10-Q
Q3--12-31false0001593538true280456http://fasb.org/us-gaap/2023#InterestReceivableAndOtherAssetshttp://fasb.org/us-gaap/2023#InterestReceivableAndOtherAssetshttp://fasb.org/us-gaap/2023#OtherLiabilitieshttp://fasb.org/us-gaap/2023#OtherLiabilitieshttp://fasb.org/us-gaap/2023#GainLossOnDerivativeInstrumentsNetPretaxhttp://fasb.org/us-gaap/2023#GainLossOnDerivativeInstrumentsNetPretaxhttp://fasb.org/us-gaap/2023#GainLossOnDerivativeInstrumentsNetPretaxhttp://fasb.org/us-gaap/2023#GainLossOnDerivativeInstrumentsNetPretaxhttp://fasb.org/us-gaap/2023#GainLossOnDerivativeInstrumentsNetPretaxhttp://fasb.org/us-gaap/2023#GainLossOnDerivativeInstrumentsNetPretaxhttp://fasb.org/us-gaap/2023#GainLossOnDerivativeInstrumentsNetPretaxhttp://fasb.org/us-gaap/2023#GainLossOnDerivativeInstrumentsNetPretaxhttp://fasb.org/us-gaap/2023#GainLossOnDerivativeInstrumentsNetPretaxhttp://fasb.org/us-gaap/2023#GainLossOnDerivativeInstrumentsNetPretaxhttp://fasb.org/us-gaap/2023#GainLossOnDerivativeInstrumentsNetPretaxhttp://fasb.org/us-gaap/2023#GainLossOnDerivativeInstrumentsNetPretaxhttp://fasb.org/us-gaap/2023#GainLossOnDerivativeInstrumentsNetPretaxhttp://fasb.org/us-gaap/2023#GainLossOnDerivativeInstrumentsNetPretaxhttp://fasb.org/us-gaap/2023#GainLossOnDerivativeInstrumentsNetPretaxhttp://fasb.org/us-gaap/2023#GainLossOnDerivativeInstrumentsNetPretaxhttp://fasb.org/us-gaap/2023#ValuationTechniqueDiscountedCashFlowMemberhttp://fasb.org/us-gaap/2023#MeasurementInputConstantPrepaymentRateMemberhttp://fasb.org/us-gaap/2023#ValuationTechniqueDiscountedCashFlowMember0001593538navi:CosignerLoanMember2023-09-300001593538us-gaap:OperatingSegmentsMembernavi:EducationLoanMembernavi:ConsumerLendingMember2022-01-012022-09-300001593538us-gaap:CreditConcentrationRiskMemberus-gaap:AccountsReceivableMembernavi:FinancingReceivablesDelinquentLoansInRepaymentMembernavi:PrivateEducationLoansMember2022-01-012022-12-310001593538navi:PrivateEducationLoanABCPFacilitiesMembernavi:BeforeHedgeAccountingAdjustmentsMember2022-12-310001593538navi:HospitalsAndOtherHealthCareProvidersMember2023-07-012023-09-300001593538navi:GuarantorAgenciesMember2023-07-012023-09-300001593538navi:PrivateEducationLoanABCPFacilitiesMemberus-gaap:VariableInterestEntityPrimaryBeneficiaryMember2022-12-310001593538navi:FinancialAsset31To60DaysPastDueMemberus-gaap:CreditConcentrationRiskMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMembernavi:RepaymentMemberus-gaap:AccountsReceivableMember2022-09-300001593538navi:StateAndLocalGovernmentMember2022-07-012022-09-300001593538navi:CommonStockSharesOutstandingMember2022-06-300001593538us-gaap:TreasuryStockCommonMember2022-12-310001593538navi:BusinessProcessingMember2022-12-310001593538us-gaap:OperatingSegmentsMember2022-07-012022-09-300001593538us-gaap:OperatingSegmentsMembernavi:FederalEducationLoansSegmentMember2023-07-012023-09-300001593538navi:RehabLoansMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember2023-09-300001593538us-gaap:FairValueInputsLevel3Memberus-gaap:InterestRateFloorMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001593538us-gaap:OperatingSegmentsMember2023-01-012023-09-300001593538navi:InterestRateReductionAndExtendedMaturityMembernavi:PrivateEducationLoansMember2022-01-012022-12-310001593538navi:CertainLoanModificationsMembernavi:NonModifiedLoansMember2022-09-300001593538us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2023-01-012023-09-300001593538us-gaap:NondesignatedMemberus-gaap:InterestRateSwapMember2022-12-310001593538navi:CorporateContractsMember2023-09-300001593538us-gaap:CrossCurrencyInterestRateContractMember2023-07-012023-09-3000015935382022-01-012022-09-300001593538us-gaap:CreditConcentrationRiskMembernavi:FinancialAsset90DaysPastDueMembernavi:RepaymentMemberus-gaap:AccountsReceivableMembernavi:PrivateEducationLoansMember2023-09-300001593538srt:MaximumMember2023-09-300001593538us-gaap:CreditConcentrationRiskMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMembernavi:RepaymentMembernavi:FinancialAsset90DaysPastDueMemberus-gaap:AccountsReceivableMember2022-12-310001593538us-gaap:AdditionalPaidInCapitalMember2022-06-300001593538navi:TollingAuthoritiesMember2022-07-012022-09-300001593538us-gaap:TreasuryStockCommonMember2022-01-012022-09-300001593538us-gaap:InterestRateSwapMember2022-12-310001593538navi:PrivateEducationLoansMember2022-01-012022-09-300001593538us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateFloorMemberus-gaap:FairValueHedgingMember2022-12-310001593538us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember2022-12-310001593538us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2022-12-310001593538us-gaap:ContractualInterestRateReductionMembernavi:PrivateEducationLoansMember2023-09-300001593538us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMemberus-gaap:FairValueHedgingMember2022-07-012022-09-300001593538us-gaap:CreditConcentrationRiskMembernavi:FinancingReceivablesLoansInRepaymentMemberus-gaap:AccountsReceivableMembernavi:PrivateEducationLoansMember2022-01-012022-09-300001593538navi:CertainLoanModificationsMember2022-09-300001593538navi:SeasoningThirtySevenThruFortyEightMembernavi:RepaymentsMember2022-09-300001593538navi:SeasoningMoreThanFortyEightMembernavi:RepaymentsMember2023-09-300001593538us-gaap:CommonStockMember2022-07-012022-09-300001593538navi:OpenMarketShareRepurchasesMemberus-gaap:TreasuryStockCommonMember2023-01-012023-09-300001593538navi:FederalGovernmentMembernavi:FederalEducationLoansSegmentMember2023-07-012023-09-300001593538navi:CertainLoanModificationsMembernavi:NonModifiedLoansMember2023-09-300001593538us-gaap:CreditConcentrationRiskMemberus-gaap:AccountsReceivableMembernavi:PrivateEducationLoansMember2022-12-310001593538us-gaap:NondesignatedMemberus-gaap:InterestRateFloorMember2023-07-012023-09-300001593538us-gaap:ChangeDuringPeriodFairValueDisclosureMemberus-gaap:InterestRateSwapMember2022-12-310001593538us-gaap:OtherContractMemberus-gaap:ChangeDuringPeriodFairValueDisclosureMember2023-09-300001593538navi:CommonStockSharesOutstandingMember2023-06-300001593538us-gaap:CreditConcentrationRiskMembernavi:FinancialAsset90DaysPastDueMembernavi:RepaymentMemberus-gaap:AccountsReceivableMembernavi:PrivateEducationLoansMember2022-09-300001593538us-gaap:CreditConcentrationRiskMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMemberus-gaap:FinancialAssetNotPastDueMembernavi:RepaymentMemberus-gaap:AccountsReceivableMember2022-12-310001593538us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:NondesignatedMember2022-01-012022-09-300001593538navi:FederalEducationLoansSegmentMember2022-07-012022-09-300001593538navi:OpenMarketShareRepurchasesMemberus-gaap:TreasuryStockCommonMember2022-07-012022-09-300001593538navi:LoanStatusGreaterThanNinetyDaysDelinquentMembernavi:LoanStatusMember2022-09-300001593538navi:BusinessProcessingMember2023-09-300001593538navi:EliminationsAndReconcilingItemsMembernavi:AdditionsSubtractionsForCoreToGaapAccountingMember2022-01-012022-09-300001593538navi:HealthcareServicesMembernavi:FederalEducationLoansSegmentMember2022-01-012022-09-300001593538navi:FicoMembernavi:BelowSixFourZeroMember2023-09-300001593538navi:CommonStockSharesOutstandingMember2023-01-012023-09-300001593538navi:BusinessProcessingMembernavi:GuarantorAgenciesMember2023-01-012023-09-300001593538us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMemberus-gaap:InterestRateSwapMember2022-12-310001593538navi:ReclassificationsForCoreToGaapAccountingMembernavi:EliminationsAndReconcilingItemsMember2023-01-012023-09-300001593538navi:AccountingStandardUpdate202004Member2023-06-300001593538navi:FederalEducationLoansSegmentMembernavi:GovernmentServicesMember2023-01-012023-09-300001593538us-gaap:ParentMember2022-12-310001593538us-gaap:OperatingSegmentsMembernavi:EducationLoanMembernavi:FederalEducationLoansSegmentMember2023-07-012023-09-300001593538us-gaap:CreditConcentrationRiskMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMemberus-gaap:AccountsReceivableMembernavi:FinancingReceivables61To90DaysPastDueMember2022-09-300001593538us-gaap:FairValueInputsLevel3Member2023-09-300001593538us-gaap:ParentMember2023-09-300001593538us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember2021-12-310001593538navi:BusinessProcessingMembernavi:HospitalsAndOtherHealthCareProvidersMember2022-07-012022-09-300001593538navi:FederalEducationLoansSegmentMembernavi:GovernmentServicesMember2022-07-012022-09-300001593538us-gaap:OperatingSegmentsMembernavi:ConsumerLendingMember2022-01-012022-09-300001593538us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001593538us-gaap:NondesignatedMemberus-gaap:InterestRateSwapMember2023-01-012023-09-300001593538us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-300001593538navi:BusinessProcessingMemberus-gaap:OperatingSegmentsMembernavi:EducationLoanMember2023-07-012023-09-300001593538navi:CosignerLoanMembernavi:CosignersMember2023-09-300001593538us-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001593538us-gaap:EstimateOfFairValueFairValueDisclosureMember2023-09-300001593538navi:BeforeHedgeAccountingAdjustmentsMembernavi:OtherBorrowingsMember2022-12-310001593538navi:BusinessProcessingMembernavi:GuarantorAgenciesMember2023-07-012023-09-300001593538navi:SchoolOrGraceOrDefermentOrForbearanceMembernavi:LoanStatusMember2023-09-300001593538us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001593538navi:ConsolidationLoansMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember2022-09-300001593538us-gaap:AllOtherSegmentsMember2022-12-310001593538us-gaap:EmployeeStockOptionMember2023-01-012023-09-300001593538us-gaap:CreditConcentrationRiskMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMemberus-gaap:AccountsReceivableMembernavi:FinancingReceivablesDelinquentLoansInRepaymentMember2023-01-012023-09-300001593538navi:CommonStockSharesOutstandingMember2023-09-300001593538us-gaap:CrossCurrencyInterestRateContractMember2022-06-3000015935382023-06-300001593538us-gaap:ParentMember2022-06-300001593538us-gaap:OperatingSegmentsMemberus-gaap:AllOtherSegmentsMembernavi:EducationLoanMember2022-07-012022-09-300001593538navi:GuarantorAgenciesMembernavi:FederalEducationLoansSegmentMember2022-07-012022-09-300001593538us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMemberus-gaap:FairValueHedgingMember2022-12-310001593538srt:MinimumMember2023-09-300001593538navi:PrivateEducationLoansMember2022-12-310001593538us-gaap:FairValueInputsLevel1Memberus-gaap:InterestRateFloorMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001593538us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:NondesignatedMember2023-07-012023-09-300001593538us-gaap:VariableInterestEntityPrimaryBeneficiaryMembernavi:PrivateEducationLoanSecuritizationsMember2022-12-310001593538us-gaap:ParentMember2022-01-012022-09-300001593538us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2023-09-300001593538us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember2023-09-300001593538navi:BusinessProcessingMembernavi:HospitalsAndOtherHealthCareProvidersMember2022-01-012022-09-300001593538us-gaap:InterestRateSwapMember2022-07-012022-09-300001593538navi:EliminationsAndReconcilingItemsMembernavi:AdjustmentsForCoreToGaapAccountingMembernavi:NetImpactOfGoodwillAndAcquiredIntangiblesMember2023-07-012023-09-300001593538us-gaap:InterestRateFloorMember2023-09-300001593538us-gaap:AccountingStandardsUpdate202202Memberus-gaap:ContractualInterestRateReductionMember2023-09-300001593538navi:BusinessProcessingMembernavi:HealthcareServicesMember2023-01-012023-09-300001593538us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-09-300001593538us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-3100015935382023-04-122023-04-120001593538us-gaap:NoncontrollingInterestMember2022-01-012022-09-300001593538us-gaap:NondesignatedMember2022