SLM projects 70% origination growth from federal student loan caps starting July 2026

Filed June 10, 2026 · Period ending June 10, 2026 · ~1 min read

Key Changes

• high

  Federal reforms capping Parent PLUS loans at $20K annually/$65K aggregate per student (effective July 1, 2026) expected to drive $4.5-5B in additional annual originations, up to 70% growth over several years as borrowers shift to private loans.

  Exhibit 99.1 verify on EDGAR →
• high

  Pausing third-party debt recovery strategies due to misaligned practices causing unnecessary defaults; if not resumed in 2026, net charge-offs could increase by ~$25M, though company expects recovery over time through internal strategies.

  Exhibit 99.1 verify on EDGAR →
• high

  Small impacted segment (0.08% of portfolio) accounts for 6.40% of gross charge-offs as of April 2026, up from 1.30% in 2025, driving disproportionate charge-off activity.

  Exhibit 99.1 verify on EDGAR →