Financial Analysis

. Commitments, Contingencies and Guarantees L egal Proceedings We and our subsidiaries and affiliates are subject to various claims, lawsuits and other actions that arise in the normal course of business. We believe that these claims, lawsuits and other actions will not, individually or in the aggregate, have a material adverse effect on our business, financial condition or results of operations, except as otherwise disclosed. Most of these matters are claims including individual and class action lawsuits relating to loan servicing or business processing and which allege violations of state or federal laws in connection with servicing or collection activities on education loans and other debts. In the ordinary course of our business, the Company and our subsidiaries and affiliates receive information and document requests and investigative demands from various entities including State Attorneys General, U.S. Attorneys, legislative committees, individual members of Congress and administrative agencies. These requests may be informational, regulatory or enforcement in nature and may relate to our business practices, the industries in which we operate, or companies with whom we conduct business. Generally, our practice has been and continues to be to cooperate with these bodies and to be responsive to any such requests. The number of these inquiries and the volume of related information demands have normalized at elevated levels and therefore the Company must continue to expend …

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. Borrowings The following table summarizes our borrowings. March 31, 2026 December 31, 2025 (Dollars in millions) Short Term Long Term Total Short Term Long Term Total Unsecured borrowings: Senior unsecured debt $ 1,225 $ 4,084 $ 5,309 $ 525 $ 4,782 $ 5,307 Total unsecured borrowings 1,225 4,084 5,309 525 4,782 5,307 Secured borrowings: Private Education Loan securitizations (1) 432 10,303 10,735 469 10,250 10,719 FFELP Loan securitizations (2)(3) 105 24,525 24,630 109 25,302 25,411 Private Education Loan ABCP facilities (4) 2,145 2,145 1,942 1,942 FFELP Loan ABCP facilities (4) 1,811 347 2,158 1,869 299 2,168 Other (5) 166 39 205 160 39 199 Total secured borrowings 4,659 35,214 39,873 4,549 35,890 40,439 Total before hedge accounting adjustments 5,884 39,298 45,182 5,074 40,672 45,746 Hedge accounting adjustments ( 14 ) ( 58 ) ( 72 ) ( 1 ) ( 39 ) ( 40 ) Total $ 5,870 $ 39,240 $ 45,110 $ 5,073 $ 40,633 $ 45,706 (1) Includes $ 432 million and $ 469 million of short-term debt related to the Private Education Loan ABS repurchase facilities (Private Education Loan Repurchase Facilities) as of March 31, 2026 and December 31, 2025, respectively. (2) Includes $ 105 million and $ 109 million of short-term debt and $ 0 and $ 0 of long-term debt related to the FFELP Loan ABS repurchase facilities (FFELP Loan Repurchase Facilities) as of March 31, 2026 and December 31, 2025, respectively. (3) Includes defaulted FFELP secured debt tranches with a remaining principal amount of $ 1.1 bill …

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". Segment Reporting We monitor and assess our ongoing operations and results based on the following three reportable operating segments: Consumer Lending, Federal Education Loans, and Other. As of February 2025, we had divested our Business Processing segment. These segments meet the quantitative thresholds for reportable operating segments. Accordingly, the results of operations of these reportable operating segments are presented separately. The underlying operating segments are used by the Companys chief operating decision maker, our chief executive officer, to manage the business, review operating performance and allocate resources, and qualify to be aggregated as part of the primary reportable operating segments. As discussed further below, we measure the profitability of our operating segments based on Core Earnings net income. Accordingly, information regarding our reportable operating segments' net income is provided on a Core Earnings basis. Consumer Lending Segment Navient owns and manages Private Education Loans and is the master servicer for these portfolios. Through our Earnest brand, we originate in-school Private Education Loans, including undergraduate and graduate products, we refinance education loans for high-quality borrowers and we intend to expand into adjacent lending products over time. ""Refinance"" Private Education Loans are loans where a borrower has refinanced their education loans, and ""In-school"" Private Education Loans are loans originally m …

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1. Significant Accounting Policies Basis of Presentation The accompanying unaudited, consolidated financial statements of Navient have been prepared in accordance with generally accepted accounting principles in the United States of America (GAAP) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete consolidated financial statements. The consolidated financial statements include the accounts of Navient and its majority-owned and controlled subsidiaries and those Variable Interest Entities (VIEs) for which we are the primary beneficiary, after eliminating the effects of intercompany accounts and transactions. In the opinion of management, all adjustments considered necessary for a fair statement of the results for the interim periods have been included. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Operating results for the three months ended March 31, 2026 are not necessarily indicative of the results for the year ending December 31, 2026 or for any other period. These unaudited financial statements should be read in conjunction with the audited financial statements and related notes included in our 2025 Form 10-K. Definitions for certain capitalized terms used but not otherwise …

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. Stockholders Equity The following table summarizes our common share repurchases, issuances and dividends paid. Three Months Ended March 31, (Dollars and shares in millions, except per share amounts) 2026 2025 Common stock repurchased (1) 2.3 2.6 Common stock repurchased (in dollars) (1) $ 23 $ 35 Average purchase price per share (1) $ 9.91 $ 13.71 Remaining common stock repurchase authority (1) $ 77 $ 76 Shares repurchased related to employee stock-based compensation plans (2) .4 .4 Average purchase price per share (2) $ 9.78 $ 13.75 Common shares issued (3) 1.2 1.3 Dividends paid $ 15 $ 16 Dividends per share $ .16 $ .16 (1) Common shares purchased under our share repurchase program. Our Board of Directors authorized a $ 100 million share repurchase program in October 2025. (2) Comprises shares withheld from the vesting of restricted stock for employees tax withholding obligations. (3) Common shares issued under our various compensation and benefit plans. The closing price of our common stock on March 31, 2026 was $ 8.18 . …

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