EX-99.1 2 d813524dex991.htm EX-99.1

2014 3 rd Quarter Investor Deck November 4, 2014 Exhibit 99.1

Confidential and proprietary information © 2014 Navient Solutions, Inc. All rights reserved. 2 Forward-Looking Statements; Non-GAAP Financial Measures The following information is current as of November 4, 2014 (unless otherwise noted) and should be read in connection with the Registration Statement on Form 10, as amended (the “Form 10”), filed by Navient Corporation (“Navient”) with the Securities and Exchange Commission (the “SEC”) on April 10, 2014 and subsequent reports filed by Navient with the SEC. Definitions for capitalized terms in this presentation not defined herein can be found in the Form 10. This presentation contains forward-looking statements and information based on management’s current expectations as of the date of this presentation. Statements that are not historical fact, including statements about the beliefs and expectations of Navient and statements that assume or are dependent upon future events, are forward-looking statements. Forward-looking statements are subject to risks, uncertainties, assumptions and other factors that may cause actual results to be materially different from those reflected in such forward-looking statements. These factors include, among others: the risks and uncertainties set forth in Item 1A “Risk Factors” and elsewhere in the Form 10, and the subsequent filings of Navient with the SEC; increases in financing costs; limits on liquidity; increases in costs associated with compliance with laws and regulations; changes in accounting standards and the impact of related changes in significant accounting estimates; any adverse outcomes in any significant litigation to which Navient is a party; credit risk associated with exposure to third parties, including counterparties to derivative transactions; and changes in the terms of student loans and the educational credit marketplace (including changes resulting from new laws and the implementation of existing laws). Navient could also be affected by, among other things: changes in its funding costs and reductions to its credit ratings or the credit ratings of the United States of America; failures of its operating systems or infrastructure, as well as those of third-party vendors; damage to its reputation; failures to successfully implement cost- cutting and adverse effects of such initiatives on its business; risks associated with the recently completed separation of Navient from SLM Corporation, including failure to achieve the expected benefits of the separation; changes in law and regulations with respect to the student lending business and financial institutions generally; increased competition from other loan servicers; the creditworthiness of its customers; changes in the general interest rate environment, including the rate relationships among relevant money- market instruments and those of its earning assets vs. its funding arrangements; changes in general economic conditions; the company’s ability to successfully effectuate any acquisitions and other strategic initiatives; and changes in the demand for debt management services. The preparation of Navient’s consolidated financial statements also requires management to make certain estimates and assumptions, including estimates and assumptions about future events. These estimates or assumptions may prove to be incorrect. All forward-looking statements contained in this release are qualified by these cautionary statements and are made only as of the date of this release. Navient does not undertake any obligation to update or revise these forward-looking statements to conform the statement to actual results or changes in expectations. Navient reports financial results on a GAAP basis and also provides certain core earnings performance measures. When compared to GAAP results, core earnings exclude the impact of: (1) the financial results of the consumer banking business for historical periods prior to the April 30, 2014 spin-off as well as related restructuring and reorganization expenses incurred in connection with the spin-off; (2) unrealized, mark-to-market gains/losses on derivatives; and (3) goodwill and acquired intangible asset amortization and impairment. Navient provides core earnings measures because this is what management uses when making management decisions regarding Navient’s performance and the allocation of corporate resources. Navient core earnings are not defined terms within GAAP and may not be comparable to similarly titled measures reported by other companies. For additional information, see “Core Earnings — Definition and Limitations” in Navient’s third quarter earnings release for a further discussion and a complete reconciliation between GAAP net income and core earnings.

Confidential and proprietary information © 2014 Navient Solutions, Inc. All rights reserved. 3 Navient Corporation Overview

Confidential and proprietary information © 2014 Navient Solutions, Inc. All rights reserved. 4 We are the leading loan management, servicing and asset recovery company Key Businesses Highlights Asset Management • FFELP Loan Portfolio • Private Education Loan Portfolio • $98 Billion FFELP Portfolio • $30 Billion Private Education Loan Portfolio Servicing • FFELP Loans • Private Education Loans • Department of Education Servicing Contract • Guarantor Servicing • Over 12 Million Borrowers • Over $300 Billion of Education Loans Asset Recovery • Education loans • Government receivables • Taxes • Court/Municipal • Schools • $16 Billion of Receivables • Consistent Top Performer on the Department of Education Collections Contract

Confidential and proprietary information © 2014 Navient Solutions, Inc. All rights reserved. 5 Operating Results “Core Earning” Basis (In millions, except per share amounts) Q3 14 Q2 14 Q3 13 Net income $218 $241 $259 EPS $0.52 $0.56 $0.58 Operating expenses $195 $195 $190 Provision $140 $155 $187 Average student loans $129,915 $131,875 $138,572

Confidential and proprietary information © 2014 Navient Solutions, Inc. All rights reserved. 6 FFELP Loans Segment “Core Earnings” Basis (In millions) Q3 14 Q2 14 Q3 13 Net income $79 $72 $91 Average FFELP Loans $98,736 $100,467 $106,316 FFELP Loan spread 1.02% 0.98% 1.03% Annualized charge-off rate 0.08% 0.08% 0.07% Greater than 90-day delinquency rate 7.6% 7.0% 8.8% • Acquired $1.8 billion of FFELP loans year to date

Confidential and proprietary information © 2014 Navient Solutions, Inc. All rights reserved. 7 FFELP Loans Segment Portfolio Characteristics • Largest holder of FFELP Loans, $98 billion portfolio (1) • Portfolio is 97-98% government guaranteed • 87% of portfolio funded to term with securitizations • Fully integrated servicing and asset recovery support operations (1) Ending FFELP Loans, net, as of September 30, 2014

8 Confidential and proprietary information © 2014 Navient Solutions, Inc. All rights reserved. FFELP Loans Segment Credit Quality “Core Earnings” Basis ($'s in millions) FFELP Education Loan Portfolio September 30, 2014 September 30, 2013 Balance % Balance % Loans in-school/grace/deferment $10,868 $14,484 Loans in forbearance 14,452 13,004 Loans in repayment and percentage of each status Loans current 60,693 84.9% 63,586 82.9% Loans delinquent 31-60 days 3,538 4.9% 3,706 4.8% Loans delinquent 61-90 days 1,878 2.6% 2,673 3.5% Loans delinqent greater than 90 days 5,399 7.6% 6,751 8.8% Total FFELP Loans in repayment 71,508 100% 76,716 100% Total FFELP Loans, gross $96,828 $104,204 Percentage of FFELP Loans in repayment 73.9% 73.6% Delinquencies as a percentage of FFELP Loans in repayment 15.1% 17.1% Loans in forbearance as a percentage of loans in repayment and forbearance 16.8% 14.5%

9 Confidential and proprietary information © 2014 Navient Solutions, Inc. All rights reserved. Federal Student Loan Market Source: Department of Education, U.S. Department of Education FY 2013 Agency Financial Report, Navient Outstanding Government Student Loan Market Distribution FFYE 9/30/2013 ($ in billions)

10 Confidential and proprietary information © 2014 Navient Solutions, Inc. All rights reserved. Top Holders of FFELP Loans Excluding Navient Top Ten Not-For-Profit Holders of FFELP Loans Lender $’s in Billions Brazos $8.7 PHEAA $7.3 Access Group $4.1 Northstar $3.4 MOHELA $2.9 EdSouth $2.4 College Foundation $2.4 SC Student Loan $2.4 Edsouth Services $1.8 KHESLC $1.3 Total Not-For-Profit $37 Top Ten For-Profit Holders of FFELP Loans Lender $’s in Billions Nelnet $25.2 Wells Fargo $12.9 Chase $7.5 PNC $6.1 CLC $5.7 Goal Financial $5.6 SunTrust $5.5 Student Loan Express $3.6 Bank of America $3.6 U.S. Bank $3.0 Total For-Profit $79 *Source: Navient 9/30/2013 estimates based on US ED Top 100 Holder 2013 and 2012 report

11 Confidential and proprietary information © 2014 Navient Solutions, Inc. All rights reserved. Private Education Loans Segment “Core Earnings” Basis ($’s in millions) Q3 14 Q2 14 Q3 13 Net income $98 $86 $75 Average Private Education Loans $31,179 $31,408 $32,256 Private Education Loan spread 4.06% 4.10% 4.12% Provision for loan losses $130 $145 $176 Charge-offs $158 $166 $205 Annualized charge-off rate 2.3% 2.5% 2.9% Total delinquency rate 7.9% 7.1% 9.8% Greater than 90-day delinquency rate 3.4% 3.2% 4.2% Forbearance rate 4.4% 4.2% 3.8% • Acquired $1.6 billion of Private Education Loans year to date

12 Confidential and proprietary information © 2014 Navient Solutions, Inc. All rights reserved. Private Education Loans Segment Portfolio Characteristics • $30 billion portfolio (1) • 24% of Navient’s total student loan portfolio • Approximately 64% of portfolio has a cosigner, typically a parent • Average FICO at origination of 718 • Higher education loans typically non-dischargeable in bankruptcy • Integrated underwriting, servicing and collections (1) Ending Private Education Loans, net, as of September 30, 2014

13 Confidential and proprietary information © 2014 Navient Solutions, Inc. All rights reserved. Private Education Loans Segment Credit Quality “Core Earnings” Basis ($'s in millions) Private Education Loan Portfolio September 30, 2014 September 30, 2013 Balance % Balance % Loans in-school/grace/deferment $3,436 $3,850 Loans in forbearance 1,258 1,103 Loans in repayment and percentage of each status Loans current 24,963 92.1% 25,389 90.2% Loans delinquent 31-60 days 732 2.7% 929 3.3% Loans delinquent 61-90 days 468 1.8% 627 2.3% Loans delinqent greater than 90 days 929 3.4% 1,187 4.2% Total Private Education Loans in repayment 27,092 100% 28,132 100% Total Private Education Loans, gross $31,786 $33,085 Percentage of Private Education Loans in repayment 85.2% 85.0% Delinquencies as a percentage of Private Education Loans in repayment 7.9% 9.8% Loans in forbearance as a percentage of loans in repayment and forbearance 4.4% 3.8%