-12-310001593538navi:SeniorUnsecuredDebtMembernavi:BeforeHedgeAccountingAdjustmentsMember2022-12-310001593538navi:FinancingReceivablesCurrentMemberus-gaap:CreditConcentrationRiskMemberus-gaap:AccountsReceivableMembernavi:PrivateEducationLoansMember2023-01-012023-09-300001593538us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2023-09-300001593538us-gaap:RetainedEarningsMember2021-12-310001593538navi:EducationLoanMember2022-01-012022-09-300001593538us-gaap:CreditConcentrationRiskMembernavi:ForbearanceMemberus-gaap:AccountsReceivableMembernavi:PrivateEducationLoansMember2022-09-300001593538navi:EliminationsAndReconcilingItemsMembernavi:AdjustmentsForCoreToGaapAccountingMember2022-07-012022-09-300001593538us-gaap:OperatingSegmentsMemberus-gaap:AllOtherSegmentsMembernavi:EducationLoanMember2022-01-012022-09-300001593538us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-06-300001593538navi:FinancingReceivables31To60DaysPastDueMemberus-gaap:CreditConcentrationRiskMemberus-gaap:AccountsReceivableMembernavi:PrivateEducationLoansMember2022-12-310001593538navi:NonCosignerLoanMembernavi:CosignersMember2023-09-300001593538us-gaap:GainLossOnDerivativeInstrumentsMember2022-07-012022-09-300001593538us-gaap:GainLossOnDerivativeInstrumentsMember2022-01-012022-09-300001593538us-gaap:RetainedEarningsMember2023-09-300001593538navi:BusinessProcessingMembernavi:TollingAuthoritiesMember2022-01-012022-09-300001593538us-gaap:OtherContractMember2022-07-012022-09-300001593538us-gaap:OperatingSegmentsMember2023-07-012023-09-300001593538navi:OpenMarketShareRepurchasesMember2023-07-012023-09-300001593538navi:HealthcareServicesMembernavi:FederalEducationLoansSegmentMember2023-07-012023-09-300001593538us-gaap:TreasuryStockCommonMember2022-09-300001593538us-gaap:AdditionalPaidInCapitalMember2023-09-300001593538navi:BusinessProcessingMembernavi:FederalGovernmentMember2022-07-012022-09-300001593538navi:CommonStockParValuePointZeroOnePerShareMember2023-01-012023-09-300001593538us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember2022-06-300001593538navi:GuarantorAgenciesMember2023-01-012023-09-300001593538us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueHedgingMember2022-01-012022-09-300001593538us-gaap:PaymentDeferralMembernavi:PrivateEducationLoansMember2023-01-012023-09-300001593538us-gaap:ChangeDuringPeriodFairValueDisclosureMemberus-gaap:InterestRateSwapMember2023-09-300001593538us-gaap:InterestRateFloorMemberus-gaap:ChangeDuringPeriodFairValueDisclosureMember2022-12-310001593538us-gaap:CreditConcentrationRiskMembernavi:FinancingReceivablesForbearanceLoansInRepaymentMemberus-gaap:AccountsReceivableMembernavi:PrivateEducationLoansMember2022-01-012022-12-310001593538us-gaap:OtherContractMember2023-06-300001593538navi:BeforeHedgeAccountingAdjustmentsMembernavi:OtherBorrowingsMember2023-09-300001593538navi:BusinessProcessingMembernavi:StateAndLocalGovernmentMember2022-01-012022-09-300001593538navi:FinancingReceivablesCurrentMemberus-gaap:CreditConcentrationRiskMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMemberus-gaap:AccountsReceivableMember2022-01-012022-12-310001593538navi:SixFourZeroAndAboveMembernavi:FicoMember2023-09-300001593538us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueHedgingMember2023-09-300001593538us-gaap:OperatingSegmentsMembernavi:FederalEducationLoansSegmentMember2023-01-012023-09-300001593538us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:FairValueInputsLevel3Member2023-09-300001593538navi:CommonStockSharesOutstandingMember2023-07-012023-09-300001593538us-gaap:OperatingSegmentsMemberus-gaap:AllOtherSegmentsMembernavi:EducationLoanMember2023-07-012023-09-300001593538navi:InterestExpenseAndDerivativeInstrumentsHedgingActivitiesMember2022-07-012022-09-300001593538us-gaap:CreditConcentrationRiskMembernavi:SchoolGraceDefermentMemberus-gaap:AccountsReceivableMembernavi:PrivateEducationLoansMember2022-09-300001593538us-gaap:CreditConcentrationRiskMembernavi:RepaymentMemberus-gaap:AccountsReceivableMembernavi:PrivateEducationLoansMember2022-12-310001593538us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001593538us-gaap:CreditConcentrationRiskMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMembernavi:FinancingReceivables90DaysPastDueMemberus-gaap:AccountsReceivableMember2022-09-300001593538navi:BusinessProcessingMemberus-gaap:OperatingSegmentsMember2023-01-012023-09-300001593538navi:FederalEducationLoanAssetRecoveryServicesMember2022-07-012022-09-300001593538us-gaap:CommonStockMember2023-06-300001593538us-gaap:CreditConcentrationRiskMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMemberus-gaap:AccountsReceivableMember2023-01-012023-09-300001593538us-gaap:CreditConcentrationRiskMemberus-gaap:AccountsReceivableMembernavi:PrivateEducationLoansMember2022-01-012022-09-300001593538navi:FinancialAsset31To60DaysPastDueMemberus-gaap:CreditConcentrationRiskMembernavi:RepaymentMemberus-gaap:AccountsReceivableMembernavi:PrivateEducationLoansMember2022-09-300001593538us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-012022-09-300001593538us-gaap:CreditConcentrationRiskMemberus-gaap:AccountsReceivableMembernavi:PrivateEducationLoansMember2022-01-012022-12-310001593538us-gaap:NondesignatedMember2022-07-012022-09-300001593538navi:LoanStatusCurrentOrNinetyDaysOrLessDelinquentMembernavi:LoanStatusMember2023-09-300001593538navi:BusinessProcessingMembernavi:FederalGovernmentMember2023-01-012023-09-300001593538us-gaap:CreditConcentrationRiskMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMembernavi:ForbearanceMemberus-gaap:AccountsReceivableMember2022-12-310001593538us-gaap:NondesignatedMemberus-gaap:InterestRateFloorMember2022-01-012022-09-300001593538navi:PrimeLiborBasisSwapsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:InterestRateSwapMember2023-09-300001593538navi:BusinessProcessingMembernavi:FederalEducationLoanAssetRecoveryServicesMember2022-01-012022-09-300001593538navi:OpenMarketShareRepurchasesMember2022-01-012022-09-300001593538navi:FederalEducationLoansSegmentMembernavi:GovernmentServicesMember2023-07-012023-09-300001593538navi:FinancingReceivables31To60DaysPastDueMemberus-gaap:CreditConcentrationRiskMemberus-gaap:AccountsReceivableMembernavi:PrivateEducationLoansMember2023-09-300001593538srt:MaximumMembernavi:PrivateEducationLoansMember2023-07-012023-09-300001593538us-gaap:OperatingSegmentsMemberus-gaap:AllOtherSegmentsMembernavi:EducationLoanMember2023-01-012023-09-300001593538us-gaap:CreditConcentrationRiskMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMembernavi:FinancingReceivablesLoansInRepaymentMemberus-gaap:AccountsReceivableMember2023-01-012023-09-300001593538us-gaap:CommonStockMember2023-01-012023-09-300001593538us-gaap:OtherContractMember2022-09-300001593538navi:EliminationsAndReconcilingItemsMembernavi:AdditionsSubtractionsForCoreToGaapAccountingMember2023-01-012023-09-300001593538us-gaap:OperatingSegmentsMembernavi:EducationLoanMembernavi:ConsumerLendingMember2022-07-012022-09-300001593538navi:SchoolOrGraceOrDefermentOrForbearanceMembernavi:LoanStatusMember2022-09-300001593538navi:ReclassificationsForCoreToGaapAccountingMembernavi:EliminationsAndReconcilingItemsMember2022-01-012022-09-300001593538us-gaap:ParentMembernavi:OpenMarketShareRepurchasesMember2023-01-012023-09-300001593538us-gaap:CreditConcentrationRiskMemberus-gaap:AccountsReceivableMembernavi:PrivateEducationLoansMember2023-01-012023-09-300001593538us-gaap:AdditionalPaidInCapitalMember2021-12-310001593538us-gaap:ChangeDuringPeriodFairValueDisclosureMember2022-12-310001593538us-gaap:AdditionalPaidInCapitalMember2022-09-300001593538us-gaap:CreditConcentrationRiskMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMembernavi:RepaymentMemberus-gaap:AccountsReceivableMember2022-12-310001593538navi:BusinessProcessingMember2022-07-012022-09-300001593538us-gaap:CreditConcentrationRiskMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMembernavi:FinancingReceivablesForbearanceLoansInRepaymentMemberus-gaap:AccountsReceivableMember2022-01-012022-09-300001593538navi:BusinessProcessingMemberus-gaap:OperatingSegmentsMember2023-07-012023-09-300001593538navi:HospitalsAndOtherHealthCareProvidersMember2022-01-012022-09-300001593538us-gaap:ChangeDuringPeriodFairValueDisclosureMembernavi:PrivateEducationLoansMember2023-09-300001593538us-gaap:CreditConcentrationRiskMembernavi:FinancingReceivables90DaysPastDueMemberus-gaap:AccountsReceivableMembernavi:PrivateEducationLoansMember2022-09-300001593538navi:InterestRateReductionAndExtendedMaturityMembernavi:PrivateEducationLoansMember2023-04-012023-06-300001593538navi:FFELPLoanAssetBackedSecuritizationsRepurchaseFacilitiesMembernavi:BeforeHedgeAccountingAdjustmentsMember2023-09-300001593538us-gaap:PaymentDeferralMembernavi:PrivateEducationLoansMember2023-07-012023-09-300001593538us-gaap:CommonStockMember2022-09-300001593538us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueHedgingMember2023-07-012023-09-300001593538navi:PreferredStockPurchaseRightsMember2023-01-012023-09-300001593538navi:SeasoningTwentyFiveThruThirtySixMembernavi:RepaymentsMember2022-09-300001593538us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember2023-01-012023-09-300001593538us-gaap:CreditConcentrationRiskMemberus-gaap:AccountsReceivableMembernavi:FinancingReceivablesDelinquentLoansInRepaymentMembernavi:PrivateEducationLoansMember2022-01-012022-09-300001593538navi:FinancialAsset31To60DaysPastDueMembernavi:PrivateEducationLoansMember2023-09-300001593538navi:PrivateEducationLoanABCPFacilitiesMemberus-gaap:VariableInterestEntityPrimaryBeneficiaryMember2023-09-300001593538us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001593538navi:FederalEducationLoansSegmentMembernavi:HospitalsAndOtherHealthCareProvidersMember2022-07-012022-09-300001593538us-gaap:ParentMember2022-07-012022-09-300001593538us-gaap:FairValueInputsLevel3Memberus-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001593538navi:BusinessProcessingMembernavi:StateAndLocalGovernmentMember2023-07-012023-09-300001593538us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CrossCurrencyInterestRateContractMemberus-gaap:FairValueHedgingMember2023-01-012023-09-300001593538us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-07-012023-09-300001593538navi:SeriesAJuniorParticipatingMember2023-09-300001593538us-gaap:CarryingReportedAmountFairValueDisclosureMember2023-09-300001593538navi:JohnKaneMember2023-09-300001593538navi:BusinessProcessingMembernavi:GovernmentServicesMember2023-01-012023-09-300001593538us-gaap:TreasuryStockCommonMember2021-12-310001593538navi:RepaymentsMember2022-09-300001593538us-gaap:RetainedEarningsMember2023-06-300001593538navi:ConsumerLendingMember2023-01-012023-09-300001593538us-gaap:CommonStockMember2021-12-310001593538us-gaap:OperatingSegmentsMemberus-gaap:AllOtherSegmentsMember2022-07-012022-09-300001593538us-gaap:CreditConcentrationRiskMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMemberus-gaap:AccountsReceivableMembernavi:FinancingReceivablesDelinquentLoansInRepaymentMember2022-01-012022-09-300001593538navi:EliminationsAndReconcilingItemsMembernavi:AdjustmentsForCoreToGaapAccountingMembernavi:NetImpactOfDerivativeAccountingMember2023-07-012023-09-300001593538navi:CommonStockSharesOutstandingMember2022-09-300001593538us-gaap:CreditConcentrationRiskMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMembernavi:FinancingReceivablesLoansInRepaymentMemberus-gaap:AccountsReceivableMember2022-01-012022-12-310001593538navi:NonCosignerLoanMembernavi:CosignersMember2022-09-300001593538us-gaap:NondesignatedMember2023-01-012023-09-300001593538navi:GovernmentServicesMember2022-01-012022-09-300001593538navi:ConsumerLendingMember2023-09-300001593538us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310001593538us