Provisions for credit losses of $214m, up from $179m a year earlier, and higher costs pushed SLM Corporation, which trades as Sallie Mae, to a net loss attributable to common stock of $36m in Q3 2026, against net income of $132m a year earlier. The student lender said the loss was primarily due to provision and expenses related to what it called its highest ever year-over-year originations growth. On 22 October 2026 it also cut its 2026 outlook for diluted earnings per common share to $1.95-$2.05 from $3.10-$3.20. Diluted EPS for the first nine months was $1.68, against $2.35 a year earlier.
- 2026 diluted EPS outlook (updated) · 22 October 20261.95-2.05 $ from $3.10-$3.20
- GAAP diluted loss per common share · Q3 20260.19 $ against EPS of $0.63 in Q3 2025
- Private Education Loan originations · Q3 20263.4 $bn +15% year on year
- Net charge-offs (excluding $19.1m of previously charged-off loans purchased) · Q3 202690 $m against $77.5m in Q3 2025
- Provisions for credit losses · Q3 2026214 $m against $179m in Q3 2025
Diluted earnings per common share Full year 2026
The release labels the outlook diluted earnings per common share and reports EPS on a GAAP basis only; it gives no non-GAAP EPS measure.
Source: SLM Corporation Q3 2026 results (Form 8-K, Exhibit 99.1), 22 October 2026, 22 October 2026.
| Items | Prior 2026 guidance | Updated 2026 guidance (22 October 2026) |
|---|---|---|
| Net charge-offs | $365m-$385m | $400m-$420m |
| Private Education Loan originations growth | 12%-14% | 12%-14% |
| Non-interest expenses | $750m-$780m | $750m-$780m |
Net gains on sales of loans were $3.7m, against $136.0m a year earlier. Non-interest expenses rose 22% year on year to $221m, which the company largely attributed to peak-season costs to capture new volume and customers following PLUS reform.
| Items | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
| Net interest income | $339.3m | $373m | −9.0% |
| Provisions for credit losses | $213.7m | $179.5m | +19.1% |
| Total non-interest income | $36.1m | $172.7m | −79.1% |
| Total non-interest expenses | $220.7m | $180.4m | +22.3% |
Source: SLM Corporation Q3 2026 results (Form 8-K, Exhibit 99.1), 22 October 2026, Three months to 30 September 2026.
“We delivered a record peak season, highlighted by the largest single quarter of originations in the Company’s history. Credit quality of originations remained strong, and we’re encouraged by the significant growth in graduate student lending following changes to federal student loan programs.”
Private Education Loan originations rose 15% from a year earlier to $3.4bn in Q3 2026, including 119% growth in Graduate Loan originations in the first academic year following PLUS reform, the company said. Net charge-offs were $90m, up from $77.5m in Q3 2025, which Sallie Mae said was primarily driven by “misaligned third-party debt resolution practices” affecting “a small, high-ability-to-pay segment of borrowers” who went straight from delinquency to default. The figure excludes $19.1m of previously charged-off loans the company bought from an unconsolidated securitization. Delinquencies were 4.2% of loans in repayment at 30 September 2026, against 4.0% a year earlier.
- BuybackShares repurchased (5.1m shares)$132.2m
- DividendDeclared dividend per common share$0.13 per share
Source: SLM Corporation Q3 2026 results (Form 8-K, Exhibit 99.1), 22 October 2026, Q3 2026.
- SLM Corporation, Q3 2026 results (Form 8-K, Exhibit 99.1), 22 Oct 2026, 22:32 CEST