Financial Data and Key Metrics Changes - In Q4 2025, core earnings per share were reported at $0.02, while the full-year core loss per share was $0.35 [13] - Total expenses for 2025 were $438 million, a decrease of nearly 50% compared to 2023, with Q4 total core operating expenses at $88 million, a 40% improvement year-over-year [24][26] - The adjusted tangible equity ratio stood at 9.1% [25] Business Line Data and Key Metrics Changes - Earnest achieved its highest-ever refi loan origination volume of $634 million in Q4 2025, bringing full-year refi originations to $2.1 billion, more than doubling from the previous year [8][15] - In-school lending originated $401 million in new loans in 2025, marking a significant increase [9] - Consumer lending segment net income for Q4 was $25 million, down from $37 million in Q4 2024, primarily due to lower outstanding balances [18] Market Data and Key Metrics Changes - The delinquency rate for private loans increased from 2.48% in Q3 to 2.24% in Q4, while 31+ day delinquency rates rose from 6.1% to 6.3% [19] - The total delinquency rate for federal education loans improved slightly from Q3, declining from 18.1% to 17.5% [21] Company Strategy and Development Direction - The company is targeting total loan originations of $4 billion in 2026, representing a growth of approximately 60% over 2025 [9][26] - A shift towards a holding company management structure is underway, with a focus on reducing central costs and improving operational efficiency [11][12] - The company continues to invest in capabilities at Earnest and aims to leverage existing capital for growth [8][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's prospects for 2026, citing strong momentum in loan origination and improved capital efficiency [12][17] - The macroeconomic environment remains a concern, with management noting a deterioration in the economic outlook impacting delinquency rates [32][69] Other Important Information - The company completed its fourth securitization of the year in Q4 2025, totaling nearly $2.2 billion in term ABS financing [25] - Share repurchases totaled 2.1 million shares at an average price of $12.67, with a total of $41 million returned to shareholders through repurchases and dividends [25][26] Q&A Session Summary Question: What prompted the increase in reserves for the private legacy portfolio? - Management indicated that a comprehensive review of assumptions regarding life of loan cash flows led to adjustments, with a significant portion of the provision related to the macroeconomic scenario and delinquency trends [30][32] Question: What is the outlook for the personal loan product? - The personal loan product is still in a pilot phase, with initial results being encouraging, but it is not expected to impact financials significantly in 2026 [41] Question: What are the macro assumptions underpinning the guidance? - The guidance reflects consensus macroeconomic assumptions for unemployment and interest rates, which will be provided offline [62] Question: What is driving the deterioration in the private legacy portfolio? - Management noted that various factors, including macroeconomic conditions and borrower challenges, have contributed to the higher delinquency rates in the legacy portfolio [68][69]

Navient (NasdaqGS:JSM) Q4 2025 Earnings call January 28, 2026 08:00 AM ET Company ParticipantsDave Yowan - President and CEOJeff Adelson - Executive DirectorJen Earyes - Head of Investor RelationsRick Shane - Managing Director and Senior Equity ResearchSanjay Sakhrani - Managing DirectorSteve Hauber - CFOConference Call ParticipantsCaroline Latta - Equity Research AnalystMark DeVries - Senior Research AnalystTerry Ma - Senior Equity Research AnalystWill Ryan - Managing Director and Senior Equity Research An ...

