Navient restructuring raises costs to protect against default

Navient: Navient is a U.S. education-finance company focused on student-loan servicing and private education lending, including its Earnest business. The company recently announced a holding-company reorganization that will separate legacy loan assets from the continuing Earnest business, with Navient LLC assuming obligations tied to listed notes. Equity: Existing Navient shares are expected to convert one-for-one into Navient Holdings shares, while trading continues under the NAVI symbol. Bondholders: The reorganization places listed-note obligations within Navient LLC while the continuing growth business, Earnest, is held separately under the new parent structure. Restructuring: Navient plans to create Navient Holdings as the parent of Navient LLC and Earnest, with the new structure expected to take effect in the fourth quarter of 2026.