What Navient Corp. told the SEC could break it.

Navient owns $28.1B of federally guaranteed FFELP loans whose default-claim reimbursement (97–98%) is backed by contractual rights against the United States, and its education-loan operations are governed by the Higher Education Act, Department of Education and CFPB — making federal student-loan policy a fundamental dependency.

“These insurance obligations are supported by contractual rights against the United States. For loans disbursed after October 1, 1993, and before July 1, 2006, we receive 98 % reimbursement on all qualifying default claims. For loans disbursed on or after July 1, 2006, we receive 97 % reimbursement.”

Navient funds its education-loan portfolios through secured ABCP facilities (Private Education Loan and FFELP) and capital-markets borrowing, with capacity dependent on qualifying collateral and facilities maturing June 2026–April 2027, exposing it to funding cost and availability risk.

“Maximum borrowing capacity under the Private Education Loan and FFELP Loan ABCP facilities will vary and be subject to each agreement's borrowing conditions, including, among others, facility size, current usage and availability of qualifying collateral from unencumbered loans.”

Navient depends on third parties — including a designated sub-servicer and IT vendors — for a wide array of servicing systems, software development and data transmission; a breach or failure by these parties could disrupt its loan-servicing operations.

“We depend on third parties for a wide array of services, systems and information technology applications. Third-party vendors are significantly involved in many aspects of our software and systems development, servicing systems, the timely transmission of information across our data communication netwo”