Student loan ABS

Loans that have yet to be originated must adhere to limitations. No more than $719,870 of originations can consist of loans made to students attending proprietary schools.

At around June 15, 2024, the VSAC will reach the end of a collateral recycling period, when it has the option to originate additional eligible loans.

NaviRefi loans account for 30% of the collateral securing the Navient Private Education Refi Loan Trust, 2023-A's. It is a noticeably higher amount than the previous deal, the 2022-B, which contained a 21% concentration.

The deal has an exposure to fixed-to-floating interest rate risk. While 75%-88% of the total notes are fixed rate, while just 57% of the underlying assets are.

Chief Justice John Roberts told a Biden administration lawyer the program will have enormous financial implications for millions of Americans.

Loan forgiveness would help offset FFELP student loan ABS low prepayment rates and maturity risk, a primary driver of rating downgrades since 2016.

Smart Option loans lack a government guarantee, but typically are extended to borrowers with higher credit quality and a higher percentage of co-signers.

Delinquencies could trend downward, similar to the rise in early stage delinquencies in 2020, but observers say high inflation could add pressure to in-school repayments.

A strong capital structure boosts confidence in the timely payments of the notes, including provisions to mitigate negative carry.

The NCSLTs say whether student loan ABS trusts are “covered persons” and thus under the CFPB’s regulation is not something that an appeals court should decide.