NASDAQ: SLM

Total Portfolio (Private

Education

Loans)Private

Education

LoansFFELP

LoansTotal

Portfolio

Beginning balance$1,435,920 $1,335,105 $4,667 $1,339,772

Transfer from unfunded commitment liability(1)
280,244 311,787 — 311,787

Less:

Charge-offs
(399,636)(376,840)(380)(377,220)

Write-downs arising from transfer of loans to held for sale(2)
— — (8,297)(8,297)

Plus:

Recoveries53,911 44,756 — 44,756

Provisions for loan losses:

Provision, current period400,677 357,067 4,010 361,077

Loan sale reduction to provision(296,524)(235,955)— (235,955)

Loans transferred to held for sale(44,274)— — —

Total provisions for loan losses(3)
59,879 121,112 4,010 125,122

Ending balance$1,430,318 $1,435,920 $— $1,435,920

20232022

Years Ended December 31, (dollars in thousands)Private

Education

LoansFFELP

LoansTotal

PortfolioPrivate

Education

LoansFFELP

LoansCredit CardsTotal

Portfolio

Beginning balance$1,353,631 $3,444 $1,357,075 $1,158,977 $4,077 $2,281 $1,165,335

Transfer from unfunded commitment liability(1)
320,237 — 320,237 344,310 — — 344,310

Less:

Charge-offs
(420,095)(1,001)(421,096)(427,416)(613)(3,215)(431,244)

Plus:

Recoveries46,368 — 46,368 41,737 — 5 41,742

Provisions for loan losses:

Provision, current period240,347 2,224 242,571 410,254 (20)3,301 413,535

Loan sale reduction to provision(205,383)— (205,383)(174,231)— — (174,231)

Loans transferred to held for sale— — — — — (2,372)(2,372)

Total provisions for loan losses(3)
34,964 2,224 37,188 236,023 (20)929 236,932

Ending balance$1,335,105 $4,667 $1,339,772 $1,353,631 $3,444 $— $1,357,075

(1) See Notes to Consolidated Financial Statements, Note 7, “Allowance for Credit Losses and Unfunded Loan Commitments,” in this Form 10-K for a summary of the activity in the allowance for and balance of unfunded loan commitments, respectively.

(2) Represents fair value adjustments on loans transferred to held for sale.

(3) See “—Financial Condition — Allowance for Credit Losses — Provision for Credit Losses” in this Item 7 for a reconciliation of the provisions for credit losses reported in the consolidated statements of income.

60 SLM CORPORATION — 2025 Form 10-K

2021

Year Ended December 31,

(dollars in thousands)Private

Education

LoansFFELP

LoansCredit

CardsTotal

Portfolio

Beginning balance$1,355,844 $4,378 $1,501 $1,361,723

Transfer from unfunded commitment liability(1)
301,655 — — 301,655

Less:

Charge-offs
(229,591)(321)(356)(230,268)

Plus:

Recoveries29,494 — 12 29,506

Provisions for loan losses:

Provision, current period(233,852)20 1,124 (232,708)

Loan sale reduction to provision(66,460)— — (66,460)

Loans transferred from held for sale1,887 — — 1,887

Total provisions for loan losses(2)
(298,425)20 1,124 (297,281)

Ending balance$1,158,977 $4,077 $2,281 $1,165,335

(1) See Notes to Consolidated Financial Statements, Note 7, “Allowance for Credit Losses and Unfunded Loan Commitments,” in this Form 10-K for a summary of the activity in the allowance for and balance of unfunded loan commitments, respectively.

(2) See “—Financial Condition — Allowance for Credit Losses — Provision for Credit Losses” in this Item 7 for a reconciliation of the provisions for credit losses reported in the consolidated statements of income.

Provision for Credit Losses

Below is a reconciliation of the provisions for credit losses reported in the consolidated statements of income.

Consolidated Statements of Income

Provisions for Credit Losses Reconciliation

Years Ended December 31,

(dollars in thousands)20252024202320222021

Private Education Loan provisions for credit losses:

Provisions for loan losses$59,879 $121,112 $34,964 $236,023 $(298,425)

Provisions for unfunded loan commitments272,808 283,393 308,275 396,521 264,324

Total Private Education Loan provisions for credit losses332,687 404,505 343,239 632,544 (34,101)

Other impacts to the provisions for credit losses:

FFELP Loans— 4,010 2,224 (20)20

Credit Cards— — — 929 1,124

Total— 4,010 2,224 909 1,144

Provisions for credit losses reported in consolidated statements of income$332,687 $408,515 $345,463 $633,453 $(32,957)

2025 Form 10-K — SLM CORPORATION 61

Private Education Loan Allowance for Credit Losses

In establishing the allowance for Private Education Loan losses as of December 31, 2025, we considered several factors with respect to our Private Education Loan held for investment portfolio, in particular, credit quality and delinquency, forbearance, and charge-off trends.

Private Education Loans held for investment in P&I repayment status were 45 percent of our total Private Education Loans held for investment portfolio at December 31, 2025, compared with 44 percent at December 31, 2024.

For a more detailed discussion of our policy for determining the collectability of Private Education Loans and maintaining our allowance for Private Education Loans, see “— Critical Accounting Estimates — Allowance for Credit Losses” in this Item 7 and Notes to Consolidated Financial Statements, Note 5, “Loans Held for Investment — Certain Collection Tools — Private Education Loans” in this Form 10-K.

62 SLM CORPORATION — 2025 Form 10-K

The table below presents our Private Education Loans held for investment portfolio delinquency trends. Loans in repayment include loans making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period (but, for purposes of the following table, do not include loans in the “loans in forbearance” metric).

