Rating Agency Action Discussion

The recent trends in repayment rates of FFELP student loans are slower than historical norms as a result slower prepayment rates during the recession and the fact that more borrowers are using deferment, forbearance or federal income-driven repayment plans. Due to this lower than expected rate of repayment, certain rating agencies are taking action with respect to FFELP ABS as a result of their view of the increased risk that certain bonds will not be paid in full on their legal final maturity dates.

As the largest issuer of student loan-backed securities, we take our leadership role seriously and we are working with the rating agencies, trustees, and investors to address these concerns.

Contact Us

We have launched a new online investor forum designed to facilitate communication with our ABS bondholders. Through this forum, bondholders can register to receive notifications regarding their bonds and can also communicate with Navient and directly with other bondholders through identity-protected messages. We encourage all of our ABS bondholders to visit www.dealvector.com/navient for more information.

We also encourage all ABS bondholders to contact Mark Rein (703-984-5679) or Joe Fisher (302-283-4075).

Navient Actions

Amend Legal Final Maturity Dates

Extending the legal final maturity date of outstanding bonds requires bondholder consent. We encourage bondholders to contact us for more information (Mark Rein, 703-984-5679 or Joe Fisher, 302-283-4075) or visit our new online forum at www.dealvector.com/navient to discuss the option of extending the legal final maturity date of existing bonds.

Executed Supplemental Indentures extending the Legal Final Maturity Date:

SLM 2003-14 (78442GKG0, 78442GKP0)
SLM 2004-3 (78442GLK0, 78442GLL8, 78442GLJ3)
SLC 2005-3 (784420AR2)
SLM 2005-4 (78442GPL4)
SLM 2004-5 (78442GLW4)
SLM 2005-8 (78442GQT6)
SLC 2006-1 (784427AG1)
SLC 2006-1 (784427AF3)
SLM 2006-4 (78442GSL1)
SLM 2006-6 (83149FAD6)
SLM 2006-7 (78443GAJ4)
SLM 2007-7 (78444EAE9)
SLM 2007-8 (78444XAF4)
SLC 2008-2 (78444NAE9)
SLM 2008-2 (784442AD7)
SLM 2008-3 (78444GAD6)
SLM 2008-4 (78445AAE6)
SLM 2008-5 (78444YAE5)
SLM 2008-6 (78445CAE2)
SLM 2008-7 (78445FAE5)
SLM 2008-8 (78445GAE3)
SLM 2008-9 (78445JAB3)
SLC 2009-1 (78444QAB8)
SLM 2012-2 (78446YAB9)
SLM 2012-3 (78447AAA2)
SLM 2012-3 (78447AAB0)
SLM 2012-4 (78445VAA8)
SLM 2012-5 (78447EAD8)
SLM 2012-8 (78447LAA8, 78447LAB6)
SLM 2013-1 (78447MAC2, 78447MAD0)
SLM 2013-2 (78446CAA9)
SLM 2013-3 (78447YAC6)
SLM 2013-4 (78448AAA1)
SLM 2013-4 (78448AAD5)
SLM 2013-5 (78448BAC5)
SLM 2013-6 (78448CAG4, 78448CAH2)
SLM 2014-1 (78448EAD7)
SLM 2014-2 (78448GAC4, 78448GAD2)
NAV 2014-2 (63938GAA7, 63938GAB5)
NAV 2014-3 (63938JAA1, 63938JAB9)
NAV 2014-4 (63938QAA5, 63938QAB3)
NAV 2014-5 (63938WAA2, 63938WAB0)
NAV 2014-6 (63939BAA7, 63939BAB5)
NAV 2014-7 (63939AAA9, 63939AAB7)
NAV 2014-8 (63939DAC9)

Exercise Clean-Up Calls

Under most of Navient’s existing securitization documents, Navient Solutions, LLC, as servicer, has the right to exercise a clean-up call to purchase the trust’s remaining student loans once the current pool balance drops below 10% of the initial pool balance.

