Navient: Demand for private in-school graduate loans to increase significantly

Recent legislation into law earlier this month that introduced changes to federal student loan programs will expand the company’s opportunities with its targeted customer segment across its product set, Navient (NAVI) said on its Q2 earnings conference call. The elimination of Grad PLUS is one important change in the federal loan ecosystem that increases its future opportunities, Navient said. Although there are several moving parts, “it is clear” that demand for private in-school graduate loans will increase significantly over time, Navient added. Expects the repayment plan changes will reduce FFELP consolidation activity, may also increase attractiveness of the company’s private refinance product to federal loan borrowers.