Navient Corporation reported second-quarter 2025 Core Earnings Net Income of $21 million, or $0.20 diluted EPS, which increased to $0.21 when adjusted for regulatory and restructuring expenses. The Federal Education Loans segment saw its Net Interest Margin (NIM) rise to 0.70% in Q2 2025, up from 0.36% in Q2 2024, driven by historically low prepayment activity.
The Consumer Lending segment demonstrated robust growth, with total private education loan originations reaching $1.0 billion in the first half of 2025, an 87% increase year-over-year. Refinance loan originations more than doubled to $443 million in Q2 2025. However, the Consumer Lending NIM decreased to 2.32% from 2.89% in Q2 2024, primarily due to $112 million of loans entering 91+ days delinquency, causing a 32 basis point drag.
Navient revised its full-year 2025 core earnings guidance to a range of $0.95 to $1.05 per share, including $0.24 of net expenses related to transition services agreements. The full-year loan origination forecast was increased to $2.2 billion, up from $1.8 billion. Operating expenses continued to decline, reaching $100 million in Q2 2025, a significant reduction from $166 million in Q2 2024, reflecting the impact of divestitures and streamlining efforts.
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