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMemberus-gaap:FairValueHedgingMember2022-01-012022-09-300001593538navi:ConsumerLendingMember2022-12-310001593538us-gaap:OperatingSegmentsMembernavi:ConsumerLendingMember2023-07-012023-09-300001593538us-gaap:AssetBackedSecuritiesSecuritizedLoansAndReceivablesMember2023-01-012023-09-300001593538us-gaap:VariableInterestEntityPrimaryBeneficiaryMembernavi:PrivateEducationLoansMember2023-09-300001593538us-gaap:NondesignatedMember2023-07-012023-09-300001593538navi:FederalEducationLoansSegmentMembernavi:FederalEducationLoanAssetRecoveryServicesMember2022-07-012022-09-300001593538us-gaap:CrossCurrencyInterestRateContractMember2023-01-012023-09-300001593538navi:SchoolGraceDefermentMembernavi:RepaymentsMember2023-09-300001593538us-gaap:OtherContractMember2023-09-300001593538us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember2022-09-300001593538us-gaap:CreditConcentrationRiskMembernavi:FinancialAsset61To90DaysPastDueMembernavi:RepaymentMemberus-gaap:AccountsReceivableMembernavi:PrivateEducationLoansMember2022-12-310001593538us-gaap:InterestRateFloorMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001593538us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001593538us-gaap:NondesignatedMember2023-09-300001593538us-gaap:InterestRateSwapMember2023-06-300001593538us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2022-07-012022-09-300001593538navi:FederalEducationLoansSegmentMembernavi:FederalEducationLoanAssetRecoveryServicesMember2023-07-012023-09-300001593538navi:EliminationsAndReconcilingItemsMembernavi:AdjustmentsForCoreToGaapAccountingMembernavi:NetImpactOfDerivativeAccountingMember2023-01-012023-09-300001593538navi:RepaymentsMember2023-09-300001593538us-gaap:CreditConcentrationRiskMembernavi:ForbearanceMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMemberus-gaap:AccountsReceivableMember2023-09-300001593538navi:FicoMembernavi:BelowSixFourZeroMember2022-09-300001593538navi:BusinessProcessingMembernavi:FederalGovernmentMember2023-07-012023-09-300001593538us-gaap:CreditConcentrationRiskMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMembernavi:FinancialAsset90DaysPastDueMembernavi:RepaymentMemberus-gaap:AccountsReceivableMember2023-09-300001593538us-gaap:CommonStockMember2023-07-012023-09-300001593538navi:CommonStockSharesOutstandingMembernavi:OpenMarketShareRepurchasesMember2022-07-012022-09-300001593538navi:PrivateEducationLoansMember2023-09-300001593538navi:GuarantorAgenciesMember2022-01-012022-09-300001593538us-gaap:ParentMember2023-07-012023-09-3000015935382022-06-300001593538navi:SeniorUnsecuredDebtMembernavi:BeforeHedgeAccountingAdjustmentsMember2023-09-300001593538us-gaap:CreditConcentrationRiskMembernavi:FinancialAsset61To90DaysPastDueMembernavi:RepaymentMemberus-gaap:AccountsReceivableMembernavi:PrivateEducationLoansMember2023-09-300001593538us-gaap:NondesignatedMember2022-01-012022-09-300001593538navi:BusinessProcessingMember2023-07-012023-09-300001593538us-gaap:FairValueInputsLevel1Memberus-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001593538navi:HealthcareServicesMember2023-01-012023-09-300001593538navi:OpenMarketShareRepurchasesMember2023-01-012023-09-300001593538navi:BusinessProcessingMembernavi:GovernmentServicesMember2023-07-012023-09-300001593538us-gaap:OperatingSegmentsMembernavi:FederalEducationLoansSegmentMember2022-01-012022-09-300001593538navi:EducationLoanMember2022-07-012022-09-300001593538us-gaap:AccountingStandardsUpdate201409Member2022-09-300001593538us-gaap:OtherContractMemberus-gaap:NondesignatedMember2022-07-012022-09-300001593538navi:FederalEducationLoansSegmentMembernavi:GovernmentServicesMember2022-01-012022-09-300001593538navi:SchoolTypeMembernavi:ForProfitMember2023-09-300001593538us-gaap:InterestRateFloorMemberus-gaap:ChangeDuringPeriodFairValueDisclosureMember2023-09-300001593538navi:FinancingReceivablesCurrentMemberus-gaap:CreditConcentrationRiskMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMemberus-gaap:AccountsReceivableMember2022-01-012022-09-300001593538us-gaap:VariableInterestEntityPrimaryBeneficiaryMembernavi:HedgeAccountingAdjustmentsMember2023-09-300001593538navi:HospitalsAndOtherHealthCareProvidersMember2022-07-012022-09-300001593538navi:GuarantorAgenciesMembernavi:FederalEducationLoansSegmentMember2022-01-012022-09-300001593538navi:EducationLoanMember2023-01-012023-09-300001593538us-gaap:NondesignatedMemberus-gaap:InterestRateFloorMember2023-01-012023-09-300001593538us-gaap:CreditConcentrationRiskMembernavi:FinancialAsset61To90DaysPastDueMembernavi:RepaymentMemberus-gaap:AccountsReceivableMembernavi:PrivateEducationLoansMember2022-09-300001593538us-gaap:OperatingSegmentsMembernavi:EducationLoanMembernavi:FederalEducationLoansSegmentMember2023-01-012023-09-300001593538us-gaap:InterestRateSwapMember2023-09-300001593538navi:FFELPLoanAssetBackedSecuritizationsRepurchaseFacilitiesMemberus-gaap:UnsecuredDebtMember2023-09-300001593538navi:FederalEducationLoansSegmentMembernavi:FederalEducationLoanAssetRecoveryServicesMember2023-01-012023-09-300001593538navi:FederalEducationLoanAssetRecoveryServicesMember2023-01-012023-09-300001593538navi:FederalGovernmentMembernavi:FederalEducationLoansSegmentMember2023-01-012023-09-300001593538us-gaap:OtherContractMemberus-gaap:NondesignatedMember2023-01-012023-09-300001593538us-gaap:CreditConcentrationRiskMembernavi:FinancialAsset61To90DaysPastDueMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMembernavi:RepaymentMemberus-gaap:AccountsReceivableMember2022-09-300001593538navi:GuarantorAgenciesMember2022-07-012022-09-300001593538us-gaap:CreditConcentrationRiskMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMembernavi:FinancingReceivables90DaysPastDueMemberus-gaap:AccountsReceivableMember2023-09-300001593538navi:BeforeHedgeAccountingAdjustmentsMember2023-09-300001593538navi:SchoolTypeMembernavi:NotForProfitMember2022-09-300001593538navi:StateAndLocalGovernmentMember2023-07-012023-09-300001593538navi:FederalEducationLoansSegmentMember2022-01-012022-09-300001593538navi:RehabLoansMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember2023-01-012023-09-300001593538us-gaap:InterestRateSwapMember2021-12-310001593538us-gaap:ContractualInterestRateReductionMembernavi:PrivateEducationLoansMember2023-01-012023-09-300001593538navi:SeniorNotesDueDecemberFifteenTwoThousandFortyThreeMember2023-01-012023-09-300001593538navi:FFELPLoanAssetBackedSecuritizationsRepurchaseFacilitiesMembernavi:BeforeHedgeAccountingAdjustmentsMember2022-12-310001593538us-gaap:OtherContractMemberus-gaap:NondesignatedMember2023-07-012023-09-300001593538navi:FicoMember2023-09-3000015935382022-09-3000015935382023-07-012023-09-300001593538navi:SeasoningThirteenThruTwentyFourMembernavi:RepaymentsMember2023-09-300001593538us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:LongTermDebtMember2022-12-310001593538us-gaap:RetainedEarningsMember2022-01-012022-09-300001593538navi:LoanStatusMember2023-09-300001593538srt:MaximumMembernavi:PrivateEducationLoansMember2022-07-012022-09-300001593538us-gaap:InterestRateFloorMember2022-12-310001593538us-gaap:CreditConcentrationRiskMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMembernavi:FinancingReceivablesForbearanceLoansInRepaymentMemberus-gaap:AccountsReceivableMember2022-01-012022-12-310001593538us-gaap:CreditConcentrationRiskMembernavi:ForbearanceMemberus-gaap:AccountsReceivableMembernavi:PrivateEducationLoansMember2022-12-310001593538us-gaap:VariableInterestEntityPrimaryBeneficiaryMembernavi:BeforeHedgeAccountingAdjustmentsMember2022-12-310001593538us-gaap:AssetBackedSecuritiesSecuritizedLoansAndReceivablesMember2022-01-012022-09-300001593538us-gaap:CreditConcentrationRiskMembernavi:RepaymentMemberus-gaap:FinancialAssetNotPastDueMemberus-gaap:AccountsReceivableMembernavi:PrivateEducationLoansMember2022-09-300001593538us-gaap:RetainedEarningsMember2023-07-012023-09-300001593538us-gaap:ParentMember2023-01-012023-09-300001593538navi:FinancingReceivables31To60DaysPastDueMemberus-gaap:CreditConcentrationRiskMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMemberus-gaap:AccountsReceivableMember2022-12-310001593538navi:CosignersMember2022-09-300001593538navi:CounterPartyMember2023-09-300001593538navi:FFELPLoanAssetBackedSecuritizationsRepurchaseFacilitiesMember2023-09-300001593538us-gaap:NondesignatedMemberus-gaap:InterestRateSwapMember2022-01-012022-09-300001593538us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMemberus-gaap:InterestRateSwapMember2023-09-300001593538us-gaap:OtherContractMember2023-01-012023-09-300001593538us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMemberus-gaap:ChangeDuringPeriodFairValueDisclosureMember2023-09-300001593538navi:BeforeHedgeAccountingAdjustmentsMemberus-gaap:UnsecuredDebtMember2023-09-300001593538us-gaap:FairValueInputsLevel1Memberus-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001593538us-gaap:AccountingStandardsUpdate202202Memberus-gaap:ContractualInterestRateReductionMember2022-12-310001593538navi:FinancingReceivablesCurrentMemberus-gaap:CreditConcentrationRiskMemberus-gaap:AccountsReceivableMembernavi:PrivateEducationLoansMember2022-01-012022-09-300001593538navi:FFELPLoanSecuritizationsMembernavi:BeforeHedgeAccountingAdjustmentsMember2023-09-300001593538us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMemberus-gaap:CrossCurrencyInterestRateContractMember2023-09-300001593538us-gaap:InterestRateSwapMember2022-06-300001593538us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:ChangeDuringPeriodFairValueDisclosureMember2023-09-300001593538navi:SeasoningThirtySevenThruFortyEightMembernavi:RepaymentsMember2023-09-300001593538us-gaap:CreditConcentrationRiskMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMembernavi:SchoolGraceDefermentMemberus-gaap:AccountsReceivableMember2022-09-300001593538navi:CosignersMember2023-09-300001593538navi:OpenMarketShareRepurchasesMember2022-07-012022-09-300001593538navi:FinancingReceivablesCurrentMemberus-gaap:CreditConcentrationRiskMemberus-gaap:AccountsReceivableMembernavi:PrivateEducationLoansMember2022-01-012022-12-310001593538us-gaap:RetainedEarningsMember2022-09-300001593538us-gaap:VariableInterestEntityPrimaryBeneficiaryMembernavi:FFELPLoanABCPFacilitiesMember2022-12-310001593538us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember2022-07-012022-09-300001593538us-gaap:CreditConcentrationRiskMemberus-gaap:AccountsReceivableMembernavi:FinancingReceivables61To90DaysPastDueMembernavi:PrivateEducationLoansMember2022-09-300001593538us-gaap:OperatingSegmentsMembernavi:FederalEducationLoansSegmentMember2022-07-012022-09-300001593538navi:FinancialAsset31To60DaysPastDueMemberus-gaap:CreditConcentrationRiskMembernavi:RepaymentMemberus-gaap:AccountsReceivableMembernavi:PrivateEducationLoansMember2023-09-300001593538us-gaap:VariableInterestEntityPrimaryBeneficiaryMembernavi:BeforeHedgeAccountingAdjustmentsMember2023-09-300001593538us-gaap:TreasuryStockCommonMember2023-07-012023-09-300001593538navi:SixFourZeroAndAboveMembernavi:FicoMember2022-09-300001593538navi:OpenMarketShareRepurchasesMemberus-gaap:TreasuryStockCommonMember2023-07-012023-09-300001593538us-gaap:OtherContractMember2021-12-310001593538us-gaap:OtherContractMemberus-gaap:ChangeDuringPeriodFairValueDisclosureMember2022-12-310001593538navi:SeasoningOneThruTwelveMembernavi:RepaymentsMember2023-09-300001593538navi:HealthcareServicesMember2022-01-012022-09-300001593538navi:BusinessProcessingMembernavi:HospitalsAndOtherHealthCareProvidersMember2023-07-012023-09-300001593538us-gaap:CreditConcentrationRiskMembernavi:FinancingReceivablesForbearanceLoansInRepaymentMemberus-gaap:AccountsReceivableMembernavi:PrivateEducationLoansMember2022-01-012022-09-300001593538navi:FederalEducationLoanAssetRecoveryServicesMember2022-01-012022-09-300001593538us-gaap:CreditConcentrationRiskMemberus-gaap:AccountsReceivableMembernavi:PrivateEducationLoansMembernavi:FinancingReceivablesDelinquentLoansInRepaymentMember2023-01-012023-09-300001593538us-gaap:AdditionalPaidInCapitalMember2022-01-012022-09-300001593538navi:FinancingReceivables31To60DaysPastDueMemberus-gaap:CreditConcentrationRiskMemberus-gaap:AccountsReceivableMembernavi:PrivateEducationLoansMember2022-09-300001593538navi:BusinessProcessingMembernavi:GovernmentServicesMember2022-01-012022-09-300001593538navi:BeforeHedgeAccountingAdjustmentsMembernavi:ShortTermUnsecuredDebtMember2023-09-300001593538navi:BeforeHedgeAccountingAdjustmentsMembernavi:ShortTermUnsecuredDebtMember2022-12-310001593538us-gaap:CrossCurrencyInterestRateContractMember2021-12-310001593538us-gaap:RetainedEarningsMember2023-01-012023-09-300001593538navi:FederalEducationLoansSegmentMember2023-09-300001593538us-gaap:CreditConcentrationRiskMembernavi:FinancialAsset61To90DaysPastDueMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMembernavi:RepaymentMemberus-gaap:AccountsReceivableMember2023-09-300001593538navi:GuarantorAgenciesMembernavi:FederalEducationLoansSegmentMember2023-07-012023-09-300001593538navi:BusinessProcessingMembernavi:TollingAuthoritiesMember2023-01-012023-09-300001593538us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2022-01-012022-09-300001593538us-gaap:CreditConcentrationRiskMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMembernavi:FinancingReceivablesLoansInRepaymentMemberus-gaap:AccountsReceivableMember2022-01-012022-09-300001593538us-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateFloorMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001593538us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember2023-09-3000015935382022-12-310001593538navi:CosignerLoanMember2022-09-300001593538navi:LoansReceivableForPreviouslyFullyChargedOffLoansMembernavi:PrivateEducationLoansMember2023-07-012023-09-300001593538us-gaap:CreditConcentrationRiskMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMemberus-gaap:AccountsReceivableMember2023-09-300001593538us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMemberus-gaap:FairValueHedgingMember2023-09-300001593538us-gaap:InterestExpenseMember2023-07-012023-09-300001593538us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ShortTermDebtMember2023-09-300001593538us-gaap:IndemnificationGuaranteeMembernavi:SLMBankMember2023-09-300001593538us-gaap:CreditConcentrationRiskMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMembernavi:SchoolGraceDefermentMemberus-gaap:AccountsReceivableMember2023-09-300001593538navi:LoanStatusMember2022-09-300001593538navi:BusinessProcessingMembernavi:StateAndLocalGovernmentMember2022-07-012022-09-300001593538us-gaap:CreditConcentrationRiskMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMembernavi:SchoolGraceDefermentMemberus-gaap:AccountsReceivableMember2022-12-310001593538us-gaap:FairValueInputsLevel2Memberus-gaap:CrossCurrencyInterestRateContractMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001593538us-gaap:NondesignatedMemberus-gaap:InterestRateFloorMember2022-12-310001593538navi:FFELPLoanSecuritizationsMembernavi:BeforeHedgeAccountingAdjustmentsMember2022-12-310001593538navi:CommonStockSharesOutstandingMember2021-12-310001593538us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateFloorMemberus-gaap:FairValueHedgingMember2023-09-300001593538us-gaap:EmployeeStockOptionMember2022-01-012022-09-300001593538us-gaap:SecuredDebtMembernavi:BeforeHedgeAccountingAdjustmentsMember2023-09-300001593538navi:InterestExpenseAndDerivativeInstrumentsHedgingActivitiesMember2023-07-012023-09-300001593538us-gaap:OperatingSegmentsMembernavi:EducationLoanMembernavi:FederalEducationLoansSegmentMember2022-07-012022-09-300001593538us-gaap:CreditConcentrationRiskMembernavi:FinancingReceivables90DaysPastDueMemberus-gaap:AccountsReceivableMembernavi:PrivateEducationLoansMember2023-09-300001593538us-gaap:InterestExpenseMember2022-07-012022-09-300001593538navi:FederalEducationLoansSegmentMembernavi:HospitalsAndOtherHealthCareProvidersMember2023-01-012023-09-300001593538us-gaap:CreditConcentrationRiskMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMembernavi:FinancingReceivablesForbearanceLoansInRepaymentMemberus-gaap:AccountsReceivableMember2023-01-012023-09-300001593538navi:BusinessProcessingMemberus-gaap:OperatingSegmentsMembernavi:EducationLoanMember2022-01-012022-09-300001593538navi:FFELPLoanAssetBackedSecuritizationsRepurchaseFacilitiesMemberus-gaap:UnsecuredDebtMember2022-12-310001593538navi:MarkHeleenMember2023-09-300001593538us-gaap:FairValueInputsLevel3Memberus-gaap:InterestRateFloorMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001593538navi:EliminationsAndReconcilingItemsMembernavi:AdjustmentsForCoreToGaapAccountingMember2023-07-012023-09-300001593538us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMemberus-gaap:InterestRateFloorMember2022-12-310001593538us-gaap:InterestExpenseMember2022-01-012022-09-300001593538us-gaap:OperatingSegmentsMember2022-01-012022-09-300001593538navi:PrivateEducationLoansMember2023-01-012023-09-300001593538navi:FinancialAsset31To60DaysPastDueMemberus-gaap:CreditConcentrationRiskMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMembernavi:RepaymentMemberus-gaap:AccountsReceivableMember2022-12-310001593538us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember2023-07-012023-09-300001593538srt:MinimumMembernavi:PrivateEducationLoansMember2023-07-012023-09-300001593538us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-09-300001593538us-gaap:TreasuryStockCommonMember2023-06-300001593538us-gaap:FairValueInputsLevel3Memberus-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001593538navi:StateAndLocalGovernmentMembernavi:FederalEducationLoansSegmentMember2023-07-012023-09-300001593538navi:HedgeAccountingAdjustmentsMember2023-09-300001593538navi:CommonStockSharesOutstandingMember2022-12-310001593538navi:HospitalsAndOtherHealthCareProvidersMember2023-01-012023-09-300001593538us-gaap:OperatingSegmentsMembernavi:EducationLoanMembernavi:ConsumerLendingMember2023-07-012023-09-300001593538navi:TollingAuthoritiesMember2023-01-012023-09-300001593538navi:PrivateEducationLoansMember2022-07-012022-09-300001593538us-gaap:CrossCurrencyInterestRateContractMember2022-12-310001593538us-gaap:CreditConcentrationRiskMembernavi:FinancingReceivablesLoansInRepaymentMemberus-gaap:AccountsReceivableMembernavi:PrivateEducationLoansMember2022-01-012022-12-310001593538navi:JohnKaneMember2023-01-012023-09-300001593538us-gaap:CreditConcentrationRiskMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMemberus-gaap:AccountsReceivableMember2022-01-012022-12-310001593538us-gaap:CreditConcentrationRiskMembernavi:FinancingReceivablesLoansInRepaymentMemberus-gaap:AccountsReceivableMembernavi:PrivateEducationLoansMember2023-01-012023-09-300001593538navi:HealthcareServicesMembernavi:FederalEducationLoansSegmentMember2022-07-012022-09-300001593538us-gaap:CreditConcentrationRiskMembernavi:SchoolGraceDefermentMemberus-gaap:AccountsReceivableMembernavi:PrivateEducationLoansMember2023-09-300001593538navi:CertainLoanModificationsMembernavi:ModifiedLoansMember2022-09-300001593538us-gaap:SecuredDebtMembernavi:BeforeHedgeAccountingAdjustmentsMember2022-12-310001593538navi:BusinessProcessingMembernavi:TollingAuthoritiesMember2022-07-012022-09-300001593538us-gaap:TreasuryStockCommonMember2023-09-300001593538navi:BusinessProcessingMembernavi:GuarantorAgenciesMember2022-01-012022-09-300001593538navi:StateAndLocalGovernmentMember2023-01-012023-09-300001593538us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:NondesignatedMember2023-09-300001593538srt:MinimumMembernavi:PrivateEducationLoansMember2022-07-012022-09-300001593538navi:BusinessProcessingMember2023-01-012023-09-300001593538navi:CertainLoanModificationsMember2023-09-300001593538us-gaap:AccountingStandardsUpdate202202Memberus-gaap:ContractualInterestRateReductionMember2023-01-012023-09-300001593538navi:FFELPLoanABCPFacilitiesMembernavi:BeforeHedgeAccountingAdjustmentsMember2022-12-310001593538us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMemberus-gaap:FairValueHedgingMember2023-07-012023-09-300001593538navi:PrivateEducationLoanABCPFacilitiesMembernavi:BeforeHedgeAccountingAdjustmentsMember2023-09-300001593538us-gaap:CreditConcentrationRiskMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMembernavi:RepaymentMemberus-gaap:AccountsReceivableMember2023-09-300001593538us-gaap:TreasuryStockCommonMember2022-07-012022-09-300001593538us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-09-300001593538navi:GuarantorAgenciesMembernavi:FederalEducationLoansSegmentMember2023-01-012023-09-300001593538navi:BusinessProcessingMembernavi:GovernmentServicesMember2022-07-012022-09-300001593538navi:TollingAuthoritiesMembernavi:FederalEducationLoansSegmentMember2023-01-012023-09-300001593538navi:PrimeLiborBasisSwapsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputConstantPrepaymentRateMemberus-gaap:InterestRateSwapMember2023-09-300001593538us-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateFloorMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001593538us-gaap:InterestExpenseMember2023-01-012023-09-300001593538us-gaap:MeasurementInputDiscountForLackOfMarketabilityMembernavi:PrimeLiborBasisSwapsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:InterestRateSwapMember2023-09-300001593538navi:RehabLoansMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember2022-09-300001593538us-gaap:AdditionalPaidInCapitalMember2023-06-300001593538navi:SchoolTypeMember2022-09-300001593538navi:GovernmentServicesMember2023-01-012023-09-3000015935382022-07-012022-09-300001593538us-gaap:CreditConcentrationRiskMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMembernavi:ForbearanceMemberus-gaap:AccountsReceivableMember2022-09-300001593538navi:FederalGovernmentMember2022-07-012022-09-300001593538us-gaap:CreditConcentrationRiskMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMemberus-gaap:AccountsReceivableMembernavi:FinancingReceivables61To90DaysPastDueMember2022-12-310001593538navi:FederalEducationLoanAssetRecoveryServicesMember2023-07-012023-09-300001593538navi:FederalGovernmentMember2022-01-012022-09-300001593538navi:CertainLoanModificationsMembernavi:ModifiedLoansMember2023-09-300001593538navi:PrivateEducationLoanSecuritizationsMembernavi:BeforeHedgeAccountingAdjustmentsMember2022-12-310001593538navi:FederalEducationLoansSegmentMember2023-01-012023-09-300001593538navi:MarkHeleenMember2023-01-012023-09-300001593538us-gaap:FairValueInputsLevel2Memberus-gaap:CrossCurrencyInterestRateContractMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001593538us-gaap:CreditConcentrationRiskMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMembernavi:FinancingReceivables90DaysPastDueMemberus-gaap:AccountsReceivableMember2022-12-310001593538navi:FinancingReceivables31To60DaysPastDueMemberus-gaap:CreditConcentrationRiskMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMemberus-gaap:AccountsReceivableMember2023-09-300001593538us-gaap:InterestRateFloorMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001593538navi:ReclassificationsForCoreToGaapAccountingMembernavi:EliminationsAndReconcilingItemsMember2022-07-012022-09-300001593538us-gaap:NondesignatedMemberus-gaap:InterestRateSwapMember2023-07-012023-09-300001593538navi:LoanStatusCurrentOrNinetyDaysOrLessDelinquentMembernavi:LoanStatusMember2022-09-300001593538us-gaap:CreditConcentrationRiskMemberus-gaap:FinancialAssetNotPastDueMembernavi:RepaymentMemberus-gaap:AccountsReceivableMembernavi:PrivateEducationLoansMember2023-09-300001593538us-gaap:FairValueInputsLevel1Memberus-gaap:InterestRateFloorMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001593538us-gaap:ParentMember2021-12