Navient Funding LLC to remarket up to $141.8mln Class A-5 notes.

Navient Funding, LLC has filed a registration statement with the SEC for an offering of up to $141.8 million in SLM Student Loan Trust 2005-7 Class A-5 notes. The issuing entity is Navient Funding, LLC, the depositor is Navient Funding, LLC, and the sponsor, servicer, and administrator is Navient Solutions, LLC. The notes are backed by student loans and investors should read the registration statement and other documents filed with the SEC for complete information.

Navient Funding, LLC has recently filed a registration statement with the SEC for an offering of up to $141.8 million in SLM Student Loan Trust 2005-7 Class A-5 notes. The issuing entity, depositor, and sponsor are all Navient Funding, LLC, while Navient Solutions, LLC serves as the servicer and administrator. The notes are backed by student loans, and investors are advised to review the registration statement and other documents filed with the SEC for complete information.

The offering comes at a time when the student loan market is undergoing significant regulatory shifts, with private lenders like SLM Corporation (SLM) poised to capture a substantial portion of the market. As Congress moves to eliminate federal Grad Plus loans under the Opportunity and Burden-Based Budget Act (OBBBA), private lenders are expected to capitalize on a market estimated to grow by $3–$4 billion annually [1].

SLM Corporation, a major player in the student loan market, has shown robust financial performance in the first quarter of 2025. Its net income rose to $305 million, and EPS of $1.40 beat estimates by 22%, marking a 10% year-over-year increase. Loan originations grew 7.3% to $2.8 billion, driven by strong demand and cost efficiencies [1].

JPMorgan has upgraded SLM to Overweight, raising its price target to $38 from $29. The upgrade reflects SLM's expertise in education lending and balance sheet flexibility, positioning it to dominate the Grad Plus transition. The firm's target aligns with a 10% upside from current levels, assuming SLM captures 40–50% of the $4 billion opportunity [1].

However, not all analysts are optimistic. GuruFocus' GF Value estimate of $18.69 highlights valuation concerns, with the model penalizing SLM's valuation multiples and flagging risks such as credit deterioration or slower origination growth [1].

Navient Funding's offering of SLM Student Loan Trust 2005-7 Class A-5 notes is a significant event in the evolving student loan market. Investors should carefully consider the risks and rewards associated with this offering, as well as the broader market trends and regulatory shifts that are shaping the student loan landscape.

References:
[1] https://www.ainvest.com/news/slm-corporation-navigating-regulatory-shifts-capture-4b-student-loan-opportunity-2507/