SLM(NASDAQ) SLM

Sallie Mae helps students and families pay for college. It offers loans to cover costs other aid does not reach. The company also provides savings accounts to help people manage money.

Paying for the Cap and Gown

• Private Education Loans: Funding for students to bridge the gap between financial aid and total education costs.
• Retail Deposits: Savings products including money market accounts and high-yield savings for individual depositors.
• Certificates of Deposit: Time-based deposit accounts which totaled $10.0 billion at March 31, 2026.
• Credit Cards: Lending services and resources designed specifically for students and their families.

Building a Student Resource Hub

• Acquired the assets of Nitro in the first quarter of 2022 to expand student resources.
• Purchased key assets from Scholly Inc. during the third quarter of 2023.
• Amended a multi-lender secured borrowing facility to $2.5 billion on June 13, 2025.
• Closed a $618 million asset-backed security transaction on March 11, 2026.

What Makes Sallie Mae Different

The company manages risk through specific underwriting and a heavy reliance on cosigners. As of March 31, 2026, 89% of its private education loans were cosigned.

A Look at the Ledger

• Net income reached $308.0 million in Q1 2026, up 1.1% from Q1 2025.
• Revenue was $833.9 million in Q1 2026, down 3.3% from the prior year.
• Gross profit hit $571.5 million in Q1 2026, up 2.5% year-over-year.
• Free cash flow was -$76.0 million in Q1 2026, which narrowed by 48.0% from Q1 2025.

Evolution of Education Finance

Sallie Mae has transitioned from a government-linked entity to a private consumer bank focused on education. It integrates lending with digital resources and retail banking to serve the student lifecycle.