Private Education Loans Held for Investment202520242023

As of December 31, (dollars in thousands)Balance%Balance%Balance%

Loans in-school/grace/deferment(1)
$5,332,532 $5,722,827 $5,291,991

Loans in forbearance(2)
433,075 405,430 324,039

Loans in repayment and percentage of each status:

Loans current15,258,723 96.0 %15,513,333 96.3 %14,809,271 96.1 %

Loans delinquent 30-59 days(3)
330,307 2.0 310,748 1.9 298,751 1.9

Loans delinquent 60-89 days(3)
154,683 1.0 140,735 0.9 151,017 1.0

Loans 90 days or greater past due(3)
151,114 1.0 141,935 0.9 150,775 1.0

Total Private Education Loans in repayment15,894,827 100.0 %16,106,751 100.0 %15,409,814 100.0 %

Total Private Education Loans, gross21,660,434 22,235,008 21,025,844

Private Education Loans deferred origination costs and unamortized premium/(discount)102,008 103,070 81,554

Total Private Education Loans21,762,442 22,338,078 21,107,398

Private Education Loans allowance for losses(1,430,318)(1,435,920) (1,335,105)

Private Education Loans, net$20,332,124 $20,902,158 $19,772,293

Percentage of loans in repayment73.4 % 72.4 %73.3 %

Delinquencies as a percentage of loans in repayment 4.0 % 3.7 %3.9 %

Percentage of loans in forbearance:

Percentage of loans in an extended grace period(4)
1.7 %1.6 %1.1 %

Percentage of loans in hardship and other forbearances(5)
1.0 % 0.9 %1.0 %

(1)Deferment includes customers who have returned to school or are engaged in other permitted educational activities and are not yet required to make payments on the loans (e.g., residency periods for medical students or a grace period for bar exam preparation).

(2)Loans for customers who have requested extension of grace period generally during employment transition or who have temporarily ceased making full payments due to hardship or other factors (other than delinquent loans in disaster forbearance), consistent with established loan program servicing policies and procedures.

(3)The period of delinquency is based on the number of days scheduled payments are contractually past due.

(4)We calculate the percentage of loans in an extended grace period as the ratio of (a) Private Education Loans in forbearance in an extended grace period numerator to (b) Private Education Loans in repayment and forbearance denominator. An extended grace period aligns with The Office of the Comptroller of the Currency definition of an additional, consecutive, one-time period during which no payment is required for up to six months after the initial grace period. We typically grant this extended grace period to customers who may be having difficulty finding employment before the full principal and interest repayment period starts or once it has begun. Loans in forbearance in an extended grace period were approximately $272 million, $253 million, and $168 million at December 31, 2025, 2024, and 2023, respectively. See “—Financial Condition — Allowance for Credit Losses — Use of Forbearance and Modifications as a Private Education Loan Collection Tool” in this Item 7 for additional details.

(5)We calculate the percentage of loans in hardship and other forbearances as the ratio of (a) Private Education Loans in hardship and other forbearances (excluding loans in an extended grace period and delinquent loans in disaster forbearance) numerator to (b) Private Education Loans in repayment and forbearance denominator. If the customer is in financial hardship, we work with the customer and/or cosigner and identify any available alternative arrangements designed to reduce monthly payment obligations, which may include a short-term hardship forbearance. Loans in hardship and other forbearances (excluding loans in an extended grace period and delinquent loans in disaster forbearance) were approximately $161 million, $152 million, and $156 million at December 31, 2025, 2024, and 2023, respectively. See “—Financial Condition — Allowance for Credit Losses — Use of Forbearance and Modifications as a Private Education Loan Collection Tool” in this Item 7 for additional details.

Delinquencies as a percentage of loans in repayment increased to 4.0 percent at December 31, 2025 from 3.7 percent at December 31, 2024. The increase in the delinquency metric in 2025 compared with 2024 is primarily attributable to changes and refinements to our loss mitigation programs in late 2024 which generally restricted loan modification eligibility to borrowers in later-stage delinquency, as well as a shift in the composition of the loans in repayment portfolio (which does not include loans held for sale) due to $933 million of newly originated loans transferred

2025 Form 10-K — SLM CORPORATION 63

to held for sale status during the fourth quarter of 2025, as we intended to sell the loans to the Strategic Partner in January 2026. See “—Financial Condition — Allowance for Credit Losses — Use of Forbearance and Modifications as a Private Education Loan Collection Tool” in this Item 7 for additional details. The percentage of loans in an extended grace forbearance remained relatively consistent at 1.7 percent and 1.6 percent at December 31, 2025 and December 31, 2024, respectively. The percentage of loans in hardship and other forbearances remained relatively consistent at 1.0 percent and 0.9 percent, respectively, at December 31, 2025 and December 31, 2024.

The decrease in delinquencies at December 31, 2024, compared with 2023, was primarily attributable to the then-new loan modification programs. The increase in the percentage of loans in an extended grace period at December 31, 2024 compared with 2023 was primarily due to borrowers being eligible to receive up to six months of extended grace forbearance in one increment instead of multiple instances of two-month increments, coupled with our continued efforts to better match our available program offerings to the financial needs of our borrowers. The percentage of loans in hardship and other forbearances remained relatively consistent at 0.9 percent and 1.0 percent, respectively at December 31, 2024 and December 31, 2023.

64 SLM CORPORATION — 2025 Form 10-K

The following table summarizes changes in the allowance for Private Education Loan (held for investment) losses and the allowance for unfunded loan commitments.

