10-Q 1 slm-20240331.htm 10-Q slm-20240331
false2024Q1000103203312/31P1MP2Yhttp://fasb.org/us-gaap/2023#OtherAssetshttp://fasb.org/us-gaap/2023#OtherAssetshttp://fasb.org/us-gaap/2023#OtherLiabilitieshttp://fasb.org/us-gaap/2023#OtherLiabilitiesNicolas JafariehEVP & Chief Legal, Government Affairs and Communications Officer122Robert StrongDirector30200010320332024-01-012024-03-310001032033slm:CommonStockParValue20PerShareMember2024-01-012024-03-310001032033slm:FloatingRateNonCumulativePreferredStockSeriesBParValue20PerShareMember2024-01-012024-03-3100010320332024-03-31xbrli:sharesiso4217:USD00010320332023-12-31iso4217:USDxbrli:shares00010320332023-01-012023-03-310001032033us-gaap:PreferredStockMember2022-12-310001032033us-gaap:CommonStockMember2022-12-310001032033us-gaap:TreasuryStockCommonMember2022-12-310001032033us-gaap:AdditionalPaidInCapitalMember2022-12-310001032033us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310001032033us-gaap:RetainedEarningsMember2022-12-3100010320332022-12-310001032033us-gaap:RetainedEarningsMember2023-01-012023-03-310001032033us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-03-310001032033us-gaap:SeriesBPreferredStockMember2023-01-012023-03-310001032033us-gaap:SeriesBPreferredStockMemberus-gaap:RetainedEarningsMember2023-01-012023-03-310001032033us-gaap:CommonStockMember2023-01-012023-03-310001032033us-gaap:AdditionalPaidInCapitalMember2023-01-012023-03-310001032033us-gaap:TreasuryStockCommonMember2023-01-012023-03-310001032033us-gaap:PreferredStockMember2023-03-310001032033us-gaap:CommonStockMember2023-03-310001032033us-gaap:TreasuryStockCommonMember2023-03-310001032033us-gaap:AdditionalPaidInCapitalMember2023-03-310001032033us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-310001032033us-gaap:RetainedEarningsMember2023-03-3100010320332023-03-310001032033us-gaap:PreferredStockMember2023-12-310001032033us-gaap:CommonStockMember2023-12-310001032033us-gaap:TreasuryStockCommonMember2023-12-310001032033us-gaap:AdditionalPaidInCapitalMember2023-12-310001032033us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-310001032033us-gaap:RetainedEarningsMember2023-12-310001032033us-gaap:RetainedEarningsMember2024-01-012024-03-310001032033us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-01-012024-03-310001032033us-gaap:SeriesBPreferredStockMember2024-01-012024-03-310001032033us-gaap:SeriesBPreferredStockMemberus-gaap:RetainedEarningsMember2024-01-012024-03-310001032033us-gaap:CommonStockMember2024-01-012024-03-310001032033us-gaap:AdditionalPaidInCapitalMember2024-01-012024-03-310001032033us-gaap:TreasuryStockCommonMember2024-01-012024-03-310001032033us-gaap:PreferredStockMember2024-03-310001032033us-gaap:CommonStockMember2024-03-310001032033us-gaap:TreasuryStockCommonMember2024-03-310001032033us-gaap:AdditionalPaidInCapitalMember2024-03-310001032033us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-03-310001032033us-gaap:RetainedEarningsMember2024-03-31xbrli:pure0001032033us-gaap:MortgageBackedSecuritiesMember2024-03-310001032033slm:UtahHousingCorporationBondsMember2024-03-310001032033slm:USGovernmentSponsoredEnterprisesAndTreasuriesMember2024-03-310001032033us-gaap:OtherDebtSecuritiesMember2024-03-310001032033us-gaap:MortgageBackedSecuritiesMember2023-12-310001032033slm:UtahHousingCorporationBondsMember2023-12-310001032033slm:USGovernmentSponsoredEnterprisesAndTreasuriesMember2023-12-310001032033us-gaap:OtherDebtSecuritiesMember2023-12-310001032033us-gaap:MortgageBackedSecuritiesMember2024-03-310001032033slm:UtahHousingCorporationBondsMember2024-03-310001032033slm:USGovernmentSponsoredEnterprisesAndTreasuriesMember2024-03-310001032033us-gaap:OtherDebtSecuritiesMember2024-03-310001032033us-gaap:MortgageBackedSecuritiesMember2023-12-310001032033slm:UtahHousingCorporationBondsMember2023-12-310001032033slm:USGovernmentSponsoredEnterprisesAndTreasuriesMember2023-12-310001032033us-gaap:OtherDebtSecuritiesMember2023-12-31slm:security0001032033slm:Maturity2024Member2024-03-310001032033slm:Maturity2025Member2024-03-310001032033slm:Maturity2026Member2024-03-310001032033slm:Maturity2027Member2024-03-310001032033slm:Maturity2038Member2024-03-310001032033slm:Maturity2039Member2024-03-310001032033slm:Maturity2042Member2024-03-310001032033slm:Maturity2043Member2024-03-310001032033slm:Maturity2044Member2024-03-310001032033slm:Maturity2045Member2024-03-310001032033slm:Maturity2046Member2024-03-310001032033slm:Maturity2047Member2024-03-310001032033slm:Maturity2048Member2024-03-310001032033slm:Maturity2049Member2024-03-310001