Navient lowers estimates for 2015

According to reports, loan servicing company Navient has estimated less expectation for this year for the reason that credit trends on some student loans have weakened and there has been a decline in loans that are emerging from deferment.

The company’s stock fell $2.36, or 12.9%, to $16 in aftermarket trading. On Monday, Navient said that a number of private student loans are "experiencing unfavorable credit trends" compared with loans in earlier years. As per reports, high-risk borrowers had taken those loans, the ones who returned to school in the period of the recession and delayed repayment of their loans after completing their degree.

The Wilmington, which is a company based in Delaware has also lowered its expectations for net interest income since costs for private education loan portfolios are high. Consequently, it is possible that Navient will not buy that much loans, expected by it earlier.

Navient Corp., which is a loan management, servicing and asset recovery company, was developed from Sallie Mae, or SLM Corp., in 2014. At the end of June, the company was holding $28.1 billion in private education loans.

According to Chief Executive Jack Remondi, "While we have removed private education loan acquisitions from our guidance, we continue to believe that there will be opportunities for Navient to acquire loans in 2015 and beyond".

According to Navient, in the second quarter, it is looking forward to earn a profit of 47 cents per share, or 40 cents per share apart from one-time items.