Years Ended December 31,

(dollars in thousands)20252024202320222021

Allowance for loan losses, beginning balance$1,435,920 $1,335,105 $1,353,631 $1,158,977 $1,355,844

Transfer from allowance for unfunded loan commitments(1)
280,244 311,787 320,237 344,310 301,655

Provisions:

Provision for current period400,677 357,067 240,347 410,254 (233,852)

Loan sale reduction to provision(296,524)(235,955)(205,383)(174,231)(66,460)

Loans transferred (to) from held for sale(44,274)— — — 1,887

Total provisions(2)
59,879 121,112 34,964 236,023 (298,425)

Net charge-offs:

Charge-offs(399,636)(376,840)(420,095)(427,416)(229,591)

Recoveries53,911 44,756 46,368 41,737 29,494

Net charge-offs(345,725)(332,084)(373,727)(385,679)(200,097)

Allowance for loan losses, ending balance1,430,318 1,435,920 1,335,105 1,353,631 1,158,977

Allowance for unfunded loan commitments, beginning balance (1)
84,568 112,962 124,924 72,713 110,044

Provision(2)(3)
272,808 283,393 308,275 396,521 264,324

Transfer to allowance for loan losses(280,244)(311,787)(320,237)(344,310)(301,655)

Allowance for unfunded loan commitments, ending balance(1)
77,132 84,568 112,962 124,924 72,713

Total allowance for credit losses, ending balance$1,507,450 $1,520,488 $1,448,067 $1,478,555 $1,231,690

Total Allowance Percentage of Private Education Loan Exposure(5)(6)
6.00 %5.83 %5.89 %6.30 %5.20 %

Allowance for loan losses coverage of net charge-offs4.14 4.32 3.57 3.51 5.79

Net charge-offs as a percentage of average loans in repayment(4)
2.15 %2.19 %2.44 %2.55 %1.33 %

Delinquencies as a percentage of ending loans in repayment(4)
4.00 %3.68 %3.90 %3.77 %3.26 %

Loans in forbearance as a percentage of ending loans in repayment and forbearance(4)
2.65 %2.46 %2.06 %1.81 %1.91 %

Ending total loans, gross$21,660,434 $22,235,008 $21,025,844 $20,303,688 $20,716,863

Average loans in repayment(4)
$16,047,085 $15,139,184 $15,310,934 $15,103,123 $15,019,869

Ending loans in repayment(4)
$15,894,827 $16,106,751 $15,409,814 $15,129,550 $15,511,212

Unfunded loan commitments for loans held for investment(6)
$1,913,753 $2,311,660 $2,221,077 $1,995,808 $1,776,976

Total accrued interest receivable$1,570,069 $1,549,415 $1,354,565 $1,177,562 $1,187,123

(1) When a new loan commitment is made, we record an allowance to cover lifetime expected credit losses on the unfunded commitments, which is recorded in “Other Liabilities” on the consolidated balance sheet. See Notes to Consolidated Financial Statements, Note 7, “Allowance for Credit Losses and Unfunded Loan Commitments” in this Form 10-K for a summary of the activity in the allowance for and balance of unfunded loan commitments.

(2) See “—Financial Condition — Allowance for Credit Losses — Provision for Credit Losses” in this Item 7 for a reconciliation of the provisions for credit losses reported in the consolidated statements of income.

(3) Includes incremental provision for new commitments and changes to provision for existing commitments.

(4) Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period (but, for purposes of the table, do not include those loans while they are in forbearance).

(5) The Total Allowance Percentage of Private Education Loan Exposure is the total allowance for credit losses as a percentage of ending total loans plus unfunded loan commitments and total accrued interest receivable on Private Education Loans.

(6) Unfunded loan commitments for loans held for investment and the calculation of the Total Allowance Percentage of Private Education Loan Exposure do not include $523 million of unfunded loan commitments associated with loans classified as held for sale at December 31, 2025. Due to the near-term timing of the loan sale and credit quality of the loans, we believe there is no risk of credit loss and are not recording an allowance for the unfunded loan commitments related to the loans classified as held for sale.

As part of concluding on the adequacy of the allowance for credit losses, we review key allowance and loan metrics. The most significant of these metrics considered are the allowance coverage of net charge-offs ratio; the Total Allowance as Percentage of Private Education Loan Exposure; and delinquency and forbearance percentages.

2025 Form 10-K — SLM CORPORATION 65

Net charge-offs as a percentage of average loans in repayment decreased in the year ended December 31, 2025 compared with the year-ago period primarily due to changes in the loan modification programs implemented in late 2024. Net charge-offs as a percentage of average loans in repayment decreased in the year ended December 31, 2024 compared with the year ended December 31, 2023 primarily due to the expanded loan modifications program implemented in late 2023 and throughout the full year 2024.

During 2026, the first wave of loans that were modified under the expanded loss mitigation programs in late 2023 will be exiting existing modifications. Borrowers currently enrolled in these programs have largely exhibited positive payment performance, and longer-term performance is unknown but will become clearer throughout 2026.

Use of Forbearance and Modifications as a Private Education Loan Collection Tool

In recent years, we have made significant changes to our credit administration practices, enhancing our loss mitigation programs through both our forbearance and loan modification offerings. We adjust the terms of loans for certain borrowers when we believe such changes will help our borrowers manage their student loan obligations, achieve better student outcomes and increase the collectability of the loans. These changes generally take the form of a temporary forbearance of payments, a temporary or permanent interest rate reduction, a temporary or permanent interest rate reduction with a permanent extension of the loan term, and/or a short-term extended repayment or interest-only alternative.

We continually monitor our credit administration practices and modify them from time to time based upon performance, industry conventions, and/or regulatory feedback.

