Navient Corp. lost out on a lucrative government contract to collect on defaulted federal student loans late last week, disappointing previously optimistic investors. The company has collected on such debt for nearly two decades, raking in tens of millions of dollars in annual revenue.
Wall Street had hoped that Navient would flourish under the incoming Trump administration, thanks to new federal contracts and the possibility that the government would retrench from the student loan business in favor of private lenders. Company shares advanced nearly 30 percent from Nov. 8 through Friday, ranking it among the 20 biggest gainers in the Standard & Poor's 500. However, shares were down more than 2 percent in early Monday trading in New York.