consumer (DTC) Origination Channel School School Direct-to-Consumer Typical Borrower Student Student Student Typical Co-signer Parent Parent Parent $10k avg orig bal, 10 yr avg term, in-school $10k avg orig ba

17. Slide 17: Navient Private Education Loan Programs

    Navient Private Education Loan Programs Consolidation (Legacy) Private Education Refi Private Education Origination Origination Channel Lender Lender School College Graduates & Select Non- Typical Borrower College Graduates Student Graduates Typical Co-signer Parent Parent Parent $15k avg orig bal,

18. Slide 18: FFELP ABS Issuance Characteristics

    FFELP ABS Issuance Characteristics FFELP ABS Transaction Features Collateral Characteristics • Issue size of $500M+ • Guarantee of underlying collateral insulates bondholders from most risk of • Senior and subordinate notes loss of principal 1 • Amortizing tranches with 1 to 10(+) year average lives

19. Slide 19: FFELP ABS Transactions

    FFELP ABS Transactions NAVSL 2021-2 NAVSL 2021-1 Pricing Date: April 12, 2021 February 8, 2021 Settlement Date: April 22, 2021 February 18, 2021 Issuance $1,011,600,000 $1,015,900,000 Amount: U.S. Government Guaranteed U.S. Government Guaranteed Collateral: FFELP Consolidation and FFELP Non-Consolid

20. Slide 20: FFELP Loan Program Characteristics

    FFELP Loan Program Characteristics Parameter Subsidized Stafford Unsubsidized Stafford PLUS/Grad PLUS Consolidation Borrower Student Student Parents or Graduate Students Student or Parents Needs Based Yes No No N/A Federal Guarantee of Principal 97 - 100% 97 - 100% 97 - 100% 97 - 100% and Accrued In

21. Slide 21: Student Loan Options During the National Emergency: What You Need to Know

    Student Loan Options During the National Emergency: What You Need to Know If you have impacted by COVID, options depend on your loan types. Contact your servicer to discuss what’s right for you. Department of Education • These loans have been automatically placed into forbearance (payments suspended

22. Slide 22: Higher Education Industry

    Higher Education Industry © 2021 Navient Solutions, LLC. All rights reserved. 22

23. Slide 23: At $1.6 trillion in student loans, the federal government is the largest non-mortgage consumer lender

    At $1.6 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. • F

24. Slide 24: In its role as a federal student loan servicer, Navient helps borrowers successfully repay their loans

    In its role as a federal student loan servicer, Navient helps borrowers successfully repay their loans Servicers begin helping borrowers navigate repayment after important financial decisions about the total cost and experience of their education have already been made. © 2021 Navient Solutions, LLC

25. Slide 25: The borrowers who struggle most are often non-completers with less than $10,000 in debt

    The borrowers who struggle most are often non-completers with less than $10,000 in debt Borrowers who do not complete a degree … As a result, borrowers who run into trouble default at a rate almost three times higher repaying usually have below-average amounts than borrowers who earned a degree … of

26. Slide 26: Navient Corporation Appendix

    Navient Corporation Appendix © 2021 Navient Solutions, LLC. All rights reserved. 26

27. Slide 27: Navient Continues to Advance Environmental, Social and Governance Initiatives

    Navient Continues to Advance Environmental, Social and Governance Initiatives Social Initiatives Environmental Initiatives Community partnerships • Ongoing efforts to reduce already low carbon footprint • National partnership with Boys & Girls Clubs of America to • Enterprise-wide emphasis on electr

28. Slide 28: Notes on Non-GAAP Financial Measures

    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 Ea

29. Slide 29: Notes on Non-GAAP Financial Measures

    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

30. Slide 30: Differences Between Core Earnings And GAAP

    Differences Between Core Earnings And GAAP Quarters Ended Core Earnings adjustments to GAAP: Jun. 30, Mar. 31, Jun. 30, (Dollars in Millions) 2021 2021 2020 GAAP net income (loss) $185 $370 $125 Net impact of derivative accounting (30) (91) 59 Net impact of goodwill and acquired intangible assets 5

31. Slide 31: Investor Relations Website

    Investor Relations Website www.navient.com/investors www.navient.com/abs • NAVI / SLM student loan trust data (Debt/asset backed securities – NAVI / SLM Student Loan Trusts) - Static pool information – detailed portfolio stratifications by trust as of the cutoff date - Accrued interest factors - Qua

32. Slide 32: NAVIENT.

    NAVIENT.

Navient — Debt Investor Presentation (October 2021) on 6ix