14 Confidential and proprietary information © 2014 Navient Solutions, Inc. All rights reserved. Private Education Loans Segment High Quality Portfolio Private Credit: % of Portfolio Outstanding by Segment Private Credit Charge-Off Rate by Segment Low Risk = Smart Option, Legacy Traditional Cosigned, and Law/MBA/MED/CT/Other Moderate Risk = Legacy Traditional Non-Cosigned Elevated Risk = Non-Traditional

15 Confidential and proprietary information © 2014 Navient Solutions, Inc. All rights reserved. Private Education Loans Segment Default Performance Historical Defaults by Payments Made • Seasoned portfolio with 91% of loans having made more than 12 payments • The probability of default substantially diminishes as the number of payments and years of seasoning increases

16 Confidential and proprietary information © 2014 Navient Solutions, Inc. All rights reserved. Loan Seasoning – “Core Earnings” Basis September 30, 2014 Traditional Portfolio Monthly Scheduled Payments Due Loan Status 0-12 payments 13-24 payments 25-36 payments 37-48 payments More than 48 payments Total Not Yet in Repayment $ - $ - $ - $ - $ - $ 3,128 Loans in Forbearance 466 17.8% 183 5.3% 157 3.8% 126 2.9% 177 1.5% 1,110 4.3% Loans in Repayment- Current 1,783 67.9% 2,920 85.0% 3,653 88.4% 3,927 91.0% 10,910 94.5% 23,193 89.0% Loans in Repayment- Delinq 31-60 days 131 5.0% 107 3.1% 109 2.6% 95 2.2% 178 1.6% 620 2.4% Loans in Repayment- Delinq 61-90 days 90 3.4% 70 2.1% 70 1.7% 58 1.3% 99 0.9% 386 1.5% Loans in Repayment- Delinq 90 + days 155 5.9% 155 4.5% 144 3.5% 111 2.6% 177 1.5% 742 2.8% Total Loans in Repayment or Forbearance $ 2,625 100% $ 3,435 100% $ 4,133 100% $ 4,317 100% $ 11,541 100% $ 26,051 100% Charge-offs as a % of loans in repayment 5.3% 3.5% 2.0% 1.4% 0.9% 1.9% Non-Traditional Portfolio Monthly Scheduled Payments Due Loan Status 0-12 payments 13-24 payments 25-36 payments 37-48 payments More than 48 payments Total Not Yet in Repayment $ - $ - $ - $ - $ - $ 308 Loans in Forbearance 75 21.8% 24 6.7% 17 4.9% 12 3.8% 20 2.2% 148 6.4% Loans in Repayment- Current 178 51.4% 253 70.7% 268 76.1% 256 80.7% 815 88.0% 1,770 77.0% Loans in Repayment- Delinq 31-60 days 27 7.8% 21 5.8% 20 5.5% 14 4.4% 30 3.2% 112 4.9% Loans in Repayment- Delinq 61-90 days 23 6.6% 16 4.5% 13 3.8% 10 3.2% 20 2.2% 82 3.6% Loans in Repayment- Delinq 90 + days 43 12.4% 44 12.3% 34 9.7% 25 7.9% 41 4.4% 187 8.1% Total Loans in Repayment or Forbearance $ 346 100% $ 358 100% $ 352 100% $ 317 100% $ 926 100% $ 2,299 100% Charge-offs as a % of loans in repayment 15.9% 11.6% 6.7% 5.1% 3.1% 7.0% Total Managed Monthly Scheduled Payments Due Loan Status 0-12 payments 13-24 payments 25-36 payments 37-48 payments More than 48 payments Total Not Yet in Repayment $ - $ - $ - $ - $ - $ 3,436 Loans in Forbearance 542 18.2% 207 5.5% 174 3.9% 138 3.0% 197 1.6% 1,258 4.4% Loans in Repayment- Current 1,961 66.0% 3,173 83.6% 3,921 87.4% 4,183 90.3% 11,725 94.0% 24,963 88.1% Loans in Repayment- Delinq 31-60 days 158 5.3% 128 3.4% 129 2.9% 109 2.3% 208 1.7% 732 2.6% Loans in Repayment- Delinq 61-90 days 112 3.8% 86 2.3% 83 1.8% 68 1.5% 119 1.0% 468 1.6% Loans in Repayment- Delinq 90 + days 198 6.7% 199 5.2% 178 4.0% 136 2.9% 218 1.8% 929 3.3% Total Loans in Repayment or Forbearance $ 2,971 100% $ 3,793 100% $ 4,485 100% $ 4,634 100% $ 12,467 100% $ 28,350 100% Charge-offs as a % of loans in repayment 6.6% 4.3% 2.4% 1.7% 1.1% 2.3%

17 Confidential and proprietary information © 2014 Navient Solutions, Inc. All rights reserved. Loan Seasoning – “Core Earnings” Basis September 30, 2013 Traditional Portfolio Monthly Scheduled Payments Due Loan Status 0-12 payments 13-24 payments 25-36 payments 37-48 payments More than 48 payments Total Not Yet in Repayment $ - $ - $ - $ - $ - $ 3,446 Loans in Forbearance 448 12.3% 165 3.7% 142 2.8% 88 2.0% 123 1.3% 966 3.6% Loans in Repayment- Current 2,546 70.2% 3,752 85.6% 4,548 89.2% 4,039 91.5% 8,692 94.2% 23,577 88.1% Loans in Repayment- Delinq 31-60 days 187 5.2% 154 3.5% 147 2.9% 112 2.5% 177 1.9% 777 2.9% Loans in Repayment- Delinq 61-90 days 161 4.4% 105 2.4% 88 1.7% 64 1.5% 88 1.0% 506 1.9% Loans in Repayment- Delinq 90 + days 285 7.9% 209 4.8% 172 3.4% 112 2.5% 145 1.6% 923 3.5% Total Loans in Repayment or Forbearance $ 3,627 100% $ 4,385 100% $ 5,097 100% $ 4,415 100% $ 9,225 100% $ 26,749 100% Charge-offs as a % of loans in repayment 5.0% 2.9% 1.9% 1.4% 1.0% 2.3% Non-Traditional Portfolio Monthly Scheduled Payments Due Loan Status 0-12 payments 13-24 payments 25-36 payments 37-48 payments More than 48 payments Total Not Yet in Repayment $ - $ - $ - $ - $ - $ 404 Loans in Forbearance 78 14.2% 21 4.9% 14 3.8% 9 2.7% 15 1.9% 137 5.5% Loans in Repayment- Current 290 52.6% 290 68.2% 279 74.2% 267 79.7% 686 85.9% 1,812 72.9% Loans in Repayment- Delinq 31-60 days 41 7.4% 31 7.3% 25 6.7% 20 6.0% 35 4.4% 152 6.1% Loans in Repayment- Delinq 61-90 days 44 8.0% 25 5.9% 18 4.7% 12 3.6% 22 2.7% 121 4.9% Loans in Repayment- Delinq 90 + days 98 17.8% 58 13.7% 40 10.6% 27 8.0% 41 5.1% 264 10.6% Total Loans in Repayment or Forbearance $ 551 100% $ 425 100% $ 376 100% $ 335 100% $ 799 100% $ 2,486 100% Charge-offs as a % of loans in repayment 16.4% 12.7% 7.4% 5.4% 3.6% 8.9% Total Managed Monthly Scheduled Payments Due Loan Status 0-12 payments 13-24 payments 25-36 payments 37-48 payments More than 48 payments Total Not Yet in Repayment $ - $ - $ - $ - $ - $ 3,850 Loans in Forbearance 526 12.6% 186 3.9% 156 2.8% 97 2.0% 138 1.4% 1,103 3.8% Loans in Repayment- Current 2,836 67.9% 4,042 84.0% 4,827 88.2% 4,306 90.7% 9,378 93.5% 25,389 86.8% Loans in Repayment- Delinq 31-60 days 228 5.4% 185 3.8% 172 3.1% 132 2.8% 212 2.1% 929 3.2% Loans in Repayment- Delinq 61-90 days 205 4.9% 130 2.7% 106 1.9% 76 1.6% 110 1.1% 627 2.1% Loans in Repayment- Delinq 90 + days 383 9.2% 267 5.6% 212 3.9% 139 2.9% 186 1.9% 1,187 4.1% Total Loans in Repayment or Forbearance $ 4,178 100% $ 4,810 100% $ 5,473 100% $ 4,750 100% $ 10,024 100% $ 29,235 100% Charge-offs as a % of loans in repayment 6.3% 3.8% 2.3% 1.8% 1.2% 2.9%

18 Confidential and proprietary information © 2014 Navient Solutions, Inc. All rights reserved. Business Services Segment “Core Earnings” Basis (In millions) Q3 14 Q2 14 Q3 13 Net income $85 $130 $127 Federal Loans serviced ($’s in billions) $277 $272 $262 Third-Party Loan servicing revenue $46 $42 $39 Asset recovery revenue $65 $132 $104 Department of Education accounts serviced 6.1 5.8 5.7 Contingency asset recovery receivables $15,988 $16,298 $15,209 • Asset recovery revenue in Q3 14 was reduced by $39 million from Q3 13 primarily due to The Bipartisan Budget Act of 2013. The Budget Act reduced the amount paid to guaranty agencies for rehabilitating defaulted FFELP Loans beginning on July 1, 2014

