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Transparency in Policy Engagement and Political Participation 2017 Semiannual Report Navient 123 Justison Street Wilmington, Delaware
1 Transparency in Policy Engagement and Political Participation
Navientactivelyengagesinthedemocraticprocessandplaysanactiveroleinformingpolicytosupportthesuccessofourcustomers,employeesandshareholders.Wearecommittedtofulfillingourroleasanactivecorporatecitizenwithintegrityandtransparency.
Thismid-yearreportcoversactivitiesfromJanuary1,2017,throughJune30,2017.
StateandFederalEngagementPolicyproposals,legislation,andregulationcanhaveanimpactonourcustomers,employeesandshareholders.Federal,state,andlocalpolicychangescansignificantlyaffectouroperations,customeroutcomesandserviceexperience,revenues,andcosts.Becauseofthisimpact,wehavearesponsibilitytoengagewithpolicymakerstoeducate,providefact-basedinformation,andtoadvancethesuccessofourcompanyandourstakeholders.
Weregularlyshareourexpertise,expressourviews,andprovidepublicofficialswithfactualbriefingstoinformtheirdecisions.Wemonitorlegislativeactivities,analyzetrends,andadvanceideastobenefitourconstituencies.Becauseofour40-plus-yearhistoryinhelpingstudentloanborrowersnavigatetheirwaytofinancialsuccess,wearefrequentlyconsultedbymembersofCongress,congressionalandlegislativestaff,andotherpolicymakersabouttheimpactoffederalandstateproposals.
Governance
Thecompany’sGovernmentRelationsDepartment,underthedirectionoftheseniorvicepresidentforpublicpolicyandgovernmentrelations,isresponsibleforgovernmentrelationspoliciesandactivitiesandmanagesallpoliticalactivitiesconductedbyoronbehalfofNavient.ThedepartmentreportsannuallytotheBoardofDirectors’NominationsandGovernanceCommitteeonpoliticalcontributionmattersandmajorlobbyingpriorities.Additionally,asrequiredbyitscharter,theNominationsandGovernanceCommitteeiscomposedentirelyofindependentdirectorsandreceivesperiodicreportsonpoliticalexpenditures,paymentsmadetotradeassociations,andcontributionsmadetoothertax-exemptpoliticalorganizations,aswellascontributionsbythecompany’sPoliticalActionCommittee.ThecompanymaintainscomplianceprocessesintendedtoensurethatNavientanditsemployeesconductallitsactivitiesinaccordancewithourCodeofBusinessConductandwithallrelevantlawsgoverningpoliticalcontributionsandlobbyingactivities.
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FederalLobbying MeaningfulengagementrequiresNavienttoparticipateinthelegislativeprocess.ThestaffofNavient’sGovernmentRelationsDepartmentisregisteredtolobbyandactivelylobbiesonissuesthataffectourcustomersandbusiness.OnlymembersoftheGovernmentRelationsDepartmentareauthorizedtodirectlobbyingactivitiesonbehalfofNavient.Navientpolicyrequirestheseprofessionalstoworkwithcounseltoassurethattheyconducttheiractivitiesincompliancewithapplicablelaws,rules,andregulationsaswellasmaintainthehigheststandardsofprofessionalintegrity.
Wedisclosepubliclyallfederallobbyingtopicsandexpendituresonaquarterlybasis,inaccordancewiththeLobbyingDisclosureAct.Navient’squarterlyfilingsareavailableathttp://soprweb.senate.gov/index.cfm?event=selectfields.
Navient’sdisclosuresprovideallfederallobbyingexpenditures,includingfeespaidtooutsideconsultants.Inthefirsthalfof2017,NavientengagedtheservicesofEmpireConsultingGroup,TheKutlerGroup,MercuryPublicAffairs,NixonPeabodyLLP(January1,2017,toMarch31,2017),HollandandKnight(April1,2017,onward)andVanScoyocAssociates,whoalsofiledisclosuresontheirfeesandactivitiesonbehalfofNavient.Forthefirsthalfoftheyear,Navientspent$1.5million onfederallobbyingexpenditures,includingfeespaidtooutsideconsultants.Thechartbelowshowslobbyingexpendituresforthefirsttwoquartersof2017(byquarter)togetherwiththeexpendituresforpreviousyears(byquarter).
