Latest news with #Navient
Business Insider
05-08-2025
- Business
- Business Insider
A major private student-loan company is prepping for a 'significant expansion' due to Trump's repayment changes. Here's what it means for borrowers.
President Donald Trump's student-loan policies are good for business, a major private lender said. Trump's "One Big Beautiful Bill" spending legislation, signed into law in July, included sweeping changes to student-loan repayment, including the elimination of a key affordable repayment plan and new caps on graduate borrowing. The changes signal a complicated — and likely more expensive — road ahead for millions of borrowers, and a potential surge of federal borrowers into private lending. That's because if borrowers are unable to get their tuition covered under the new federal borrowing caps, private student loans might be their only option for aid. David Yowan, CEO of the private student loan company Navient, said during an earnings call last week that he expects to see more borrowers turn to Navient following Trump's federal repayment changes. "Grad PLUS elimination is a substantial and significant expansion of opportunities that we have with graduate students," Yowan said. The Grad PLUS program, which Trump's spending bill eliminated, allowed graduate and professional students to borrow up to the full cost of attendance for their programs. The bill also capped federal borrowing for graduate students at $100,000 over a lifetime, along with a $200,000 lifetime cap for professional students, like those in medical or law school. Yowan added that the August 1 restart of interest charges for borrowers currently on the SAVE plan has led to more federal borrowers seeking to refinance. The SAVE plan, which would have allowed for cheaper monthly payments and a shorter timeline to debt relief, was eliminated in Trump's bill. Borrowers enrolled in the plan can either switch to a different repayment plan or remain on the plan, with growing interest, until it's phased out in 2028. Other private lenders also saw Trump's policies as opportunities; Anthony Noto, CEO of SoFi, said during the company's earnings call that the elimination of the Grad and Parent PLUS programs could lead to "further opportunities for in school lending and student loan refinance." Here's what a shift to the private student-loan market could mean for borrowers. What switching from federal to private student loans means Private student loans are favorable for some borrowers because they would cover what federal loans might not. For example, the new federal cap on graduate and professional borrowing falls under the average tuition costs for both medical and law school, so if students cannot pay the remaining costs for their programs, turning to private student loans would help. However, switching from federal to private borrowing comes with risks. Interest rates on federal student loans are fixed, meaning that the rate that is set when a borrower takes out the loan remains at that rate for the loan's lifetime. Private student loan interest rates, meanwhile, are often variable, meaning the rate can increase or decrease over the loan's lifetime, and lenders set the rates. It could leave some borrowers paying interest in the double digits, making it difficult to handle growing balances. Borrowers with private loans also cannot access federal programs, like debt relief through Public Service Loan Forgiveness or federal income-driven repayment plans. Sen. Elizabeth Warren led some of her Democratic colleagues on Monday in sending a letter to the CEOs of major private lenders requesting information on how they're preparing for a potential influx of federal borrowers. She has previously scrutinized private lenders over accusations of predatory behavior, like denying borrowers debt relief. "Student debt places a tremendous burden on borrowers, their families, their communities, and the U.S. economy, driving employment, spending, and housing decisions that have long-lasting negative impacts on borrowers' financial health," the lawmakers wrote. "Placing a greater share of student loans into the hands of private lenders threatens to make these problems much worse."
Business Insider
04-08-2025
- Business
- Business Insider
Trump's student-loan repayment overhaul could push borrowers out of the federal system. Democratic lawmakers want to know if private lenders are ready.