19 Confidential and proprietary information © 2014 Navient Solutions, Inc. All rights reserved. Business Services Segment Federal Loan Servicing & Customer Success Federal Loans Serviced by Navient • Largest servicer of federal student loans • Federal loans serviced by Navient have a 40% better cohort default rate • Federal borrowers serviced by Navient are less likely to postpone paying their loans by using forbearance • Every week we help nearly 1,200 borrowers rehabilitate their loans • Direct Loan borrowers serviced by Navient are more likely to be in income-based repayment plans • We promote success through more than 50 million communications annually Key Characteristics

20 Confidential and proprietary information © 2014 Navient Solutions, Inc. All rights reserved. Business Services Segment Asset Recovery Contingency Asset Recovery Receivables • Generated $308 million of revenue in the first nine months of 2014 • Consistent top performer on the Department of Education collections contract • Strong compliance infrastructure • Opportunities to expand market share in student loans and other asset classes Key Characteristics

21 Confidential and proprietary information © 2014 Navient Solutions, Inc. All rights reserved. Funding and Liquidity

22 Confidential and proprietary information © 2014 Navient Solutions, Inc. All rights reserved. 2014 Capital Markets Summary • Issued $4.0 billion of FFELP ABS • Closed on an $8 billion FFELP ABCP facility • Refinanced $1.1 billion of FFELP reset notes to term • Issued $1.8 billion of Private ABS • Closed on a $1 billion Private ABCP facility • Issued $850 million of long-term unsecured debt • Returned $621 million to shareholders through share repurchases and dividends (1) • Maintained strong capital position (1) As of September 30, 2014

23 Confidential and proprietary information © 2014 Navient Solutions, Inc. All rights reserved. Secured Funding • Navient is among the largest issuers of ABS globally, having issued over $250 billion of Private and FFELP ABS transactions to date • Over $105 billion of securitizations on balance sheet • Additional capacity under FFELP secured facilities is $11 billion • Maximum capacity under Private Education Loan secured facilities is $1 billion 2014 YTD Issuance Issuer Total ($mm) Asset Class 1 Ally 12,239 Auto 2 Ford 9,381 Auto 3 Citigroup 9,050 Credit Card 4 Santander Drive 6,184 Auto 5 Chase 6,050 Credit Card 6 Navient (1) 5,799 Student Loan 7 Discover 5,050 Credit Card 8 Volkswagen 4,999 Auto 9 Toyota 4,414 Auto 10 Capital One 4,300 Credit Card 11 Bank America 4,100 Credit Card 12 AMEX 3,887 Credit Card 13 Hyundai 3,821 Auto 14 Honda 3,500 Auto 15 GE Capital 3,267 Equipment 16 Nelnet 3,248 Student Loan 17 AmeriCredit 3,150 Auto 18 Mercedes-Benz 3,112 Auto 19 CNH 3,022 Equipment 20 CarMax 2,922 Auto (1) Includes previous issuing entities: SLM Student Loan Trust and SLM Private Education Loan Trust (Bloomberg ticker: SLMA) Source: J.P. Morgan Research As of September 30, 2014

24 Confidential and proprietary information © 2014 Navient Solutions, Inc. All rights reserved. Recent FFELP ABS Transactions (1) Estimated based on a variety of assumptions concerning loan repayment behavior, as more fully described in the related prospectus, which may be obtained at https://www.navient.com/about/investors/debtasset/. Actual average life may vary significantly from estimates. (2) Pricing represents the yield to expected call. NAVSL 2014-2 thru 2014-7 NAVSL 2014-1 SLM 2014-2 Priced Settled August 7, 2014 August 14, 2014 May 20, 2014 May 29, 2014 March 18, 2014 March 27, 2014 Issuance Amount $1,264M $747M $992M Collateral US Govt. Guaranteed or Insured FFELP Consolidation loans US Govt. Guaranteed or Insured FFELP Stafford, Plus and Consolidation Loans US Govt. Guaranteed or Insured FFELP Stafford and Plus Loans Prepayment Speed (1) 4% Constant Prepayment Rate 6% CPR Stafford / 4% CPR Consolidation 6% Constant Prepayment Rate Tranching Rating Amt WAL (1) Pricing (2) A Aaa $1,230 8.4 L+62 B Aa1 $34 18.4 L+220 Rating Amt WAL (1) Pricing (2) A-1 Aaa $216 1.3 L+25 A-2 Aaa $101 3.3 L+31 A-3 Aaa $350 6.8 L+51 A-4 Aaa $60 10.6 L+75 B Aa1 $20 10.6 L+190 Rating Amt WAL (1) Pricing (2) A-1 Aaa $268 1.3 L+25 A-2 Aaa $191 3.3 L+35 A-3 Aaa $506 6.8 L+59 B Aa1 $27 9.1 L+190

25 Confidential and proprietary information © 2014 Navient Solutions, Inc. All rights reserved. Recent Private Education Loan ABS Transactions (1) Estimated based on a variety of assumptions concerning loan repayment behavior, as more fully described in the related prospectus, which may be obtained at https://www.navient.com/about/investors/debtasset/slmsltrusts/. Actual average life may vary significantly from estimates. (2) Yield on fixed rate A-2 tranches were 2.77% and 2.59% for NAVSL 2014-A and SLM 2014-A, respectively. Yield on fixed rate B tranches were 4.65% and 4.73% for NAVSL 2014-A and SLM 2014-A, respectively. NAVSL Trust 2014-A NAVSL Trust 2014-CT SLM Trust 2014-A Priced Settled October 15, 2014 October 23, 2014 July 15, 2014 July 24, 2014 February 25, 2014 March 6, 2014 Issuance Amount $664M $463M $676M Collateral Private Education Loans Private Education Loans Private Education Loans Prepayment Speed (1) 4% Constant Prepayment Rate 6% Constant Prepayment Rate 4% Constant Prepayment Rate Tranching Rating Amt WAL (1) Pricing (2) A -1 Aaa $186 1.0 L+48 A-2A Aaa $168 5.8 s+115 A-2B Aaa $168 5.8 L+125 A-3 Aaa $76 9.7 L+160 B A $66 10.6 s+240 Rating Amt WAL (1) Pricing A-1 Aaa $394 2.2 L+70 B A $69 6.6 L+215 Rating Amt WAL (1) Pricing (2) A -1 Aaa $355 1.8 L+60 A-2A Aaa $77 4.6 s+115 A-2B Aaa $77 4.6 L+115 A-3 Aaa $100 6.4 Not offered B A $67 7.2 s+225

26 Confidential and proprietary information © 2014 Navient Solutions, Inc. All rights reserved. Unsecured Debt Fitch Moody’s S&P Senior Unsecured Debt BB Ba3 BB Outlook Stable Stable Stable

27 Confidential and proprietary information © 2014 Navient Solutions, Inc. All rights reserved. Confidential and proprietary information © 2012 Sallie Mae, Inc. All rights reserved. Projected Life of Loan Cash Flows *Floor income projected using 9/30/2014 yield curve. These projections are based on internal estimates and assumptions and are subject to ongoing review and modification. These projections may prove to be incorrect. • Since 12/31/13, we have added $2.9 billion of cash flows through new loan acquisitions and improved portfolio performance • $36 billion of estimated future cash flows over ~ 20 years - Highly predictable - Includes ~$11 billion of overcollateralization (O/C) to be released from residuals - Continuing low interest rate environment will increase future floor revenue - Acquisitions of additional education loan portfolios will increase future cash flows • Significant pool of cash available for shareholder distributions Key Portfolio Characteristics Cash Flow Projection as of 12/31/13 $35.3 B - Sep YTD 2014 Cash Flows & Refinancing's (2.2)B + Loan Acquisitions, net of Financings 2.3 B + Additional Floor Income 0.4 B + Credit Improvement 0.2 B Total Additions 2.9 B Cash Flow Projection as of 9/30/14 $36.0 B Education Loan Portfolio Generates Significant Cash Flows

28 Confidential and proprietary information © 2014 Navient Solutions, Inc. All rights reserved. FFELP Cash Flows Highly Predictable • Total Cash Flows from Projected Excess Spread = $7.0 Billion • Total Cash Flows from Projected Servicing Revenues = $3.9 Billion Assumptions No Floor Income, CPR/CDR = Stafford & Plus (4.0%), Consolidation (3.0%) These projections are based on internal estimates and assumptions and are subject to ongoing review and modification. These projections may prove to be incorrect. *Numbers may not add due to rounding as of 9/30/14 4Q 2014 2015 2016 2017 2018 2019 2020 2021 Projected FFELP Average Balance $94,471 $89,240 $80,752 $72,614 $65,178 $57,821 $50,777 $44,106 Projected Excess Spread $223 $843 $800 $712 $646 $575 $501 $448 Projected Servicing Revenue $178 $489 $451 $413 $377 $338 $297 $256 Projected Total Revenue $401 $1,332 $1,251 $1,124 $1,023 $913 $798 $703 2022 2023 2024 2025 2026 2027 2028 2029+ Projected FFELP Average Balance $37,831 $32,075 $26,858 $22,649 $18,940 $15,406 $12,060 $4,444 Projected Excess Spread $403 $349 $292 $242 $215 $187 $156 $384 Projected Servicing Revenue $216 $180 $148 $124 $104 $86 $68 $161 Projected Total Revenue $620 $530 $440 $365 $319 $272 $224 $545