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Amongthetopicswehaveadvocatedare:
• Bettertoolsandinformationtohelpstudentsandtheirfamiliesmakeinformedborrowingdecisionsandhelpthemsuccessfullyrealizeareturnontheirhighereducationinvestment
• Risk-basedfederalloanservicingandportfoliomanagementapproachesthathelpmoreborrowersavoiddelinquencyanddefault
• Ensuringthatservicershavethenecessarytoolstocontactborrowersandhelpthemavoiddefault• Streamlinedrepaymentoptionstoreducecomplexityforborrowersandservicersandincrease
engagement• Easiermethodstoenrollinandrecertifyfederalincome-drivenrepaymentprograms• Programsthatencourageborrowerstocontacttheirstudentloanservicers• Moreassistancetoborrowersparticipatinginthefederalrehabilitationprogramtohelpthem
recoverfromdefault• Improvefederalbudgetingtoassureadequatefundingforstudentloandelinquencyanddefault
prevention• Theestablishmentofaprivateloanrehabilitationprogramthatcreatesapathwayforborrowers
indefaulttogetbackontrackandimprovetheircredit• Aone-timecreditbureauretractionforstudentloanborrowerswhomissapaymentwhile
transitioningintorepayment• Requirethirdpartydebtreliefcompaniestoprominentlydisclosetheavailabilityofsuchservices
fromtheirloanservicerwithoutcost• Bankruptcyreformthatallowsfederalandprivatestudentloanstobedischargedafteragood
faithefforttorepay• Employerrepaymentassistanceprogramsthatallowpre-taxdollarbenefitstobeusedforstudent
loanrepayment• Issuesrelatingtothecollectionsindustryandensuringgovernmentdebtcollectionprograms
employindustrybestpractices
PoliticalContributionsThecompany’spoliciesensurethat,consistentwithfederallaw,Navientmaynotcontributecorporatefundsormakein-kindcontributionstocandidatesforfederalofficeortonationalpartycommittees.Navientdoesnotusecorporatefundstomakeindependentpoliticalexpenditures.Wehavenotspentanycorporatefundsoncommunicationstothegeneralpublicthatexpresslyadvocatetheelectionordefeatofafederalcandidateandwehavenoplanstospenddirectcorporatefundsonsuchcommunications.
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StateContributions
Navientmadenocontributionstostateorlocalelectedofficialsorcandidatesduringthefirsttwoquartersof2017.
TradeAssociations
Navientparticipatesinseveraltradeassociationsthatprovidetheirmembersavarietyofservicesincludingtechnicalassistance,bestpractices,andthatmayalsoadvocateonmajorpublicpolicyissuesofimportancetotheirmembersandthecommunitiestheyserve.Formostoftheseorganizations,theprimarypurposeofNavient’smembershipisforprofessionaldevelopment,technicalassistance,andbestindustrypractices.Ourpaymentsformembershipduescomewiththerecognitionthatwemaynotalwaysagreewithallthepositionsofanorganizationoritsindividualmembers.Onoccasion,someoftheseorganizationsmayundertakespecificprojectsonbehalfoftheirmembersforwhichadditionalfeesandexpensereimbursementsmaybepaidinadditiontomembershipfeesdisclosedbelow.
Navientdoesnotcoordinateorearmarkcorporatefundstowardelection-relatedactivityatthefederal,stateorlocallevel,includingcontributionsandexpendituresinsupportof,orinoppositionto,anycandidateforanyoffice,ballotinitiativecampaign,politicalpartycommitteeorPAC.
Belowisalistofthemembershipfeespaidtotheprincipalorganizations1inwhichNavientrenewedamembershiporbecameanewmemberatanypointduringthefirsttwoquartersof2017andwhichconductsomelobbyingactivity:
TradeAssociation2017
MembershipandotherFees
ACAInternational $6,314NationalAssociationofCollegeandUniversityBusinessOfficers $2,293
StructuredFinanceIndustryGroup $36,000
1 Wedefineprincipalorganizationstoincludethosetradeassociationsthatparticipatedinlobbingactivityandinwhichthecompanymaintainedacorporatemembershipandwhereourannualexpendituresexceeded$1,000.Wedonotconsideratradeassociationtobeaprincipalorganizationifouremployeesarememberstosatisfyprofessionallicensingrequirements.Inadditiontothenationalorganizationslistedinthetable,Navientisamemberofstateandlocalchambersofcommercewherewehaveasignificantemployeepresence.