032033slm:Maturity2050Member2024-03-310001032033slm:Maturity2051Member2024-03-310001032033slm:Maturity2052Member2024-03-310001032033slm:Maturity2053Member2024-03-310001032033slm:Maturity2054Member2024-03-310001032033slm:Maturity2055Member2024-03-310001032033slm:Maturity2056Member2024-03-310001032033slm:Maturity2058Member2024-03-3100010320332023-01-012023-12-3100010320332006-07-0100010320332006-06-3000010320331993-09-300001032033slm:PrivateEducationLoansMember2024-01-012024-03-310001032033slm:PrivateEducationLoansMemberus-gaap:FixedIncomeInterestRateMember2024-03-310001032033slm:PrivateEducationLoansMemberus-gaap:FixedIncomeInterestRateMember2023-12-310001032033slm:PrivateEducationLoansMemberus-gaap:VariableIncomeInterestRateMember2024-03-310001032033slm:PrivateEducationLoansMemberus-gaap:VariableIncomeInterestRateMember2023-12-310001032033slm:PrivateEducationLoansMember2024-03-310001032033slm:PrivateEducationLoansMember2023-12-310001032033us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember2024-03-310001032033us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember2023-12-310001032033slm:PrivateEducationLoansMember2023-01-012023-03-310001032033us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember2024-01-012024-03-310001032033us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember2023-01-012023-03-310001032033us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember2023-12-310001032033slm:PrivateEducationLoansMember2023-12-310001032033us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember2024-01-012024-03-310001032033slm:PrivateEducationLoansMember2024-01-012024-03-310001032033us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember2024-03-310001032033slm:PrivateEducationLoansMember2024-03-310001032033us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember2022-12-310001032033slm:PrivateEducationLoansMember2022-12-310001032033slm:CreditCardsMember2022-12-310001032033us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember2023-01-012023-03-310001032033slm:PrivateEducationLoansMember2023-01-012023-03-310001032033slm:CreditCardsMember2023-01-012023-03-310001032033us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember2023-03-310001032033slm:PrivateEducationLoansMember2023-03-310001032033slm:CreditCardsMember2023-03-310001032033srt:MinimumMember2024-01-012024-03-310001032033srt:MaximumMember2024-01-012024-03-31slm:payment00010320332023-10-012023-12-310001032033srt:MinimumMember2023-12-310001032033srt:MaximumMember2023-12-310001032033slm:PrivateEducationLoansMemberus-gaap:ExtendedMaturityMember2023-12-310001032033slm:PrivateEducationLoansMemberus-gaap:ExtendedMaturityMember2023-10-012023-12-310001032033slm:PrivateEducationLoansMemberus-gaap:ExtendedMaturityMemberus-gaap:FinancialAssetNotPastDueMember2024-03-310001032033slm:PrivateEducationLoansMemberus-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:ExtendedMaturityMember2024-03-310001032033slm:PrivateEducationLoansMemberus-gaap:ExtendedMaturityMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2024-03-310001032033slm:PrivateEducationLoansMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:ExtendedMaturityMember2024-03-310001032033slm:PrivateEducationLoansMemberus-gaap:ExtendedMaturityMember2024-01-012024-03-310001032033us-gaap:ExtendedMaturityMember2024-01-012024-03-310001032033slm:PrivateEducationLoansMemberus-gaap:InterestRateBelowMarketReductionMember2024-01-012024-03-310001032033slm:PrivateEducationLoansMemberslm:InterestRateReductionAndTermExtensionMember2024-01-012024-03-310001032033us-gaap:InterestRateBelowMarketReductionMember2024-01-012024-03-310001032033slm:InterestRateReductionAndTermExtensionMember2024-01-012024-03-310001032033slm:PrivateEducationLoansMemberus-gaap:InterestRateBelowMarketReductionMember2023-01-012023-03-310001032033slm:PrivateEducationLoansMemberslm:InterestRateReductionAndTermExtensionMember2023-01-012023-03-310001032033us-gaap:InterestRateBelowMarketReductionMember2023-01-012023-03-310001032033slm:InterestRateReductionAndTermExtensionMember2023-01-012023-03-310001032033slm:PrivateEducationLoansMemberus-gaap:InterestRateBelowMarketReductionMembersrt:MaximumMember2024-01-012024-03-310001032033slm:PrivateEducationLoansMembersrt:MinimumMemberus-gaap:InterestRateBelowMarketReductionMember2024-01-012024-03-310001032033slm:PrivateEducationLoansMembersrt:MaximumMemberslm:InterestRateReductionAndTermExtensionMember2024-01-012024-03-310001032033slm:PrivateEducationLoansMembersrt:MinimumMemberslm:InterestRateReductionAndTermExtensionMember2024-01-012024-03-310001032033slm:PrivateEducationLoansMemberus-gaap:InterestRateBelowMarketReductionMembersrt:MaximumMember2023-01-012023-03-310001032033slm:PrivateEducationLoansMembersrt:MinimumMemberus-gaap:InterestRateBelowMarketReductionMember2023-01-012023-03-310001032033slm:PrivateEducationLoansMembersrt:MaximumMemberslm:InterestRateReductionAndTermExtensionMember2023-01-012023-03-310001032033slm:PrivateEducationLoansMembersrt:MinimumMemberslm:InterestRateReductionAndTermExtensionMember2023-01-012023-03-310001032033slm:PrivateEducationLoansMemberslm:FinancialAssetEqualToOrGreaterThan60DaysPastDueMember2024-01-012024-03-310001032033slm:PrivateEducationLoansMemberslm:FinancialAssetEqualToOrGreaterThan60DaysPastDueMember2023-01-012023-03-310001032033slm:FinancialAssetEqualToOrGreaterThan60DaysPastDueMember2024-01-012024-03-310001032033slm:FinancialAssetEqualToOrGreaterThan60DaysPastDueMember2023-01-012023-03-310001032033slm:PrivateEducationLoansMemberslm:LoansInSchoolGraceDefermentMember2024-01-012024-03-310001032033slm:PrivateEducationLoansMemberus-gaap:FinancialAssetNotPastDueMember2024-01-012024-03-310001032033slm:PrivateEducationLoansMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2024-01-012024-03-310001032033slm:PrivateEducationLoansMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2024-01-012024-03-310001032033slm:PrivateEducationLoansMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2024-01-012024-03-310001032033slm:LoansInSchoolGraceDefermentMember2024-01-012024-03-310001032033us-gaap:FinancialAssetNotPastDueMember2024-01-012024-03-310001032033us-gaap:FinancingReceivables30To59DaysPastDueMember2024-01-012024-03-310001032033us-gaap:FinancingReceivables60To89DaysPastDueMember2024-01-012024-03-310001032033us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2024-01-012024-03-310001032033slm:PrivateEducationLoansMemberslm:LoansInSchoolGraceDefermentMember2023-01-012023-12-310001032033slm:PrivateEducationLoansMemberus-gaap:FinancialAssetNotPastDueMember2023-01-012023-12-310001032033slm:PrivateEducationLoansMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2023-01-012023-12-310001032033slm:PrivateEducationLoansMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-01-012023-12-310001032033slm:PrivateEducationLoansMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-01-012023-12-310001032033slm:PrivateEducationLoansMember2023-01-012023-12-310001032033slm:LoansInSchoolGraceDefermentMember2023-01-012023-12-310001032033us-gaap:FinancialAssetNotPastDueMember2023-01-012023-12-310001032033us-gaap:FinancingReceivables30To59DaysPastDueMember2023-01-012023-12-310001032033us-gaap:FinancingReceivables60To89DaysPastDueMember2023-01-012023-12-310001032033us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-01-012023-12-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberslm:WithCosignerMember2024-03-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberslm:WithoutCosignerMember2024-03-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberslm:CosignerMember2024-03-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberslm:SchoolFicoMemberslm:FICOscorelessthan670Member2024-03-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberslm:SchoolFicoMemberslm:FICOscore670699Member2024-03-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberslm:SchoolFicoMemberslm:FICOscore700749Member2024-03-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberslm:SchoolFicoMemberslm:FICOscoregreaterthan750Member2024-03-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberslm:SchoolFicoMember2024-03-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberslm:SchoolFICORefreshedAmountsMemberslm:FICOscorelessthan670Member2024-03-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberslm:SchoolFICORefreshedAmountsMemberslm:FICOscore670699Member2024-03-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberslm:SchoolFICORefreshedAmountsMemberslm:FICOscore700749Member2024-03-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberslm:SchoolFICORefreshedAmountsMemberslm:FICOscoregreaterthan750Member2024-03-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberslm:SchoolFICORefreshedAmountsMember2024-03-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberslm:RepaymentsMemberslm:SeasoningBasedOnMonthlyScheduledPaymentsDueFromOneToTwelvePaymentsMember2024-03-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberslm:RepaymentsMemberslm:SeasoningBasedOnMonthlyScheduledPaymentsDueFromThirteenToTwentyFourPaymentsMember2024-03-