© 2026 Sallie Mae Bank. All rights reserved.
Sallie Mae is an Outstanding Franchise
Supporting student success at every step of the higher education journey
Powerful Brand
Market leader in private education lending with a brand synonymous with higher education and powerful acquisition & engagement capabilities
Rigorous Underwriting
Proprietary underwriting models refined over decades of experience in student lending that go far beyond traditional FICO-based approaches
Appears on 98% of documented lender lists*, supported by 2,100+ actively managed university relationships* and the largest school relationship team in the student loan industry
* Based on Internal Company statistics
Diversified Funding
Access to deposits, capital markets, and established loan sale programs underpins a resilient funding model capable of supporting unprecedented originations growth from expected federal student lending reform across rate environments
Effective Servicing
Scalable, reliable, and effective bank-regulated origination and servicing platforms that deliver high-quality customer experiences supported by a disciplined fixed-cost foundation
Results Reflect Continued Earnings and Originations Growth
Q1 2026
Private Education Loan Originations(1)
$2.9B5% growth compared to the year-ago quarter
Diluted Earnings Per Common Share
$1.54GAAP Net Income attributable to Common Stock of $304M
Total Non-Interest Expenses
$171MAs compared to $155M in the year-ago quarter
+5%
2025 2026E*
Net Interest Margin
5.29%An increase of 2 basis points from year-ago quarter
Cost of Funds
4.13%Compared to 4.23% in the year-ago quarter
* The shaded portion of the block represents full year 2026 originations as a projected estimate, while the solid portion of the block represents Q1 2026 actual performance. Estimates and related comments constitute forward-looking statements and are based on performance during the first three months of 2026 and management's current expectations and beliefs. There can be no guarantee as to whether and to what extent these estimates will be achieved. The Company undertakes no obligation to revise or release any revision or update to these forward-looking statements. See our Forward-Looking Statements disclosures on slide 2 for more information.
Capital Deployment and Strategic Balance Sheet Actions
Q1 2026
Share Repurchases
12.0MShares repurchased in the quarter for $259M, representing 6% of shares outstanding at 12/31/2025
Loan Sales
$3.3BPrivate Education Loans, including $3.1B of principal and
$201M of capitalized interest
Common Stock Dividend Per Share
$0.13Paid on March 16, 2026
Accelerated Share Repurchase ("ASR")
On March 9th, SLM entered into a $200M ASR with Goldman Sachs & Co., LLC
Transactions under the ASR agreement are expected to be completed prior to the end of the 2nd quarter of 2026
$242M capacity remaining under the 2026 Share Repurchase Program as of March 31, 2026
Total Shares Repurchased Since January 1, 2020
58%+
at an average price of
$17.15
2026-A ABS Securitization
$618MSuccessfully completed the first private education loan ABS transaction of the year on March 11, 2026, with strong pricing in a volatile market
Other Key Performance Highlights
Q1 2026
Liquidity of Total Assets
21.2%Up from 16.8% in the year-ago quarter
Provision for Credit Losses
($11M)Provision for credit losses was impacted by a $131M release of provision from loan sales and loans transferred to held for sale, offset by an increase in new loan commitments
Return on Common Equity ("ROCE")(2)
56.4%Down from 60.1% in the year-ago quarter
Total Risk-Based Capital
13.7%CET1 capital ratio of 12.4%
Students and families continue to recognize the value of higher education
Higher Education Spend*
(Academic Year 2024-2025 estimated)
$174B
Grants
$536B
Total
$13B
Other
$89B
Federal & State Loans
$14B
Private Education Loans
Students and families increasingly rely on borrowed funds and recent federal reforms will drive more of them to consider private loan financing
Our 2026 How America Plans for College
study finds…
90% 82% 73%
view higher believe it would rather education as is worth borrow than not an investment the cost attend college
$246B
Family Contribution
*Source: How America Pays for College 2025
Over the next several years, we expect the federal reforms to increase our originations by up to 70%*
PLUS Program Changes
On July 4th, 2025, H.R.1., which contains major federal student lending reforms, was signed into law. All federal student loan program changes are to be effective for new borrowers beginning July 1, 2026, and will not apply to borrowers who begin borrowing prior to that date.
Eliminates Grad PLUS loans and Expands Unsubsidized Stafford Loans for Professional Graduate Students
Unsubsidized Stafford loans to graduate students remain capped at
$20,500 annually; lowered to $100,000 aggregate.
Unsubsidized Stafford loans to professional graduate students raised to $50,000 annually; $200,000 aggregate.
Caps Parent PLUS Loans
Introduces a $20,000 annual cap;
Added $65,000 aggregate (per student).
Leaves Undergraduate Loan Limits at Current Levels
Sallie Mae PLUS Volume Scenarios*
Once the shift from prior programs is fully complete, we anticipate an additional $4.5 to $5B in annual originations
Year 1 Year 2 Year 3 Year 4
* Includes modeled projections and future-oriented estimates prepared for illustrative purposes only, not intended as guidance. There can be no guarantee as to whether and to what extent these projections and estimates will be achieved. The Company undertakes no obligation to revise or release any revision or update to these forward-looking statements. See our Forward-Looking Statements disclosures on slide 2 for more information.
