Here are 1-3 brief analogies for SLM Corporation:

• Like Ally Bank, but primarily focused on private student loans instead of auto loans.
• Similar to a more niche version of Discover Financial Services, primarily serving students with private loans and banking products.

• Private Education Loans: SLM originates and services private education loans for students and families to finance education costs.
• Retail Deposit Accounts: The company offers various retail deposit products, including certificates of deposit, money market deposit accounts, and high-yield savings accounts.
• Omnibus Accounts: SLM provides omnibus accounts, which are often used by financial institutions.
• Credit Card Loans: The company also offers credit card loans to its customers.

SLM Corporation (SLM) sells primarily to individuals. Its major customer categories include:

• Students and their families: These are the primary customers for SLM's private education loans, which help finance the cost of their education.
• Individuals seeking deposit accounts: Customers who utilize SLM's retail deposit accounts, such as certificates of deposit, money market deposit accounts, and high-yield savings accounts.
• Individuals seeking credit card loans: Customers who apply for and utilize SLM's credit card loan offerings.

• Equifax (EFX)
• Experian (EXPN)
• TransUnion (TRU)

Jonathan Witter, Chief Executive Officer

Jon Witter joined Sallie Mae as Chief Executive Officer in April 2020. He brings nearly three decades of executive leadership and banking expertise to the company. Prior to Sallie Mae, he served as Executive Vice President and Chief Customer Officer for Hilton Worldwide from April 2017 to April 2020. He spent seven years at Capital One in various leadership roles, including President of Retail and Direct Banking. His career also includes serving as 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, Executive Vice President and Chief Financial Officer

Pete Graham assumed the role of Chief Financial Officer for Sallie Mae on October 27, 2023, joining the company as an Executive Vice President in September 2023. He is responsible for finance, accounting, treasury activities, and investor relations. Prior to joining Sallie Mae, he served as CFO for PRA Group since August 2016. He also spent over 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 and Chief Operational Officer

Kerri Palmer serves as the Chief Operational Officer of Sallie Mae and President of Sallie Mae Bank. She oversees the company's credit, operations, technology, and corporate security functions, playing a key role in driving Sallie Mae's mission. She leads the enterprise strategy for credit performance, customer experience, and business transformation.

William (Will) Wolf, Executive Vice President and Chief People Officer

Will Wolf is the Chief People Officer for Sallie Mae. He is responsible for talent acquisition and development, total rewards, HR information systems and analytics, employee relations, HR controls and compliance, and facilities. He and his team also lead initiatives and programs that cultivate a mission-led culture within Sallie Mae.

Lori Aiken, Chief Diversity Officer

Lori Aiken joined Sallie Mae as Chief Diversity Officer in April 2021. She leads the company's efforts to ensure Diversity, Equity, and Inclusion (DE&I) is integrated into the company's culture. Her background includes senior talent leadership roles at premier organizations such as Viacom, Sony Pictures Entertainment, and JPMorgan Chase & Co.

The key risks to SLM Corporation's business include:

1. Credit Risk and Loan Defaults: A primary risk for SLM Corporation stems from its significant concentration in private education loans, making it vulnerable to loan defaults and deteriorating credit quality. Economic downturns, high unemployment rates, or individual financial hardships can directly impact borrowers' ability to repay their loans, leading to increased delinquencies, higher credit loss provisions, and ultimately, reduced profitability. In Q2 2025, the provision for credit losses surged to $149 million, a substantial increase from $17 million in Q2 2024, reflecting a more cautious economic outlook and a rise in loan commitments. As of June 30, 2025, 30+ day delinquencies for private education loans stood at 3.5%.
2. Regulatory and Political Risk: SLM Corporation operates in a highly regulated environment, and its business model is significantly exposed to changes in student lending policies and consumer protection laws. Future administrations could implement stricter consumer protections, and the inherent risks of the private loan market, including a lack of transparency and reporting requirements, draw scrutiny. The student loan market is subject to political influence, and legislative changes, such as modifications to federal student loan programs or government subsidy levels, can directly impact the demand for private loans and the company's profitability.
3. Interest Rate Risk: As a financial institution that originates loans and accepts deposits, SLM Corporation is sensitive to fluctuations in interest rates. Changes in interest rates can affect the company's net interest income, which is the difference between interest earned on its loan portfolio and interest paid on its funding sources, such as retail and brokered deposits. Rising funding costs, for example, can lead to a compression of its Net Interest Margin (NIM), impacting profitability.

