Ruh Roh.January 8, 2016
Until Thursday, Navient stock had never closed below book value. A year ago, Navient traded at twice its book value.
More than 12 million student loan borrowers, or about one in four, have a relationship with Navient, making it the nation’s largest student loan specialist. The company, formerly known as Sallie Mae, also is a major U.S. Department of Education contractor.
Navient shares have plunged 53 percent over the past year, and are down about 40 percent since the company spun off from Sallie Mae in 2014 and began trading independently.
Patricia Christel, a Navient spokeswoman, didn’t respond to a request for comment.
The company is contending with a variety of woes, from a possible lawsuit from the federal Consumer Financial Protection Bureau over allegations it cheated student loan borrowers, to investors’ concerns that the company will struggle to meet its obligations.