SLM Corporation
- Open
- 25.30
- Day high
- 25.54
- Day low
- 25.08
- Prev close
- 25.34
- Volume
- 2.3M
- Mkt cap
- $4.8B
- P/E (TTM)
- 6.9
- EPS (TTM)
- $3.65
- P/B
- 2.0
- P/S
- 1.6
- Yield
- 1.03%
- Per share
- $0.26
SLM Corporation (SLM) is a Financial Services company listed on NASDAQ. The stock is down 22% over the past year.
SLM Corporation (SLM) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 4 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
SLM earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 23, 2026 | $1.14 | $1.54 | +35.1% | $560M | +5.6% |
| Jan 22, 2026 | $0.95 | $1.12 | +17.9% | $734M | +101.3% |
| Oct 23, 2025 | $0.80 | $0.63 | -21.0% | $830M | +52.3% |
| Jul 24, 2025 | $0.49 | $0.32 | -34.7% | $684M | +76.8% |
| Apr 24, 2025 | $1.19 | $1.40 | +17.6% | $862M | +53.9% |
| Jan 23, 2025 | $0.56 | $0.50 | -10.7% | $689M | +87.2% |
| Oct 23, 2024 | $0.06 | $-0.23 | -483.3% | $677M | +72.9% |
| Jul 24, 2024 | $0.84 | $1.11 | +32.1% | $783M | +115.9% |
| Jan 24, 2024 | $0.89 | $0.91 | +2.2% | $726M | +78.9% |
| Jul 26, 2023 | $1.16 | $1.10 | -5.2% | $778M | +115.8% |
| Feb 1, 2023 | $0.47 | $-0.33 | -170.2% | $543M | +55.9% |
| Oct 26, 2022 | $0.48 | $0.29 | -39.6% | $615M | +38.1% |
SLM insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 18, 2026 | GREIG HENRY Fdirector | Grant | 1,089 | — |
| Jun 18, 2026 | Blackley Richard Scottdirector | Grant | 1,198 | — |
| Jun 18, 2026 | Greenstein Danieldirector | Grant | 7,349 | — |
| Jun 18, 2026 | Franke Mary Carter Warrendirector | Grant | 7,349 | — |
| Jun 18, 2026 | MILLERCHIP GARYdirector | Grant | 7,349 | — |
| Jun 18, 2026 | Matheson James D.director | Grant | 7,349 | — |
| Jun 18, 2026 | GREIG HENRY Fdirector | Grant | 7,349 | — |
| Jun 18, 2026 | Lavelle Mark Ldirector | Grant | 7,349 | — |
| Jun 18, 2026 | Akella Janakidirector | Grant | 7,349 | — |
| Jun 18, 2026 | Leech Christopher T.director | Grant | 7,349 | — |
| Jun 18, 2026 | Blackley Richard Scottdirector | Grant | 7,349 | — |
| Jun 18, 2026 | Turner Steven Allenofficer: EVP, Chief Tech. & Enablement | Grant | 29,438 | — |
| Jun 18, 2026 | Wolberg Kirsten O.director | Grant | 7,349 | — |
| Jun 18, 2026 | Manvitz Teddirector | Grant | 1,062 | — |
| Jun 18, 2026 | Manvitz Teddirector | Grant | 7,349 | — |
Source: SLM SEC Form 4 filings, latest Jun 18, 2026. For informational purposes only — not investment advice.
See the full SLM insider & 13F page →SLM Corporation company profile
Overview
SLM Corporation (NASDAQ:SLM), commonly known as Sallie Mae, is a consumer finance company that specializes in private education loans. Founded in 1972 as the Student Loan Marketing Association, the company was originally a government-sponsored enterprise that facilitated federal student loans. SLM underwent significant transformation in the 2000s, splitting from its federal loan servicing operations and repositioning itself as a private education lender. Today, SLM operates as a publicly traded corporation headquartered in Newark, Delaware, focusing primarily on originating and servicing private student loans while also offering banking products to consumers.
Business
SLM Corporation operates in the consumer finance industry, specifically within the education lending sector. The company's core business revolves around private education loans, which are non-federal student loans that help students and families bridge the gap between college costs and available federal financial aid, scholarships, and personal resources. Private education loans differ significantly from federal student loans in several key ways. While federal loans are funded by the U.S. government and offer standardized terms, income-driven repayment options, and potential forgiveness programs, private education loans are originated by private lenders like SLM and typically require credit underwriting. These loans often require a co-signer (usually a parent or guardian) and carry interest rates based on the borrower's creditworthiness rather than government-set rates. The company's business segments include: 1. Private Education Loan Origination and Servicing (~95% of revenue): SLM originates new private student loans during peak borrowing seasons and services these loans throughout their lifecycle. The company maintains approximately 55% market share in the private student loan market, originating around $7 billion annually. 2. Banking Products (~5% of revenue): SLM offers retail deposit accounts including high-yield savings accounts, certificates of deposit, and money market accounts primarily to attract funding for its lending operations. The company previously offered credit card products but exited this business in recent years. The education lending market operates on a seasonal cycle, with peak origination periods occurring during summer months when students prepare for the upcoming academic year. SLM's loans typically have terms ranging from 5 to 20 years, with borrowers entering repayment after graduation or leaving school.
