Department of Education Delays Involuntary Collections on Federal Student Loans
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 16 2026
0mins
The Department of Education announced that it will delay the implementation of involuntary collections on federal student loans, including Administrative Wage Garnishment and the Treasury Offset Program. "The temporary delay will enable the Department to implement major student loan repayment reforms under the Working Families Tax Cuts Act to give borrowers more options to repay their loans," the agency said in a statement. "These reforms, which include simplifying repayment options and providing an additional opportunity for borrowers to rehabilitate their federal student loans, reflect the Trump Administration's commitment to provide better support for current and future borrowers in repayment," it added. SLM (SLM), Navient (NAVI), Nelnet (NNI) and SoFi Technologies (SOFI) have exposure to student loans.
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Analyst Views on NAVI
Wall Street analysts forecast NAVI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NAVI is 13.00 USD with a low forecast of 11.00 USD and a high forecast of 18.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
1 Buy
3 Hold
3 Sell
Moderate Sell
Current: 9.810
Low
11.00
Averages
13.00
High
18.00
Current: 9.810
Low
11.00
Averages
13.00
High
18.00
About NAVI
Navient Corporation provides technology-enabled education finance solutions. The Company's businesses include Federal Education Loans and Consumer Lending. The Company's Federal Education Loans business includes owning and managing Federal Family Education Loan Program (FFELP) Loans and is the master servicer on this portfolio. Its Consumer Lending business includes owning and managing Private Education Loans and is the master servicer for these portfolios. The Company, through its Earnest brand, also refinances and originates in-school Private Education Loans. The Company helps students and families on the planning and paying for college journey. Its digital tools empower people to find scholarships and compare financial aid offers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Navient to Announce Q4 Earnings on January 28
- Earnings Announcement Date: Navient (NAVI) is set to release its Q4 2023 earnings report on January 28 before market open, with a consensus EPS estimate of $0.31, reflecting a substantial year-over-year increase of 229.2%, indicating a significant improvement in profitability.
- Revenue Expectations Decline: Despite strong EPS expectations, the revenue estimate stands at $138.25 million, representing a 38.0% year-over-year decline, highlighting challenges in revenue growth that could impact overall financial health.
- Historical Performance Review: Over the past two years, NAVI has beaten EPS estimates 38% of the time and revenue estimates 75% of the time, demonstrating relative stability in financial forecasting, although recent estimates for both EPS and revenue have seen multiple downward revisions.
- Estimation Revision Dynamics: In the last three months, EPS estimates have undergone three upward revisions and six downward revisions, while revenue estimates have seen one upward and three downward revisions, indicating market divergence in expectations for Navient's future performance.
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Navient Corporation Q4 2025 Earnings Call Insights
- Leadership Changes: Navient appointed Steve Hauber as CFO and is searching for a fintech-experienced CFO to better align with its strategic goals, which is expected to enhance management efficiency and business execution.
- Significant Cost Reductions: The company successfully completed Phase 1 of its transformation, exceeding its $400 million expense reduction goal, which is projected to increase future loan cash flows by $2 billion, enhancing financial flexibility and supporting new growth initiatives.
- Innovative Loan Issuance: Earnest achieved total loan originations of $2.5 billion in 2025, with refinancing loans reaching $2.1 billion, and targets $4 billion in total loan originations for 2026, representing over 60% growth, indicating strong market demand.
- Optimistic Financial Outlook: Management expects core EPS for 2026 to range between $0.65 and $0.80, with expenses reduced to $350 million, reflecting confidence in future growth while emphasizing ongoing attention to credit quality.
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