Student loan ABS

For the first time in almost two years, borrowers are taking out floating-rate loans to refinance their student debt. So Navient is testing investor appetite for floating-rate bonds backed by refinance loans.

Now that the noncompete has expired, Navient plans to market private student loans to borrowers in school; the servicing giant is also free from restrictions on marketing refinance loans through Earnest.

The company has filed a request with a federal judge in Pennsylvania for a summary judgment in two counts against it, accusing the bureau of failing to provide evidence.

Physicians account for 28.8% of borrowers in the collateral pool, up from 22% for SoFi's previous student loan securitization, according to Moody's Investors Service. Notably, fewer of these, 4.2% versus 7.8%, are in residency programs.

The $748 million Navient Student Loan Trust 2019-1 looks a lot like the four FFELP deals the sponsor completed in 2018; it is backed by a mix of rehab (19.6%) and non-rehab (80.4%) loans.

This time, the $98.4 million of underlying collateral was originated by before the financial crisis by Citibank via its former student lending affiliate, the Student Loan Corp.

Many banks remain wary of student loans given the government's dominance in the market, but some fintechs see untapped potential.

It's the first time the refinance student lender used this feature to lock in current funding costs, according to Moody's Investors Service.

Calling a $149 million transaction and securitizing the notes allows Goal Structured Solutions to benefit from a reduction in spreads since 2016.

Starting next year, the servicing giant plans to go after some of SLM Corp.'s best borrowers – at least with refinance student loans.