Private student lenders are on track for some good years ahead, Democratic lawmakers said. On Monday, Sen. Elizabeth Warren led some of her Democratic colleagues, including Sens. Bernie Sanders and Ron Wyden, in sounding the alarm on a potential influx of federal student-loan borrowers into the private lending market as a result of President Donald Trump's spending law. Trump's legislation included a major overhaul to student-loan repayment, including capping borrowing on graduate and professional loans and condensing income-driven repayment options into two less-generous plans. Business Insider previously reported that the changes could drive some borrowers away from federal lending and into the private lending market, which education experts said tends to have higher interest rates and riskier terms. In letters first viewed by Business Insider, the lawmakers requested that the leaders of major companies that oversee private loans — Navient, SoFi, Sallie Mae, and Nelnet — provide updated information on their borrower portfolios and protections they have for borrowers in default or those who attended predatory schools. "Student debt places a tremendous burden on borrowers, their families, their communities, and the U.S. economy, driving employment, spending, and housing decisions that have long-lasting negative impacts on borrowers' financial health," they wrote. "Placing a greater share of student loans into the hands of private lenders threatens to make these problems much worse." Once a borrower switches to the private market, they can no longer access programs available to federal borrowers like Public Service Loan Forgiveness and borrower defense to repayment, which allows a debt to be discharged if a borrower was defrauded by their school. Sara Partridge, associate director for higher education policy at the left-leaning think tank Center for American Progress, previously told Business Insider that "private student loans often require a cosigner, so some students may not qualify, and they may have no options to fully finance and attend graduate school. So there is a possibility that for some students, this will be a barrier to accessing graduate school." Warren has previously come after private student lenders over accusations of predatory behavior that forced borrowers into unaffordable debt loads. Last year, she led efforts to hold Navient accountable over its process to discharge debt for defrauded student loan borrowers, accusing the company of denying borrowers relief with little explanation. Student-loan borrowers have already faced major changes under Trump. The spending law eliminated the SAVE plan, which allowed for more affordable monthly payments, and the 8 million enrolled borrowers are once again seeing interest charges on their accounts after a yearlong pause. The administration also restarted collections on defaulted student loans after five years, leaving borrowers to face wage garnishment this year.
Yahoo
28-07-2025
- Business
- Yahoo
Navient's Q2 Earnings in the Cards: Here's What to Expect
Navient Corporation NAVI is scheduled to report second-quarter 2025 results on July 30, before the opening bell. Its quarterly revenues are expected to have risen, while earnings are expected to have declined on a year-over-year the last reported quarter, NAVI's adjusted earnings beat the Zacks Consensus Estimate. The results were driven by lower expenses. However, a rise in provision for loan losses and a decrease in net interest income (NII) were has an impressive earnings surprise history. Its earnings outpaced estimates in each of the trailing four quarters and missed once, with the average earnings surprise being 27.10%. Navient Corporation Price and EPS Surprise Navient Corporation price-eps-surprise | Navient Corporation Quote The Zacks Consensus Estimate for earnings of 29 cents per share has remained unchanged in the past week. The figure indicates a 39.6% plunge from the year-ago reported consensus estimate for sales of $142.8 million suggests a rise of 5%. Factors to Influence Navient's Results in Q2 Revenues: Per the Fed's latest data, consumer loan demand was stable in the second quarter. The demand remained solid on account of a strong labor market despite tariff uncertainties. As such, Navient's Consumer Lending segment is expected to have recorded a decent rise in revenues. However, elevated prepayment due to student loan forgiveness and subdued origination volume are likely to have limited the company's revenue growth in the Federal Education Loans Zacks Consensus Estimate for NII (Core) is pegged at $142.9 million, indicating a sequential decline of 0.8%. The consensus estimate for NII (Federal Education loan) is pegged at $48.6 million, suggesting a slight rise on a sequential basis. The Zacks Consensus Estimate for NII (consumer lending) is pegged at $111.5 million, implying a decline of 1.4%. The consensus estimate for servicing revenues is pegged at $10 million, indicating a 23.3% fall from the prior quarter. The Zacks Consensus Estimate for asset recovery and business processing revenues of $6.8 million implies a 70.3% decline. The Zacks Consensus Estimate for total non-interest income of $25.1 million indicates a 50.7% decline Navient's cost-control measures are expected to have boosted operating efficiency and lowered expenses in the second quarter. Last year, the company announced strategic actions, which are expected to have resulted in a further decline in operating expenses in the to-be-reported quarter. What the Zacks Model Reveals for Navient NAVI does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better — for increasing the odds of an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP ESP: The Earnings ESP for Navient is -7.66%.Zacks Rank: The company currently carries a Zacks Rank of 3. