SLM Corporation, commonly known as Sallie Mae, reported its financial results for the second quarter of 2025, revealing a significant decline in net income and earnings per share compared to the same period last year. For the three months ended June 30, 2025, the company recorded a net income of $71.3 million, or $0.32 per diluted share, down from $252 million, or $1.11 per diluted share, in the prior year. The decrease in profitability was attributed to a higher provision for credit losses and the absence of gains from loan sales, which had positively impacted the previous year's results.
Total interest income for the second quarter increased to $656.8 million, up from $641.5 million a year earlier, primarily driven by a rise in average Private Education Loans. However, net interest income after provisions for credit losses fell to $228.1 million, compared to $355.3 million in the same quarter of 2024. The provision for credit losses surged to $149 million, reflecting a significant increase from $17 million in the prior year, largely due to new loan commitments and changes in economic outlook.
In terms of operational metrics, SLM's total loans held for investment reached $21.2 billion as of June 30, 2025, a slight increase from $20.9 billion at the end of 2024. The company reported a total of 16.2 million loans in repayment, with a delinquency rate of 3.5%, up from 3.3% a year prior. The company also noted that 40% of its Private Education Loans were in full principal and interest repayment status, a slight decrease from 42% in the previous year.
Strategically, SLM has focused on enhancing its risk management framework and optimizing its capital allocation. The company continues to maintain a rigorous approach to managing its credit quality, with an allowance for credit losses of $1.47 billion as of June 30, 2025. Additionally, SLM announced a new securitization transaction in July 2025, which is expected to positively impact its Private Education Loan originations in the coming years. The company remains committed to maximizing profitability and growth in its core private student loan business while navigating the evolving regulatory landscape and market conditions.
About SLM Corp
About 10-Q Filings
A 10-Q form is an important financial report that public companies in the United States must submit every three months. It gives a clear picture of a company's financial health and recent performance.
Key points about the 10-Q:
- Frequency: Companies file it three times a year, covering the first three quarters. The fourth quarter is covered in a more comprehensive annual report.
-
Content: It includes:
- Financial statements showing the company's current financial position
- Updates from management on the performance and projections of the business
- Information about potential risks the company faces
- Details on how the company is run internally
- Deadline: Must be filed within 40 or 45 days after the quarter ends, depending on the size of the company.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.