-310001593538navi:BusinessProcessingMemberus-gaap:OperatingSegmentsMember2022-01-012022-09-300001593538us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember2023-06-300001593538navi:BeforeHedgeAccountingAdjustmentsMemberus-gaap:UnsecuredDebtMember2023-09-300001593538navi:BusinessProcessingMemberus-gaap:OperatingSegmentsMember2022-07-012022-09-300001593538us-gaap:OtherContractMemberus-gaap:NondesignatedMember2022-01-012022-09-300001593538us-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001593538navi:SeriesAJuniorParticipatingPreferredStockMember2022-12-310001593538navi:HealthcareServicesMembernavi:BusinessProcessingMember2023-07-012023-09-300001593538us-gaap:VariableInterestEntityPrimaryBeneficiaryMembernavi:HedgeAccountingAdjustmentsMember2022-12-310001593538us-gaap:ParentMember2022-09-300001593538navi:FederalEducationLoansSegmentMember2023-07-012023-09-300001593538us-gaap:CreditConcentrationRiskMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMemberus-gaap:AccountsReceivableMember2022-01-012022-09-300001593538us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:NondesignatedMember2023-01-012023-09-300001593538navi:StateAndLocalGovernmentMember2022-01-012022-09-300001593538navi:BusinessProcessingMembernavi:FederalEducationLoanAssetRecoveryServicesMember2023-07-012023-09-300001593538navi:StateAndLocalGovernmentMembernavi:FederalEducationLoansSegmentMember2022-07-012022-09-300001593538navi:PrivateEducationLoansMember2021-12-310001593538us-gaap:OperatingSegmentsMembernavi:EducationLoanMembernavi:ConsumerLendingMember2023-01-012023-09-300001593538us-gaap:AccountingStandardsUpdate201409Member2023-09-300001593538us-gaap:RetainedEarningsMember2022-12-310001593538us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueHedgingMember2023-01-012023-09-300001593538us-gaap:NondesignatedMemberus-gaap:InterestRateFloorMember2022-07-012022-09-300001593538us-gaap:CreditConcentrationRiskMembernavi:RepaymentMemberus-gaap:AccountsReceivableMembernavi:PrivateEducationLoansMember2023-09-300001593538us-gaap:OperatingSegmentsMemberus-gaap:AllOtherSegmentsMember2022-01-012022-09-300001593538navi:FinancialAsset90DaysPastDueMembernavi:PrivateEducationLoansMember2023-09-300001593538us-gaap:CrossCurrencyInterestRateContractMember2023-06-300001593538us-gaap:CrossCurrencyInterestRateContractMember2022-07-012022-09-300001593538navi:FederalEducationLoansSegmentMembernavi:FederalEducationLoanAssetRecoveryServicesMember2022-01-012022-09-300001593538navi:ReclassificationsForCoreToGaapAccountingMembernavi:EliminationsAndReconcilingItemsMember2023-07-012023-09-300001593538navi:FederalEducationLoansSegmentMembernavi:HospitalsAndOtherHealthCareProvidersMember2023-07-012023-09-300001593538navi:EliminationsAndReconcilingItemsMembernavi:AdjustmentsForCoreToGaapAccountingMembernavi:NetImpactOfGoodwillAndAcquiredIntangiblesMember2022-01-012022-09-3000015935382023-09-300001593538us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CrossCurrencyInterestRateContractMemberus-gaap:FairValueHedgingMember2022-01-012022-09-300001593538us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CrossCurrencyInterestRateContractMemberus-gaap:FairValueHedgingMember2023-09-300001593538navi:SchoolTypeMember2023-09-300001593538us-gaap:ParentMembernavi:OpenMarketShareRepurchasesMember2022-07-012022-09-300001593538navi:BusinessProcessingMember2022-01-012022-09-300001593538navi:StaffordLoansMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember2023-09-300001593538us-gaap:ContractualInterestRateReductionMembernavi:PrivateEducationLoansMember2023-07-012023-09-300001593538us-gaap:ContractualInterestRateReductionMembernavi:PrivateEducationLoansMember2023-04-012023-06-300001593538navi:SeriesAJuniorParticipatingPreferredStockMember2023-09-300001593538us-gaap:TreasuryStockCommonMember2022-06-300001593538navi:ConsolidationLoansMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember2023-09-300001593538us-gaap:CreditConcentrationRiskMembernavi:RepaymentMembernavi:FinancialAsset90DaysPastDueMemberus-gaap:AccountsReceivableMembernavi:PrivateEducationLoansMember2022-12-310001593538navi:FederalGovernmentMember2023-01-012023-09-300001593538us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2023-07-012023-09-300001593538us-gaap:CreditConcentrationRiskMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMembernavi:RepaymentMemberus-gaap:AccountsReceivableMember2022-09-300001593538navi:BeforeHedgeAccountingAdjustmentsMember2022-12-310001593538us-gaap:FinancialAssetNotPastDueMembernavi:PrivateEducationLoansMember2023-09-300001593538navi:InterestRateReductionAndExtendedMaturityMembernavi:PrivateEducationLoansMember2023-07-012023-09-300001593538navi:SchoolTypeMembernavi:ForProfitMember2022-09-300001593538us-gaap:AdditionalPaidInCapitalMember2022-12-310001593538us-gaap:RetainedEarningsMember2022-07-012022-09-300001593538navi:EliminationsAndReconcilingItemsMembernavi:AdditionsSubtractionsForCoreToGaapAccountingMember2023-07-012023-09-300001593538navi:FederalGovernmentMember2023-07-012023-09-300001593538us-gaap:OtherContractMemberus-gaap:FairValueInputsLevel3Member2023-09-300001593538navi:BusinessProcessingMembernavi:TollingAuthoritiesMember2023-07-012023-09-300001593538us-gaap:CommonStockMember2022-12-310001593538us-gaap:CreditConcentrationRiskMembernavi:RepaymentMemberus-gaap:AccountsReceivableMembernavi:PrivateEducationLoansMember2022-09-300001593538navi:SeasoningTwentyFiveThruThirtySixMembernavi:RepaymentsMember2023-09-300001593538navi:FinancialAsset31To60DaysPastDueMemberus-gaap:CreditConcentrationRiskMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMembernavi:RepaymentMemberus-gaap:AccountsReceivableMember2023-09-300001593538us-gaap:OperatingSegmentsMemberus-gaap:AllOtherSegmentsMember2023-01-012023-09-300001593538us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMemberus-gaap:CrossCurrencyInterestRateContractMember2022-12-310001593538us-gaap:ContractualInterestRateReductionMembernavi:PrivateEducationLoansMember2022-01-012022-12-310001593538navi:FederalEducationLoansSegmentMember2022-12-310001593538us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:ChangeDuringPeriodFairValueDisclosureMember2022-12-310001593538us-gaap:FairValueMeasurementsRecurringMember2023-09-300001593538us-gaap:EstimateOfFairValueFairValueDisclosureMember2022-12-310001593538us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:NondesignatedMember2022-12-310001593538us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueHedgingMember2022-07-012022-09-300001593538us-gaap:CreditConcentrationRiskMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMemberus-gaap:AccountsReceivableMembernavi:FinancingReceivablesDelinquentLoansInRepaymentMember2022-01-012022-12-310001593538navi:TollingAuthoritiesMembernavi:FederalEducationLoansSegmentMember2022-01-012022-09-300001593538us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001593538navi:StaffordLoansMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember2022-09-300001593538us-gaap:CreditConcentrationRiskMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMembernavi:RepaymentMemberus-gaap:FinancialAssetNotPastDueMemberus-gaap:AccountsReceivableMember2022-09-300001593538us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2022-12-310001593538us-gaap:OtherContractMember2022-12-310001593538navi:StateAndLocalGovernmentMembernavi:FederalEducationLoansSegmentMember2022-01-012022-09-300001593538navi:HealthcareServicesMember2023-07-012023-09-300001593538us-gaap:CreditConcentrationRiskMembernavi:FinancingReceivables61To90DaysPastDueMemberus-gaap:AccountsReceivableMembernavi:PrivateEducationLoansMember2022-12-310001593538navi:DirectorsOrOfficersMember2023-01-012023-09-300001593538navi:CommonStockSharesOutstandingMembernavi:OpenMarketShareRepurchasesMember2023-07-012023-09-300001593538navi:InterestExpenseAndDerivativeInstrumentsHedgingActivitiesMember2023-01-012023-09-300001593538us-gaap:CreditConcentrationRiskMembernavi:FinancialAsset61To90DaysPastDueMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMembernavi:RepaymentMemberus-gaap:AccountsReceivableMember2022-12-310001593538us-gaap:EmployeeStockOptionMember2022-07-012022-09-300001593538us-gaap:OperatingSegmentsMembernavi:ConsumerLendingMember2022-07-012022-09-300001593538navi:SeasoningOneThruTwelveMembernavi:RepaymentsMember2022-09-300001593538navi:HedgeAccountingAdjustmentsMember2022-12-310001593538us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ShortTermDebtMember2022-12-310001593538navi:CosignerLoanMembernavi:CosignersMember2022-09-300001593538navi:BusinessProcessingMembernavi:StateAndLocalGovernmentMember2023-01-012023-09-300001593538us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001593538us-gaap:CarryingReportedAmountFairValueDisclosureMember2022-12-310001593538navi:EliminationsAndReconcilingItemsMembernavi:AdjustmentsForCoreToGaapAccountingMembernavi:NetImpactOfGoodwillAndAcquiredIntangiblesMember2022-07-012022-09-300001593538navi:FFELPLoanABCPFacilitiesMembernavi:BeforeHedgeAccountingAdjustmentsMember2023-09-300001593538us-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001593538navi:SecuritizationTrustContractsMember2023-09-300001593538us-gaap:CreditConcentrationRiskMembernavi:ForbearanceMemberus-gaap:AccountsReceivableMembernavi:PrivateEducationLoansMember2023-09-300001593538navi:SeasoningThirteenThruTwentyFourMembernavi:RepaymentsMember2022-09-300001593538us-gaap:ChangeDuringPeriodFairValueDisclosureMember2023-09-300001593538us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001593538us-gaap:ParentMembernavi:OpenMarketShareRepurchasesMember2023-07-012023-09-300001593538navi:BusinessProcessingMemberus-gaap:OperatingSegmentsMembernavi:EducationLoanMember2023-01-012023-09-300001593538us-gaap:CreditConcentrationRiskMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMembernavi:FinancingReceivables61To90DaysPastDueMemberus-gaap:AccountsReceivableMember2023-09-300001593538navi:BusinessProcessingMembernavi:HealthcareServicesMember2022-01-012022-09-300001593538navi:FicoMember2022-09-300001593538us-gaap:EmployeeStockOptionMember2023-07-012023-09-300001593538navi:BusinessProcessingMembernavi:FederalEducationLoanAssetRecoveryServicesMember2023-01-012023-09-300001593538us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001593538navi:InterestRateReductionAndExtendedMaturityMembernavi:PrivateEducationLoansMember2023-01-012023-09-300001593538navi:PrivateEducationLoansMember2022-09-300001593538us-gaap:InterestRateSwapMember2023-01-012023-09-300001593538us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueHedgingMember2022-12-310001593538navi:FinancingReceivablesCurrentMemberus-gaap:CreditConcentrationRiskMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMemberus-gaap:AccountsReceivableMember2023-01-012023-09-300001593538us-gaap:CrossCurrencyInterestRateContractMember2022-09-300001593538us-gaap:CreditConcentrationRiskMembernavi:FinancingReceivables61To90DaysPastDueMemberus-gaap:AccountsReceivableMembernavi:PrivateEducationLoansMember2023-09-300001593538us-gaap:OtherContractMember2022-01-012022-09-300001593538us-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001593538us-gaap:InterestRateSwapMember2023-07-012023-09-300001593538us-gaap:OperatingSegmentsMemberus-gaap:AllOtherSegmentsMember2023-07-012023-09-300001593538navi:CommonStockSharesOutstandingMember2022-07-012022-09-300001593538us-gaap:CreditConcentrationRiskMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMemberus-gaap:AccountsReceivableMember2022-09-300001593538navi:FederalGovernmentMembernavi:FederalEducationLoansSegmentMember2022-07-012022-09-300001593538us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001593538us-gaap:NoncontrollingInterestMember2021-12-310001593538us-gaap:FairValueMeasurementsRecurringMember2022-12-310001593538us