Core Insights - The company is poised for growth driven by federal student lending reforms, particularly in the graduate lending segment, which is expected to present a $5 billion opportunity over the next two to three years as new rules take effect [1][3][7]. Growth Outlook - The company anticipates a year-over-year growth of 12% to 14% in private loan originations by 2026, with the impact of Grad PLUS reforms expected to begin influencing results during the peak season this year [2][7]. - The management views mid-single digit origination growth as a normalized run rate, with the current guidance reflecting incremental volume from program changes [7]. Strategic Partnerships - The company is implementing a strategic partnership funding model, starting with KKR, to enhance capital efficiency and generate fee-based income while expanding into new market segments [4][6][11]. - The partnership model is designed to create a long-term source of income while maintaining customer relationships through loan servicing [11]. Financial Projections - Operating expenses are projected to increase by approximately 16% year-over-year as the company invests in graduate product development and marketing, with initial marketing efforts expected to be inefficient [5][14]. - The loan portfolio is expected to remain flat to slightly decrease in the near term, with a return to modest growth anticipated later [6][8]. Market Position - The company leverages its established presence in undergraduate lending, including a significant sales force and relationships with over 2,100 schools, to compete effectively in the graduate lending market [15]. - The company has repurchased over 55% of its shares in the last five years and has announced a $500 million share repurchase authorization for the next two years, indicating confidence in its growth strategy [16]. Economic and Credit Performance - The partnership model is expected to be economically superior to traditional loan holding, with a focus on fee-based income and stable credit performance projected for 2026 [11][13]. - The company anticipates that the graduate cohort will exhibit higher credit quality and shorter duration compared to the core undergraduate product, potentially leading to lower reserve requirements [13]. Labor Market Insights - The company has noted a modest increase in new college graduate unemployment and a longer job search duration, but does not see significant negative impacts on borrower repayment performance from the resumption of federal student loan payments [20][21].

Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against SLM Corporation due to allegations of violations of federal securities laws, particularly concerning misleading statements about the company's financial health and delinquency rates [2][4]. Group 1: Legal Investigation and Claims - Faruqi & Faruqi is encouraging investors who suffered losses in SLM between July 25, 2025, and August 14, 2025, to discuss their legal options [1]. - A federal securities class action has been filed against SLM, with a deadline of February 17, 2026, for investors to seek the role of lead plaintiff [2][6]. - The complaint alleges that SLM and its executives made false statements regarding the company's delinquency rates and the effectiveness of its loss mitigation programs [4]. Group 2: Financial Performance and Market Reaction - A report from TD Cowen on August 14, 2025, indicated that July 2025 delinquencies increased by 49 basis points month-over-month, which was significantly worse than the seasonal expectation of a 10 basis point increase [5]. - Following the TD Cowen report, SLM's stock price dropped by $2.67 per share, or 8.09%, closing at $30.32 on August 15, 2025 [5]. Group 3: Company Background - Faruqi & Faruqi, LLP is a national securities law firm with a history of recovering hundreds of millions of dollars for investors since its establishment in 1995 [3].

Core Insights - Sallie Mae is a leader in the private student lending space, providing financing and resources to support college students in achieving their educational goals [1] Group 1: Business Model Transformation - Sallie Mae is undergoing a transformation of its business model, with a focus on strategic changes to enhance its operations and offerings [2] - The company is looking to achieve specific goals over the next few years as part of this transformation [2]