Forbearance

Forbearance allows a borrower to not make scheduled payments for a specified period of time. Our forbearance policies and practices vary depending upon whether a borrower is current or delinquent at the time forbearance is requested, generally with stricter requirements for delinquent borrowers. Using forbearance extends the original term of the loan by the term of forbearance taken. Forbearance does not grant any reduction in the total principal or interest repayment obligation. While a loan is in forbearance status, interest continues to accrue and is capitalized (added to principal) at the end of the forbearance. Interest will not capitalize at the end of certain types of forbearance, such as disaster forbearance, however.

During the first six months following a borrower’s grace period, the borrower may be eligible for extended grace forbearance, which provides temporary payment relief to give the borrower additional time to be in a position to make regular principal and interest payments. We do not consider borrowers who are eligible for extended grace to be experiencing financial difficulty.

Hardship forbearance may be granted in order to provide temporary payment relief to borrowers who are either current in their payments but demonstrate a need for relief, or who are delinquent in their payments but demonstrate an ability and willingness to repay their obligation. In these circumstances, a borrower’s loan is placed into a forbearance status in limited monthly increments and is reflected in the forbearance status at month-end during this time. At the end of the forbearance period for borrowers who were current when they entered forbearance or those who were delinquent but met specific payment requirements curing their delinquency, the borrower will enter repayment status as current. In all instances, the borrowers are expected to begin making scheduled monthly payments at the end of their forbearance periods. This strategy is aimed at assisting borrowers while mitigating the risks of delinquency and default as well as encouraging resolution of delinquent loans.

Disaster forbearance is used to assist borrowers affected by material events, typically federally-declared disasters, including hurricanes, wildfires, floods, and pandemics. We typically grant disaster forbearance to affected borrowers in one-month increments, up to three months at a time, but the disaster forbearance granted generally does not apply toward the 12-month forbearance limit described below. Disaster forbearance is granted based on areas impacted by federally declared disasters, not because the borrower is experiencing financial difficulty. Loans in disaster forbearance are not assessed late or other fees. Due to the nature and limited timeframe of disaster forbearance, delinquent loans granted disaster forbearance are maintained in their pre-grant delinquency status, and as such, are not reflected in our loans in forbearance metrics.

We offer certain other administrative forbearances (e.g., death and disability, bankruptcy, military service, and in school assistance) that are required by law (such as by the Servicemembers Civil Relief Act), are considered separate from our active loss mitigation programs, or do not exceed the significance threshold. We do not consider borrowers eligible for these other administrative forbearances to be experiencing financial difficulty.

66 SLM CORPORATION — 2025 Form 10-K

Currently, we generally grant forbearance for up to 12 months over the life of the loan, in increments of one to two months at a time, although extended grace forbearance is typically granted in one six-month increment. Disaster forbearance and certain other limited instances do not apply toward the 12-month limit. We also currently require 12 months of positive payment performance by a borrower (meaning the borrower must make payment in a cumulative amount equivalent to 12 monthly required payments under the loan) between successive grants of forbearance and between forbearance grants and certain other repayment alternatives. This required period of positive payment performance is not necessary to receive additional increments of extended grace forbearance or for a borrower to receive a contractual interest rate reduction. In addition, we currently limit the participation of delinquent borrowers in certain short-term extended or interest-only repayment alternatives to once in 12 months and twice in five years. We also now count the number of months a borrower receives a short-term extended repayment alternative toward the 12-month forbearance limit described above.

Modification Programs other than Forbearances

For borrowers experiencing more severe hardship, following evaluation of their ability and willingness to repay, we currently use modification programs tailored to the financial condition of the individual borrower. Pursuant to our modification programs, we may reduce the contractual interest rate on a loan to a rate between 2 percent and 8 percent temporarily, and/or in some instances may permanently extend the final maturity of a loan. For borrowers experiencing the most severe financial conditions, we may permanently reduce the contractual interest rate on a loan to 2 percent for the remaining life of the loan and also permanently extend the final maturity of the loan. Following modification, borrowers who are delinquent but meet specific payment requirements curing their delinquency will be brought current. We currently limit the granting of a permanent extension of the final maturity date of a loan to once over the life of the loan, and the number of interest rate reductions to twice over the life of the loan.

Modifications under these programs are generally considered loan modifications to borrowers experiencing financial difficulty. See Note 7, “Allowance for Credit Losses and Unfunded Commitments — Loan Modifications to Borrowers Experiencing Financial Difficulty” in this Form 10-K for disclosures related to these modification programs. However, in some situations, we may offer on a limited basis term extensions or rate reductions or a combination of both to borrowers to reduce consolidation activities, which we do not consider to be modifications of loans to borrowers experiencing financial difficulty.

Delinquency Trends by Active Repayment Status

The tables below show the composition and status of the Private Education Loan portfolio held for investment aged by number of months in active repayment status (months for which a scheduled monthly payment was due). Active repayment status includes loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period. Our experience shows that the percentage of loans in forbearance status generally decreases the longer the loans have been in active repayment status. At December 31, 2025, Private Education Loans (held for investment) in forbearance that have been in active repayment status for fewer than 25 months as a percentage of all loans in repayment and forbearance were 2.0 percent. At December 31, 2025, approximately 76 percent of our Private Education Loans (held for investment) in forbearance status have been in active repayment status fewer than 25 months.

