Financial Performance - Navient reported a GAAP net income of $14 million and core earnings net income of $21 million for 2Q 2025[12] - The company's core EPS is projected to be $0.95 - $1.05, including net expenses of $0.24 per share related to transition agreements[13] - Navient distributed $40 million to shareholders through dividends and share repurchases in 2Q 2025[31] Strategic Actions and Cost Reductions - Navient is on track to achieve 80% of its expense reduction target before 2026, aiming for approximately $400 million in expense reductions[9, 8] - Total expenses for 2Q 2025 were $100 million, compared to $182 million in 2Q 2024, reflecting cost reduction efforts[26, 24] - The company has reduced employee headcount by more than 80% from YE2023 through 2Q25 as part of its strategic actions[4] Segment Results - Federal Education Loans generated a net income of $30 million in 2Q 2025, compared to $28 million in 2Q 2024[14] - Consumer Lending reported a net income of $26 million in 2Q 2025, compared to $60 million in 2Q 2024, with $500 million in Private Education Loan originations[15, 16] - The Business Processing segment is no longer providing services following divestitures, with transition services expected to be mostly complete by the end of 2025[21] Loan Portfolio and Cash Flows - Total projected loan portfolio undiscounted cash flows after repayment of secured financings are $11.8 billion over the next 20 years[49] - The FFELP portfolio has projected cash flows of $2.1 billion through the end of 2029 and $5.4 billion over the next 20 years, assuming a 7% CPR for Stafford Loans and 5% for Consolidation Loans[52] - The Private Education Loan portfolio has projected cash flows of $3.5 billion through the end of 2029 and $6.4 billion over 20 years, assuming a 10% CPR[55]

"A year ago, we announced three ambitious strategic actions – outsourcing servicing, divesting our business processing businesses, a non- strategic asset, and a more cost efficient and streamlined structure. We are pleased to say that we achieved our 2024 objectives against an aggressive timeline. These actions provide clear line of sight to our expense reduction targets, deliver value and position us for the future. We accomplished these steps while at the same time achieved strong loan origination growth, ...