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Performance of NAVI's Peers Capital One's COF second-quarter 2025 adjusted earnings of $5.48 per share surpassed the Zacks Consensus Estimate of $3.83. The bottom line also compared favorably with $4.06 in the prior results benefited from higher NII and non-interest income. Also, loans and deposits improved in the quarter. However, the increase in expenses and jump in provisions were undermining Financial's ALLY second-quarter 2025 adjusted earnings of 99 cents per share surpassed the Zacks Consensus Estimate of 78 cents. Further, the bottom line reflected a jump of 35.6% from the year-ago benefited from a rise in net finance revenues and other revenues. Further, lower non-interest expenses and reduced provision provided support. However, a decline in net finance receivables and lower loans and deposits were the undermining factors for ALLY. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Capital One Financial Corporation (COF) : Free Stock Analysis Report Ally Financial Inc. (ALLY) : Free Stock Analysis Report Navient Corporation (NAVI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Indianapolis Star
22-07-2025
- Business
- Indianapolis Star
After 164 years, Fishers farmhouse along I-69 to be demolished. How its legacy will be celebrated
After several years in limbo, the historic but crumbling and vacant Kincaid House in Fishers is coming down. The city announced Tuesday, July 22, that the 19th century farmhouse house along I-69 north of 106th Street would be 'deconstructed,' but some of its bricks repurposed. 'We're at a point where there is such an advanced level of deterioration that rehabilitating the structure would be a significant financial and logistical undertaking, and the house likely wouldn't survive another move,' Fishers Mayor Scott Fadness said in a news release. 'With a lack of interest from private entities to take over ownership of the house, we have decided to preserve what we can and celebrate the legacy of the Kincaid House at a location that better fits the historical significance of the structure." The clay brick from the house will be used in a future, unspecified project, at the Fishers AgriPark on the east side. Since being relocated to its current spot the Morris-Flanagan-Kincaid House has deteriorated structurally, with sunken floors, joint collapse and unstable walls, according to the city. The Italianate-style farmhouse was built in 1861 by the Peter Flanagan family with clay bricks made onsite at 106th Street and Kincaid Drive. But landowner Thompson Thrift said in 2014 the house would be demolished to make room for a new I-69 interchange at 106th Street. Preservationists raised $115,000, including a donation from Thompson Thrift, to move the house a half mile north to a 2-acre plot donated by Navient. Nickel Plate Arts, which held the deed, transferred it to Fishers and four years later, Knowledge Services bought the land, where it planned to build a new headquarters. So Fishers and Hamilton County Tourism decided to move the house again, to a roundabout on USA Parkway, south of Ikea. But those plans fell through and the Kincaid House has sat empty and mostly neglected since, serving mostly as a curiosity for I-69 commuters. A member of the namesake Kincaid family, said he favored the city's action. 'While the usefulness of the current Flanagan-Kincaid house has come to an end and we are sad to see it go, we are pleased it can continue in another form to honor the farming heritage of Fishers,' Fishers resident Randy Kincaid said.
Yahoo
05-06-2025
- Business
- Yahoo
Navient holds 2025 annual shareholder meeting, appoints Edward Bramson as board chair
HERNDON, Va., June 05, 2025 (GLOBE NEWSWIRE) -- Navient (Nasdaq: NAVI) today held its 2025 Annual Meeting of Shareholders. Shareholders voted in accordance with the recommendations of the company's board of directors to approve three proposals, including the election of seven nominees to the board. Linda Mills did not stand for reelection at the 2025 annual meeting. Ms. Mills joined the Navient board of directors in 2014 and served as chair since 2019. 'Linda's leadership and service on the board since Navient's inception are greatly appreciated,' said Dave Yowan, president and CEO of Navient. 'Her valuable perspectives have been integral to Navient's continued success.' Also today, Edward Bramson was elected chair of the board of directors. The current directors are Edward Bramson, Frederick Arnold, Anna Escobedo Cabral, Larry Klane, Michael Lawson, Jane Thompson, and David Yowan. Mr. Bramson is a partner in Sherborne Investors, a turnaround investment firm. He joined Navient's board in 2022 and became vice chair in 2024. Mr. Bramson has also served as chairman or chief executive officer of several other publicly traded companies in a range of commercial and financial sectors. Final voting results are available on a Form 8-K filed with the SEC at and on About NavientNavient (Nasdaq: NAVI) provides technology-enabled education finance solutions that help millions of people achieve success. Learn more at Contact:Media: Cate Fitzgerald, 317-806-8775, Investors: Jen Earyes, 703-984-6801,