2025 Form 10-K — SLM CORPORATION 67

As of December 31, 2025

(dollars in millions)Private Education Loans Held for Investment

Aged by Number of Months in Active Repayment StatusNot Yet in

RepaymentTotal

0 to 1213 to 2425 to 3637 to 48More than 48

Loans in-school/grace/deferment$— $— $— $— $— $5,333 $5,333

Loans in forbearance266 63 38 28 38 — 433

Loans in repayment - current4,142 3,655 1,937 1,587 3,937 — 15,258

Loans in repayment - delinquent 30-59 days82 51 49 41 107 — 330

Loans in repayment - delinquent 60-89 days41 26 21 19 48 — 155

Loans in repayment - 90 days or greater past due43 22 22 17 47 — 151

Total$4,574 $3,817 $2,067 $1,692 $4,177 $5,333 21,660

Deferred origination costs and unamortized premium/(discount) 102

Allowance for loan losses (1,430)

Total Private Education Loans, net $20,332

Loans in forbearance as a percentage of total Private Education Loans in repayment and forbearance1.63 %0.39 %0.23 %0.17 %0.23 %— %2.65 %

As of December 31, 2024

(dollars in millions)Private Education Loans Held for Investment

Aged by Number of Months in Active Repayment StatusNot Yet in

RepaymentTotal

0 to 1213 to 2425 to 3637 to 48More than 48

Loans in-school/grace/deferment$— $— $— $— $— $5,723 $5,723

Loans in forbearance247 66 37 23 32 — 405

Loans in repayment - current4,497 3,585 2,230 1,518 3,683 — 15,513

Loans in repayment - delinquent 30-59 days78 58 49 36 90 — 311

Loans in repayment - delinquent 60-89 days38 25 22 17 39 — 141

Loans in repayment - 90 days or greater past due39 23 20 16 44 — 142

Total$4,899 $3,757 $2,358 $1,610 $3,888 $5,723 22,235

Deferred origination costs and unamortized premium/(discount) 103

Allowance for loan losses (1,436)

Total Private Education Loans, net $20,902

Loans in forbearance as a percentage of total Private Education Loans in repayment and forbearance1.50 %0.40 %0.23 %0.14 %0.19 %— %2.46 %

68 SLM CORPORATION — 2025 Form 10-K

As of December 31, 2023

(dollars in millions)Private Education Loans Held for Investment

Aged by Number of Months in Active Repayment StatusNot Yet in

RepaymentTotal

0 to 1213 to 2425 to 3637 to 48More than 48

Loans in-school/grace/deferment$— $— $— $— $— $5,292 $5,292

Loans in forbearance190 55 31 20 28 — 324

Loans in repayment - current4,129 3,529 2,183 1,472 3,496 — 14,809

Loans in repayment - delinquent 30-59 days81 56 45 33 84 — 299

Loans in repayment - delinquent 60-89 days40 29 24 17 41 — 151

Loans in repayment - 90 days or greater past due42 28 23 16 42 — 151

Total$4,482 $3,697 $2,306 $1,558 $3,691 $5,292 21,026

Deferred origination costs and unamortized premium/(discount) 81

Allowance for loan losses (1,335)

Total Private Education Loans, net $19,772

Loans in forbearance as a percentage of total Private Education Loans in repayment and forbearance1.21 %0.35 %0.19 %0.13 %0.18 %— %2.06 %

2025 Form 10-K — SLM CORPORATION 69

Private Education Loans Held for Investment Types

The following table provides information regarding the loans in repayment balance and total loan balance by Private Education Loan held for investment product type for the years ended December 31, 2025 and 2024.

As of December 31, 2025 (dollars in thousands)Smart OptionGraduate

Loan
Other(1)
Total

$ in repayment(2)
$13,806,666 $1,765,589 $322,572 $15,894,827

$ in total$18,785,313 $2,468,471 $406,650 $21,660,434

As of December 31, 2024 (dollars in thousands)Smart OptionGraduate

Loan
Other(1)
Total

$ in repayment(2)
$14,273,952 $1,466,915 $365,884 $16,106,751

$ in total$19,710,266 $2,067,468 $457,274 $22,235,008

(1) Other includes our Parent Loan and Career training loan products. In December 2021, we discontinued offering our Parent Loan product. Applications for those loans received before the offering termination date continued to be processed, and final disbursements under those loans occurred in February 2023. In May 2022, we discontinued offering our Career Training loan product. Applications for those loans received before the offering termination date continued to be processed, and final disbursements under those loans occurred in September 2023.

(2) Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period (but, for purposes of the table, do not include loans in the “loans in forbearance” metric).

Accrued Interest Receivable

The following table provides information regarding accrued interest receivable on our Private Education Loans. The table also discloses the amount of accrued interest on loans 90 days or greater past due as compared to our allowance for uncollectible interest. The majority of the total accrued interest receivable represents accrued interest on deferred loans where no payments are due while the borrower is in school and fixed-pay loans where the borrower makes a $25 monthly payment that is smaller than the interest accruing on that loan in that month. The accrued interest on these loans will be capitalized to the balance of the loans when the borrower exits the grace period after separation from school. The allowance for credit losses considers both the collectibility of principal and accrued interest. The allowance for uncollectible interest estimates the additional uncollectible interest that is not captured in the allowance for credit losses.

Private Education Loans

Accrued Interest Receivable

(Dollars in thousands)Total Interest Receivable90 Days or Greater

Past Due
Allowance for

Uncollectible

Interest(1)

December 31, 2025$1,570,069 $6,548 $14,511

December 31, 2024$1,549,415 $6,420 $12,366

December 31, 2023$1,354,565 $8,373 $9,897

December 31, 2022$1,177,562 $6,609 $8,121

December 31, 2021$1,187,123 $3,635 $4,937

(1) The allowance for uncollectible interest at December 31, 2025, 2024, 2023, 2022, and 2021 represents the expected losses related to the portion of accrued interest receivable on those loans that are in repayment (at December 31, 2025, 2024, 2023, 2022, and 2021, relates to $164 million, $164 million, $151 million, $240 million, and $240 million, respectively, of accrued interest receivable) that is/was not expected to be capitalized. The accrued interest receivable that is/was expected to be capitalized ($1.4 billion, $1.4 billion, $1.2 billion, $937 million, and $947 million, respectively, at December 31, 2025, 2024, 2023. 2022, and 2021) is/was reserved for in the allowance for credit losses.