Sallie Mae Undergraduate & Graduate Loans | Federal Student Loans | ||
Direct | PLUS | ||
Less Than Half-Time Eligible | Yes | No | |
Loan Limits | No | Yes | Yes, as of July 1, 2026 |
Origination Fee | No | Yes | |
Fixed & Variable Interest Rates | Yes | Fixed Only | |
Repayment Types | Interest Only, Fixed Pay, Deferred | Deferred | Immediate P&I, Deferred |
Repayment Terms | 10-15 yrs for all except 5-15 yrs for MBA and 20 yrs for medical and dental schools | 10 yrs with extended repayment for 20 or 25 years | |
We offer a broad product suite with increasing differentiation across borrower needs
Private Education Loan Product Suite
Undergraduate Loans
Undergraduate
Career Training
Nursing School
Flight School
Graduate Loans
General Graduate
Health Professions
Law School
MBA
Medical School
Dental School
Postgraduate Loans
Bar Exam
Medical Residency
Dental Residency
More options that set students up for success
We offer payment programs designed to provide targeted flexibility at critical moments
Payment programs available to support borrowers throughout the repayment cycle
In School
In-School Payment Assistance
Available to customers with scheduled payments while they are in school
Entering Repayment
Early Repayment Assistance
Available to customers after the 6-month grace period immediately following departure from school for up to 6 months of payment deferment to provide short-term relief during their transition to full principal and interest repayment
In Repayment
Short-Term Interest-Only Options Available to customers during a specified timeframe after exiting school. Adjusts payments to interest-only for 12 months
Forbearance
For customers in full principal and interest repayment, defers payments for up to 2 months at a time and up to 12 months over the life of the loan
Reduced Payment Adjusts payments to interest-only for a prescribed period of time
Loan Modification
Adjusts the contractual interest rate between 2%-8% for a temporary period, and in some instances may also permanently extend the final maturity of the loan based on need and eligibility
We have built a well-seasoned
Smart Option Originations Vintages(3)
Smart Option Payment Type
portfolio of private
3% 6% 3%
18%
education loans
26%
2025
2026
Pre 2016 2016 3%
2017 3%
2018
4%
2019
4%
Interest Only
46%
20%
2024
$18.0B
Loans
11%
2023
2020
7%
2021
10%
2022
36%
Fixed Pay
$18.0B
Loans
Deferred
Undergraduate Smart Option Student Loan portfolio makes up 90%+ of our loan portfolio today
Smart Option Customer FICO at Original Approval(4)
30%
780+
746
Weighted Avg.
22%
740-779
23%
<700
Smart Option Portfolio Interest Rate Type
22%
Variable
$18.0B
Loans 78%
Fixed
25%
700-739
As of 3/31/2026
Private Education Loan Originations: Growth & Trends
Q1 2026
Private Education Loan Originations(1)
$6.4B
$6.0B
$5.4B
$7.0B
$7.4B
Private Education Loan Trends
Q1 2026 originations were approximately $2.9B, 5% higher than the year-ago quarter
Graduate loan originations were 14% higher than the year-ago quarter
Sallie Mae's Private Education Loan market share increased from 52% in 2020 to 63%
as of year-end 2025
+5%
2021 2022 2023 2024 2025 2026E*
+2% +10% +7% +10% +6%
Introduced expanded graduate loan options for medical and dental students with custom product features to support their unique journey through higher education
* The shaded portion of the block represents full year 2026 originations as a projected estimate, while the solid portion of the block represents Q1 2026 actual performance. Estimates and related comments constitute forward-looking statements and are based on performance during the first three months of 2026 and management's current expectations and beliefs. There can be no guarantee as to whether and to what extent these estimates will be achieved. The Company undertakes no obligation to revise or release any revision or update to these forward-looking statements. See our Forward-Looking Statements disclosures on slide 2 for more information.
