Navient Corp.

Now that the deadline has passed, we expect prepayments to fall. As of June 30, 2024, the company's FFELP loans were down to $32.9 billion, from $37.9 billion at year-end 2023 and $40.9 billion as of June 2023. The blended weighted average life of this portfolio is 7.5 years, assuming a constant prepayment rate of 6%. FFELP loan prepayments caused Navient to write-off the loan premium of the prepaid loans, lowering the net income from its FFELP portfolio to $68 million for the first half of 2024, versus $162 million in the same period of 2023. As of June 30, 2024, the company recorded a contingency loss liability of $105 million related to this matter, and an additional $15 million

...We expect FFELP loan prepayments to slow after accelerated prepayments in the first half of 2024 caused Navient Corp.'s interest income to fall sharply. The Department of Education (DOE) allowed non-federally held FFELP borrowers until June 30, 2024, to consolidate their loans into the direct loan program for them to qualify for certain forgiveness or income-driven payment plans. As a result, FFELP loan prepayments totaled $4.1 billion for the first half of 2024, versus $1.3 billion a year ago. Now that the deadline has passed, we expect prepayments to fall. As of June 30, 2024, the company's FFELP loans were down to $32.9 billion, from $37.9 billion at year-end 2023 and $40.9 billion as of June 2023. The blended weighted average life of this portfolio is 7.5 years, assuming a constant prepayment rate of 6%. FFELP loan prepayments caused Navient to write-off the loan premium of the prepaid loans, lowering the net income from its FFELP portfolio to $68 million for the first half of 2024,...

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