SLM (SLM) investor relations material

Company overview and recent achievements

• Operates as a private student lender, focusing on gap financing after scholarships and federal aid.

• Average loan size is $12,000–$13,000, with a 2% annual net charge-off rate and seven-year repayment.

• Built a customer acquisition engine reaching 4 million annually, covering about two-thirds of college-bound high school seniors.

• Innovations have improved cost to acquire, net interest margin, and loss rates.

• Returned capital by buying back 55% of shares over five and a half years.

Capital markets activity and financial strategy

• Completed first on-book securitization of the year at favorable pricing during market disruption.

• Announced $200 million accelerated share repurchase, totaling $300 million in capital returned.

• Reached terms on a $2 billion loan sale, expected to close in Q1 and support a $500 million share repurchase authorization for 2026.

• Securitization was several times oversubscribed, indicating strong demand.

Impact of AI and market resilience

• AI seen as a nuanced, pro-economic force, with schools adapting curricula and support services.

• Recent college grad unemployment gap has nearly closed, showing resilience in the job market.

• Maintains a 93% cosigner rate and 20–25% ROE, with tightened underwriting and reduced originations for credit quality.