70 SLM CORPORATION — 2025 Form 10-K

Liquidity and Capital Resources

Funding and Liquidity Risk Management

Our primary funding and liquidity objective is to support our businesses throughout market cycles, including during periods of financial stress. Our business needs primarily include funding originations of Private Education Loans and meeting any deposits outflows at the Bank. To achieve these objectives, we maintain access to diverse funding sources, such as retail deposits, brokered deposits, asset-backed securitizations, unsecured debt, other financing facilities, and loan sales. We maintained liquidity reserves in the form of unrestricted cash and liquid investments of $5.4 billion and $6.1 billion as of December 31, 2025 and 2024, respectively, as noted in the table below.

At December 31, 2025 and December 31, 2024, our sources of liquidity included liquid investments with unrealized losses of $61.2 million and $105.8 million, respectively. It is our policy to manage operations so our liquidity needs are fully satisfied through normal operations to avoid unplanned loan or liquid investment sales under all but the most dire conditions. Our liquidity management is governed by policies approved by our Board of Directors. Oversight of these policies is performed in the Asset and Liability Committee, a management-level committee. These policies take into account the volatility of cash flow forecasts, expected asset and liability maturities, anticipated loan demand, and a variety of other factors to establish minimum liquidity guidelines.

Key risks associated with our liquidity relate to our ability to access the capital markets and deposit markets at reasonable rates. This ability may be affected by our performance, competitive pressures, the macroeconomic environment, and the impact they have on the availability of funding sources in the marketplace. We target maintaining sufficient on-balance sheet and contingent sources of liquidity to enable us to meet all contractual and contingent obligations under various stress scenarios, including severe macroeconomic stresses and specific stresses that test the resiliency of our balance sheet. At December 31, 2025, we held a significant liquidity buffer of cash and liquid investments, which we expect to maintain through in the future. Due to the seasonal nature of our business, our liquidity levels will likely vary from quarter to quarter.

Sources of Liquidity and Available Capacity

Ending Balances

As of December 31,

(dollars in thousands)202520242023

Sources of primary liquidity:

Unrestricted cash and liquid investments:

Holding Company and other non-bank subsidiaries$4,421 $3,745 $3,224

Sallie Mae Bank(1)
4,236,844 4,696,621 4,146,614

Available-for-sale investments
1,135,886 1,361,431 1,988,295

Total unrestricted cash and liquid investments$5,377,151 $6,061,797 $6,138,133

(1) This amount will be used primarily to originate Private Education Loans at the Bank.

Average Balances

Years Ended December 31,

(dollars in thousands)202520242023

Sources of primary liquidity:

Unrestricted cash and liquid investments:

Holding Company and other non-bank subsidiaries$8,397 $8,698 $6,827

Sallie Mae Bank(1)
3,958,618 4,504,167 4,014,444

Available-for-sale investments1,170,153 1,647,113 1,975,754

Total unrestricted cash and liquid investments$5,137,168 $6,159,978 $5,997,025

(1) This amount will be used primarily to originate Private Education Loans at the Bank.

2025 Form 10-K — SLM CORPORATION 71

Deposits

The following table summarizes total deposits.

As of December 31,

(dollars in thousands)20252024

Deposits - interest-bearing$21,059,967 $21,066,752

Deposits - non-interest-bearing184 1,816

Total deposits$21,060,151 $21,068,568

Our total deposits of $21.1 billion were comprised of $8.8 billion in brokered deposits and $12.3 billion in retail and other deposits at December 31, 2025, compared with total deposits of $21.1 billion, which were comprised of $9.5 billion in brokered deposits and $11.6 billion in retail and other deposits, at December 31, 2024.

Interest-bearing deposits as of December 31, 2025 and 2024 consisted of retail and brokered non-maturity savings deposits, retail and brokered non-maturity money market deposit accounts (“MMDAs”), and retail and brokered CDs. Interest-bearing deposits also include deposits from Educational 529 and Health Savings plans that diversify our funding sources and that we consider to be core. These and other large omnibus accounts, aggregating the deposits of many individual depositors, represented $7.6 billion of our deposit total as of December 31, 2025, compared with $7.0 billion at December 31, 2024. The omnibus accounts are structured in such a way that entitles the individual depositor pass-through deposit insurance (subject to FDIC rules and limitations), and the majority of these deposits have contractual minimum balances and maturity terms.

Some of our deposit products are serviced by third-party providers. Placement fees associated with the brokered CDs are amortized into interest expense using the effective interest rate method. We recognized placement fee expense of $8 million, $11 million, and $12 million in the years ended December 31, 2025, 2024, and 2023, respectively. Fees paid to third-party brokers related to brokered CDs were $8 million, $8 million, and $8 million during the years ended December 31, 2025, 2024, and 2023, respectively.

Interest-bearing deposits at December 31, 2025 and 2024 are summarized as follows:

20252024

As of December 31,

(dollars in thousands)Amount
Year-End Weighted Average Stated Rate(1)
Amount
Year-End Weighted Average Stated Rate(1)

Money market$10,004,845 3.83 %$9,582,290 4.27 %

Savings1,177,177 3.83 944,034 4.02

Certificates of deposit9,877,945 3.87 10,540,428 4.20

Deposits - interest-bearing$21,059,967 $21,066,752

(1) Includes the effect of interest rate swaps in effective hedge relationships.