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CrossCurrencyInterestRateContractMemberus-gaap:FairValueHedgingMember2023-07-012023-09-300001593538us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:NondesignatedMember2022-07-012022-09-300001593538us-gaap:CreditConcentrationRiskMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMembernavi:RepaymentMembernavi:FinancialAsset90DaysPastDueMemberus-gaap:AccountsReceivableMember2022-09-300001593538navi:EducationLoanMember2023-07-012023-09-300001593538us-gaap:ChangeDuringPeriodFairValueDisclosureMembernavi:PrivateEducationLoansMember2022-12-310001593538us-gaap:AllOtherSegmentsMember2023-09-300001593538navi:PrivateEducationLoansMember2022-12-310001593538navi:SchoolGraceDefermentMembernavi:RepaymentsMember2022-09-300001593538us-gaap:InterestRateSwapMember2022-09-300001593538navi:CommonStockSharesOutstandingMembernavi:OpenMarketShareRepurchasesMember2023-01-012023-09-300001593538navi:StaffordLoansMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember2023-01-012023-09-300001593538us-gaap:NondesignatedMemberus-gaap:InterestRateSwapMember2022-07-012022-09-300001593538us-gaap:OtherContractMember2023-07-012023-09-300001593538us-gaap:AdditionalPaidInCapitalMember2022-07-012022-09-300001593538us-gaap:NondesignatedMemberus-gaap:InterestRateFloorMember2023-09-300001593538us-gaap:CommonStockMember2023-09-290001593538navi:EliminationsAndReconcilingItemsMembernavi:AdditionsSubtractionsForCoreToGaapAccountingMember2022-07-012022-09-300001593538navi:TollingAuthoritiesMembernavi:FederalEducationLoansSegmentMember2022-07-012022-09-300001593538us-gaap:TreasuryStockCommonMember2023-01-012023-09-300001593538navi:EliminationsAndReconcilingItemsMembernavi:AdjustmentsForCoreToGaapAccountingMembernavi:NetImpactOfDerivativeAccountingMember2022-01-012022-09-300001593538navi:EliminationsAndReconcilingItemsMembernavi:AdjustmentsForCoreToGaapAccountingMembernavi:NetImpactOfDerivativeAccountingMember2022-07-012022-09-300001593538us-gaap:VariableInterestEntityPrimaryBeneficiaryMembernavi:PrivateEducationLoanSecuritizationsMember2023-09-300001593538navi:EliminationsAndReconcilingItemsMembernavi:AdjustmentsForCoreToGaapAccountingMembernavi:NetImpactOfGoodwillAndAcquiredIntangiblesMember2023-01-012023-09-300001593538us-gaap:CreditConcentrationRiskMembernavi:FinancingReceivables90DaysPastDueMemberus-gaap:AccountsReceivableMembernavi:PrivateEducationLoansMember2022-12-310001593538navi:BeforeHedgeAccountingAdjustmentsMemberus-gaap:UnsecuredDebtMember2022-12-310001593538navi:PrivateEducationLoansMember2023-07-012023-09-300001593538us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CrossCurrencyInterestRateContractMemberus-gaap:FairValueHedgingMember2022-12-310001593538us-gaap:AdditionalPaidInCapitalMember2023-07-012023-09-300001593538navi:EliminationsAndReconcilingItemsMembernavi:AdjustmentsForCoreToGaapAccountingMember2023-01-012023-09-300001593538us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-09-300001593538us-gaap:CreditConcentrationRiskMembernavi:SchoolGraceDefermentMemberus-gaap:AccountsReceivableMembernavi:PrivateEducationLoansMember2022-12-310001593538navi:FederalGovernmentMembernavi:FederalEducationLoansSegmentMember2022-01-012022-09-300001593538navi:LoansReceivableForPreviouslyFullyChargedOffLoansMembernavi:PrivateEducationLoansMember2022-07-012022-09-300001593538us-gaap:CreditConcentrationRiskMemberus-gaap:AccountsReceivableMembernavi:PrivateEducationLoansMember2022-09-300001593538navi:FinancialAsset61To90DaysPastDueMembernavi:PrivateEducationLoansMember2023-09-300001593538navi:BusinessProcessingMembernavi:GuarantorAgenciesMember2022-07-012022-09-300001593538us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001593538us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMemberus-gaap:InterestRateFloorMember2023-09-300001593538us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001593538navi:SeasoningMoreThanFortyEightMembernavi:RepaymentsMember2022-09-300001593538us-gaap:VariableInterestEntityPrimaryBeneficiaryMembernavi:FFELPLoanABCPFacilitiesMember2023-09-300001593538navi:CommonStockSharesOutstandingMember2022-01-012022-09-300001593538us-gaap:CommonStockMember2022-01-012022-09-300001593538navi:FinancialAsset31To60DaysPastDueMemberus-gaap:CreditConcentrationRiskMembernavi:RepaymentMemberus-gaap:AccountsReceivableMembernavi:PrivateEducationLoansMember2022-12-310001593538navi:CommonStockSharesOutstandingMembernavi:OpenMarketShareRepurchasesMember2022-01-012022-09-300001593538navi:EliminationsAndReconcilingItemsMembernavi:AdjustmentsForCoreToGaapAccountingMember2022-01-012022-09-300001593538navi:SeriesAJuniorParticipatingMember2022-12-310001593538navi:ConsolidationLoansMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember2023-01-012023-09-300001593538navi:BusinessProcessingMembernavi:FederalEducationLoanAssetRecoveryServicesMember2022-07-012022-09-3000015935382022-01-012022-01-310001593538navi:SchoolTypeMembernavi:NotForProfitMember2023-09-300001593538navi:SchoolDefermentMembernavi:PrivateEducationLoansMember2023-09-300001593538navi:TollingAuthoritiesMembernavi:FederalEducationLoansSegmentMember2023-07-012023-09-300001593538navi:BusinessProcessingMembernavi:HospitalsAndOtherHealthCareProvidersMember2023-01-012023-09-300001593538us-gaap:NondesignatedMemberus-gaap:InterestRateSwapMember2023-09-300001593538navi:BusinessProcessingMembernavi:HealthcareServicesMember2022-07-012022-09-300001593538navi:FFELPLoanSecuritizationsMemberus-gaap:VariableInterestEntityPrimaryBeneficiaryMember2022-12-310001593538us-gaap:CreditConcentrationRiskMemberus-gaap:FinancialAssetNotPastDueMembernavi:RepaymentMemberus-gaap:AccountsReceivableMembernavi:PrivateEducationLoansMember2022-12-310001593538us-gaap:CrossCurrencyInterestRateContractMember2023-09-300001593538navi:PrivateEducationLoanSecuritizationsMembernavi:BeforeHedgeAccountingAdjustmentsMember2023-09-300001593538us-gaap:CreditConcentrationRiskMembernavi:FinancingReceivablesForbearanceLoansInRepaymentMemberus-gaap:AccountsReceivableMembernavi:PrivateEducationLoansMember2023-01-012023-09-300001593538us-gaap:CreditConcentrationRiskMemberus-gaap:AccountsReceivableMembernavi:PrivateEducationLoansMember2023-09-3000015935382023-01-012023-09-300001593538navi:GovernmentServicesMember2022-07-012022-09-300001593538navi:TollingAuthoritiesMember2023-07-012023-09-300001593538navi:BeforeHedgeAccountingAdjustmentsMemberus-gaap:UnsecuredDebtMember2022-12-310001593538us-gaap:CreditConcentrationRiskMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMemberus-gaap:AccountsReceivableMember2022-12-310001593538navi:InterestExpenseAndDerivativeInstrumentsHedgingActivitiesMember2022-01-012022-09-300001593538us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:LongTermDebtMember2023-09-300001593538navi:LoanStatusGreaterThanNinetyDaysDelinquentMembernavi:LoanStatusMember2023-09-300001593538us-gaap:AdditionalPaidInCapitalMember2023-01-012023-09-300001593538us-gaap:CommonStockMember2023-09-300001593538us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember2022-12-310001593538navi:FinancingReceivables31To60DaysPastDueMemberus-gaap:CreditConcentrationRiskMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMemberus-gaap:AccountsReceivableMember2022-09-300001593538navi:PrivateEducationLoanSecuritizationsRepurchaseFacilityMembernavi:BeforeHedgeAccountingAdjustmentsMember2023-09-300001593538us-gaap:ParentMember2023-06-3000015935382023-01-012023-03-310001593538navi:StateAndLocalGovernmentMembernavi:FederalEducationLoansSegmentMember2023-01-012023-09-300001593538navi:GovernmentServicesMember2023-07-012023-09-300001593538us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember2022-01-012022-09-300001593538us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CrossCurrencyInterestRateContractMemberus-gaap:FairValueHedgingMember2022-07-012022-09-300001593538us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMemberus-gaap:ChangeDuringPeriodFairValueDisclosureMember2022-12-310001593538us-gaap:OtherContractMember2022-06-300001593538navi:FederalEducationLoansSegmentMembernavi:HospitalsAndOtherHealthCareProvidersMember2022-01-012022-09-300001593538us-gaap:CreditConcentrationRiskMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMemberus-gaap:FinancialAssetNotPastDueMembernavi:RepaymentMemberus-gaap:AccountsReceivableMember2023-09-300001593538navi:PrivateEducationLoansMember2023-09-300001593538us-gaap:RetainedEarningsMember2022-06-300001593538navi:OpenMarketShareRepurchasesMemberus-gaap:TreasuryStockCommonMember2022-01-012022-09-300001593538us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMemberus-gaap:FairValueHedgingMember2023-01-012023-09-300001593538us-gaap:OperatingSegmentsMembernavi:EducationLoanMembernavi:FederalEducationLoansSegmentMember2022-01-012022-09-300001593538navi:PrivateEducationLoansMember2022-06-300001593538us-gaap:VariableInterestEntityPrimaryBeneficiaryMembernavi:PrivateEducationLoansMember2022-12-310001593538navi:BusinessProcessingMembernavi:FederalGovernmentMember2022-01-012022-09-300001593538navi:TollingAuthoritiesMember2022-01-012022-09-300001593538navi:ForbearanceMembernavi:PrivateEducationLoansMember2023-09-300001593538us-gaap:OperatingSegmentsMembernavi:ConsumerLendingMember2023-01-012023-09-300001593538us-gaap:CrossCurrencyInterestRateContractMember2022-01-012022-09-300001593538navi:HealthcareServicesMember2022-07-012022-09-300001593538navi:BusinessProcessingMemberus-gaap:OperatingSegmentsMembernavi:EducationLoanMember2022-07-012022-09-3000015935382021-12-310001593538us-gaap:GainLossOnDerivativeInstrumentsMember2023-01-012023-09-300001593538navi:FFELPLoanSecuritizationsMemberus-gaap:VariableInterestEntityPrimaryBeneficiaryMember2023-09-300001593538us-gaap:GainLossOnDerivativeInstrumentsMember2023-07-012023-09-300001593538navi:PrivateEducationLoanSecuritizationsRepurchaseFacilityMembernavi:BeforeHedgeAccountingAdjustmentsMember2022-12-310001593538us-gaap:InterestRateSwapMember2022-01-012022-09-300001593538navi:PrivateEducationLoansMember2023-06-300001593538us-gaap:CommonStockMember2022-06-300001593538navi:HealthcareServicesMembernavi:FederalEducationLoansSegmentMember2023-01-012023-09-300001593538us-gaap:ParentMembernavi:OpenMarketShareRepurchasesMember2022-01-012022-09-30xbrli:purexbrli:sharesnavi:Segmentnavi:StateAttorneysGeneraliso4217:USD
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
(Mark One)
|
|
|
☑ |
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended September 30, 2023
or
|
|
|
☐ |
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission File Number: 001-36228
Navient Corporation
(Exact name of registrant as specified in its charter)
|
|
Delaware |
46-4054283 |
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
|
|
13865 Sunrise Valley Drive, Herndon, Virginia 20171 |
(703) 810-3000 |
(Address of principal executive offices) |
(Telephone Number) |
(703) 810-3000
(Registrant’s telephone number, including area code)
(Former name, former address and former fiscal year, if changed since last report)
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):
|
|
|
|
|
|
|
Large accelerated filer |
|
☒ |
|
Accelerated filer |
|
☐ |
Non-accelerated filer |
|
☐ |
|
Smaller reporting company |
|
☐ |
Emerging growth company |
|
☐ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑
Securities registered pursuant to Section 12(b) of the Act.
|
|
|
|
|
Title of each class |
|
Trading Symbol(s) |
|
Name of each exchange on which registered |
Common stock, par value $.01 per share |
|
NAVI |
|
The NASDAQ Global Select Market |
6% Senior Notes due December 15, 2043 |
|
JSM |
|
The NASDAQ Global Select Market |
Preferred Stock Purchase Rights |
|
None |
|
The NASDAQ Global Select Market |
As of September 30, 2023, there were 117,571,091 shares of common stock outstanding.
