NEWARK, DE — Sallie Mae (Nasdaq: SLM), formally SLM Corporation, reported third-quarter 2025 net income of $132 million, or $0.63 per diluted share, reflecting stronger credit performance, higher loan sales, and disciplined cost control.
Total interest income reached $658 million, while net interest income rose to $373 million, supported by a 5.18% net interest margin—an 18-basis-point increase from the prior year. The company recorded $136 million in gains from loan sales and $179 million in provisions for credit losses, a reduction from $267 million a year earlier due largely to provision releases from loan sales.
“We delivered another solid quarter in line with our expectations,” said Jonathan Witter, CEO of Sallie Mae. “We are particularly pleased with our strong credit performance, lower net charge-offs, stabilization in late-stage delinquencies, and continued lower levels of loan modification enrollments compared to the prior year.”
Private education loans outstanding averaged $22.3 billion, up 9% year-over-year, while loan originations increased 6%. The total net charge-off rate declined to 1.95%, down from 2.08% in the same quarter last year, and loans in hardship forbearance held steady at just 1.00% of the portfolio.
Sallie Mae continued returning capital to shareholders, repurchasing 5.6 million shares for $166 million during the quarter, with $138 million remaining under its 2024 share repurchase program. The company also paid a quarterly dividend of $0.13 per share.
For full-year 2025, Sallie Mae expects diluted earnings between $3.20 and $3.30 per share, 5–6% loan origination growth, and total charge-offs between 2.0% and 2.2%. Non-interest expenses are projected to range from $655 million to $675 million.
With a total risk-based capital ratio of 12.6% and CET1 of 11.3%, the company remains well-positioned to navigate a competitive credit environment while maintaining disciplined growth in its private education loan portfolio.
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