Since 2014, Navient Solutions, LLC has exercised its 10% optional clean-up call with respect to following trusts:

SMS 1998-A SMS 1999-A SMS 1999-B SMS 2000-A
SMS 2000-B SLM 2001-4 SLM 2002-1 SLM 2002-4
SLM 2002-5 SLM 2002-6 SLM 2003-3 SLM 2003-6
SLM 2003-8 SLM 2003-9 SLM 2004-6 SLM 2004-9
SLM 2005-1 SLM 2005-2    

Amend to Add 10% Optional Servicer Purchase Right

Since 2014, Navient has amended the servicing agreements for the following trusts to give Navient Solutions, LLC, as servicer, an option to purchase trust student loans aggregating up to 10% of the trust’s initial pool:

As of December 24, 2014:

SLM 2002-1 SLM 2002-7 SLM 2003-2 SLM 2003-3
SLM 2006-3 SLM 2007-2 SLM 2007-3 SLM 2007-7
SLM 2008-1 SLM 2008-2 SLM 2008-3 SLM 2008-4
SLM 2008-5 SLM 2008-6 SLM 2008-7 SLM 2008-8
SLM 2008-9      

Review Omnibus Amendment here

As of September 15, 2015:

SLM 2003-1 SLM 2003-4 SLM 2003-5 SLM 2003-7
SLM 2003-11 SLM 2003-14 SLM 2004-1 SLM 2004-3
SLM 2004-10 SLM 2005-4 SLM 2005-5 SLM 2005-10
SLM 2006-1 SLM 2007-6 SLM 2007-8 SLM 2012-3

Review Omnibus Amendment here

As of December 10, 2015:

SLC 2009-1

Review Omnibus Amendment Here

Amend to Incorporate Revolving Credit Agreement with Navient Corporation

In 2015, Navient amended certain administration agreements and indentures to incorporate a revolving credit agreement pursuant to which Navient Corporation can make loans to the following trusts:

As of September 15, 2015:

SLM 2003-1 SLM 2003-4 SLM 2003-5 SLM 2003-7
SLM 2003-11 SLM 2003-14 SLM 2004-1 SLM 2004-3
SLM 2004-10 SLM 2005-4 SLM 2005-5 SLM 2005-10
SLM 2006-1 SLM 2007-6 SLM 2007-8 SLM 2012-3

Review Omnibus Amendment here

As of November 6, 2015:

SLM 2002-7 SLM 2003-2 SLM 2003-10 SLM 2003-12 SLM 2004-2 SLM 2004-4
SLM 2004-5 SLM 2004-7 SLM 2004-8 SLM 2005-3 SLM 2005-6 SLM 2005-7
SLM 2005-8 SLM 2005-9 SLM 2006-3 SLM 2006-4 SLM 2006-6 SLM 2006-7
SLM 2006-10 SLM 2007-2 SLM 2007-3 SLM 2007-5 SLM 2007-7 SLM 2008-1
SLM 2008-2 SLM 2008-3 SLM 2008-4 SLM 2008-5 SLM 2008-6 SLM 2008-7
SLM 2008-8 SLM 2008-9 SLM 2009-1 SLM 2009-2 SLM 2009-3 SLM 2010-1
SLM 2010-2 SLM 2011-1 SLM 2011-2 SLM 2011-3 SLM 2012-1 SLM 2012-2
SLM 2012-4 SLM 2012-5 SLM 2012-6 SLM 2012-7 SLM 2012-8 SLM 2013-1
SLM 2013-2 SLM 2013-3 SLM 2013-4 SLM 2013-5 SLM 2013-6 SLM 2014-1
SLM 2014-2 NAV 2014-1 NAV 2014-2 NAV 2014-3 NAV 2014-4 NAV 2014-5
NAV 2014-6 NAV 2014-7 NAV 2014-8 NAV 2015-1 NAV 2015-2 NAV 2015-3

Review Omnibus Amendment Here: SLM and Navient deals 2014 and prior
Review Omnibus Amendment Here: Navient 2015 Deals.

As of November 30, 2015:

SLM 2006-5

Review Omnibus Amendment Here

As of December 10, 2015:

SLC 2009-1

Review Omnibus Amendment Here

ABS Repackaging

Some investors have expressed interest in repackaging their existing ABS bonds into securities with maturity dates later than the current legal final maturity dates of their existing ABS bonds. We have been working with our trustees to resolve structural impediments to investors executing repack transactions. For more information, investors should contact the trustee applicable to the bonds they hold.