Here are 1-3 brief analogies for SLM:

• Like Discover Bank, but with a primary focus on private student loans.
• The Bank of America for college students and their private student loan needs.
• A specialized lender, much like GM Financial for car loans, but focused entirely on education.

• Private Student Loans: Sallie Mae provides loans directly to students and their families to cover higher education expenses not met by federal aid.
• Student Loan Refinancing: The company offers options for borrowers to refinance existing student loans, potentially securing new terms or lower interest rates.

• Undergraduate Students: Students enrolled in associate's or bachelor's degree programs who seek private student loans to cover tuition, fees, housing, books, and other educational expenses not met by federal aid, scholarships, or personal savings.
• Graduate Students: Individuals pursuing master's, doctoral, or professional degrees (e.g., MBA, JD, MD) who often require larger loan amounts to finance their advanced education and living expenses during their studies.
• Parents and Families (often as Cosigners): While students are the primary borrowers, parents and other family members frequently serve as co-signers on private student loans to help students qualify for loans and potentially secure better interest rates. Some parents may also take out parent loans directly.

• Experian (symbol: EXPN.L)
• TransUnion (symbol: TRU)
• Equifax (symbol: EFX)

Jonathan (Jon) Witter, Chief Executive Officer and Director

Jonathan Witter joined Sallie Mae as Chief Executive Officer and Director in April 2020. He brings nearly three decades of executive leadership, banking expertise, and operational management to the company. Prior to Sallie Mae, he served as Executive Vice President and Chief Customer Officer for Hilton Worldwide. His career also includes seven years at Capital One as President of Retail and Direct Banking, Chief Operating Officer of Morgan Stanley's retail banking group, and Executive Vice President and Head of General Bank Distribution at Wachovia (now Wells Fargo & Co.).

Pete Graham, Chief Financial Officer and Executive Vice President

Pete Graham was appointed Chief Financial Officer in October 2023. He has over 30 years of extensive experience in financial services and public accounting. Most recently, he served as the Chief Financial Officer for PRA Group. Before that, he spent more than a decade at General Electric, where he held various executive finance roles, including Chief Financial Officer for GE Commercial Distribution Finance and GE Capital Markets. Earlier in his career, he led audit and advisory teams at KPMG LLP, serving financial services clients.

Kerri Palmer, Executive Vice President, Chief Operational Officer, and President of Sallie Mae Bank

Kerri Palmer became Chief Operational Officer and President of Sallie Mae Bank in January 2023, having joined Sallie Mae in 2021 as Chief Risk Officer. She is responsible for the company’s credit, operations, technology, and corporate security functions. With over 20 years of experience in the financial services industry, she previously served as Senior Vice President of Risk Management at Capital One.

Munish Luthra, Executive Vice President and Chief Risk Officer

Munish Luthra joined Sallie Mae in 2021, initially as Chief Credit Risk Officer, before becoming Executive Vice President and Chief Risk Officer. He brings over 25 years of experience, having held key positions in credit, risk management, decision science, business transformations, operations, and regulatory management for consumer lending and deposit products. His prior experience includes roles at Bank of New York Mellon, PNC National Bank, MBNA, and Bank of America, with projects in North America, Europe, China, and India.

The key risks to SLM Corporation's business, also known as Sallie Mae, are primarily concentrated in the areas of credit risk and loan performance, regulatory scrutiny and changes in the student loan landscape, and competitive pressures within the financial services sector.