TABLE OF CONTENTS
Organization of Our Form 10-Q
The order and presentation of content in our Form 10-Q differs from the traditional Securities and Exchange Commission (SEC) Form 10-Q format. Our format is designed to improve readability and to better present how we organize and manage our business. See Appendix A, "Form 10-Q Cross-Reference Index" for a cross-reference index to the traditional SEC Form 10-Q format.
FORWARD-LOOKING AND CAUTIONARY STATEMENTS
This Quarterly Report on Form 10-Q contains “forward-looking” statements and other information that is based on management’s current expectations as of the date of this report. Statements that are not historical facts, including statements about our beliefs, opinions, or expectations and statements that assume or are dependent upon future events, are forward-looking statements and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “see,” “will,” “would,” “may,” “could,” “should,” “goals,” or “target.” Such statements are based on management's expectations as of the date of this filing and involve many risks and uncertainties that could cause our actual results to differ materially from those expressed or implied in our forward-looking statements. Such risks and uncertainties are discussed more fully under the section titled “Risk Factors” and include, but are not limited to the following:
•the continuing impacts of the COVID-19 pandemic and related risks;
•general economic conditions, including the potential impact of persistent inflation and increasing interest rates on Navient and its clients and customers and on the creditworthiness of third parties;
•increased defaults on education loans held by us;
•the cost and availability of funding in the capital markets;
•changes in the general interest rate environment, including the availability of any relevant money-market index rate, including LIBOR or SOFR, or the relationship between the relevant money-market index rate and the rate at which our assets are priced;
•unanticipated repayment trends on education loans including prepayments or deferrals resulting from new interpretations of current laws, rules or regulations or future laws, executive orders or other policy initiatives that operate to encourage or require consolidation, abolish existing or create additional income-based repayment or debt forgiveness programs or establish other policies and programs which may increase the prepayment rates on education loans and accelerate repayment of the bonds in our securitization trusts;
•our unhedged Floor Income is dependent on the future interest rate environment and therefore is variable;
•a reduction in our credit ratings;
•adverse market conditions or an inability to effectively manage our liquidity risk or access liquidity could negatively impact us;
•the interest rate characteristics of our assets do not always match those of our funding arrangements;
•our use of derivatives exposes us to credit and market risk;
•our ability to continually and effectively align our cost structure with our business operations;
•a failure or breach of our operating systems, infrastructure or information technology systems;
•failure by any third party providing us material services or products or a breach or violation of law by one of these third parties;
•changes to applicable laws, rules, regulations and government policies and expanded regulatory and governmental oversight;
•our work with government clients exposes us to additional risks inherent in the government contracting environment;
•shareholders’ percentage ownership in Navient may be diluted in the future;
•reputational risk and social factors;
•obligations owed to parties under various transaction agreements that were executed as part of the spin-off of Navient from SLM Corporation (the Spin-Off); and
•acquisitions or strategic investments that we pursue.
Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Readers are urged to carefully review and consider the various disclosures made in this Form 10-Q and in other documents we file from time to time with the SEC that disclose risks and uncertainties that may affect our business.
The preparation of our 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 and actual results could differ materially. All forward-looking statements contained in this report are qualified by these cautionary statements and are made only as of the date of this report. We do not undertake any obligation to update or revise these forward-looking statements except as required by law.
Through this discussion and analysis, we intend to provide the reader with some narrative context for how our management views our consolidated financial statements, additional context within which to assess our operating results, and information on the quality and variability of our earnings, liquidity and cash flows.
1
USE OF NON-GAAP FINANCIAL MEASURES
We prepare financial statements and present financial results in accordance with GAAP. However, we also evaluate our business segments and present our financial results on a basis that differs from GAAP. We refer to this different basis of presentation as Core Earnings, which is a non-GAAP financial measure. We provide this Core Earnings basis of presentation on a consolidated basis and for each business segment because this is what we review internally when making management decisions regarding our performance and how we allocate resources. We also include this information in our presentations with credit rating agencies, lenders and investors. Because our Core Earnings basis of presentation is our measure of profit or loss for our segments, we are required by GAAP to provide Core Earnings disclosures in the notes to our consolidated financial statements for our business segments.
In addition to Core Earnings, we present the following other non-GAAP financial measures: Tangible Equity, Adjusted Tangible Equity Ratio, Earnings before Interest, Taxes, Depreciation and Amortization Expense (EBITDA) (for the Business Processing segment), and Allowance for Loan Losses Excluding Expected Future Recoveries on Previously Fully Charged-off Loans. Definitions for the non-GAAP financial measures and reconciliations are provided below, except that reconciliations of forward-looking non-GAAP financial measures are not provided because the company is unable to provide such reconciliations without unreasonable effort due to the uncertainty and inherent difficulty of predicting the occurrence and financial impact of certain items, including, but not limited to, the impact of any mark-to-market gains/losses resulting from our use of derivative instruments to hedge our economic risks. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Non-GAAP Financial Measures” for a further discussion and a complete reconciliation between GAAP net income and Core Earnings.
2
Overview and Fundamentals of Our Business
Navient (Nasdaq: NAVI) provides technology-enabled education finance and business processing solutions that simplify complex programs and help millions of people achieve success. Our customer-focused, data-driven services deliver exceptional results for clients in education, health care and government. Learn more at navient.com.
With a focus on data-driven insights, service, compliance and innovative support, Navient’s business consists of:
We own a portfolio of $39.6 billion of federally guaranteed Federal Family Education Loan Program (FFELP) Loans. As a servicer on our own portfolio and for third parties, we deploy data-driven approaches to support the success of our customers. Our flexible and scalable infrastructure manages large volumes of complex transactions, simplifying the customer experience and continually improving efficiency.
We help students and families succeed through the college journey with innovative planning tools, student loans and refinancing products. Our $17.3 billion Private Education Loan portfolio demonstrates high customer success rates. In the third quarter of 2023, we originated $382 million of Private Education Loans.
We leverage our loan servicing expertise to provide business processing solutions for approximately 500 public sector and healthcare organizations, and their tens of millions of clients, patients, and constituents. Our suite of omnichannel customer experience, digital processing and revenue cycle solutions enables our clients to deliver better results for the people they serve.
Superior Operational Performance with a Strong Customer Service and Compliance Commitment
We help our customers — both individuals and institutions — navigate the path to financial success through proactive, data-driven, simplified service and innovative solutions.
•Delivering superior performance. Whether supporting student loan borrowers in successfully managing their loans, designing and implementing omnichannel contact center solutions for public sector agencies, generating additional revenue for hospitals and medical systems, or helping a state manage communications or recover revenue that funds essential services, Navient delivers value for our clients and customers.
We leverage our customer service expertise, data-driven insights, technology platforms, and scale to maximize value for our clients.
•Scalable, data-driven solutions. Annually, we support tens of millions of people in conducting hundreds of millions of transactions and interactions. Our systems are built for scale and rapid implementation. We harness the power of data to build tailored programs with analytics that optimize our clients’ results.
3
•Simplify complex processes. On our clients’ behalf, we help individuals successfully navigate a broad spectrum of complex transactions. Our people and platforms simplify complex programs to help customers and constituents achieve their goals.
•Improving customer experience and success. We continually make enhancements to improve the customer experience, drawing from a variety of inputs including customer surveys, research panels, analysis of customer inquiries and activities, complaint data, and regulator commentary. Across our businesses, our customer-facing representatives are trained to provide empathetic, accurate support.
•Commitment to compliance. We maintain a robust, multi-layered compliance management system and thoroughly understand and comply with applicable federal, state, and local laws. We use a “Three Lines of Defense” compliance framework, considered best practice by the U.S. Federal Financial Institutions Examination Council (FFIEC). This framework and other compliance protocols ensure we adhere to key industry laws and regulations including: Fair and Accurate Credit Transactions Act (FACTA); Fair Credit Reporting Act (FCRA); Fair Debt Collection Practices Act (FDCPA); Electronic Funds Transfer Act (EFTA); Equal Credit Opportunity Act (ECOA); Federal Information Security Management Act (FISMA); Gramm-Leach-Bliley Act (GLBA); Health Insurance Portability and Accountability Act (HIPAA); IRS Publication 1075; Servicemembers Civil Relief Act (SCRA); Military Lending Act (MLA); Telephone Consumer Protection Act (TCPA); Truth in Lending Act (TILA); Unfair, Deceptive, or Abusive Acts and Practices (UDAAP); state laws; and state and city licensing.
•Corporate social responsibility. We are committed to contributing to the social and economic wellbeing of our communities; fostering the success of our customers; supporting a culture of integrity, inclusion and equality in our workforce; and embracing sustainable business practices. Navient has earned recognition from the Forum of Executive Women, Human Rights Campaign Foundation, and military publisher VIQTORY, among other organizations, for our continued commitment to fostering diversity. Our employees are active in our communities, through local and national organizations, including a national partnership with Boys & Girls Clubs of America.
Navient is committed to a sustainable future. We leverage technology that minimizes energy use in our office buildings and promote widespread adoption of “paperless” digital customer communications. Navient prioritizes the usage of power-saving features to our buildings to reduce energy usage. Energy efficiency and reducing CO2 and CO2 equivalents are among the many factors considered in our growth and real estate decisions.
Strong Financial Performance Resulting in a Strong Capital Return
Our third-quarter 2023 results continue to demonstrate the strength of our business model and our ability to deliver predictable and meaningful cash flow and earnings in all types of economic environments.
Our significant earnings generate significant capital, which allows for a strong capital return to our investors. Navient expects to continue to return excess capital to shareholders through dividends and share repurchases in accordance with our capital allocation policy.
By optimizing capital adequacy and allocating capital to highly accretive opportunities, including organic growth and acquisitions, we remain well positioned to pay dividends and repurchase stock, while maintaining appropriate leverage that supports our credit ratings and ensures ongoing access to capital markets.
In December 2021, our Board approved a share repurchase program authorizing the purchase of up to $1 billion of the Company’s outstanding common stock. At September 30,2023, $360 million remained in share repurchase authorization.
To inform our capital allocation decisions, we use the Adjusted Tangible Equity Ratio(1) in addition to other metrics. Our Adjusted Tangible Equity Ratio(1) was 8.7% as of September 30, 2023.
|
|
|
|
|
|
|
|
|
(Dollars and shares in millions) |
|
Q3-23 |
|
|
Q3-22 |
|
Shares repurchased |
|
|
4.2 |
|
|
|
6.3 |
|
Reduction in shares outstanding |
|
|
3 |
% |
|
|
4 |
% |
Total repurchases in dollars |
|
$ |
75 |
|
|
$ |
95 |
|
Dividends paid |
|
$ |
19 |
|
|
$ |
22 |
|
Total Capital Returned(2) |
|
$ |
94 |
|
|
$ |
117 |
|
Adjusted Tangible Equity Ratio(1) |
|
|
8.7 |
% |
|
|
7.8 |
% |
(1)Item is a non-GAAP financial measure. For a description and reconciliation, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Non-GAAP Financial Measures.”
(2)Capital Returned is defined as share repurchases and dividends paid.
4
How We Organize Our Business
We operate our business in three primary segments: Federal Education Loans, Consumer Lending and Business Processing.
Federal Education Loans Segment
Navient owns FFELP Loans and performs servicing on this portfolio. We also service FFELP Loans owned by other institutions. Our servicing quality, data-driven strategies and omnichannel education about federal repayment options translate into positive results for the millions of borrowers we serve. We generate revenue primarily through net interest income on our FFELP Loans and servicing-related fee income.