Financial Data and Key Metrics Changes - In Q4 2025, core earnings per share were reported at $0.02, while the full-year core loss per share was $0.35 [12] - The company exceeded its $400 million expense reduction target, achieving a total operating expense of $88 million in Q4 2025, a 40% improvement compared to Q4 2024 [21] - Full-year total expenses for 2025 were $438 million, a decrease of nearly 50% compared to 2023 [21] Business Line Data and Key Metrics Changes - Earnest achieved its highest-ever refi loan origination volume of $2.1 billion in 2025, doubling the volume from the prior year [6][13] - In-school lending originated $401 million in new loans in 2025, marking a significant increase [7][14] - Consumer lending segment net income for Q4 was $25 million, down from $37 million in Q4 2024, primarily due to lower outstanding balances [16] Market Data and Key Metrics Changes - The private charge-off rates decreased from 2.48% in Q3 to 2.24% in Q4, while delinquency rates increased slightly [17] - The total delinquency rate for the federal education loan segment improved from 18.1% in Q3 to 17.5% in Q4 [19] Company Strategy and Development Direction - The company is transitioning to a holding company management structure to better align with its business strategy for Earnest and Navient [10] - For 2026, the company is targeting total loan originations of $4 billion, representing a growth of approximately 60% over 2025 [8][24] - The company plans to continue returning capital to shareholders through share repurchases and dividends in 2026 [9] Management's Comments on Operating Environment and Future Outlook - Management noted that the macroeconomic environment has deteriorated, impacting delinquency rates and necessitating increased provisions for the private legacy portfolio [30] - The company remains optimistic about loan growth, particularly in the refi and in-school lending segments, driven by strong demand and improved capital efficiency [6][40] Other Important Information - The company completed its fourth securitization of the year in Q4 2025, totaling nearly $2.2 billion in term ABS financing [22] - The adjusted tangible equity ratio stood at 9.1% at the end of the year [23] Q&A Session Summary Question: Concerns about reserve adequacy in the private legacy portfolio - Management explained that the increase in reserves was due to a deterioration in the macroeconomic scenario and sequential increases in delinquency rates in the private legacy portfolio [30][31] Question: Outlook for loan growth and personal loan opportunities - Management indicated that while the personal loan product is still in pilot, they are optimistic about its potential and expect to see growth in the private book in 2026 [39][40] Question: Drivers of higher delinquencies in the private legacy portfolio - Management attributed the higher delinquencies to various factors, including macroeconomic conditions and the impact of the pandemic on borrowers [66][68] Question: Expectations for net interest margin and provisions - Management expects a stable outlook for net interest margin and provisions, with adjustments made based on new originations and reserve levels [70][71]

4Q 2025 Earnings Call Presentation Confidential and proprietary information © 2026 Navient Solutions, LLC. All rights reserved. 1 Delivering Value to Shareholders Enhance the value of our growth businesses Maximize the cash flows from our loan portfolios Continuously simplify the business and increase efficiency Maintain a strong balance sheet and distribute excess capital • Invest in capabilities to grow high-quality loan originations that generate targeted returns, and explore opportunities to deepen rela ...

Financial Performance - GAAP net loss for Q4 2025 was $5 million, translating to a diluted loss per share of $0.06, while core earnings showed a net income of $2 million or $0.02 diluted earnings per share [3]. - For the full year 2025, GAAP net loss totaled $80 million ($0.81 diluted loss per share), with core earnings reflecting a net loss of $35 million ($0.35 diluted loss per share) [3]. - Net income for Q4 2025 was a loss of $5 million, compared to a loss of $86 million in Q3 2025 and a profit of $24 million in Q4 2024 [21]. - Diluted earnings per share for Q4 2025 was $(0.06), a decrease from $(0.87) in Q3 2025 and an increase from $0.22 in Q4 2024 [23]. - Net income for 2025 was $(80) million, compared to $131 million in 2024, representing a decrease of 161% [24]. - The company reported a net loss of $80 million for the year, compared to a net income of $45 million in the previous period [61]. Revenue and Income - Total interest income for Q4 2025 was $746 million, down 4% from $781 million in Q3 2025 and down 13% from $862 million in Q4 2024 [23]. - Total interest income for the year ended December 31, 2025, was $3,108 million, with education loans contributing $3,025 million [61]. - Total other income for the year was $91 million, with servicing revenue accounting for $51 million [61]. - Total other income (loss) was $19 million, with servicing revenue contributing $11 million [56]. Loan Performance - The Consumer Lending segment incurred a provision for loan losses of $43 million, with $34 million attributed to macroeconomic outlook and delinquency trends [3]. - The provision for loan losses in the Federal Education Loans segment decreased to $1 million from $7 million year-over-year, reflecting stable credit trends [6]. - Net charge-offs in the Consumer Lending segment rose to $86 million, up from $71 million in the previous year [11]. - The provision for Private Education Loan losses increased to $43 million in the current period, up from $38 million in the year-ago quarter, primarily due to macroeconomic outlook and delinquency trends [28]. - Net charge-offs for the quarter were $101 million, with $14 million for FFELP loans and $87 million for Private Education loans, resulting in a net charge-off percentage of 0.23% and 2.26% respectively [39]. - The allowance for loan losses at the end of the period (GAAP) was $537 million, consisting of $173 million for FFELP loans and $364 million for Private Education loans [39]. Expenses and Cost Management - Total expenses decreased to $100 million in Q4 2025, down 9% from $110 million in Q3 2025 and down 34% from $152 million in Q4 2024 [23]. - Operating expenses decreased by $259 million, primarily due to the sale of the government services business and a decline in regulatory-related expenses [35]. - Total expenses for the year were $438 million, with direct operating expenses at $237 million [61]. Shareholder Actions - The company repurchased $26 million of common shares and paid $15 million in dividends during the quarter [3]. - The company repurchased 2.1 million shares of common stock during the fourth quarter of 2025, resulting in a 9% decrease in average outstanding diluted shares compared to the previous year [29]. - The company repurchased 2.1 million shares of common stock for $26 million in the fourth quarter of 2025 [45]. Future Outlook and Strategy - Navient's CEO emphasized a focus on loan growth and product expansion for 2026, aiming for strong operating leverage [3]. - The company plans to focus on market expansion and new product development in the upcoming fiscal year [61]. - Future guidance indicates a focus on expanding market presence and exploring potential acquisitions to drive growth [63]. Asset and Equity Management - Total assets decreased to $48,681 million in 2025 from $49,306 million in 2024, a decline of 1.3% [25]. - Total equity decreased to $2,399 million in 2025 from $2,439 million in 2024, a decline of 1.6% [25]. - The company's tangible equity was reported at $1,965 million as of December 31, 2025, down from $2,204 million in the previous year [76]. Tax and Accounting Adjustments - The effective income tax benefit for the quarter was $(2) million, impacting the overall net income [56]. - The effective income tax benefit was $31 million, contributing to the overall net loss [61]. - The cumulative impact of derivative accounting has decreased GAAP equity by approximately $39 million due to cumulative net mark-to-market losses recognized under GAAP [70].

Summary of Navient's Strategy Update Conference Call Company Overview - **Company**: Navient - **Division Highlighted**: Earnest, focusing on student loan refinancing and personal loans Key Points and Arguments Phase One and Phase Two Strategy - **Phase One**: Aimed at maximizing cash flows from legacy portfolios, resulting in an additional $2 billion of discretionary cash for growth or distributions [5][6] - **Phase Two**: Focused on growing earnings and changing market perception of Navient from a student lender to a specialty finance company [5][6][7] Earnest's Role and Business Model - **Earnest**: Represents Navient's student loan refinancing and personal loan business, with a strategy to generate long-term relationships with high lifetime value customers [9][10] - **Customer Profile**: Average customer age is in the early to mid-30s, with an income of approximately $120,000 and a FICO score above 770, indicating a high potential customer base [11] Financial Performance and Projections - **2025 Financial Snapshot**: Expected operating profit of around $70 million with $10 billion in outstanding loans, primarily securitized [12][14] - **Return on Equity (ROE)**: Aiming for a pre-tax ROE of about 12%, with potential for significant increases through optimized securitization strategies [42][45] Securitization Strategy - **Securitization Changes**: Transitioning from horizontal to vertical securitization to maximize return on equity, despite lower net interest income [20][22] - **Loan Sales**: Exploring loan sales as a method to remove loans from the balance sheet and accelerate income [22][23] Market Opportunities - **Total Addressable Market (TAM)**: - Education and graduate lending market estimated at $12 billion annually [32] - Student loan refinancing market projected to grow from $8 billion in 2025 to $11 billion in 2026 [32] - Personal lending market expected to be around $36 billion by 2028, targeting existing customers [33][34] Competitive Landscape - **Market Positioning**: Aiming to be competitive at lower origination levels compared to peers like Upstart and SoFi, with a focus on maintaining low sales and marketing expenses [26][27] - **Customer Acquisition**: Approximately $350 million spent to acquire the current customer base, with plans to monetize through multiple products as customer needs evolve [30] Technology and Operations - **New Lending Platform**: Launched a modular lending platform to improve operational efficiency and increase loan automation, enhancing conversion rates [17][18] - **Data Science Integration**: Expanding the use of machine learning for credit decisioning and pricing to improve competitiveness [18] Future Outlook - **Growth Projections**: Anticipating a significant increase in originations, with a goal of reaching around $4 billion in originations in the near term [40] - **Transition Year**: 2026 is seen as a pivotal year for transitioning into personal lending and expanding market presence [39] Additional Important Insights - **Talent Acquisition**: Efforts to attract industry talent to enhance operational capabilities and market competitiveness [12][13] - **Investor Relations**: Emphasis on improved disclosures to better communicate the value of Earnest as part of Navient [28][29] This summary encapsulates the strategic direction and financial outlook of Navient, particularly focusing on the Earnest division and its role in the company's growth strategy.