29 Confidential and proprietary information © 2014 Navient Solutions, Inc. All rights reserved. Secured Cash Flow Note: Totals may not add due to rounding * Net residual represents excess distribution, net of payments on floor contracts and receipts from basis swaps 3Q14 YTD 2013 2012 2011 Servicing (Cash Paid) $ 363 $ 507 $ 526 $ 563 Net Residual* (Excess Distributions) 512 476 628 715 Net Cash Flow 134 1,199 934 568 $ 1,008 $ 2,182 $ 2,088 $ 1,846 Servicing (Cash Paid) $ 142 $ 198 $ 181 $ 189 Residual (Excess Distribution) 171 170 103 28 Net Cash Flow 11 9 22 2 $ 325 $ 377 $ 306 $ 219 Total Proceeds from Residual Sales $ 589 $ 1,333 $ 3,148 $ 2,394 $ 2,065 3Q14 YTD 2013 2012 2011 $ 89,256 $ 95,055 $ 104,913 $ 109,509 6,091 11,085 22,271 29,466 $ 95,347 $ 106,140 $ 127,184 $ 138,975 $ 24,512 $ 26,037 $ 25,111 $ 25,619 1,541 1,106 1,875 233 $ 26,053 $ 27,143 $ 26,987 $ 25,853 $ 121,400 $ 133,283 $ 154,171 $ 164,828 Total Private Credit Total FFELP and Private Credit Term FFELP Other Secured FFELP Total FFELP Private Credit Term Private Credit Other Secured Financings FFELP FFELP Term Securitized Other Secured FFELP Total FFELP Private Credit Term Securitized Other Secured Financings Total Private Credit Total FFELP and Private Credit Average Principal Balances $ in Millions

30 Confidential and proprietary information © 2014 Navient Solutions, Inc. All rights reserved. FFELP ABS Appendix

31 Confidential and proprietary information © 2014 Navient Solutions, Inc. All rights reserved. Recent FFELP ABS Issuance Characteristics FFELP ABS Transaction Features Collateral Characteristics • Issue size of $500M to $1.5B • Tranches or pass-through denominated in US$ • Triple-A rated senior notes make up to 97% of issue structure • Floating rate tied to 1 month LIBOR • Amortizing tranches with 1 to 15(+) year average lives • Navient Solutions, Inc. is servicer or master servicer • Insurance or guarantee of underlying collateral insulates bondholders from virtually any loss of principal (1) • Typically non-dischargeable in bankruptcy • Formerly a 20% risk-weighted asset, now a <10% risk-weighted under Basel II’s IRB methodology • Offer significantly higher yields than government agency securities with comparable risk profiles (1) Principal and accrued interest on underlying FFELP loan collateral carry insurance or guarantee of 97%-100% dependent on origination year and on meeting the servicing requirements of the U.S. Department of Education.

32 Confidential and proprietary information © 2014 Navient Solutions, Inc. All rights reserved. FFELP Loan Program Characteristics (1) Aggregate loan limit for a Dependent Undergraduate is $31,000 Note: As of July 1, 2011 . Parameter Subsidized Stafford Unsubsidized Stafford PLUS/Grad PLUS Subsidized Consolidation Unsubsidized Consolidation Borrower Student Student Parents or Graduate Students Student or Parents Student or Parents Needs Based Yes No No N/A N/A Federal Guarantee of Principal and Accrued Interest 97 - 100% 97 - 100% 97 - 100% 97 - 100% 97 - 100% Interest Subsidy Payments Yes No No Yes No Special Allowance Payments (SAP) Yes Yes If cap is reached Yes Yes Repayment Term 120 months 120 months 120 months Up to 360 months Up to 360 months Aggregate Loan Limit Undergraduate: $23,000 Graduate: $65,500 Undergraduate¹: $57,500 Graduate: $138,500 None None None

33 Confidential and proprietary information © 2014 Navient Solutions, Inc. All rights reserved. Navient Stafford & PLUS Loan Prepayments • Annualized CPRs for Stafford/PLUS ABS trusts have decreased significantly as incentives for borrowers to consolidate have declined • After a temporary increase in mid 2012 due to the Special Direct Consolidation Loan program, CPRs decreased in the fourth quarter of 2012 * Quarterly CPR assumes School and Grace loans are not scheduled to make payments. Deferment, Forbearance and Repayment loans are scheduled to make payments.

34 Confidential and proprietary information © 2014 Navient Solutions, Inc. All rights reserved. Navient Consolidation Loan Prepayments • CPRs for Consolidation ABS trusts declined significantly following legislation effective in 2006 that prevented in-school and re-consolidation of borrowers’ loans • After a temporary increase in mid 2012 due to the Special Direct Consolidation Loan program, CPRs decreased in the fourth quarter of 2012 * Quarterly CPR assumes School and Grace loans are not scheduled to make payments. Deferment, Forbearance and Repayment loans are scheduled to make payments.

35 Confidential and proprietary information © 2014 Navient Solutions, Inc. All rights reserved. Private Education Loan ABS Appendix

36 Confidential and proprietary information © 2014 Navient Solutions, Inc. All rights reserved. Recent Private Education Loan ABS Issuance Characteristics Private Education Loan ABS Transaction Features Collateral Characteristics • Issue size of $500M to $1.5B • Triple-A rated senior notes, Single-A rated subordinated notes • 20-30% Triple-A overcollateralization • Amortizing tranches with 1 to 10 year average lives • Fixed rate or floating rate tied to 1 month LIBOR • Complies with European risk retention (5% retention) • Navient Solutions, Inc. is servicer or master servicer • Collateralized by loans made to students and parents to fund college tuition, room and board • Underwritten using FICO, Custom Scorecard & judgmental criteria w/risk based pricing • 70-80% with cosigners, typically a parent • Many seasoned assets benefiting from proven payment history • Typically non-dischargeable in bankruptcy

37 Confidential and proprietary information © 2014 Navient Solutions, Inc. All rights reserved. Navient Private Education Loan Programs Smart Option Undergraduate/Graduate/ Med/Law/MBA Direct-to-Consumer (DTC) Consolidation Career Training Origination Channel School School Direct-to-Consumer Lender School Typical Borrower Student Student Student College Graduates Student Typical Co-signer Parent Parent Parent Parent Parent, Spouse Typical Loan $10k avg orig bal, 10 yr avg term, in-school payments of interest only, $25 or fully deferred $10k avg orig bal, 15 yr term, deferred payments $12k avg orig bal, 15 yr term, deferred payments $43k avg orig bal, 15-30 year term depending on balance, immediate repayment $9k avg orig bal, up to 15 yr term, immediate payments Origination Period March 2009 to April 2014 All history through 2014 2004 through 2008 2006 through 2008 1998 through 2014 Certification and Disbursement School certified and disbursed School certified and disbursed Borrower self-certified, disbursed to borrower Proceeds to lender to pay off loans being consolidated School certified and disbursed Borrower Underwriting FICO, custom credit score model, and judgmental underwriting Primarily FICO Primarily FICO FICO and Debt-to-Income FICO, Debt-to-Income and judgmental underwriting Borrowing Limits $200,000 $100,000 Undergraduate, $150,000 Graduate $130,000 $400,000 Cost of attendance plus up to $6,000 for expenses Current ABS Sec. Criteria For-Profit; FICO > 670 For-Profit; FICO > 670 FICO > 670 For-Profit; FICO > 670 FICO > 670 Non-Profit; FICO > 640 Non-Profit; FICO > 640 Non-Profit; FICO > 640 School UW No No No No Yes Historical Risk-Based Pricing L + 2% to L + 14% P-1.5% to P+7.5% P+1% to P+6.5% P - 0.5% to P + 6.5% P+0% to P+9% L+0% to L+15% L+6% to L+12% L+6.5% to L+14% Dischargeable in Bankruptcy No No No No Yes Additional Characteristics Made to students and parents primarily through college financial aid offices to financial aid offices to fund 2- fund 2-year, 4-year and graduate school college tuition, room and board Also available on a limited basis to students and parents Med and MBA Loan brands to fund non-degree granting secondary education, including community college, part time, technical and trade school programs Both Title IV and non-Title IV schools (1) Made to students and parents through college year, 4-year and graduate school college tuition, room and board Signature, Excel, Law, Title IV schools only (1) Freshmen must have a co- signer with limited exceptions Co-signer stability test (minimum 3 year repayment history) Terms and underwriting criteria similar to Undergraduate, Graduate, Med/Law/MBA with primary differences being: Marketing channel No school certification Disbursement of proceeds directly to borrower Title IV schools only (1) Freshmen must have a co- signer with limited exceptions Co-signer stability test (minimum 3 year repayment history) Loans made to students and parents to refinance one or more private education loans Student must provide proof community college, part time, of graduation in order to obtain loan Loans made to students and parents to fund non- degree granting secondary education, including technical, trade school and tutorial programs Both Title IV and non-Title IV schools (1) (1) Title IV Institutions are post-secondary institutions that have a written agreement with the Secretary of Education that allows the institution to participate in any of the Title IV federal student financial assistance programs and the National Early Intervention Scholarship and Partnership (NEISP) programs.

