The board of Wilmington-based Navient approved a new share repurchase program for up to $1 billion of the company’s common stock.
“This new share repurchase program demonstrates our confidence in our capital-generation expectations and our ongoing commitment to return excess capital to our shareholders,” said Jack Remondi, CEO of Navient. “We remain focused on investing capital to support new loan originations and overall business growth. This includes maintaining appropriate capital that supports our credit ratings and enhances ongoing access to financing. Our capital return policy is consistent with these objectives.”
Navient’s share price has been increasing as it unloaded its federal student loan servicing business that had been under fire for its collection practices. Navient defended its practices but faced lawsuits and continued criticism.
The share repurchase is in addition to [the approximately $150 million unused authorization,. The company expects to complete the remainder of the 2019 authorization at the end of the year and anticipates using $400 million of the new authority in 2022.