1. Credit Risk and Loan Performance: Sallie Mae faces significant risks related to the credit quality of its private student loan portfolio. Recent reports indicate a substantial surge in credit losses and net charge-offs, with a 783% year-over-year increase in provisions for credit losses in Q2 2025. Net charge-offs for private loans reached 2.36% of average loans, reflecting macroeconomic strains. Borrowers can experience financial hardship due to high interest rates, complex repayment options, and inflexible terms, leading to accumulating debt that is difficult to manage. Historically, the company has also faced allegations of relaxing underwriting standards and employing practices like forbearance, which can delay but ultimately increase defaults.
2. Regulatory Scrutiny and Changes in the Student Loan Landscape: The private student loan industry is subject to intense regulatory oversight, and Sallie Mae has a history of facing scrutiny and legal challenges over its lending and servicing practices. This includes investigations into improperly applying payments, leading to higher interest costs for borrowers, and allegations of misleading practices. Future changes to federal student loan programs, such as the H.R.1 reforms, could significantly alter the market, potentially creating opportunities but also exposing Sallie Mae to higher-risk borrowers and new compliance challenges. The Consumer Financial Protection Bureau (CFPB) has taken action against Navient, Sallie Mae's former servicing arm, for harming student loan borrowers, highlighting the ongoing regulatory risks in the sector.
3. Competition: Sallie Mae faces increasing competition from modern financial technology companies and other lenders, such as SoFi. These competitors may be able to outcompete Sallie Mae by offering integrated consumer finance and other financial services that Sallie Mae currently does not provide. This competitive landscape necessitates continuous adaptation to maintain market share and leadership.

Income Share Agreements (ISAs) represent an emerging threat to Sallie Mae's traditional private student loan business model. ISAs offer students an alternative financing method where, instead of incurring fixed debt with interest, they agree to pay a percentage of their future income for a set period, often with an income floor below which no payments are required. This model provides graduates with more income-aligned repayment flexibility and protection against underemployment or low-income periods, which can be highly attractive compared to the fixed obligations of traditional loans. As more universities and private entities adopt and promote ISAs, and as awareness among students grows, they could siphon demand from the private student loan market, particularly given increasing concerns about student debt burdens and repayment difficulties associated with traditional loan structures.

1. Growth in Private Education Loan Originations: Sallie Mae anticipates continued growth in its core private education loan originations. The company reported a 13% increase in originations in Q3 2024 compared to the prior year period, with year-to-date growth through September 2024 at 9%. For the full year 2024, Sallie Mae has revised its guidance to expect 8% to 9% growth in private education loan originations. This indicates a sustained demand for their primary product.
2. Market Expansion from Federal Student Loan Reforms: Federal changes to the PLUS loan program are expected to significantly expand the addressable market for private student loans. Management anticipates this reform could generate an additional $4.5 billion to $5 billion in annual private loan origination volume once fully realized, with the most substantial impacts projected for 2027 and beyond. This represents a considerable long-term growth opportunity.
3. New Revenue from Private Credit Partnerships and Loan Sales: Sallie Mae is preparing to announce a multiyear private credit partnership focused on selling both seasoned and recent loans. This strategy is designed to generate fee-based revenue and decrease reliance on balance sheet growth, supporting higher capital returns. The company has also successfully priced student loan ABS transactions, further diversifying its funding and revenue streams.
4. Enhanced Customer Experience and Digital Data Initiatives: Sallie Mae is increasing its focus on digital data solutions and initiatives to improve the customer experience and offer more personalized financing solutions. These efforts are aimed at enhancing customer engagement and satisfaction, which can lead to increased customer acquisition and retention, thereby driving revenue growth.
5. Diversification of Products and Services: Sallie Mae has been diversifying its revenue streams through various initiatives, including acquisitions and the introduction of complementary products and services. For example, the acquisition of Scholly has expanded the company's offerings to include free college planning tools and scholarship search capabilities, moving beyond traditional lending to become a broader education solutions provider. This expansion can attract a wider customer base and generate additional revenue streams.

Share Repurchases

• Sallie Mae executed significant share repurchases, acquiring approximately 50% of its outstanding shares from the beginning of 2020 through Q1 2024, using proceeds from ~$15 billion in whole loan sales.
• As of March 31, 2024, $623 million remained under the existing share repurchase program authorization.
• In January 2024, SLM Corporation authorized a new share repurchase program for up to $650 million of its common stock, valid until February 6, 2026.

Share Issuance

• Sallie Mae's outstanding shares were reported as 220.35 million in April 2024.
• The company's earnings per share (EPS) grew at a 15.1% compound annual growth rate over the last five years, despite flat revenue, as a result of capital allocation decisions, including repurchases.

Outbound Investments

• In 2022, Sallie Mae acquired Nitro College from Epic Research LLC, a digital marketing and education solutions company, to enhance its digital marketing capabilities, expand outreach, and reduce customer acquisition costs.
• SLM Corporation is expanding its private student lending business through strategic partnerships.