As of December 31, 2025 and 2024, there were $1.2 billion and $1.2 billion, respectively, of deposits exceeding FDIC insurance limits. Accrued interest on deposits was $71 million and $92 million at December 31, 2025 and 2024, respectively.

72 SLM CORPORATION — 2025 Form 10-K

Counterparty Exposure

Counterparty exposure related to financial instruments arises from the risk that a lending, investment, or derivative counterparty will not be able to meet its obligations to us.

Excess cash is generally invested with the Federal Reserve Bank of San Francisco (the “FRB”) on an overnight basis or in the FRB’s Term Deposit Facility, minimizing counterparty exposure on cash balances.

Our investment portfolio is primarily comprised of a small portfolio of mortgage-backed securities issued by government agencies and government-sponsored enterprises that are purchased to meet CRA targets. Additionally, our investing activity is governed by Board-approved limits on the amount that is allowed to be invested with any one issuer based on the credit rating of the issuer, further minimizing our counterparty exposure. Counterparty credit risk is considered when valuing investments and considering impairment.

Related to derivative transactions, protection against counterparty risk is generally provided by International Swaps and Derivatives Association, Inc. Credit Support Annexes (“CSAs”), or clearinghouses for over-the-counter derivatives. CSAs require a counterparty to post collateral if a potential default would expose the other party to a loss. All derivative contracts entered into by the Bank are covered under CSAs or clearinghouse agreements and require collateral to be exchanged based on the net fair value of derivatives with each counterparty. Our exposure to the counterparty is limited to the value of the derivative contracts in a gain position, less any collateral held by us and plus collateral posted with the counterparty.

Title VII of the Dodd-Frank Act requires all standardized derivatives, including most interest rate swaps, to be submitted for clearing to central counterparties to reduce counterparty risk. Two of the central counterparties we use are the CME and the LCH. All variation margin payments on derivatives cleared through the CME and LCH are accounted for as legal settlement. As of December 31, 2025, $562 million notional of our derivative contracts were cleared on the CME and $11 million were cleared on the LCH. The derivative contracts cleared through the CME and LCH represent 98.0 percent and 2.0 percent, respectively, of our total notional derivative contracts of $573 million at December 31, 2025.

For derivatives cleared through the CME and LCH, the net gain (loss) position includes the variation margin amounts as settlement of the derivative and not collateral against the fair value of the derivative. The amount of variation margin included as settlement as of December 31, 2025 was $(1) million and $(0.1) million for the CME and LCH, respectively. Changes in fair value for derivatives not designated as hedging instruments are presented as realized gains (losses).

Our exposure to the counterparty is limited to the value of the derivative contracts in a gain position less any collateral held and plus any collateral posted. When there is a net negative exposure, we consider our exposure to the counterparty to be zero. At December 31, 2025 and 2024, we had a net positive exposure (derivative gain/loss positions to us, less collateral held by us and plus collateral posted with counterparties) related to derivatives of $0.1 million and $5 million, respectively.

We have liquidity exposure related to collateral movements between us and our derivative counterparties. Movements in the value of the derivatives, which are primarily affected by changes in interest rates, may require us to return cash collateral held or may require us to access primary liquidity to post collateral to counterparties.

The table below highlights exposure related to our derivative counterparties as of December 31, 2025.

As of December 31, 2025

(dollars in thousands)
SLM Corporation

and Sallie Mae Bank

Contracts

Total exposure, net of collateral
$113

Exposure to counterparties with credit ratings, net of collateral$113

Percent of exposure to counterparties with credit ratings below S&P AA- or Moody’s Aa3— %

Percent of exposure to counterparties with credit ratings below S&P A- or Moody’s A3— %

2025 Form 10-K — SLM CORPORATION 73

Regulatory Capital

The Bank is subject to various regulatory capital requirements administered by federal and state banking authorities. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material adverse effect on our business, results of operations, and financial position. Under U.S. Basel III and the regulatory framework for prompt corrective action, the Bank must meet specific capital standards that involve quantitative measures of its assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and its classification under the prompt corrective action framework are also subject to qualitative judgments by the regulators about components of capital, risk weightings, and other factors.

Capital Management

The Bank intends to maintain at all times regulatory capital levels that meet both the minimum levels required under U.S. Basel III (including applicable buffers) and the levels necessary to be considered “well capitalized” under the FDIC’s prompt corrective action framework, in order to support asset growth and operating needs, address unexpected credit risks, and protect the interests of depositors and the DIF administered by the FDIC. The Bank’s Capital Policy requires management to monitor these capital standards and the Bank’s compliance with them. The Board of Directors and management periodically evaluate the quality of assets, the stability of earnings, and the adequacy of the allowance for credit losses for the Bank. The Company is a source of strength for the Bank and will provide additional capital if necessary.

We believe that current and projected capital levels are appropriate for 2026. As of December 31, 2025, the Bank’s risk-based and leverage capital ratios exceed the required minimum ratios and the applicable buffers under the fully phased-in U.S. Basel III standards as well as the “well capitalized” standards under the prompt corrective action framework.

