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Bulletin: Student Loan Forgiveness Plan Could Reduce Navient's Earnings Potential While Bolstering Liquidity In The Short Term

Published Aug 25, 2022

2 pages (1287 words) — Published Aug 25, 2022

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Abstract:

CENTENNIAL (S&P Global Ratings) Aug. 25, 2022--The Biden administration yesterday announced its plan to provide student loan debt relief to American student loan borrowers. The plan would cancel up to $10,000 in student debt for individuals who earn less than $125,000 per year or are in households earning less than $250,000 per year. Individuals could receive up to $20,000 of relief if they received Pell Grants as low-income students. While some details remain unknown, the announcement ends the speculation regarding the size and scope of the plan. In our view, this announcement could lead to reduced earnings for Navient in the intermediate term but could bolster the company's liquidity in the short term. As of now, our 'BB-' long-term rating

Report Type:

Bulletin

Issuer

Navient Corp.

GICS

Consumer Finance (40202010)

Sector

Global Issuers

Country

United States

Region

United States

Format:

PDF

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Cite this Report


MLA:	S&P Global Ratings’ Credit Research. "Bulletin: Student Loan Forgiveness Plan Could Reduce Navient's Earnings Potential While Bolstering Liquidity In The Short Term" Aug 25, 2022. Alacra Store. May 19, 2024. <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-Student-Loan-Forgiveness-Plan-Could-Reduce-Navient-s-Earnings-Potential-While-Bolstering-Liquidity-In-The-Short-Term-2884820>

APA:	S&P Global Ratings’ Credit Research. (). Bulletin: Student Loan Forgiveness Plan Could Reduce Navient's Earnings Potential While Bolstering Liquidity In The Short Term Aug 25, 2022. New York, NY: Alacra Store. Retrieved May 19, 2024 from <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-Student-Loan-Forgiveness-Plan-Could-Reduce-Navient-s-Earnings-Potential-While-Bolstering-Liquidity-In-The-Short-Term-2884820>

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