38 Confidential and proprietary information © 2014 Navient Solutions, Inc. All rights reserved. Navient Private Education Trusts (1) Smart Option loans subject to interim interest only and $25 fixed monthly payments are classified as in Repayment. (2) Assumes Prime/LIBOR spread of 3.00% for all transactions. Summary Information 11-A 11-B 11-C 12-A 12-B 12-C 12-D 12-E 13-A 13-B 13-C 14-A 14-CT 14-A Bond Amount ($mil) 562 825 721 547 891 1,135 640 976 1,108 1,135 624 676 463 664 Initial AAA Enhancement (%) 21% 18% 24% 27% 26% 25% 25% 21% 26% 22% 28% 24% 30% 30% Total Enhancement (%) 21% 18% 24% 27% 26% 25% 25% 21% 15% 13% 20% 15% 17% 22% Loan Program (%) Signature/Law/MBA/Med 88% 91% 71% 61% 48% 43% 37% 35% 26% 29% 26% 19% 0% 26% Smart Option -- -- 10% 20% 30% 40% 45% 48% 63% 63% 64% 63% 0% 50% Consolidation 0% 0% 7% 6% 9% 5% 5% 5% 3% 5% 0% 6% 0% 9% Direct to Consumer 9% 6% 12% 12% 12% 12% 12% 12% 8% 3% 10% 12% 0% 15% Career Training 3% 3% 0% 1% 1% 0% 0% 0% 0% 0% 0% 0% 100% 0% Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Payment Status (%) School, Grace, Deferment 55% 55% 45% 37% 38% 40% 39% 44% 59% 62% 63% 49% 0% 46% Repayment 43% 43% 52% 60% 60% 57% 59% 54% 39% 36% 36% 50% 99% 53% Forbearance 2% 3% 2% 2% 2% 3% 2% 2% 2% 2% 1% 1% 1% 1% Wtd Avg Term to Maturity (Mo.) 192 189 182 171 164 151 144 148 144 146 143 150 104 161 % Loans with Cosigner 72% 75% 71% 75% 77% 79% 80% 80% 80% 80% 81% 82% 71% 79% % Loans with No Cosigner 28% 25% 29% 25% 23% 21% 20% 20% 20% 20% 19% 18% 29% 21% Wtd Avg FICO at Origination 737 736 733 735 736 737 740 733 741 740 740 742 743 739 Wtd Avg Recent FICO at Issuance 723 722 720 724 726 728 730 722 733 734 733 741 726 737 WA FICO (Cosigner at Origination) 747 745 744 745 745 745 748 741 751 750 749 750 749 748 WA FICO (Cosigner at Rescored) 736 731 734 732 734 735 738 728 745 746 745 750 735 746 WA FICO (Borrower at Origination) 709 710 704 705 705 707 710 702 703 702 705 707 728 707 WA FICO (Borrower at Rescored) 690 695 688 700 700 702 698 696 683 684 682 701 701 701 Wtd Avg LIBOR Equivalent Margin (1) 7.40% 7.21% 6.37% 6.74% 6.98% 7.14% 7.18% 7.46% 6.63% 6.64% 6.88% 6.60% 7.01% 6.66% 2011-2014YTD Issuance Program Navient

39 Confidential and proprietary information © 2014 Navient Solutions, Inc. All rights reserved. Navient Private Education Loan Trusts – Prepayment Analysis • Constant prepayment rates increased in 2007 due to the introduction of Private Education Consolidation loans, then declined following our decision to suspend our consolidation loan program in 2008

40 Confidential and proprietary information © 2014 Navient Solutions, Inc. All rights reserved. Cohort Default Triangles • The following cohort default triangles provide loan performance information for certain Private Education Loans of Navient Corporation and its consolidated subsidiaries that meet such subsidiaries’ current securitization criteria (including those criteria listed below): - Program types include Undergraduate/Graduate (1) , Direct-to-Consumer (“DTC”) (2) , Career Training (3) and Private Consolidation Loans - FICO scores are based on the greater of the borrower and cosigner scores as of a date near the loan application and must be at least: • Undergraduate/Graduate at not-for-profit schools: > 640 • Undergraduate/Graduate at for-profit schools: > 670 • DTC loans: > 670 • Career Training loans: > 670 • Private Consolidation loans: > 640 - Excludes loans made at selected schools that have historically experienced higher rates of default • The cohort default triangles are not representative of the characteristics of the portfolio of Private Education Loans of Navient Corporation and its consolidated subsidiaries as a whole or any particular securitization trust (1) Undergraduate/Graduate loans marketed under the Signature Student Loan brand. (2) Direct-to-Consumer Loans marketed under the Tuition Answer brand. (3) Career Training loans provide eligible borrowers financing at technical, trade, K-12 or tutoring schools.

41 Confidential and proprietary information © 2014 Navient Solutions, Inc. All rights reserved. Cohort Default Triangles • The cohort default triangles featured on subsequent slides are segmented by loan program type, FICO score, cosigner status, and school type • Terms and calculations used in the cohort default triangles are defined below: - Repayment Year – The calendar year loans entered repayment - Disbursed Principal Entering Repayment – The amount of principal entering repayment in a given year, based on disbursed principal prior to any interest capitalization - Years in Repayment – Measured in years between repayment start date and default date. Zero represents defaults that occurred prior to the start of repayment. - Periodic Defaults – Defaulted principal in each Year in Repayment as a percentage of the disbursed principal entering repayment in each Repayment Year • Defaulted principal includes any interest capitalization that occurred prior to default • Defaulted principal is not reduced by any amounts recovered after the loan defaulted • Because the numerator includes capitalized interest while the denominator does not, default rates are higher than if the numerator and denominator both included capitalized interest - Total – The sum of Periodic Defaults across Years in Repayment for each Repayment Year

42 Confidential and proprietary information © 2014 Navient Solutions, Inc. All rights reserved. Cohort Default Triangles Note: Data as of 9/30/14. (1) Undergraduate/Graduate loans marketed under the Signature Student Loan brand. (2) Periodic Defaults for the most recent two calendar Years in Repayment are for a partial year. (3) Numerator is the amount of principal in each cohort that defaulted in each Year in Repayment. Denominator is the amount of disbursed principal for that Repayment Year. Undergraduate/Graduate (1) Disbursed Principal Entering Repayment Year Repayment ($m) 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Total 1998 $11 0.0% 0.0% 0.0% 0.0% 0.0% 0.1% 0.4% 0.8% 0.4% 0.2% 1.5% 0.7% 0.4% 0.3% 0.0% 0.1% 5.0% 1999 $28 0.0% 0.0% 0.0% 0.1% 0.9% 0.6% 1.4% 0.4% 0.3% 1.0% 0.5% 0.2% 0.7% 0.3% 0.1% 0.4% 7.0% 2000 $70 0.0% 0.0% 0.0% 0.6% 1.1% 1.3% 0.6% 0.9% 1.5% 1.5% 1.0% 0.8% 0.4% 0.4% 0.3% 0.0% 10.6% 2001 $187 0.0% 0.0% 0.1% 1.1% 1.4% 0.9% 1.8% 1.3% 2.3% 1.8% 1.5% 0.8% 0.6% 0.3% 0.0% 13.9% 2002 $386 0.0% 0.2% 0.2% 1.2% 1.1% 1.8% 1.6% 2.3% 1.9% 1.3% 0.9% 0.6% 0.5% 0.1% 13.9% 2003 $682 0.0% 0.2% 0.6% 0.9% 1.9% 1.6% 2.7% 2.4% 1.8% 1.2% 0.8% 0.6% 0.1% 14.6% 2004 $1,132 0.0% 0.2% 0.3% 1.9% 1.8% 3.0% 2.9% 1.8% 1.4% 1.1% 0.7% 0.1% 15.2% 2005 $1,537 0.0% 0.0% 0.4% 2.5% 3.7% 3.4% 2.1% 1.6% 1.2% 0.8% 0.1% 15.9% 2006 $2,013 0.0% 0.1% 1.6% 3.7% 3.7% 2.5% 1.8% 1.4% 1.0% 0.1% 15.9% 2007 $2,451 0.0% 0.4% 3.5% 4.6% 3.0% 2.0% 1.7% 1.3% 0.1% 16.7% 2008 $2,933 0.0% 2.3% 4.2% 3.9% 2.6% 2.2% 1.5% 0.2% 16.9% 2009 $3,241 0.0% 3.4% 3.7% 3.6% 2.6% 1.7% 0.2% 15.2% 2010 $2,769 0.0% 3.6% 3.8% 3.5% 1.8% 0.2% 13.0% 2011 $1,870 0.0% 3.0% 4.5% 2.1% 0.3% 9.9% 2012 $1,101 0.0% 2.9% 3.6% 0.5% 7.0% 2013 $528 0.0% 2.4% 0.6% 3.0% Periodic Defaults by Years in Repayment (2),(3)

