Navient estimates up to $390M net cash flow reduction if 10% of FFELP borrowers consolidate under debt relief plan

NAVIENT CORP

As of June 30, 2022: $427M loan premium, $364M debt deferred fees, $245M loan loss allowance, $125M unrecognized fees, $232M goodwill in FFELP portfolio.
10% consolidation of 2M borrowers would accelerate ~$340M cash flows but reduce net cash flows by ~$390M.
Accelerated amortization of premiums and deferred fees reduces net income; partially offset by allowance release and unrecognized fee recognition.
$232M goodwill may be impaired depending on the level of loan consolidation activity.
Impact timeline uncertain; applications accepted through end of 2023; Education Dept. may expand eligibility to privately held federal loans.

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