On Oct. 21, 2026, Navient Corp. announced its plans to establish a new holding company structure. Under the new structure, the new parent company, Navient Holdings Inc. will become the holding company of Navient LLC and E, Parent Inc. (Earnest). Navient LLC's assets will be in runoff after servicing the debt, and excess cash flows will be partially transferred to the holding company, which it will likely use to fund Earnest’s growth or shareholder distributions. As a result, we revised our outlook on Navient Corp. to negative from stable to reflect its inability to grow without reorganization, potentially aggressive growth strategy towards riskier assets, and a possible shift in funding mix to mainly secured funding as it moves to an
