Transparency in Policy Engagement and Political Participation 2017 Semiannual Report Navient 123 Justison Street Wilmington, Delaware
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.
2 Transparency in Policy Engagement and Political Participation
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).
3 Transparency in Policy Engagement and Political Participation
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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