Navient is marketing $259 million of securities backed by private student loans it sponsored and services.
Navient Private Education Loan Trust 2015-C will issue $209 million of class A, floating-rate notes, rated 'AAA' by DBRS that are due Jan. 16, 2035; and $50 million of class B, fixed-rate notes, rated 'AA' that are due May 15, 2040.
Loans in the collateral pool coinsist of seasoned private student loans underwritten by Navient. Borrowers on average have been making payments for five years and have a weighted average FICO score of 690.
The loans were originated under Navient's Undergraduate and Graduate, Career Training, Direct-to-Consumer, Consolidation, Law, MBA and Medical loan programs.
Most of the loans (77.2%) are Undergraduate and Graduate loans and were primarily offered under Navient’s Signature loan program, which was replaced with Navient’s Smart Option loan program in mid-2009, and made to borrowers attending a four-year, two-year or proprietary school.
The 2015-C transaction will be the sponsor's fifth private student loan securitization, bringing oustandings to $1.4 billion. Navient holds a total of $30 billion outstanding private student loans on balance sheet; 94% of the loans are in repayment.
The sponsor's Federal Family Education Loan securitization program was recently flagged for default risk due to slower than expected repayments that may extend beyond the bonds final maturity date. Moody's Investors Service and Fitch Ratings are revising their rating criteria for this asset class. The rating reviews do not affect private student loan securitizations.