Consumer Lending Segment
Navient owns, originates and services in-school and refinance Private Education Loans. "In-school" Private Education Loans are loans originally made to borrowers while they are attending school whereas "Refinance" Private Education Loans are loans where a borrower has refinanced their education loans. We generate revenue primarily through net interest income on our Private Education Loan portfolio.
Navient helps students and families through the going-to and paying-for-college journey. Our digital tools empower people to find grants and scholarships, compare financial aid offers and complete the FAFSA. Our Private Education Loans offer easy-to-understand payment options. After graduation, we offer student loan refinancing to help people simplify their repayment and earn a better rate. We believe our 50 years of experience, product design, digital marketing strategies, and origination and servicing platform provide a unique competitive advantage. We see meaningful growth opportunities in originating Private Education Loans, generating attractive long-term, risk-adjusted returns.
Business Processing Segment
Navient provides business processing solutions such as omnichannel contact center services, workflow processing, and revenue cycle optimization. We leverage the same expertise and intelligent tools we use to deliver successful results for portfolios we own. Our support enables our clients to ensure better constituent outcomes, meet rapidly changing needs, improve technology, reduce operating expenses, manage risk and optimize revenue opportunities. Our clients include:
•Government: We offer our solutions to federal agencies, state governments, tolling and parking authorities, and other public sector clients.
•Healthcare: Our clients include hospitals, hospital systems, medical centers, large physician groups, other healthcare providers and public health departments.
Other Segment
This segment consists of our corporate liquidity portfolio, gains and losses incurred on the repurchase of debt, unallocated expenses of shared services (which includes regulatory expenses) and restructuring/other reorganization expenses.
5
Management’s Discussion and Analysis of Financial Condition and Results of Operations
Selected Historical Financial Information and Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended
September 30, |
|
(In millions, except per share data) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
GAAP Basis |
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
79 |
|
|
$ |
105 |
|
|
$ |
256 |
|
|
$ |
540 |
|
Diluted earnings per common share |
|
$ |
.65 |
|
|
$ |
.75 |
|
|
$ |
2.04 |
|
|
$ |
3.67 |
|
Weighted average shares used to compute diluted
earnings per share |
|
|
121 |
|
|
|
141 |
|
|
|
125 |
|
|
|
147 |
|
Return on assets |
|
|
.51 |
% |
|
|
.57 |
% |
|
|
.53 |
% |
|
|
.96 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Core Earnings Basis(1) |
|
|
|
|
|
|
|
|
|
|
|
|
Net income(1) |
|
$ |
57 |
|
|
$ |
87 |
|
|
$ |
278 |
|
|
$ |
356 |
|
Diluted earnings per common share(1) |
|
$ |
.47 |
|
|
$ |
.62 |
|
|
$ |
2.22 |
|
|
$ |
2.42 |
|
Weighted average shares used to compute diluted
earnings per share |
|
|
121 |
|
|
|
141 |
|
|
|
125 |
|
|
|
147 |
|
Net interest margin, Federal Education Loans segment |
|
|
1.52 |
% |
|
|
.94 |
% |
|
|
1.20 |
% |
|
|
1.03 |
% |
Net interest margin, Consumer Lending segment |
|
|
3.17 |
% |
|
|
2.90 |
% |
|
|
3.09 |
% |
|
|
2.78 |
% |
Return on assets |
|
|
.37 |
% |
|
|
.47 |
% |
|
|
.58 |
% |
|
|
.63 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Education Loan Portfolios |
|
|
|
|
|
|
|
|
|
|
|
|
Ending FFELP Loans, net |
|
$ |
39,581 |
|
|
$ |
46,891 |
|
|
$ |
39,581 |
|
|
$ |
46,891 |
|
Ending Private Education Loans, net |
|
|
17,333 |
|
|
|
19,151 |
|
|
|
17,333 |
|
|
|
19,151 |
|
Ending total education loans, net |
|
$ |
56,914 |
|
|
$ |
66,042 |
|
|
$ |
56,914 |
|
|
$ |
66,042 |
|
Average FFELP Loans |
|
$ |
40,554 |
|
|
$ |
48,443 |
|
|
$ |
41,886 |
|
|
$ |
50,398 |
|
Average Private Education Loans |
|
|
18,165 |
|
|
|
20,308 |
|
|
|
18,710 |
|
|
|
20,771 |
|
Average total education loans |
|
$ |
58,719 |
|
|
$ |
68,751 |
|
|
$ |
60,596 |
|
|
$ |
71,169 |
|
(1)Item is a non-GAAP financial measure. For a description and reconciliation, see “Non-GAAP Financial Measures.”
6
The Quarter in Review
We prepare financial statements and present financial results in accordance with GAAP. However, we also evaluate our business segments and present financial results on a basis that differs from GAAP. We refer to this different basis of presentation as Core Earnings. We provide this Core Earnings basis of presentation on a consolidated basis and for each business segment because this is what we review internally when making management decisions regarding our performance and how we allocate resources. We also include this information in our presentations with credit rating agencies, lenders and investors. Because our Core Earnings basis of presentation corresponds to our segment financial presentations, we are required by GAAP to provide certain Core Earnings disclosures in the notes to our consolidated financial statements for our business segments. See “Non-GAAP Financial Measures — Core Earnings” for a further discussion and a complete reconciliation between GAAP net income and Core Earnings.
Third-quarter 2023 GAAP net income was $79 million ($0.65 diluted earnings per share), compared with $105 million ($0.75 diluted Core Earnings per share) for the year-ago quarter. See “Results of Operations – GAAP Comparison of Third-Quarter 2023 Results with Third-Quarter 2022" for a discussion of the primary contributors to the change in GAAP earnings between periods.
Third-quarter 2023 Core Earnings net income was $57 million ($0.47 diluted Core Earnings per share), compared with $87 million ($0.62 diluted Core Earnings per share) for the year-ago quarter. See “Segment Results” for a discussion of the primary contributors to the change in Core Earnings between periods.
GAAP and Core Earnings results included a net reduction to pre-tax income of $58 million ($0.37 diluted loss per share), comprised of the following significant items:
•$12 million ($0.07 diluted earnings per share) benefit related to the continued extension of the FFELP Loan portfolio ($48 million of additional net interest income partially offset by $36 million of provision for loan losses),
•$10 million ($0.06 diluted earnings per share) benefit of additional Private Education Loan net interest income related to a decrease in the speed of loan premium amortization primarily in connection with a decline in the Refinance Loans' prepayment rate,
•$29 million ($0.18 diluted loss per share) of provision for loan losses related to lowering the expected recovery percentage on defaulted Private Education Loans, and
•$51 million ($0.32 diluted loss per share) of regulatory-related and restructuring expenses, of which $45 million relates to recent developments in connection with CFPB matters.
7
Financial highlights of third-quarter 2023 include:
Federal Education Loans segment:
•Net income of $94 million.
•Net interest margin of 1.52%.
Consumer Lending segment:
•Net income of $56 million.
•Net interest margin of 3.17%.
•Originated $382 million of Private Education Loans.
Business Processing segment:
•Net income of $9 million and EBITDA(1) of $13 million.
Capital, funding and liquidity:
•GAAP equity-to-asset ratio of 4.6% and adjusted tangible equity ratio(1) of 8.7%.
•Repurchased $75 million of common shares. $360 million common share repurchase authority remains outstanding.
•Paid $19 million in common stock dividends.
Operating Expenses:
•Operating expenses of $186 million, excluding $47 million of regulatory-related expenses.
(1)Item is a non-GAAP financial measure. For a description and reconciliation, see “Non-GAAP Financial Measures.”
8
Results of Operations
GAAP Income Statements (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
|
Increase
(Decrease) |
|
|
Nine Months Ended September 30, |
|
|
Increase
(Decrease) |
|
(In millions, except per share data) |
|
2023 |
|
|
2022 |
|
|
$ |
|
|
% |
|
|
2023 |
|
|
2022 |
|
|
$ |
|
|
% |
|
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFELP Loans |
|
$ |
778 |
|
|
$ |
553 |
|
|
$ |
225 |
|
|
|
41 |
% |
|
$ |
2,191 |
|
|
$ |
1,312 |
|
|
$ |
879 |
|
|
|
67 |
% |
Private Education Loans |
|
|
351 |
|
|
|
309 |
|
|
|
42 |
|
|
|
14 |
|
|
|
1,036 |
|
|
|
862 |
|
|
|
174 |
|
|
|
20 |
|
Cash and investments |
|
|
41 |
|
|
|
19 |
|
|
|
22 |
|
|
|
116 |
|
|
|
111 |
|
|
|
25 |
|
|
|
86 |
|
|
|
344 |
|
Total interest income |
|
|
1,170 |
|
|
|
881 |
|
|
|
289 |
|
|
|
33 |
|
|
|
3,338 |
|
|
|
2,199 |
|
|
|
1,139 |
|
|
|
52 |
|
Total interest expense |
|
|
879 |
|
|
|
641 |
|
|
|
238 |
|
|
|
37 |
|
|
|
2,636 |
|
|
|
1,301 |
|
|
|
1,335 |
|
|
|
103 |
|
Net interest income |
|
|
291 |
|
|
|
240 |
|
|
|
51 |
|
|
|
21 |
|
|
|
702 |
|
|
|
898 |
|
|
|
(196 |
) |
|
|
(22 |
) |
Less: provisions for loan losses |
|
|
72 |
|
|
|
28 |
|
|
|
44 |
|
|
|
157 |
|
|
|
68 |
|
|
|
62 |
|
|
|
6 |
|
|
|
10 |
|
Net interest income after provisions
for loan losses |
|
|
219 |
|
|
|
212 |
|
|
|
7 |
|
|
|
3 |
|
|
|
634 |
|
|
|
836 |
|
|
|
(202 |
) |
|
|
(24 |
) |
Other income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Servicing revenue |
|
|
15 |
|
|
|
24 |
|
|
|
(9 |
) |
|
|
(38 |
) |
|
|
48 |
|
|
|
60 |
|
|
|
(12 |
) |
|
|
(20 |
) |
Asset recovery and business
processing revenue |
|
|
85 |
|
|
|
80 |
|
|
|
5 |
|
|
|
6 |
|
|
|
240 |
|
|
|
264 |
|
|
|
(24 |
) |
|
|
(9 |
) |
Other revenue |
|
|
5 |
|
|
|
6 |
|
|
|
(1 |
) |
|
|
(17 |
) |
|
|
15 |
|
|
|
22 |
|
|
|
(7 |
) |
|
|
(32 |
) |
Gains (losses) on derivative and
hedging activities, net |
|
|
26 |
|
|
|
40 |
|
|
|
(14 |
) |
|
|
(35 |
) |
|
|
44 |
|
|
|
161 |
|
|
|
(117 |
) |
|
|
(73 |
) |
Total other income |
|
|
131 |
|
|
|
150 |
|
|
|
(19 |
) |
|
|
(13 |
) |
|
|
347 |
|
|
|
507 |
|
|
|
(160 |
) |
|
|
(32 |
) |
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
233 |
|
|
|
194 |
|
|
|
39 |
|
|
|
20 |
|
|
|
601 |
|
|
|
588 |
|
|
|
13 |
|
|
|
2 |
|
Goodwill and acquired
intangible assets impairment
and amortization expense |
|
|
3 |
|
|
|
10 |
|
|
|
(7 |
) |
|
|
(70 |
) |
|
|
8 |
|
|
|
17 |
|
|
|
(9 |
) |
|
|
(53 |
) |
Restructuring/other reorganization
expenses |
|
|
4 |
|
|
|
21 |
|
|
|
(17 |
) |
|
|
(81 |
) |
|
|
23 |
|
|
|
25 |
|
|
|
(2 |
) |
|
|
(8 |
) |
Total expenses |
|
|
240 |
|
|
|
225 |
|
|
|
15 |
|
|
|
7 |
|
|
|
632 |
|
|
|
630 |
|
|
|
2 |
|
|
|
— |
|
Income before income tax expense |
|
|
110 |
|
|
|
137 |
|
|
|
(27 |
) |
|
|
(20 |
) |
|
|
349 |
|
|
|
713 |
|
|
|
(364 |
) |
|
|
(51 |
) |
Income tax expense |
|
|
31 |
|
|
|
32 |
|
|
|
(1 |
) |
|
|
(3 |
) |
|
|
93 |
|
|
|
173 |
|
|
|
(80 |
) |
|
|
(46 |
) |
Net income |
|
$ |
79 |
|
|
$ |
105 |
|
|
$ |
(26 |
) |
|
|
(25 |
)% |
|
$ |
256 |
|
|
$ |
540 |
|
|
$ |
(284 |
) |
|
|
(53 |
)% |
Basic earnings per common
share |
|
$ |
.66 |
|
|
$ |