Under U.S. Basel III, the Bank is required to maintain the following minimum regulatory capital ratios: a Common Equity Tier 1 risk-based capital ratio of 4.5 percent, a Tier 1 risk-based capital ratio of 6.0 percent, a Total risk-based capital ratio of 8.0 percent, and a Tier 1 leverage ratio of 4.0 percent. In addition, the Bank is subject to a Common Equity Tier 1 capital conservation buffer of greater than 2.5 percent. Failure to maintain the buffer will result in restrictions on the Bank’s ability to make capital distributions, including the payment of dividends, and to pay discretionary bonuses to executive officers. Including the buffer, the Bank is required to maintain the following capital ratios under U.S. Basel III in order to avoid such restrictions: a Common Equity Tier 1 risk-based capital ratio of greater than 7.0 percent, a Tier 1 risk-based capital ratio of greater than 8.5 percent, and a Total risk-based capital ratio of greater than 10.5 percent.

To qualify as “well capitalized” under the prompt corrective action framework for insured depository institutions, the Bank must maintain a Common Equity Tier 1 risk-based capital ratio of at least 6.5 percent, a Tier 1 risk-based capital ratio of at least 8.0 percent, a Total risk-based capital ratio of at least 10.0 percent, and a Tier 1 leverage ratio of at least 5.0 percent.

In July 2023, the federal banking agencies proposed a rule to implement significant changes to the U.S. Basel Ill regulatory capital requirements. The proposed changes to the regulatory capital requirements generally would amend or introduce approaches and methodologies that would apply to banking organizations with total consolidated assets of $100 billion or more or to banking organizations with significant trading activity. The proposed rule therefore would not affect the Bank's capital requirements or the calculation of its capital ratios. It is uncertain if and when a final rule will be adopted, and if so, whether and to what extent it will differ from the proposed rule.

Under regulations issued by the FDIC and other federal banking agencies, banking organizations that adopted CECL during the 2020 calendar year, including the Bank, could elect to delay for two years, and then phase in over the following three years, the effects on regulatory capital of CECL relative to the incurred loss methodology. The Bank elected to use this option. Therefore, the regulatory capital impact of the Bank’s transition adjustments recorded on January 1, 2020 from the adoption of CECL, and 25 percent of the ongoing impact of CECL on the Bank’s allowance for credit losses, retained earnings, and average total consolidated assets, each as reported for regulatory capital purposes (collectively, the “adjusted transition amounts”), were deferred for the two-year period ending January 1, 2022. On each of January 1, 2022, 2023, 2024 and 2025, 25 percent of the adjusted transition amounts were phased in for regulatory capital purposes. As of January 1, 2025, all adjusted transition amounts have been phased in for regulatory capital purposes. The Bank’s January 1, 2020 CECL transition amounts increased our allowance for credit losses by $1.1 billion, increased the liability representing our off-balance sheet exposure for unfunded commitments by $116 million, and increased our deferred tax asset by $306 million, resulting in a cumulative effect adjustment that reduced retained

74 SLM CORPORATION — 2025 Form 10-K

earnings by $953 million. This transition adjustment was inclusive of qualitative adjustments incorporated into our CECL allowance as necessary, to address any limitations in the models used.

The Bank’s required and actual regulatory capital amounts and ratios, including applicable capital conservation buffers, under U.S. Basel III are shown in the following table. The following capital amounts and ratios are based upon the Bank’s average assets and risk-weighted assets, as indicated. The Bank has elected to exclude accumulated other comprehensive income related to both available-for-sale investments and swap valuations from Common Equity Tier 1 Capital.

Actual
U.S. Basel III

Minimum Requirements Plus Buffer(1)(2)

(Dollars in thousands)AmountRatioAmountRatio

As of December 31, 2025(3):

Common Equity Tier 1 Capital (to Risk-Weighted Assets)$2,929,973 11.1 %$1,849,590 >7.0 %

Tier 1 Capital (to Risk-Weighted Assets)$2,929,973 11.1 %$2,245,930 >8.5 %

Total Capital (to Risk-Weighted Assets)$3,274,883 12.4 %$2,774,384 >10.5 %

Tier 1 Capital (to Average Assets)$2,929,973 9.9 %$1,186,335 >4.0 %

As of December 31, 2024(3):

Common Equity Tier 1 Capital (to Risk-Weighted Assets)$2,957,067 11.3 %$1,827,318 >7.0 %

Tier 1 Capital (to Risk-Weighted Assets)$2,957,067 11.3 %$2,218,886 >8.5 %

Total Capital (to Risk-Weighted Assets)$3,294,663 12.6 %$2,740,976 >10.5 %

Tier 1 Capital (to Average Assets)$2,957,067 9.7 %$1,213,505 >4.0 %

(1) Reflects the U.S. Basel III minimum required ratio plus the applicable capital conservation buffer.

(2) The Bank’s regulatory capital ratios also exceeded all applicable standards for the Bank to qualify as “well capitalized” under the prompt corrective action framework.

(3) For December 31, 2025 and 2024, the actual amounts and the actual ratios include the respective adjusted transition amounts discussed above.

2025 Form 10-K — SLM CORPORATION 75

Dividends

The Bank is chartered under the laws of the State of Utah and its deposits are insured by the FDIC. The Bank’s ability to pay dividends is subject to the laws of Utah and the regulations of the FDIC. Generally, under Utah’s industrial bank laws and regulations as well as FDIC regulations, the Bank may pay dividends from its net profits without regulatory approval if, following the payment of the dividend, the Bank’s capital and surplus would not be impaired. The Company relies on dividends from the Bank, as necessary, to enable the Company to pay any declared dividends and other payments and consummate share repurchases, as described herein. The Bank declared $700 million, $570 million, and $550 million in dividends to the Company for the years ended December 31, 2025, 2024, and 2023, respectively, with the proceeds primarily used to fund share repurchase programs and stock dividends. We expect that the Bank will pay dividends to the Company as may be necessary to enable the Company to pay any declared dividends on its Series B Preferred Stock and common stock and to consummate any common share repurchases by the Company under the share repurchase programs. See