Navient presents reorganization separating legacy and continuing businesses under new holding company

• Navient will separate its legacy business and Earnest into two wholly owned subsidiaries under a newly formed holding company, Navient Holdings.
• The legacy business will hold existing legacy loans and all Earnest loans originated through December 31, 2026.
• Without the reorganization, the adjusted tangible equity ratio would begin constraining growth in 2027.
• Starting in 2027, a portion of newly securitized assets may sit on the holding company's standalone balance sheet.
• Legacy run-off portfolios are projected to generate $4.7 billion in discretionary cash before overhead and taxes, available for growth or shareholder distributions.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Navient Corporation published the original content used to generate this news brief on October 21, 2026, and is solely responsible for the information contained therein.