SLM Corporation (symbol: SLM) anticipates several key drivers for future revenue growth over the next 2-3 years:

1. Growth in Private Education Loan Originations: The company projects significant increases in its private education loan originations. For 2026, private education loan origination growth is projected at 12%-14%. This follows a 6% growth in originations for the full year 2025 compared to 2024, reaching $7.4 billion. The company also saw private education loan originations increase by 6% year-over-year in Q1 2024.
2. Leveraging the Grad PLUS Opportunity: Federal reforms, particularly the Grad PLUS opportunity, are expected to be a significant catalyst for private loan originations. This opportunity is estimated at $5 billion once fully scaled and is a primary factor driving the projected 12%-14% growth in originations for 2026. SLM also expects to build capacity to handle the incoming volume related to PLUS.
3. Expansion of Strategic Partnerships and Fee-Based Revenue: SLM is transforming its business model through new strategic partnerships, such as the agreement with KKR. These partnerships offer capital-efficient funding sources for originations and are expected to drive fee income. The company plans to grow by balancing its traditional bank-funded loan portfolio with alternative, asset-light businesses, including strategic loan partnerships and recurring servicing and program-management fees. By 2030, Sallie Mae anticipates that 21% of its total revenues will come from partnerships, an increase from 8% currently. Strategic partnerships are projected to handle 30%-40% of private student loan originations through new sale models.
4. Expansion of Market Share: SLM has continued to expand its market share in the private student lending sector, benefiting from the exit of competitors. This increased market presence can lead to a larger customer base and, consequently, higher revenue.
5. Improved Credit Quality and Loss Mitigation Programs: Enhanced credit and loan performance metrics are expected to lead to higher net margins and stronger net income. This is achieved through improved credit quality and more effective loss mitigation programs. Better credit performance reduces provisions for credit losses, which, while not a direct revenue driver, positively impacts the company's net income and financial performance.

Share Repurchases

• SLM Corporation announced a new 24-month $500 million share repurchase program, effective January 22, 2026.
• In 2025, the company repurchased 12.8 million shares for $373 million.
• In 2024, SLM Corporation repurchased 11.6 million shares for $250 million, with $402 million of capacity remaining under its 2024 Share Repurchase Program as of December 31, 2024. A new $650 million share repurchase program was approved in January 2024, effective through February 6, 2026.

Share Issuance

• In 2024, SLM Corporation issued $500 million of 6.50% unsecured Senior Notes due January 31, 2030, to strengthen its long-term capital structure.

Outbound Investments

• In 2025, SLM Corporation sold $5.0 billion of private education loans.
• In 2024, the company announced plans to sell approximately $2 billion in private education loans to manage balance sheet growth.
• In the fourth quarter of 2023, a $1.1 billion private education loan sale was completed, contributing to a decrease in provisions for credit losses.

Capital Expenditures

• SLM Corporation projects a 16% increase in expenses in 2026, primarily driven by investments in product development, technology, and marketing for the graduate student market. The company also appointed a Chief Technology and Enablement Officer to focus on technology efforts.
• Total operating expenses for the full year 2024 were $642 million.
• For the full year 2023, total operating expenses were $619 million, a 12% increase from 2022, attributed to higher FDIC fees, increased originations, a slowdown in consolidations, increased staffing, and general inflationary pressures.