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527PoliticalOrganizationsNavientdoesnotprovidefundingtogroupsorganizedunderSection527oftheInternalRevenueCodeexceptforthoselistedbelow.Wemaintainourmembershipsinthesegroupstosupportouroperationsinthestatesinwhichouremployeesworkandlive.Ourcontributionstothesegroupsaremembershipduesandarenotearmarkedtosupporttheelectionofanyspecificcandidatenorforfundingspecificexpendituresorcommunications.Inaddition,wedonotconsultwiththesegroupsregardingtheexpenditureoftheirfunds.Belowisthelistoffour527groupsthatNavientcontributedtoin2017.
Organization2017
ContributionRepublicanGovernorsAssociation $22,500DemocraticGovernorsAssociation $10,000RepublicanLegislativeCampaignCommittee $12,000DemocraticLegislativeCampaignCommittee $12,000
PoliticalActionCommittee
TheNavientPoliticalActionCommitteeisfundedsolelythroughvoluntarycontributionsfromeligibleemployees.ThePACsupportscandidates,parties,andcommittees–onabipartisanbasis–whoseviewsonspecificissuesareconsistentwiththecompany’spriorities.ThePACdoesnotcontributeinconnectionwithU.S.presidentialelections.
Navient’scorporatepolicyrequiresthatcontributionsfromNavient’sPACpromotecompanyinterestswithoutregardfortheprivatepoliticalpreferencesofexecutives.TheNavientPACisgovernedbyaboardcomprisedofseniorleadersfromseveralcorporatefunctionalandgeographicareasaswellasbusinessunits.ThePACBoardannuallyreviewsandapprovesagivingframework.Theboardischairedbytheseniorvicepresidentforpublicpolicyandgovernmentrelations.Indecidingwhotosupport,PACleadershipconsiderscandidateswhorepresentthecommunitiesweserve,underservedcommunities,thosewhoserveonrelevantcommitteesorinleadership,andthosewhohaveshownsupportforpoliciesandinitiativesofimportancetothecompany,itscustomers,andshareholders.
ContributionsfromNavient’sPAC,asrequiredbylaw,arereportedinfilingswiththeFederalElectionCommissionandaremadepubliclyavailable.
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Navient2017PoliticalContributionSnapshotJanuary1–June30,2017NavientPACContributionstoU.S.HouseofRepresentatives
U.S.HouseCandidate State District 2017Contribution
Rep.LouisJ.Barletta(R) PA CongressionalDistrict11 $2,000Rep.SanfordD.Bishop,Jr.(D) GA CongressionalDistrict02 $1,000Rep.DianeLynnBlack(R) TN CongressionalDistrict06 $1,000Rep.SusanW.Brooks(R) IN CongressionalDistrict05 $1,000Rep.GeorgeKennethButterfield,Jr.(D) NC CongressionalDistrict01 $1,000Rep.EmanuelCleaver,II(D) MO CongressionalDistrict05 $1,000Rep.JamesM.Costa(D) CA CongressionalDistrict16 $1,000Rep.ThomasEarlEmmer,Jr.(R) MN CongressionalDistrict06 $2,500Rep.VirginiaAnnFoxx(R) NC CongressionalDistrict05 $2,500Rep.MarciaLouiseFudge(D) OH CongressionalDistrict11 $1,000Rep.S.BrettGuthrie(R) KY CongressionalDistrict02 $1,000Rep.AlceeLamarHastings(D) FL CongressionalDistrict20 $2,500Rep.JamesAndrewHimes(D) CT CongressionalDistrict04 $1,000Rep.HakeemS.Jeffries(D) NY CongressionalDistrict08 $1,000Rep.AnnMcLaneKuster(D) NH CongressionalDistrict02 $1,000Rep.SheilaJacksonLee(D) TX CongressionalDistrict18 $500Rep.JasonMarkLewis(R) MN CongressionalDistrict02 $1,000Rep.ThomasMacArthur(R) NJ CongressionalDistrict03 $1,000Rep.GregoryWeldonMeeks(D) NY CongressionalDistrict05 $1,000Rep.PatrickL.Meehan(R) PA CongressionalDistrict07 $500Rep.AllanLucasMesser(R) IN CongressionalDistrict06 $5,000Rep.PaulMitchell,III(R) MI CongressionalDistrict10 $2,000Rep.GwendolynneSophiaMoore(D) WI CongressionalDistrict04 $500Rep.StaceyElizabethPlaskett(D) VI CongressionalDistrict01 $1,000Rep.BruceLeePoliquin(R) ME CongressionalDistrict02 $1,000Rep.ThomasW.Reed,II.(R) NY CongressionalDistrict23 $1,000Rep.PaulDavisRyan,Jr.(R) WI CongressionalDistrict01 $5,000Rep.CedricLevonRichmond(D) LA CongressionalDistrict02 $1,500Rep.TheodoreEdwardRokita(R) IN CongressionalDistrict04 $5,000Rep.StephenJosephScalise(R) LA CongressionalDistrict01 $5,000Rep.KyrstenSinema(D) AZ CongressionalDistrict09 $2,500Rep.EliseM.Stefanik(R) NY CongressionalDistrict21 $1,000Rep.GregoryPaulWalden(R) OR CongressionalDistrict02 $2,500