Core Viewpoint - Rosen Law Firm is reminding investors who purchased SLM Corporation securities between July 25, 2025, and August 14, 2025, of the lead plaintiff deadline on February 17, 2026, for a class action lawsuit related to misleading statements made by the company [1]. Group 1: Class Action Details - Investors who bought SLM securities during the specified Class Period may be eligible for compensation without any out-of-pocket fees through a contingency fee arrangement [2]. - A class action lawsuit has already been filed, and those wishing to serve as lead plaintiff must act by February 17, 2026 [3]. - Investors can join the class action by visiting the provided link or contacting the law firm directly for more information [6]. Group 2: Case Background - The lawsuit alleges that SLM Corporation made false and misleading statements regarding its financial health, specifically about an increase in early-stage delinquencies and the effectiveness of its loss mitigation programs [5]. - The misleading public statements created a materially false impression of SLM's business operations and prospects, leading to investor damages when the truth was revealed [5]. Group 3: Rosen Law Firm's Credentials - Rosen Law Firm emphasizes the importance of selecting qualified legal counsel with a successful track record in securities class actions, highlighting its own achievements in recovering significant amounts for investors [4]. - The firm has been recognized for its performance in securities class action settlements, including being ranked No. 1 for the number of settlements in 2017 and securing over $438 million for investors in 2019 [4].

Summary of SLM (Sallie Mae) Conference Call Company Overview - **Company**: Sallie Mae (SLM) - **Industry**: Private Student Lending - **Conference Date**: February 10, 2026 Key Points Business Transformation and Strategy - Sallie Mae is undergoing a transformation in its business model, focusing on expanding its reach in the private student lending market due to federal reforms in student lending [4][5] - The company has initiated strategic partnerships, starting with KKR, to enhance its funding capabilities and capitalize on acquisition opportunities [4][5] Financial Guidance - For 2026, Sallie Mae expects private loan originations to grow by 12%-14% year-over-year, with a significant contribution from Grad PLUS loans [6][12] - The Grad PLUS opportunity is estimated to be a $5 billion market, with initial scaling expected to be $2.5 billion in the first year [7][10][11] Loan Portfolio Management - The loan portfolio is expected to remain flat to slightly down in the near term, with a gradual return to growth projected at 1%-2% annually [14][16] - The company is balancing traditional loan growth with new partnerships, which will allow for a more capital-efficient origination strategy [14][15] Partnerships and Market Position - The KKR partnership is unique as it involves selling newly originated loans before full disbursement, differing from traditional seasoned portfolio sales [18][21] - Sallie Mae's existing relationships with over 2,100 schools provide a competitive advantage in the undergrad space, which is crucial for entering the grad market [32] Competitive Landscape - The competitive intensity in the student lending market remains stable, with existing players signaling intentions to pursue the same opportunities [40] - Sallie Mae anticipates that marketing efforts will be inefficient in the first year as they target new-to-firm customers, but expects to optimize over time [34][41] Credit Performance and Risk Management - The company expects stable credit performance in 2026, with net charge-offs consistent with the previous year [24] - The Grad PLUS cohort is anticipated to have higher credit quality, potentially leading to lower reserve requirements over time [25] Investment and Expenses - Sallie Mae plans to increase investments in product design, technology, and marketing to attract a new consumer profile, with a projected 16% year-over-year increase in expenses [27][30] - Approximately 40% of the expense increase is attributed to strategic investments aimed at enhancing product offerings for the grad market [28] Capital Return and Financial Health - The company has a history of returning capital to shareholders, with a new $500 million share repurchase authorization announced [51] - Sallie Mae maintains a matched book strategy to manage interest rate risks, with expectations of operating within a low to mid 5% net interest margin [52] Employment Trends and Borrower Support - New grad unemployment rates have increased slightly, but Sallie Mae's products are designed to support borrowers during the transition to employment [53][54] - The company has a high cosigner rate of over 90% on new originations, which aids in borrower support and reduces delinquency risks [58][60] Investor Sentiment - Investors generally understand the potential for Sallie Mae's growth and support the company's strategic direction, particularly regarding the Grad PLUS opportunity [66][67] Additional Insights - The company views the current opportunity as a once-in-a-career chance for significant growth in originations, emphasizing the importance of product design and marketing strategies to capture this market [67]

