The following table summarizes our goodwill for our reporting units and reportable segments.



(Dollars in millions)	June 30, 2026		December 31, 2025
Consumer Lending reportable segment:
Private Education Legacy In-School Loans	$	106	$	106
Private Education Refinance Loans		77		77
Private Education Recent In-School Loans		13		13
Total		196		196
Federal Education Loans reportable segment:
FFELP Loans		227		227
Federal Education Loan Servicing		5		5
Total		232		232
Total goodwill	$	428	$	428

The Company performs its annual goodwill impairment test as of October 1. As of October 1, 2025, a quantitative test was performed, and the fair value of each reporting unit with goodwill exceeded its carrying value. In January 2026, Navient’s stock price experienced a decline and sustained volatility after Navient reduced its 2026 EPS guidance. The Company determined the decline in stock price constituted a triggering event requiring an interim goodwill impairment assessment.

Accordingly, management performed a qualitative impairment assessment as of March 31, 2026. The assessment included an analysis of the amount of cushion that existed (difference between the fair value and carry value of the reporting unit) when the quantitative test was last completed in the fourth quarter of 2025, and a review of macroeconomic conditions, including stock price volatilities within our industry and the broader market, the regulatory and legislative environment and the performance of each reporting unit relative to the key assumptions used in the previous October 1, 2025, quantitative test. We also considered our market capitalization in relation to book equity. We concluded it was more likely than not on March 31, 2026, that the fair value of each reporting unit with goodwill continued to exceed their respective carrying values and therefore goodwill was not impaired. Therefore, a quantitative impairment test was not required.

We did not identify an additional triggering event for the second quarter ended June 30, 2026. The Company will continue to monitor its market capitalization and other qualitative factors to assess whether the underlying fair value of its reporting units has declined, which could result in future goodwill impairment. We will also monitor the decline in the stock price as a sustained decline could lead to goodwill impairment in the future.