Navient Corporation (NASDAQ:NAVI) Q3 2023 Earnings Call Transcript

Jeffrey Adelson: Okay. We’ll look out for that. And just on your, your pre-pay speed assumptions, I think maybe we’re a little surprised that there haven’t been more folks taking advantage of the opportunity to consolidate into the government loan to get the IDR benefit. Is there any reason why, some of your long dated borrowers wouldn’t be consolidating over, is it just, they don’t, their incomes are too high? Maybe just help us understand. I think last quarter you mentioned like happier loans or in an IDR plan already.

Dave Yowan: Yes. So it’s a good question. And I think that we all going back a year, probably would have expected to see even higher consolidation volume at that time, given the opportunities potentially for loan forgiveness. So I’ll just try to set a base of thinking about the FFELP portfolio where these are very well seasoned borrowers at this point in time, the last loans that we originated and held on balance sheet began in 2008. So you’re talking about 15 years where there have been a substantial amount of programs and opportunities to consolidate over time with various benefits that for whatever reason borrowers have not taken advantage of. So as I said earlier, I would encourage those borrowers that are struggling to make payments where there is an opportunity for them in the direct loan program that isn’t necessarily there in the FFELP program that they should be taking advantage of that.

But today we just haven’t seen it over the course. And looking at the portfolio, it was naturally extending. We thought it was appropriate to take those adjustments this quarter.

Jeffrey Adelson: And maybe just the last one question is the July change in the safe plan, is that a date you’re watching at all? Or just based on the activity you’re seeing, you don’t think there will be any kind of shift?

Dave Yowan: Based on the early activity, there hasn’t been much of an impact. So we’ll continue to monitor it. And it’s something, again, just encourage borrowers to take advantage of it if it makes sense for them.

Jeffrey Adelson: Okay, great. Thank you.

Operator: Thank you. That concludes the question-and-answer session. At this time, I would like to turn the call back to Jen Earyes for closing remarks.

Jen Earyes: Thanks, Abigail. We’d like to thank everyone for joining us on today’s call. Please contact me if you have any other follow-up questions. This concludes today’s call.

Operator: Thank you for your participation in today’s conference. This does conclude the program. You may now disconnect.