43 Confidential and proprietary information © 2014 Navient Solutions, Inc. All rights reserved. Cohort Default Triangles Undergraduate/Graduate (1) Without Co-signer Undergraduate/Graduate (1) With Co-signer Note: Data as of 9/30/14. (1) Undergraduate/Graduate loans marketed under the Signature Student Loan brand. (2) Periodic Defaults for the most recent two calendar Years in Repayment are for a partial year. (3) Numerator is the amount of principal in each cohort that defaulted in each Year in Repayment. Denominator is the amount of disbursed principal for that Repayment Year. Disbursed Principal Entering Repayment Year Repayment ($m) 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Total 1998 $6 0.0% 0.0% 0.0% 0.0% 0.0% 0.1% 0.6% 1.0% 0.4% 0.0% 0.2% 1.1% 0.1% 0.0% 0.0% 0.1% 3.6% 1999 $14 0.0% 0.0% 0.0% 0.0% 0.4% 0.1% 0.9% 0.4% 0.2% 0.1% 0.4% 0.0% 0.1% 0.1% 0.1% 0.2% 3.0% 2000 $37 0.0% 0.0% 0.0% 0.5% 0.5% 0.7% 0.7% 0.4% 0.7% 1.2% 0.8% 0.9% 0.2% 0.4% 0.2% 0.0% 7.3% 2001 $90 0.0% 0.0% 0.1% 0.7% 0.9% 0.6% 1.2% 1.0% 1.7% 1.4% 1.1% 0.8% 0.4% 0.2% 0.0% 10.1% 2002 $196 0.0% 0.2% 0.1% 0.8% 0.6% 1.4% 0.8% 1.9% 1.5% 1.1% 0.7% 0.6% 0.5% 0.0% 10.3% 2003 $367 0.0% 0.1% 0.3% 0.5% 0.9% 1.1% 2.2% 1.9% 1.3% 0.9% 0.7% 0.6% 0.1% 10.6% 2004 $632 0.0% 0.2% 0.2% 1.0% 1.0% 2.2% 2.2% 1.4% 1.1% 0.9% 0.6% 0.1% 10.8% 2005 $843 0.0% 0.0% 0.2% 1.4% 2.4% 2.3% 1.6% 1.2% 0.9% 0.7% 0.1% 10.9% 2006 $1,121 0.0% 0.0% 0.7% 2.4% 2.4% 1.8% 1.3% 1.1% 0.9% 0.1% 10.6% 2007 $1,408 0.0% 0.2% 2.0% 2.9% 2.0% 1.5% 1.3% 1.0% 0.1% 11.0% 2008 $1,758 0.0% 1.2% 2.6% 2.7% 1.7% 1.6% 1.1% 0.2% 11.1% 2009 $2,075 0.0% 2.0% 2.4% 2.4% 1.8% 1.3% 0.2% 10.0% 2010 $1,853 0.0% 2.1% 2.3% 2.3% 1.3% 0.2% 8.2% 2011 $1,352 0.0% 1.6% 2.7% 1.3% 0.2% 5.9% 2012 $848 0.0% 1.7% 2.3% 0.3% 4.4% 2013 $404 0.0% 1.5% 0.3% 1.8% Periodic Defaults by Years in Repayment (2),(3) Disbursed Principal Entering Repayment Year Repayment ($m) 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Total 1998 $5 0.0% 0.0% 0.0% 0.0% 0.0% 0.2% 0.2% 0.6% 0.4% 0.4% 3.1% 0.2% 0.8% 0.7% 0.0% 0.2% 6.8% 1999 $14 0.0% 0.0% 0.0% 0.3% 1.3% 1.1% 1.9% 0.4% 0.3% 1.8% 0.6% 0.5% 1.4% 0.6% 0.1% 0.6% 10.9% 2000 $33 0.0% 0.0% 0.0% 0.8% 1.7% 2.0% 0.6% 1.5% 2.3% 2.0% 1.1% 0.7% 0.7% 0.4% 0.5% 0.0% 14.2% 2001 $97 0.0% 0.0% 0.1% 1.5% 1.9% 1.2% 2.2% 1.5% 2.9% 2.3% 1.8% 0.9% 0.7% 0.4% 0.0% 17.4% 2002 $190 0.0% 0.2% 0.2% 1.6% 1.7% 2.3% 2.3% 2.8% 2.4% 1.5% 1.1% 0.6% 0.6% 0.1% 17.5% 2003 $315 0.0% 0.2% 0.9% 1.4% 2.9% 2.3% 3.3% 3.0% 2.3% 1.5% 0.8% 0.6% 0.0% 19.3% 2004 $499 0.0% 0.3% 0.4% 3.1% 2.8% 4.1% 3.8% 2.3% 1.7% 1.3% 0.8% 0.2% 20.8% 2005 $694 0.0% 0.1% 0.7% 3.9% 5.3% 4.7% 2.7% 2.1% 1.6% 0.9% 0.2% 22.0% 2006 $892 0.0% 0.2% 2.7% 5.3% 5.4% 3.4% 2.4% 1.9% 1.2% 0.2% 22.6% 2007 $1,043 0.0% 0.8% 5.5% 6.9% 4.3% 2.8% 2.4% 1.6% 0.2% 24.4% 2008 $1,175 0.0% 4.0% 6.5% 5.8% 3.7% 3.0% 2.0% 0.2% 25.5% 2009 $1,165 0.0% 6.0% 6.0% 5.7% 3.9% 2.5% 0.3% 24.4% 2010 $916 0.0% 6.7% 6.8% 6.0% 2.9% 0.3% 22.8% 2011 $518 0.0% 6.7% 9.0% 4.2% 0.6% 20.5% 2012 $252 0.1% 7.1% 7.9% 1.0% 16.0% 2013 $124 0.1% 5.2% 1.5% 6.8% Periodic Defaults by Years in Repayment (2),(3)

44 Confidential and proprietary information © 2014 Navient Solutions, Inc. All rights reserved. Cohort Default Triangles Note: Data as of 9/30/14. (1) Undergraduate/Graduate loans marketed under the Signature Student Loan brand. (2) Periodic Defaults for the most recent two calendar Years in Repayment are for a partial year. (3) Numerator is the amount of principal in each cohort that defaulted in each Year in Repayment. Denominator is the amount of disbursed principal for that Repayment Year. Undergraduate/Graduate (1) Non-Profit Undergraduate/Graduate (1) For-Profit Disbursed Principal Entering Repayment Year Repayment ($m) 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Total 1998 $11 0.0% 0.0% 0.0% 0.0% 0.0% 0.2% 0.4% 0.4% 0.4% 0.2% 1.1% 0.7% 0.3% 0.3% 0.0% 0.1% 4.2% 1999 $26 0.0% 0.0% 0.0% 0.0% 0.8% 0.5% 1.2% 0.4% 0.3% 1.0% 0.5% 0.2% 0.5% 0.4% 0.1% 0.3% 6.2% 2000 $68 0.0% 0.0% 0.0% 0.6% 1.0% 1.4% 0.5% 0.9% 1.4% 1.3% 1.0% 0.8% 0.5% 0.4% 0.3% 0.0% 10.2% 2001 $180 0.0% 0.0% 0.1% 1.0% 1.4% 0.9% 1.7% 1.2% 2.4% 1.8% 1.5% 0.8% 0.6% 0.3% 0.0% 13.5% 2002 $360 0.0% 0.2% 0.2% 1.2% 1.0% 1.8% 1.6% 2.3% 2.0% 1.3% 0.9% 0.6% 0.5% 0.1% 13.7% 2003 $630 0.0% 0.2% 0.6% 0.8% 1.8% 1.6% 2.6% 2.4% 1.7% 1.1% 0.7% 0.6% 0.1% 14.1% 2004 $1,006 0.0% 0.2% 0.2% 1.8% 1.6% 2.9% 2.6% 1.7% 1.3% 1.1% 0.7% 0.1% 14.3% 2005 $1,362 0.0% 0.0% 0.4% 2.4% 3.5% 3.2% 2.0% 1.5% 1.2% 0.8% 0.1% 15.1% 2006 $1,766 0.0% 0.1% 1.5% 3.5% 3.6% 2.4% 1.7% 1.4% 1.0% 0.1% 15.3% 2007 $2,103 0.0% 0.4% 3.4% 4.3% 2.8% 2.0% 1.7% 1.2% 0.1% 15.9% 2008 $2,457 0.0% 2.2% 3.9% 3.6% 2.4% 2.1% 1.4% 0.2% 15.9% 2009 $2,686 0.0% 3.2% 3.4% 3.4% 2.4% 1.6% 0.2% 14.3% 2010 $2,378 0.0% 3.4% 3.7% 3.3% 1.7% 0.2% 12.3% 2011 $1,664 0.0% 2.8% 4.2% 2.0% 0.3% 9.4% 2012 $1,002 0.0% 2.8% 3.4% 0.4% 6.7% 2013 $481 0.0% 2.3% 0.6% 2.9% Periodic Defaults by Years in Repayment (2),(3) Disbursed Principal Entering Repayment Year Repayment ($m) 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Total 1998 $0.36 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 13.6% 0.0% 0.0% 12.6% 0.0% 5.1% 0.0% 0.4% 0.0% 31.7% 1999 $2 0.0% 0.0% 0.0% 2.3% 1.4% 2.1% 4.8% 0.0% 0.0% 0.0% 0.0% 0.9% 5.3% 0.0% 0.0% 2.5% 19.3% 2000 $2 0.0% 0.0% 0.0% 0.0% 2.8% 0.7% 3.2% 3.2% 3.7% 8.9% 0.0% 1.6% 0.0% 0.0% 0.0% 0.0% 24.3% 2001 $7 0.0% 0.1% 0.1% 4.7% 2.2% 1.1% 4.3% 2.2% 0.8% 3.5% 1.5% 1.8% 0.4% 0.1% 0.1% 22.8% 2002 $27 0.0% 0.0% 0.3% 1.9% 2.2% 2.1% 1.8% 2.7% 1.8% 1.3% 0.8% 0.7% 0.6% 0.0% 16.3% 2003 $52 0.0% 0.2% 0.7% 2.4% 2.7% 2.2% 3.8% 2.9% 2.4% 1.6% 1.0% 0.7% 0.0% 20.7% 2004 $126 0.0% 0.3% 0.6% 3.2% 3.0% 3.9% 4.6% 2.4% 1.8% 1.4% 0.9% 0.1% 22.2% 2005 $175 0.0% 0.0% 0.7% 3.7% 5.2% 4.9% 2.7% 1.9% 1.3% 1.1% 0.2% 21.9% 2006 $246 0.0% 0.2% 2.1% 4.9% 5.0% 3.2% 2.1% 1.9% 1.3% 0.1% 20.9% 2007 $348 0.0% 0.5% 4.3% 6.5% 4.0% 2.5% 2.1% 1.5% 0.2% 21.6% 2008 $475 0.0% 3.0% 5.9% 5.6% 3.1% 2.5% 1.8% 0.2% 22.1% 2009 $554 0.0% 4.3% 5.1% 4.3% 3.3% 2.0% 0.4% 19.4% 2010 $391 0.1% 4.7% 4.7% 4.8% 2.4% 0.6% 17.3% 2011 $206 0.1% 4.5% 6.4% 2.9% 0.7% 14.6% 2012 $99 0.1% 4.1% 5.8% 0.8% 10.9% 2013 $47 0.2% 3.2% 0.8% 4.1% Periodic Defaults by Years in Repayment (2),(3)