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberslm:RepaymentsMemberslm:SeasoningBasedOnMonthlyScheduledPaymentsDueFromTwentyFiveToThirtySixPaymentsMember2024-03-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberslm:RepaymentsMemberslm:SeasoningBasedOnMonthlyScheduledPaymentsDueFromThirtySevenToFortyEightPaymentsMember2024-03-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberslm:RepaymentsMemberslm:SeasoningBasedOnMonthlyScheduledPaymentsDueFromMoreThanFortyEightPaymentsMember2024-03-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberslm:RepaymentsMemberslm:SeasoningBasedOnMonthlyScheduledPaymentsDueFromNotYetInRepaymentMember2024-03-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberslm:RepaymentsMember2024-03-310001032033us-gaap:StudentLoanMemberus-gaap:ConsumerPortfolioSegmentMember2024-01-012024-03-310001032033us-gaap:StudentLoanMemberus-gaap:ConsumerPortfolioSegmentMember2024-03-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberslm:WithCosignerMember2023-12-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberslm:WithoutCosignerMember2023-12-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberslm:CosignerMember2023-12-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberslm:SchoolFicoMemberslm:FICOscorelessthan670Member2023-12-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberslm:SchoolFicoMemberslm:FICOscore670699Member2023-12-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberslm:SchoolFicoMemberslm:FICOscore700749Member2023-12-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberslm:SchoolFicoMemberslm:FICOscoregreaterthan750Member2023-12-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberslm:SchoolFicoMember2023-12-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberslm:SchoolFICORefreshedAmountsMemberslm:FICOscorelessthan670Member2023-12-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberslm:SchoolFICORefreshedAmountsMemberslm:FICOscore670699Member2023-12-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberslm:SchoolFICORefreshedAmountsMemberslm:FICOscore700749Member2023-12-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberslm:SchoolFICORefreshedAmountsMemberslm:FICOscoregreaterthan750Member2023-12-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberslm:SchoolFICORefreshedAmountsMember2023-12-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberslm:RepaymentsMemberslm:SeasoningBasedOnMonthlyScheduledPaymentsDueFromOneToTwelvePaymentsMember2023-12-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberslm:RepaymentsMemberslm:SeasoningBasedOnMonthlyScheduledPaymentsDueFromThirteenToTwentyFourPaymentsMember2023-12-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberslm:RepaymentsMemberslm:SeasoningBasedOnMonthlyScheduledPaymentsDueFromTwentyFiveToThirtySixPaymentsMember2023-12-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberslm:RepaymentsMemberslm:SeasoningBasedOnMonthlyScheduledPaymentsDueFromThirtySevenToFortyEightPaymentsMember2023-12-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberslm:RepaymentsMemberslm:SeasoningBasedOnMonthlyScheduledPaymentsDueFromMoreThanFortyEightPaymentsMember2023-12-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberslm:RepaymentsMemberslm:SeasoningBasedOnMonthlyScheduledPaymentsDueFromNotYetInRepaymentMember2023-12-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberslm:RepaymentsMember2023-12-310001032033us-gaap:StudentLoanMemberus-gaap:ConsumerPortfolioSegmentMember2023-01-012023-12-310001032033us-gaap:StudentLoanMemberus-gaap:ConsumerPortfolioSegmentMember2023-12-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberslm:LoansInSchoolGraceDefermentMember2024-03-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberslm:LoansInForbearanceMember2024-03-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberus-gaap:FinancialAssetNotPastDueMember2024-03-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2024-03-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2024-03-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2024-03-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberslm:LoansInSchoolGraceDefermentMember2023-12-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberslm:LoansInForbearanceMember2023-12-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberus-gaap:FinancialAssetNotPastDueMember2023-12-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2023-12-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-12-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-12-310001032033us