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NavientPACContributionstoU.S.SenateU.S.SenateCandidate State District 2017
ContributionSen.LamarAlexander(R) TN UnitedStatesSenate $1,000Sen.CoryAnthonyBooker(D) NJ UnitedStatesSenate $1,500Sen.RobertP.Casey,Jr(D) PA UnitedStatesSenate $1,500Sen.ChristopherAndrewCoons(D) DE UnitedStatesSenate $500Sen.BobP.Corker,Jr.(R) TN UnitedStatesSenate $1,000Sen.JosephSimonDonnelly,Sr.(D) IN UnitedStatesSenate $2,500Sen.MartinHeinrich(D) NM UnitedStatesSenate $1,000Sen.AmyKlobuchar(D) MN UnitedStatesSenate $1,000Sen.JosephManchin,III(D) WV UnitedStatesSenate $1,000Sen.GaryCharlesPeters(D) MI UnitedStatesSenate $2,000Sen.BrianEmanuelSchatz(D) HI UnitedStatesSenate $1,000Sen.TimothyEugeneScott(R) SC UnitedStatesSenate $3,000Sen.JeanneShaheen(D) NH UnitedStatesSenate $500Sen.JonTester(D) MT UnitedStatesSenate $1,000Sen.PatrickJosephToomey(R) PA UnitedStatesSenate $1,000Sen.TomStewartUdall(D) NM UnitedStatesSenate $500NavientPACContributionstoLeadershipCommitteesLeadershipPAC Sponsor 2017
ContributionBuildingRelationshipsinDiverseGeographicEnvironmentsPAC
Rep.JamesE.Clyburn(D) $2,500
CitizensforProsperityinAmericaTodayPAC
Sen.PatrickJosephToomey(R) $1,000
FearlessforthePeople Sen.KamalaD.Harris(D) $1,000HeartlandsValuePAC Sen.JohnThune(R) $1,000IMPACT Sen.CharlesSchumer(D) $5,000KeystoneAmericaPAC Rep.RobertP.CaseyJr.(D) $1,000ProsperityActionInc. Rep.PaulDavisRyanJr.(R) $5,000
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NavientPACContributionstoCongressionalCaucusandPartyParty/Caucus 2017
ContributionCongressionalBlackCaucusPAC(D) $5,000CHCBOLDPAC $5,000DSCC(D) $15,000NRCC(R) $15,000NRSC(R) $15,000OtherPoliticalActivityNavientdoesnotengagein,andexpendsnoresourcesinsupportof,groupsorganizedunderSection501(c)(4)oftheInternalRevenueCode.Navientdoesnotengageinandexpendsnoresourcesforgrassrootslobbyingcommunications,definedasanycommunicationdirectedtothegeneralpublicthat(a)referstospecificlegislationorregulation,(b)reflectsaviewonlegislationorregulation,and(c)encouragestherecipientofthecommunicationtotakeactionwithrespecttothelegislationorregulation.Navientdoesnotengageininfluencingandexpendsnoresourcestoinfluencetheoutcomeofballotmeasures.Otherthanasdisclosedabove,Navientdoesnotbelongtoanyothertax-exemptorganizationswhosepurposeitistoinfluencefederalorstatepolicy,includingorganizationsthatwriteandendorsemodellegislationEmployeeEngagement
Navientencouragesemployeestoparticipateinpoliticalandcivicactivitiesoftheirchoosing.Ouremployeeshavetherighttoparticipateinthepoliticalprocessbymakingpersonalcontributionsfrompersonalfunds,subjecttoapplicablelegallimits.InaccordancewithourCodeofBusinessConduct,employeesmaynotbereimbursedorotherwisecompensatedbyNavientforanysuchcontributions,andpoliticalactivitymusttakeplaceonpersonalratherthancompanytime.TheCodeofBusinessConductrequiresemployeeinteractionswithgovernmentofficialsmaintainthehigheststandardsofethicalbehavior.
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