45 Confidential and proprietary information © 2014 Navient Solutions, Inc. All rights reserved. Cohort Default Triangles Undergraduate/Graduate (1) Loans, FICO 740-850 (2) Undergraduate/Graduate (1) Loans, FICO 700-739 (2) Note: Data as of 9/30/14. (1) Undergraduate/Graduate loans marketed under the Signature Student Loan brand. (2) FICO scores are based on the greater of the borrower and co-borrower scores as of a date near the loan application. (3) Periodic Defaults for the most recent two calendar Years in Repayment are for a partial year. (4) Numerator is the amount of principal in each cohort that defaulted in each Year in Repayment. Denominator is the amount of disbursed principal for that Repayment Year. Disbursed Principal Entering Repayment Year Repayment ($m) 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Total 1998 $3 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.2% 0.0% 0.4% 0.4% 0.9% 0.9% 0.0% 0.0% 0.0% 0.0% 2.8% 1999 $6 0.0% 0.0% 0.0% 0.0% 0.5% 0.3% 1.7% 0.5% 0.2% 0.2% 0.0% 0.2% 0.0% 0.4% 0.0% 0.8% 4.9% 2000 $22 0.0% 0.0% 0.0% 0.3% 0.4% 0.4% 0.2% 0.3% 1.0% 1.0% 0.4% 0.5% 0.0% 0.1% 0.1% 0.0% 4.8% 2001 $64 0.0% 0.0% 0.0% 0.5% 0.4% 0.4% 1.1% 0.8% 1.0% 0.7% 0.7% 0.7% 0.4% 0.3% 0.0% 6.9% 2002 $137 0.0% 0.2% 0.1% 0.5% 0.4% 0.8% 0.6% 1.1% 0.9% 0.6% 0.5% 0.4% 0.3% 0.0% 6.4% 2003 $248 0.0% 0.1% 0.2% 0.4% 0.6% 0.7% 1.2% 1.4% 0.8% 0.7% 0.6% 0.4% 0.0% 7.2% 2004 $424 0.0% 0.1% 0.1% 0.7% 0.7% 1.4% 1.3% 0.9% 0.8% 0.7% 0.4% 0.1% 7.3% 2005 $574 0.0% 0.0% 0.2% 1.0% 1.5% 1.5% 1.1% 0.9% 0.6% 0.5% 0.1% 7.4% 2006 $761 0.0% 0.0% 0.5% 1.4% 1.5% 1.1% 0.8% 0.7% 0.6% 0.1% 6.6% 2007 $937 0.0% 0.1% 1.2% 1.6% 1.1% 1.0% 0.8% 0.7% 0.1% 6.5% 2008 $1,130 0.0% 0.7% 1.5% 1.4% 1.0% 1.0% 0.7% 0.1% 6.4% 2009 $1,325 0.0% 1.2% 1.4% 1.4% 1.2% 0.8% 0.1% 6.1% 2010 $1,186 0.0% 1.4% 1.5% 1.5% 1.0% 0.1% 5.6% 2011 $831 0.0% 1.1% 1.8% 0.9% 0.2% 4.0% 2012 $506 0.0% 1.3% 1.5% 0.2% 3.0% 2013 $245 0.0% 1.0% 0.3% 1.3% Periodic Defaults by Years in Repayment (3),(4) Disbursed Principal Entering Repayment Year Repayment ($m) 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Total 1998 $3 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.5% 2.2% 0.0% 0.0% 0.0% 0.0% 0.1% 0.7% 0.0% 0.0% 3.5% 1999 $8 0.0% 0.0% 0.0% 0.0% 0.5% 0.4% 0.7% 0.0% 0.3% 1.5% 0.7% 0.1% 0.8% 0.1% 0.0% 0.0% 5.1% 2000 $20 0.0% 0.0% 0.0% 0.4% 0.7% 1.3% 0.8% 1.1% 0.8% 1.3% 0.7% 0.6% 0.4% 0.7% 0.2% 0.0% 8.9% 2001 $54 0.0% 0.0% 0.1% 0.9% 1.2% 0.5% 1.4% 0.9% 1.9% 1.3% 1.2% 0.9% 0.5% 0.2% 0.0% 11.2% 2002 $111 0.0% 0.1% 0.1% 1.1% 1.0% 1.7% 1.3% 2.2% 1.4% 1.3% 0.8% 0.5% 0.5% 0.1% 12.2% 2003 $194 0.0% 0.2% 0.5% 0.8% 1.5% 1.5% 2.4% 1.9% 1.8% 1.2% 0.7% 0.6% 0.0% 13.1% 2004 $321 0.0% 0.2% 0.2% 1.7% 1.5% 2.5% 2.9% 1.8% 1.4% 1.0% 0.6% 0.1% 14.0% 2005 $439 0.0% 0.0% 0.4% 2.2% 3.3% 2.9% 2.1% 1.4% 1.1% 0.8% 0.1% 14.4% 2006 $553 0.0% 0.1% 1.3% 3.1% 3.4% 2.4% 1.7% 1.2% 0.9% 0.1% 14.2% 2007 $659 0.0% 0.3% 2.8% 4.1% 2.7% 1.7% 1.6% 1.2% 0.1% 14.7% 2008 $782 0.0% 2.0% 3.8% 3.5% 2.4% 2.0% 1.4% 0.2% 15.3% 2009 $875 0.0% 3.0% 3.5% 3.4% 2.5% 1.7% 0.2% 14.4% 2010 $731 0.0% 3.4% 3.8% 3.4% 1.7% 0.2% 12.5% 2011 $482 0.0% 2.8% 4.2% 2.0% 0.3% 9.5% 2012 $281 0.1% 2.7% 3.4% 0.4% 6.6% 2013 $134 0.0% 1.9% 0.6% 2.6% Periodic Defaults by Years in Repayment (3),(4)

46 Confidential and proprietary information © 2014 Navient Solutions, Inc. All rights reserved. Cohort Default Triangles Note: Data as of 9/30/14. (1) Undergraduate/Graduate loans marketed under the Signature Student Loan brand. (2) FICO scores are based on the greater of the borrower and co-borrower scores as of a date near the loan application. (3) Periodic Defaults for the most recent two calendar Years in Repayment are for a partial year. (4) Numerator is the amount of principal in each cohort that defaulted in each Year in Repayment. Denominator is the amount of disbursed principal for that Repayment Year. Undergraduate/Graduate (1) Loans, FICO 670-699 (2) Undergraduate/Graduate (1) Loans, FICO 640-669 (2) Disbursed Principal Entering Repayment Year Repayment ($m) 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Total 1998 $3 0.0% 0.0% 0.0% 0.0% 0.0% 0.6% 0.6% 0.3% 0.5% 0.3% 2.8% 0.0% 0.5% 0.3% 0.1% 0.3% 6.2% 1999 $7 0.0% 0.0% 0.0% 0.5% 1.4% 0.5% 1.3% 0.3% 0.3% 0.1% 0.7% 0.5% 1.3% 0.4% 0.0% 0.4% 7.7% 2000 $14 0.0% 0.0% 0.0% 0.9% 1.4% 1.9% 0.2% 1.0% 0.9% 1.4% 1.4% 0.9% 0.9% 0.4% 0.9% 0.0% 12.2% 2001 $37 0.0% 0.0% 0.1% 1.3% 2.1% 1.5% 1.9% 1.6% 2.7% 2.9% 2.0% 0.8% 0.6% 0.3% 0.0% 17.8% 2002 $77 0.0% 0.2% 0.3% 1.6% 1.8% 2.4% 2.4% 2.9% 2.7% 1.5% 1.1% 0.7% 0.6% 0.1% 18.3% 2003 $134 0.0% 0.1% 0.8% 1.3% 2.8% 2.2% 3.7% 3.3% 2.1% 1.3% 0.7% 0.7% 0.1% 19.1% 2004 $222 0.0% 0.3% 0.5% 2.9% 2.6% 4.3% 3.8% 2.3% 1.7% 1.3% 0.8% 0.1% 20.5% 2005 $298 0.0% 0.1% 0.7% 3.8% 5.2% 4.9% 2.7% 1.9% 1.5% 1.0% 0.2% 22.0% 2006 $402 0.0% 0.2% 2.6% 5.5% 5.5% 3.6% 2.4% 1.9% 1.3% 0.2% 23.2% 2007 $504 0.0% 0.7% 5.6% 7.4% 4.7% 3.0% 2.4% 1.6% 0.1% 25.6% 2008 $623 0.0% 3.8% 6.9% 6.4% 3.8% 3.1% 2.2% 0.2% 26.4% 2009 $662 0.1% 5.7% 6.1% 6.0% 3.9% 2.5% 0.3% 24.7% 2010 $543 0.0% 6.2% 6.2% 5.7% 2.7% 0.3% 21.2% 2011 $355 0.0% 5.0% 7.8% 3.7% 0.5% 17.0% 2012 $199 0.1% 4.8% 6.4% 0.7% 12.0% 2013 $94 0.0% 4.3% 1.1% 5.4% Periodic Defaults by Years in Repayment (3),(4) Disbursed Principal Entering Repayment Year Repayment ($m) 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Total 1998 $2 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.3% 0.5% 0.9% 0.0% 2.9% 2.3% 1.3% 0.2% 0.0% 0.3% 8.6% 1999 $6 0.0% 0.0% 0.0% 0.0% 1.1% 1.3% 2.3% 0.9% 0.3% 2.1% 0.5% 0.1% 0.7% 0.5% 0.4% 0.5% 10.7% 2000 $14 0.0% 0.0% 0.0% 1.3% 2.5% 2.3% 1.4% 1.6% 3.8% 3.0% 1.9% 1.5% 0.7% 0.5% 0.3% 0.0% 20.8% 2001 $32 0.0% 0.0% 0.1% 2.3% 2.9% 2.0% 3.4% 2.5% 5.2% 3.8% 2.8% 1.1% 1.0% 0.6% 0.1% 27.9% 2002 $61 0.0% 0.2% 0.4% 2.7% 2.3% 3.9% 3.1% 4.6% 4.2% 2.4% 1.8% 1.2% 1.3% 0.1% 28.1% 2003 $107 0.0% 0.3% 1.3% 2.1% 4.1% 3.3% 5.3% 4.6% 3.5% 2.1% 1.4% 0.9% 0.1% 29.1% 2004 $165 0.0% 0.5% 0.5% 4.4% 3.9% 6.4% 5.7% 3.5% 2.4% 2.0% 1.4% 0.2% 31.0% 2005 $226 0.0% 0.1% 0.9% 5.4% 8.2% 7.0% 3.8% 3.3% 2.3% 1.4% 0.2% 32.5% 2006 $296 0.0% 0.2% 3.7% 8.1% 7.8% 4.8% 3.6% 2.9% 1.8% 0.3% 33.2% 2007 $351 0.0% 1.1% 8.0% 9.8% 6.0% 4.0% 3.4% 2.3% 0.2% 34.8% 2008 $398 0.0% 5.4% 8.5% 8.1% 5.2% 4.2% 2.8% 0.3% 34.7% 2009 $378 0.0% 8.2% 8.0% 7.3% 4.9% 3.4% 0.3% 32.1% 2010 $310 0.0% 8.0% 8.4% 7.8% 3.5% 0.5% 28.2% 2011 $202 0.0% 7.7% 10.2% 4.6% 0.5% 23.1% 2012 $114 0.0% 7.5% 8.8% 1.0% 17.4% 2013 $54 0.0% 6.2% 1.1% 7.3% Periodic Defaults by Years in Repayment (3),(4)