Core Viewpoint - A class action lawsuit has been filed against SLM Corporation (Sallie Mae) for allegedly concealing a significant increase in loan delinquencies during a specific period, leading to investor losses [1][3]. Group 1: Lawsuit Details - The lawsuit represents investors who acquired Sallie Mae securities from July 25, 2025, to August 14, 2025 [1][2]. - The complaint claims that Sallie Mae misled investors about the nature of rising early-stage delinquencies, attributing them to seasonal trends while downplaying the effectiveness of their loss mitigation programs [3]. Group 2: Financial Impact - A TD Cowen report revealed that July delinquencies increased by 49 basis points month-over-month, which was higher than expected for that season [4]. - Following the report, Sallie Mae's stock price fell by $2.67 per share, or 8.09%, closing at $30.32 on August 15, 2025 [4].

NEW YORK, Feb. 09, 2026 (GLOBE NEWSWIRE) -- WHY: Rosen Law Firm, a global investor rights law firm, reminds persons who invested in securities of SLM Corporation a/k/a Sallie Mae (NASDAQ: SLM) between July 25, 2025 and August 14, 2025, both dates inclusive (the “Class Period”), of the important February 17, 2026 lead plaintiff deadline. SO WHAT: If you purchased SLM securities during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingenc ...

Core Viewpoint - A class action lawsuit has been filed against SLM Corporation (Sallie Mae) on behalf of investors who acquired its securities during the specified Class Period, alleging misleading information regarding loan delinquencies [1][3]. Group 1: Lawsuit Details - The lawsuit claims that during the Class Period from July 25, 2025, to August 14, 2025, Sallie Mae misled investors about the state of its loan delinquencies, asserting that increases were typical seasonal patterns while downplaying the severity of the situation [3]. - Investors became aware of the true condition of Sallie Mae's loan portfolio following a report from TD Cowen on August 14, 2025, which indicated a 49-basis-point month-over-month increase in delinquencies for July, surpassing seasonal norms [4]. - Following the revelation of this information, Sallie Mae's stock price fell by $2.67 per share, or 8.09%, closing at $30.32 on August 15, 2025 [4]. Group 2: Investor Information - Investors who purchased Sallie Mae securities during the Class Period have until February 17, 2026, to seek appointment as lead plaintiff representatives of the class [2].

Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against SLM Corporation due to allegations of violations of federal securities laws, specifically regarding misleading statements about the company's financial health and delinquency rates [2][4]. Group 1: Legal Investigation - The law firm is encouraging SLM investors who suffered losses exceeding $50,000 to contact them for discussing legal options [1]. - A federal securities class action has been filed against SLM, with a deadline of February 17, 2026, for investors to seek the role of lead plaintiff [2][5]. - The complaint alleges that SLM and its executives made false statements and failed to disclose significant increases in early-stage delinquencies, overstating the effectiveness of their loss mitigation programs [4]. Group 2: Company Background - SLM Corporation is publicly traded on NASDAQ under the ticker SLM [2]. - Faruqi & Faruqi, LLP has a history of recovering hundreds of millions of dollars for investors since its establishment in 1995 [3].

Core Viewpoint - A class action lawsuit has been filed against SLM Corporation (Sallie Mae) on behalf of investors who acquired its securities during the specified Class Period, alleging misleading information regarding loan delinquencies [1][3]. Group 1: Lawsuit Details - The lawsuit claims that during the Class Period from July 25, 2025, to August 14, 2025, Sallie Mae misled investors about the company's loan delinquencies, stating that rising early-stage delinquencies were typical for the season while praising their loss mitigation strategies [3]. - Following the revelation of the true state of loan delinquencies, Sallie Mae's stock price fell by $2.67 per share, or 8.09%, closing at $30.32 on August 15, 2025 [4]. Group 2: Investor Information - Investors who purchased Sallie Mae securities during the Class Period have until February 17, 2026, to seek appointment as lead plaintiff representatives of the class [2].