Navient Corp.’s second offering of refinanced student loans this year from high-earning professionals includes loans that have a lower average principal balance that other recent Navient-sponsored deals.
According to a presale report from DBRS Morningstar, the $743.3 million Navient Private Education Refi Loan Trust 2021-B has an average balance of $59,226 per account. The previous four Navient securitizations of refinanced private loans had average balances between $73,498 and $79,306.
The average balance in the new deal is also lower than recent securitizations by other private refi SLABS issuers like SoFi and CommonBond.
DBRS Morningstar assigned a provisional AAA rating to the $692.3 million Class A tranche and an AA to the $51 million Class B tranche.
Navient 2021-B is the 62ndABS transaction sponsored by the former servicing arm of the legacy Sallie Mae Corp., and the 28thsince the 2014 spinoff. The originations are from Navient’s Earnest student loan refi program.
The pool’s characteristics are typical for a refi SLABS deal catering to high-income, post-graduate professionals with advanced degrees in the medical, legal and business administration fields. The weighted average borrower FICO is 773, and average income is $150,293 with free monthly cash flow of $5,249.
The accounts have a WA coupon of 4.31%. Nearly all are fixed rate except for a 6.31% sliver (or $47.9 million in loan balances) that have floating-rate terms.
Nearly all of the loans are in active repayment (99.5%).