Earnest's Strategy and Financial Performance - Navient's restructuring program has increased future cash flows, adding approximately $2 billion to existing net cash flow for growth investments or distributions[13] - Earnest aims to achieve overall efficiency equal to or greater than peers at lower breakeven volumes[15] - Earnest has over 375,000 unique customer relationships as of September 30, 2025, with over 40,000 expected to be added in 2026[20] - For 2025E, Earnest's total revenue is projected to be $219 million, with net interest income of $168 million and servicing revenue of $51 million[26] - Earnest's total assets are projected to be $10,007 million, with securitized loans of $8,255 million and equity of $724 million as of December 31, 2025[28] Growth and Efficiency Improvements - Annual originations are expected to increase 2.5x from $971 million in 2023 to $2,400 million in 2025E[37] - Quarterly rate check volume (Q3) for SLR is expected to increase 3.9x from $1.4 billion in 2023 to $5.4 billion in 2025E[37] - Sales & Marketing expenses as a percentage of originations are expected to decrease by 59% from 5.6% in 2023 to 2.3% in 2025E[37] - Loan automation (Q3) is expected to increase 1.4x from 57% in 2023 to 79% in 2025E[37] Market Opportunity and Future Plans - The total Earnest opportunity in non-education loans is projected to be $47 billion in 2026 and $101 billion in 2028[46]

Financial Performance - Third-quarter 2025 net loss was $86 million ($0.87 diluted loss per share), compared to a net loss of $2 million ($0.02 diluted loss per share) in the same quarter last year, representing a significant increase in losses [47][53]. - Core Earnings net loss for the third quarter was $83 million ($0.84 diluted loss per share), compared to a profit of $160 million ($1.45 diluted per share) in the prior year [48]. - Net income for the third quarter of 2025 was $35 million, compared to $27 million in the same quarter of 2024, reflecting a 30% increase [67]. - Net income (loss) for the three months ended September 30, 2025, was a loss of $86 million [123]. - Net income for the nine months ended September 30, 2025, was $(75) million, compared to $107 million for the same period in 2024 [186]. Loan Performance - The provision for loan losses totaled $168 million, with $155 million attributed to Consumer Lending, reflecting elevated delinquency balances and macroeconomic forecasts [50][54]. - Delinquencies greater than 90 days increased to $2.5 billion from $1.9 billion year-over-year [67]. - The delinquency rate for FFELP loans greater than 90 days increased to 10.5% as of September 30, 2025, from 8.7% as of December 31, 2024 [101]. - The percentage of loans in repayment increased to 82.8% as of September 30, 2025, compared to 80.1% on September 30, 2024 [204]. - Loans delinquent greater than 90 days increased to $2,539 million, representing 10.5% of loans in repayment as of September 30, 2025, compared to 7.3% on September 30, 2024 [204]. Capital Management - Total capital returned to shareholders in Q3 2025 was $42 million, down from $50 million in Q3 2024 [28]. - The company has authorized a new $100 million share repurchase program in October 2025, in addition to approximately $26 million of unused authorization as of September 30, 2025 [26]. - The company repurchased $26 million of common shares and authorized a new $100 million share repurchase program [50]. - The company repurchased a total of 2.0 million shares at an average price of $13.19 during the third quarter of 2025 [160]. - The company has approximately $26 million of unused authorization remaining under its share repurchase programs as of September 30, 2025 [160]. Operational Efficiency - Operating expenses were $105 million, a decrease of 43% from $184 million in the prior year [52]. - Operating expenses decreased by $200 million, primarily due to a decline in business processing expenses from the sale of the government services and healthcare services businesses [61]. - The company reduced its headcount by over 80% since the beginning of 2024 as part of its strategic actions to simplify the company [33]. - Total expenses for the quarter were $109 million, with direct operating expenses amounting to $61 million [123]. - Total expenses amounted to $341 million, with direct operating expenses at $189 million and unallocated shared services expenses at $144 million [127]. Loan Originations - The company originated $1.8 billion of Private Education Loans in the first nine months of 2025, a 73% increase from $1.0 billion a year ago [22]. - Total originations of Private Education Loans nearly doubled to $1.8 billion in the first nine months of 2025 compared to $1.0 billion a year ago [36]. - The company originated $788 million in Private Education Loans, marking a 58% increase compared to the previous year [50]. - The company originated $687 million in new loans during the three months ended September 30, 2025, compared to $407 million in the same period of 2024 [100]. - The company originated $788 million of Private Education Loans in Q3 2025, a 58% increase compared to $500 million in Q3 2024 [80]. Asset Management - Ending total education loans, net, stood at $44.4 billion, down from $47.5 billion year-over-year [45]. - Total assets decreased to $49.3 billion as of September 30, 2025, down from $51.8 billion at the end of 2024, representing a decline of approximately 4.8% [169]. - Total liabilities decreased to $46.87 billion, down from $49.15 billion, reflecting a decrease of approximately 4.6% [169]. - The company reported unrestricted cash of $571 million as of September 30, 2025, down from $1.143 billion a year earlier [111]. - The total balance of loans in forbearance for Private Education Loans decreased from $445 million as of September 30, 2024, to $239 million as of September 30, 2025, a reduction of approximately 46.3% [102]. Interest Income and Expenses - Total interest income decreased by 18% to $781 million in the third quarter, down from $948 million in the same period last year [52]. - The company reported a total interest expense of $639 million, leading to a net interest income of $142 million before provisions [123]. - Total interest income for the three months ended September 30, 2025, was $781 million, with education loans contributing $760 million [123]. - Total interest income for the nine months ended September 30, 2025, was $2,361 million, down from $2,948 million in 2024, representing a decrease of approximately 20% [172]. - The company incurred $4 million in restructuring and other reorganization expenses during the quarter [123]. Future Outlook - The passage of the "Big Beautiful Bill" on July 3, 2025, is expected to drive increased demand for private in-school graduate loans, presenting a growth opportunity for Navient [40]. - The company plans to focus on market expansion and new product development as part of its future strategy [125]. - The company anticipates continued focus on market expansion and new product development in the upcoming quarters [127]. - The company has no further obligations to provide transition services for its government services business as of October 2025 [89]. - The company expects to fund ongoing liquidity needs, including the repayment of $0.5 billion of senior unsecured notes maturing in the short term and $4.8 billion maturing in the long term, with 69% maturing by 2031 [109].

Financial Data and Key Metrics Changes - The company reported core earnings per share of $0.29 for the quarter, adjusting for significant items, while the core loss per share was $0.84 [14] - The expected life of loan cash flows increased by approximately $195 million due to lower prepayment speeds and updated assumptions [10][11] - The company announced a new share repurchase authorization of $100 million, providing additional capacity to purchase future value at a discount [4] Business Line Data and Key Metrics Changes - Total loan originations in the Consumer Lending segment grew to $788 million, a 58% increase from the previous year, driven by over 100% growth in Refi originations [17] - The Refi loans accounted for $528 million, marking the highest quarterly volume this year, while in-school lending reached a record $260 million [5][17] - The net interest margin for the Consumer Lending segment was 239 basis points, an increase from 232 basis points in the previous quarter [18] Market Data and Key Metrics Changes - The company experienced a decline in total delinquencies from 19% to 18.1%, while the net charge-off rate increased by 1 basis point to 15 basis points [16] - The provision expense for the quarter was $168 million, with $151 million related to previously originated loans, reflecting elevated delinquency rates [14][15] Company Strategy and Development Direction - The company is focused on aggressively reducing expenses and has exceeded its initial goal of $400 million in run-rate expense reductions ahead of schedule [8][22] - The company plans to provide an update on the growth strategy for its Earnest business on November 19th, indicating ongoing strategic initiatives [13] - The company is well-positioned to capitalize on opportunities in the Refi market, particularly as federal loan policies become less attractive to borrowers [79] Management's Comments on Operating Environment and Future Outlook - Management noted that the expected future cash flows increased due to changes in public policy and customer repayment behavior, with a focus on legacy loan portfolios [10][29] - The outlook for the fourth quarter is a range of $0.30-$0.35 per share, which would place the company within the full-year guidance of $1-$1.20 per share [15] - Management expressed confidence in the ability to finance rapid asset growth through ABS issuances, indicating a strong capital position [48][49] Other Important Information - The company completed its fourth term ABS financing of the year, backed by Refi loan collateral, demonstrating strong investor demand [12] - The total reserve build in the quarter was driven by various factors, including changes in borrower behavior and macroeconomic outlook [21] Q&A Session Summary Question: Regarding the provision and delinquencies noted - Management explained that the provision expense reflects incremental defaults and lower prepayment rates, which are expected to continue [26][29] Question: Where is the credit weakness coming from? - Management indicated that the majority of the weakness is focused on legacy portfolios, with some changes in other products but not as significant [38] Question: Breakdown of the $151 million provision - Management stated that the majority of the provision is related to trends in the private legacy portfolio, with macroeconomic conditions contributing only a small part [75] Question: Outlook on competition and market opportunities - Management highlighted that the company is well-positioned to take advantage of opportunities in the market, particularly in graduate loan originations [84] Question: Potential Grad PLUS opportunity - Management estimated the Grad PLUS market to be around $14 billion, with expectations for significant expansion opportunities [91]

Financial Data and Key Metrics Changes - The company reported core earnings per share of $0.29 for the quarter, adjusting for significant items, while the core loss per share was $0.84 [14][4] - The expected life of loan cash flows increased by approximately $195 million due to lower prepayment speeds and updated assumptions [10][11] - The company announced a new share repurchase authorization of $100 million to enhance shareholder value [4] Business Line Data and Key Metrics Changes - Total loan originations in the Consumer Lending segment grew to $788 million, a 58% increase year-over-year, driven by over 100% growth in refinance originations [17] - The Federal Education Loan segment's net interest margin for Q3 was 84 basis points, up 14 basis points from the previous quarter [15] - The Consumer Lending segment's net interest margin was 239 basis points, compared to 232 basis points in the second quarter [18] Market Data and Key Metrics Changes - The company experienced a record high in school lending originations of $260 million, the highest quarterly volume in its history [5] - Delinquency rates improved from 19% to 18.1%, while the net charge-off rate increased slightly to 15 basis points [16] - The company raised its full-year total loan originations guidance to approximately $2.4 billion, over 30% higher than initial guidance [17] Company Strategy and Development Direction - The company is focused on reducing operating expenses and has exceeded its initial goal of $400 million in run-rate expense reductions ahead of schedule [8][22] - The company aims to capitalize on growth opportunities in the refinance market, particularly among high-quality borrowers, as interest rates potentially decrease [6][13] - The company plans to provide an update on its growth strategy for the Earnest business on November 19th [13] Management's Comments on Operating Environment and Future Outlook - Management noted that the operating environment is influenced by changes in public policy and borrower repayment behavior, which have affected delinquency and charge-off rates [27][66] - The outlook for the fourth quarter is a range of $0.30 to $0.35 per share, reflecting continued strong origination growth and expense reductions [15][23] - Management expressed confidence in the company's ability to finance rapid asset growth through ABS issuances and other financing strategies [49][50] Other Important Information - The company completed its fourth term ABS financing of the year, backed by refinance loan collateral, indicating strong investor demand [12] - The total reserve build in the quarter was driven by various factors, including changes in borrower behavior and macroeconomic outlook [20][21] Q&A Session Summary Question: Inquiry about provision and delinquencies - Management explained that the provision expense reflects incremental defaults and lower prepayment rates, particularly in legacy portfolios [26][28] Question: Clarification on credit weakness sources - Management indicated that the majority of credit weakness is concentrated in legacy portfolios, with some changes in newer products but not as significant [38] Question: Discussion on reserve rate stabilization - Management noted that the reserve rate is influenced by new originations and the quality of loans, with expectations for the allowance to decrease as the portfolio runs off [57] Question: Impact of macroeconomic conditions on provisions - Management stated that macroeconomic conditions contributed minimally to the current provision, with the majority driven by trends in the legacy portfolio [77] Question: Outlook on competition and market opportunities - Management highlighted the company's strong position in the market and the potential for growth in both refinance and in-school lending segments [86][88]