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Get filing alertsSLM 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
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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 view on EDGAR → -
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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 view on EDGAR → -
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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 view on EDGAR → -
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Q1 2026 origination credit quality remains strong: average FICO at approval 754 (up from 753), cosigned loans 95% (up from 93%), in-school repayment 59% (up from 56%).
Exhibit 99.1 view on EDGAR → -
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Enhanced medical/dental loan products (March 2026) drove 117% application growth; graduate/law enhancements (May 2026) drove 34% growth versus prior-year periods.
Exhibit 99.1 view on EDGAR →
Summary
SLM disclosed at a Morgan Stanley conference that federal student lending reforms enacted in July 2025 will cap Parent PLUS loans starting July 1, 2026, creating a substantial growth opportunity.
The company projects the caps will drive $4.5-5 billion in additional annual originations once fully implemented—up to 70% growth over several years—as families unable to access sufficient federal loans turn to private alternatives. This represents a significant structural tailwind for SLM's core business.
The company also addressed near-term credit headwinds from third-party debt resolution practices that encouraged high-ability-to-pay borrowers to default unnecessarily. SLM is pausing certain recovery strategies and shifting to internal collection, which could add ~$25 million to 2026 net charge-offs if third-party strategies are not resumed. A small segment (0.08% of portfolio) accounts for 6.40% of gross charge-offs, indicating the issue is concentrated. Management expects to recover these losses over time through internal efforts. Meanwhile, Q1 origination credit quality remains strong (754 FICO, 95% cosigned), and new graduate loan products are driving triple-digit application growth, positioning the company to capture the federal reform opportunity.
Section-by-Section Diff
Event · Exhibit 99.1
SLM Corp disclosed a Morgan Stanley conference presentation covering Q1 2026 results, federal student loan reform impacts, and credit quality trends.
Added in current filing · view on EDGAR →
MISALIGNED Third-Party Debt Resolution Practices • Marketing a private student loan refinance solution with a loan for the full amount plus fees, while settling with the original lender at a discount • Requiring borrowers to stop making payments and default, even when many have both the willingness and capacity to pay ... If these efforts fall short and we don’t resume third-party recovery strategies this year, estimated 2026 full year net charge-offs could increase by approximately $25 million, with recovery expected over time through internal recovery strategies
SLM identified misaligned third-party debt resolution practices causing high-ability-to-pay borrowers to default unnecessarily. The company is pausing recovery loan sales and certain settlement strategies, shifting to internal recovery. If third-party recovery strategies are not resumed in 2026, full-year net charge-offs could increase by approximately $25 million, though the company expects recovery over time through internal strategies.
Event · Item 7.01 — Regulation FD Disclosure
SLM posted investor presentation for Morgan Stanley conference on June 10, 2026.
Show 1 minor / wording change
Added in current filing · verify on EDGAR →
SLM Corporation (the “Company”) has posted to its website at https://www.salliemae.com/investors/webcasts-and-presentations/, and furnished herewith as Exhibit 99.1, a presentation containing certain information and updates that Pete Graham, Co-President and Chief Financial Officer of the Company, will speak to at the previously announced Morgan Stanley U.S. Financials Conference on June 10, 2026.
The company posted an investor presentation to its website that its CFO will present at the Morgan Stanley U.S. Financials Conference. This is a routine disclosure of conference materials under Regulation FD, ensuring all investors have equal access to information being shared at the conference.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jun 19, 2026 · How we verify