SLM Corporation (Sallie Mae) reported a net income of $745 million for the year ended December 31, 2025, translating to $3.46 in diluted earnings per common share. This represents a 23% increase compared to the net income of $608 million, or $2.68 per diluted share, reported for the year ended December 31, 2024. The increase was primarily driven by a rise in net interest income, a decrease in provisions for credit losses, and an increase in gains on sales of loans and other income, partially offset by an increase in total non-interest expenses.
Net interest income for 2025 increased by $22 million to $1.502 billion, compared to $1.481 billion in 2024. This was mainly due to a $1.5 billion increase in average Private Education Loans outstanding and a 5-basis point increase in the net interest margin to 5.24%. The provision for credit losses decreased by $76 million, from $409 million in 2024 to $333 million in 2025, primarily due to $297 million in negative provisions resulting from $4.95 billion in Private Education Loan sales during 2025 and the $44 million in the reversal of provision in fourth quarter of 2025 due to the transfer of loans held for sale. Gains on sales of loans, net, increased by $114 million to $369 million in 2025, compared to $255 million in 2024, as a result of selling approximately $4.95 billion of Private Education Loans in 2025.
Strategic developments in 2025 included the announcement of the company's first private credit strategic partnership, a new funding model that allows SLM to establish a capital-light, fee-based revenue strategy. This model involves selling Private Education Loans while maintaining customer relationships, retaining servicing, and earning ongoing fees for servicing and program management. The company expects this partnership to expand access to scalable and capital-efficient funding, strengthen loan origination capacity, and improve the ability to serve students and families.
Key operational developments included a 6% increase in Private Education Loan originations, reaching $7.4 billion in 2025. As of December 31, 2025, Private Education Loans held for investment, net, totaled $20.3 billion. The company's lending philosophy emphasizes responsible borrowing, with an average FICO score of 755 for Private Education Loans originated in 2025 and approximately 92.8% of those loans being cosigned. As of December 31, 2025, 4.0% of Private Education Loans in repayment were 30 days or more delinquent, and Private Education Loans in forbearance were 2.7% of loans in repayment and forbearance. Private Education Loan net charge-offs as a percentage of average loans in repayment were 2.15% in 2025. The company anticipates that changes to federal student loan programs, effective July 1, 2026, will increase demand for Private Education Loans, particularly for graduate students and parents.
About SLM Corp
SLM Corporation, known as Sallie Mae, is a leading provider of private student loans, offering origination and servicing for high-quality education financing. It serves students and families nationwide, primarily funding higher education costs through private loans, deposit products, and market-based funding. The company emphasizes responsible lending, customer support, and digital engagement, supporting access to higher education and fostering financial responsibility.
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