Origination Credit Quality Remains
Average FICO at Approval(4)
Cosigned In School
Repayment
Q1 2026
Strong
754 95% 59%Compared to 753 in the year-ago quarter
Compared to 93% in the year-ago quarter
Compared to 56% in the year-ago quarter
Consistent with full-year historical performance
Average FICO at Approval(4)
750 747 748 752 754
Cosigned
86% 86% 87% 90% 93%
In School Repayment
59% 57% 55% 56% 58%
2021 2022 2023 2024 2025
2021 2022 2023 2024 2025
2021 2022 2023 2024 2025
Diversified funding mix supports net interest margin discipline and consistent origination growth across market environments
Diversified Funding Strategy
(as of March 31, 2026)
12%
Other (HSA & 529)
23%
Total Borrowings
ABS and Unsecured Debt
Outstanding borrowings consist of unsecured debt and secured borrowings issued through our term asset-backed securitization program, totaling approximately $993M and $5.2B, respectively, as of March 31, 2026
Deposits
Total deposits of $20.5B were comprised of $8.7B in brokered deposits and $11.8B in retail and other deposits as of March 31, 2026
33%
Retail (MMDA & CD)
$26.7B
Total Funding
9%
Brokered (Variable)
23%
Brokered (Fixed)
Building on our performance and discipline, we believe we are well-positioned for the next evolution of our strategy
Traditional Core Business
Continues to leverage legacy strengths by maintaining a high-quality, bank-funded, growing portfolio of private student loans
Alternative Growth Engine
Harnesses our deep customer relationships, differentiated solutions, along with innovative funding strategies, to develop asset-light businesses
These businesses leverage a common customer acquisition engine, operate on comparable technology platforms, and benefit from our distinctive brand positioning
The goal of our evolved strategy is to
drive sustainable growth and greater resiliency
Should result in…
Sustainable EPS growth
Competitive capital returns
Greater resilience to market and credit cycles
Evolved Investment Thesis
Drive consistent earnings growthReduce credit risk and earnings volatility
Maintain robust capital return
Transition to an asset-light growth model
Appendix
© 2026 Sallie Mae Bank. All rights reserved. 17
Key Financial Highlights
Q1 2026
Income Statement ($M) Q1 2026 Q4 2025 Q1 2025
Total Interest Income $649 $657 $656
Total Interest Expense $274 $280 $281
Net Interest Income: $375 $377 $375
Less: Provisions for Credit Losses ($11) ($19) $23
Total Non-Interest Income $185 $77 $206
Total Non-Interest Expense $171 $157 $155
Income Tax Expense $92 $83 $99
Net Income: $308 $233 $305
Preferred Stock Dividends $4 $4 $4
Net Income Attributable to Common Stock $304 $229 $301
Ending Balances ($M)
Private Education Loans Held for Investment, Net $19,887 $20,332 $21,091 Private Education Loans Held for Sale, Net $236 $933 -
Total Deposits $20,525 $21,060 $20,073 Brokered Deposits $8,676 $8,784 $8,689
Retail and Other Deposits $11,849 $12,276 $11,384
Key Performance Metrics
Q1 2026
Key Performance Metrics Q1 2026 Q4 2025 Q1 2025
Net Interest Margin 5.29% 5.21% 5.27%
Yield - Total Interest-Earning Assets 9.14% 9.07% 9.22%
Private Education Loans 10.46% 10.44% 10.59%
Cost of Funds 4.13% 4.14% 4.23%
Efficiency Ratio 30.6% 34.6% 26.6%
Return on Assets ("ROA")(5) 4.2% 3.1% 4.2%
Return on Common Equity ("ROCE")(2) 56.4% 42.2% 60.1%
Private Education Loan Sales ($M) $3,332 $1,014 $2,003
Per Common Share
GAAP Diluted Earnings per Common Share $1.54 $1.12 $1.40
Average Common and Common Equivalent Shares Outstanding (M)
198 205 215
Credit Performance Highlights
Q1 2026
Loans In Repayment and % of Each Status | Balance | % | Balance | % | Balance | % |
Loans Current | $14,753,563 | 96.0% | $15,258,723 | 96.0% | $15,333,672 | 96.4% |
Loans Delinquent 30-59 Days | $298,732 | 2.0% | $330,307 | 2.0% | $276,279 | 1.7% |
Loans Delinquent 60-89 Days | $159,714 | 1.0% | $154,683 | 1.0% | $152,612 | 1.0% |
Loans Delinquent 90+ Days | $152,484 | 1.0% | $151,114 | 1.0% | $141,234 | 0.9% |
Total Private Education Loans in Repayment(6) | $15,364,493 | 100% | $15,894,827 | 100% | $15,903,797 | 100% |
Delinquencies as % of Loans in Repayment(7) | 4.0% | 4.0% | 3.6% | |||
Loans in Forbearance % of Loans in Forbearance(8) | $488,404 | $433,075 | $464,601 | |||
% of Loans in an Extended Grace Period(9) | 2.1% | 1.7% | 1.9% | |||
% of Loans in Hardship and Other Forbearances(10) | 1.0% | 1.0% | 0.9% | |||
Total Allowance % of Private Education Loan Exposure* | 6.05% | 6.00% | 5.97% | |||
Net Charge-Offs | $89,064 | $97,752 | $76,169 |
⁕ Total Allowance % of Private Education Loan Exposure defined as total allowance for credit losses as a percentage of the ending total loan balance plus unfunded loan commitments and total accrued interest receivable on Private Education Loans, where total allowance for credit losses represents the sum of the allowance for Private Education Loans and the allowance for unfunded loan commitments. Unfunded loan commitments for loans held for investment and the calculation of the Total Allowance % of Private Education Loan Exposure do not include $35 million of unfunded loan commitments associated with loans classified as held for sale at March 31, 2026. Due to the near-term timing of the loan sale and credit quality of the loans, we believe there is no risk of credit loss and are not recording an allowance for the unfunded loan commitments related to the loans classified as held for sale.
Private Education Loans
Held for Investment ($ Thousands)
Mar 31
2026
Quarters Ended
Dec 31
2025
Mar 31
2025
© 2026 Sallie Mae Bank. All rights reserved.
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