47 Confidential and proprietary information © 2014 Navient Solutions, Inc. All rights reserved. Cohort Default Triangles Private Consolidation Loans Without Co-signer Private Consolidation Loans With Co-signer Note: Data as of 9/30/14. (1) Periodic Defaults for the most recent two calendar Years in Repayment are for a partial year. (2) Numerator is the amount of principal in each cohort that defaulted in each Year in Repayment. Denominator is the amount of disbursed principal for that Repayment Year. Disbursed Principal Entering Repayment Year Repayment ($m) 0 1 2 3 4 5 6 7 8 9 Total 2006 $249 0.0% 0.1% 0.1% 0.5% 0.6% 0.6% 0.4% 0.3% 0.4% 0.0% 2.9% 2007 $675 0.0% 0.0% 0.2% 0.4% 0.6% 0.4% 0.4% 0.4% 0.1% 2.5% 2008 $376 0.0% 0.1% 0.4% 0.7% 0.6% 0.6% 0.5% 0.1% 2.9% Periodic Defaults by Years in Repayment (1),(2) Disbursed Principal Entering Repayment Year Repayment ($m) 0 1 2 3 4 5 6 7 8 9 Total 2006 $125 0.0% 0.4% 0.9% 1.5% 1.7% 1.5% 1.0% 1.1% 1.0% 0.0% 9.2% 2007 $295 0.0% 0.0% 0.9% 1.0% 1.3% 1.0% 1.0% 0.8% 0.2% 6.1% 2008 $133 0.0% 0.2% 1.7% 2.1% 1.8% 1.7% 1.9% 0.6% 9.9% Periodic Defaults by Years in Repayment (1),(2)

48 Confidential and proprietary information © 2014 Navient Solutions, Inc. All rights reserved. Cohort Default Triangles Note: Data as of 9/30/14. (1) FICO scores are based on the greater of the borrower and co-borrower scores as of a date near the loan application. (2) Periodic Defaults for the most recent two calendar Years in Repayment are for a partial year. (3) Numerator is the amount of principal in each cohort that defaulted in each Year in Repayment. Denominator is the amount of disbursed principal for that Repayment Year. DTC With Co-signer, FICO 670 (1) DTC Without Co-signer, FICO 670 (1) Disbursed Principal Entering Repayment Year Repayment ($m) 0 1 2 3 4 5 6 7 8 9 10 11 Total 2004 $8 0.0% 0.0% 0.0% 0.0% 0.0% 0.2% 0.1% 0.4% 0.0% 0.2% 0.0% 0.0% 0.9% 2005 $65 0.0% 0.1% 0.8% 0.7% 1.4% 2.1% 1.2% 0.9% 0.8% 1.0% 0.0% 9.1% 2006 $139 0.0% 0.7% 1.8% 4.4% 4.8% 2.4% 2.0% 2.0% 1.2% 0.2% 19.4% 2007 $245 0.0% 0.6% 4.7% 6.2% 4.2% 2.7% 2.6% 1.9% 0.2% 23.0% 2008 $369 0.0% 2.9% 5.8% 4.9% 3.6% 2.9% 2.2% 0.3% 22.6% 2009 $396 0.0% 3.7% 4.1% 4.0% 3.1% 2.4% 0.3% 17.6% 2010 $314 0.0% 3.6% 4.1% 4.6% 2.8% 0.6% 15.7% 2011 $192 0.1% 3.7% 5.2% 3.4% 0.7% 13.1% 2012 $104 0.0% 3.2% 5.3% 1.4% 9.9% 2013 $23 0.0% 1.2% 0.9% 2.1% Periodic Defaults by Years in Repayment (2),(3) Disbursed Principal Entering Repayment Year Repayment ($m) 0 1 2 3 4 5 6 7 8 9 10 11 Total 2004 $2 0.0% 0.0% 1.6% 1.2% 0.6% 4.7% 2.2% 3.0% 1.2% 4.2% 0.0% 0.0% 18.8% 2005 $19 0.0% 1.0% 2.0% 2.4% 4.0% 6.5% 2.8% 1.6% 1.0% 1.2% 0.0% 22.6% 2006 $66 0.0% 1.4% 2.5% 6.6% 6.4% 4.0% 2.7% 2.5% 1.3% 0.1% 27.6% 2007 $158 0.0% 1.0% 5.8% 8.1% 4.6% 3.8% 3.3% 2.2% 0.1% 28.9% 2008 $255 0.0% 3.7% 7.9% 7.3% 4.2% 4.0% 2.4% 0.2% 29.8% 2009 $235 0.0% 6.7% 6.3% 6.8% 5.2% 3.0% 0.6% 28.6% 2010 $152 0.1% 8.3% 7.0% 8.7% 3.9% 0.7% 28.8% 2011 $88 0.1% 7.8% 10.1% 5.5% 1.3% 24.9% 2012 $47 0.0% 6.2% 8.1% 1.8% 16.1% 2013 $5 0.0% 3.2% 1.1% 4.2% Periodic Defaults by Years in Repayment (2),(3)

49 Confidential and proprietary information © 2014 Navient Solutions, Inc. All rights reserved. Cohort Default Triangles Note: Data as of 9/30/14. (1) FICO scores are based on the greater of the borrower and co-borrower scores as of a date near the loan application. (2) Periodic Defaults for the most recent two calendar Years in Repayment are for a partial year. (3) Numerator is the amount of principal in each cohort that defaulted in each Year in Repayment. Denominator is the amount of disbursed principal for that Repayment Year. Career Training Loans, 670+ FICO (1) Disbursed Principal Entering Repayment Year Repayment ($m) 0 1 2 3 4 5 6 7 8 9 10 11 12 Total 2003 $291 0.0% 0.4% 1.4% 1.6% 1.8% 1.4% 1.3% 1.0% 0.8% 0.5% 0.4% 0.3% 0.1% 11.0% 2004 $382 0.0% 0.4% 1.5% 2.3% 1.7% 1.8% 1.7% 1.1% 0.8% 0.5% 0.3% 0.1% 12.3% 2005 $513 0.0% 0.3% 2.2% 2.2% 2.5% 2.1% 1.5% 1.0% 0.8% 0.6% 0.1% 13.2% 2006 $630 0.0% 0.4% 2.5% 3.5% 3.2% 2.2% 1.5% 1.0% 0.8% 0.1% 15.3% 2007 $672 0.0% 0.5% 3.5% 3.9% 2.9% 1.8% 1.2% 1.0% 0.2% 15.1% 2008 $581 0.0% 0.6% 4.3% 3.6% 2.2% 1.5% 1.2% 0.3% 13.6% 2009 $169 0.0% 0.2% 2.1% 2.1% 1.5% 1.1% 0.3% 7.3% 2010 $19 0.0% 0.6% 1.2% 1.0% 0.5% 0.3% 3.5% Periodic Defaults by Years in Repayment (2),(3)

50 Confidential and proprietary information © 2014 Navient Solutions, Inc. All rights reserved. Navient Corporation Appendix

51 Confidential and proprietary information © 2014 Navient Solutions, Inc. All rights reserved. GAAP Results (In millions, except per share amounts) Q3 14 Q2 14 Q3 13 Net income $359 $307 $260 EPS $0.85 $0.71 $0.57 Operating expenses $195 $211 $257 Provision $140 $165 $207 Average Student Loans $129,915 $134,737 $145,585

52 Confidential and proprietary information © 2014 Navient Solutions, Inc. All rights reserved. “Core Earnings” adjustments to GAAP: GAAP net income $ 359 Net impact of SLM BankCo 1 14 Net impact of derivative accounting (226) Net impact of goodwill and acquired intangible assets 2 Net income tax effect 69 Total “Core Earnings” adjustments to GAAP (141) “Core Earnings” net income $218 Quarter ended September 30, 2014 ($ in millions) 1 Includes restructuring and other reorganization expenses incurred in connection with the spin-off. Differences between “Core Earnings” and GAAP

53 Confidential and proprietary information © 2014 Navient Solutions, Inc. All rights reserved. • SLM / NAVI student loan trust data (Debt/asset backed securities – SLM / NAVI Student Loan Trusts) - Static pool information – detailed portfolio stratifications by trust as of the cutoff date - Accrued interest factors - Quarterly distribution factors - Historical trust performance – monthly charge-off, delinquency, loan status, CPR, etc. by trust - Since issued CPR – monthly CPR data by trust since issuance • SLM / NAVI student loan performance by trust – Issue details - Current and historical monthly distribution reports - Distribution factors - Current rates - Prospectus for public transactions and Rule 144A transactions are available through underwriters • Additional information (Webcasts and presentations) - Archived and historical webcasts, transcripts and investor presentations https://www.navient.com/about/investors/ Investor Relations Website

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