SLM Corporation Q3 2025 Earnings Recap

Sallie Mae reported a robust third quarter with a 6.4% increase in loan originations year-over-year, driven by strong credit quality and strategic capital management, including a successful loan sale resulting in significant gains.

Key Takeaways

• GAAP diluted EPS reached $0.63, reflecting solid operational performance in peak season.
• Loan originations totaled $2.9 billion, showcasing consistent year-over-year growth and strong underwriting metrics with a cosigner rate of 95%.
• Net charge-offs decreased to $78 million, representing 1.95% of average private education loans, indicating stable credit performance amidst economic uncertainty.
• Completed a loan sale of approximately $1.9 billion, generating $136 million in gains and leading to a reduced provision for credit losses.
• Strong capital return strategy continued, with 5.6 million shares repurchased, reducing shares outstanding by 55% since 2020.