Revenue model
SLM Corporation generates revenue primarily through net interest income from its loan portfolio. The company borrows money at lower rates through various funding sources and lends it to students and families at higher rates, capturing the interest rate spread as profit. This traditional banking model means SLM's profitability depends heavily on maintaining healthy net interest margins. The company's funding sources include retail deposits from its banking operations, asset-backed securities, and wholesale funding markets. SLM's net interest margin has been running in the 5-6% range, reflecting the premium pricing of private education loans compared to other consumer credit products. Several factors significantly impact SLM's margins and profitability. Interest rate environment plays a crucial role - rising rates generally benefit the company as loan yields increase faster than funding costs, while falling rates can compress margins. Credit quality is another critical factor, as higher charge-offs directly reduce net income. The company has been working to improve credit quality by increasing co-signer rates (now around 90%) and raising average FICO scores of approved borrowers (currently around 752). Competition in the private student loan market affects pricing power. SLM recently benefited from a major competitor's exit from the market, capturing additional market share. Regulatory changes to federal student loan programs could significantly impact demand for private loans - reforms that limit federal PLUS loans could increase private loan demand, while expanded federal programs could reduce it. Seasonal factors also influence performance, with peak origination seasons during summer months and credit performance typically showing seasonal patterns. The company uses loan sales as a "governor" to manage balance sheet growth and optimize capital deployment, selling approximately $2 billion in loans annually to maintain target growth rates while returning capital to shareholders.
Competitive moat
SLM Corporation operates in a market with moderate barriers to entry, giving it a limited but meaningful competitive moat. The company's primary competitive advantages stem from its scale, established relationships, and operational expertise rather than truly durable economic moats. The company's dominant market position with approximately 55% market share provides significant scale advantages. This scale enables SLM to spread fixed costs across a large loan volume, maintain extensive school relationships, and invest in technology and marketing that smaller competitors cannot match. The recent exit of a major competitor (Discover) has further strengthened SLM's market position. Established school partnerships and distribution channels represent another competitive advantage. SLM has built relationships with thousands of colleges and universities over decades, creating preferred lender arrangements and embedded financial aid processes. These relationships create switching costs for schools and provide SLM with consistent origination channels. However, the company's moat faces several vulnerabilities. The private student loan market is heavily influenced by federal policy changes that could dramatically alter demand. Expansion of federal loan programs or changes to PLUS loan limits could significantly reduce the addressable market. Additionally, new fintech entrants with digital-first approaches and alternative underwriting models pose competitive threats, though none have achieved significant scale yet. The regulatory environment also presents ongoing challenges, with potential changes to student loan regulations, consumer protection requirements, and bankruptcy laws that could impact the business model. Unlike traditional banking moats built on geographic presence or switching costs, SLM's competitive position is more dependent on market structure and regulatory framework, making it somewhat fragile over the long term.
Risks & safety
SLM Corporation presents a moderate margin of safety with strong liquidity but elevated leverage typical of financial services companies. • Liquidity position: Strong with $4.7 billion in cash and short-term investments, providing substantial cushion for operations and unexpected credit losses • Debt levels: High debt-to-equity ratio of 2.98x, typical for lending businesses but creating financial leverage risk during economic downturns • Solvency risk: Low near-term risk given strong cash position and profitable operations, though sensitive to credit cycle changes • Valuation metrics: Attractive with P/E ratio of 9.8x, P/B ratio of 2.8x, and EV/EBITDA of 4.7x, suggesting reasonable valuation relative to earnings • Credit quality trends: Improving with higher co-signer rates (90%) and FICO scores (752), though charge-offs remain elevated at 2.2% of loans in repayment • Regulatory exposure: Significant risk from potential federal student loan program changes that could materially impact addressable market size • Capital return capacity: Strong with ongoing share buyback programs and dividend payments, having reduced share count by 52% since 2020
Recent development
Over the past few years, SLM Corporation has executed several strategic initiatives to strengthen its market position and improve operational efficiency. The company has significantly enhanced its credit underwriting standards, increasing co-signer rates from 87% in 2023 to 90% in 2024 and raising average FICO scores from 748 to 752. These improvements aim to reduce future charge-off rates toward the company's target range of high 1% to low 2%. SLM has implemented enhanced loss mitigation programs to help struggling borrowers, with management reporting that 80% of borrowers in loan modification programs successfully complete their first repayments and 70% complete their first six payments. These programs are designed to reduce long-term charge-offs while providing borrower assistance. The company has pursued a disciplined capital allocation strategy, using loan sales as a mechanism to manage balance sheet growth while returning capital to shareholders. SLM has sold approximately $2 billion in loans annually and reduced its share count by 52% since 2020 through aggressive buyback programs. This approach allows the company to maintain moderate balance sheet growth of 2-5% annually while optimizing returns. Market share expansion has been a key development, with SLM benefiting from Discover's exit from the private student loan market. The company captured an estimated 50-55% of Discover's previous market share, contributing to 13% origination growth in recent quarters. SLM has also made strategic technology investments, including the acquisition of Nitro College to enhance its digital marketing capabilities and customer acquisition processes. Looking ahead, the company is positioning itself for potential federal student loan program reforms, particularly changes to the PLUS loan program that could expand the addressable market for private education loans. Management has expressed support for reforms that would provide more targeted federal assistance while creating opportunities for responsible private lending.
SLM company profile · for informational purposes only — not investment advice.
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