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2024-03-310001032033us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-12-310001032033us-gaap:TrademarksAndTradeNamesMember2024-03-310001032033us-gaap:TrademarksAndTradeNamesMember2023-12-310001032033us-gaap:CustomerRelationshipsMember2024-03-310001032033us-gaap:CustomerRelationshipsMember2023-12-310001032033us-gaap:DevelopedTechnologyRightsMember2024-03-310001032033us-gaap:DevelopedTechnologyRightsMember2023-12-310001032033slm:PartnerRelationshipsMember2024-03-310001032033slm:PartnerRelationshipsMember2023-12-310001032033slm:NitroCollegeMember2024-01-012024-03-310001032033slm:SchollyIncMember2024-01-012024-03-310001032033slm:NitroCollegeMemberus-gaap:TrademarksAndTradeNamesMember2023-12-012023-12-310001032033us-gaap:UnsecuredDebtMember2024-03-310001032033us-gaap:UnsecuredDebtMember2023-12-310001032033us-gaap:FixedIncomeInterestRateMemberus-gaap:SecuredDebtMemberslm:PrivateEducationLoanSecuritizationMember2024-03-310001032033us-gaap:FixedIncomeInterestRateMemberus-gaap:SecuredDebtMemberslm:PrivateEducationLoanSecuritizationMember2023-12-310001032033us-gaap:SecuredDebtMemberslm:PrivateEducationLoanSecuritizationMemberus-gaap:VariableIncomeInterestRateMember2024-03-310001032033us-gaap:SecuredDebtMemberslm:PrivateEducationLoanSecuritizationMemberus-gaap:VariableIncomeInterestRateMember2023-12-310001032033us-gaap:SecuredDebtMemberslm:PrivateEducationLoanSecuritizationMember2024-03-310001032033us-gaap:SecuredDebtMemberslm:PrivateEducationLoanSecuritizationMember2023-12-310001032033slm:ABCPBorrowingsMemberus-gaap:SecuredDebtMember2024-03-310001032033slm:ABCPBorrowingsMemberus-gaap:SecuredDebtMember2023-12-310001032033us-gaap:SecuredDebtMember2024-03-310001032033us-gaap:SecuredDebtMember2023-12-310001032033slm:SMBPrivateEducationLoanTrust2023AMember2023-03-310001032033us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMemberslm:SMBPrivateEducationLoanTrust2023AMember2023-03-310001032033slm:SMBPrivateEducationLoanTrust2023AMember2023-03-012023-03-310001032033slm:SMBPrivateEducationLoanTrust2023CMember2023-08-310001032033slm:SMBPrivateEducationLoanTrust2023CMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember2023-08-310001032033slm:SMBPrivateEducationLoanTrust2023CMember2023-08-012023-08-310001032033slm:PrivateEducationLoansSecuritizedIn2023Member2024-03-310001032033us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberslm:PrivateEducationLoanSecuritizationMember2024-03-310001032033us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberslm:ABCPBorrowingsMember2024-03-310001032033us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2024-03-310001032033us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberslm:PrivateEducationLoanSecuritizationMember2023-12-310001032033us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberslm:ABCPBorrowingsMember2023-12-310001032033us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2023-12-310001032033slm:PrivateEducationLoansMemberslm:SMBPrivateEducationLoanTrust2023BMember2024-03-132024-03-130001032033slm:SMBPrivateEducationLoanTrust2023BMember2024-01-012024-03-310001032033slm:PrivateEducationLoanSecuritizationMemberus-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2024-03-310001032033slm:PrivateEducationLoanSecuritizationMemberus-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2023-12-31slm:counterparty0001032033exch:XCME2024-03-310001032033slm:LondonClearingHouseMember2024-03-310001032033exch:XCME2024-01-012024-03-310001032033slm:LondonClearingHouseMember2024-01-012024-03-310001032033us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-03-310001032033us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-12-310001032033us-gaap:InterestRateSwapMemberus-gaap:FairValueHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-03-310001032033us-gaap:InterestRateSwapMemberus-gaap:FairValueHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-12-310001032033us-gaap:InterestRateSwapMemberus-gaap:NondesignatedMember2024-03-310001032033us-gaap:InterestRateSwapMemberus-gaap:NondesignatedMember2023-12-310001032033us-gaap:InterestRateSwapMember2024-03-310001032033us-gaap:InterestRateSwapMember2023-12-310001032033us-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-03-310001032033us-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-12-310001032033us-gaap:FairValueHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-03-310001032033us-gaap:FairValueHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-12-310001032033us-gaap:NondesignatedMember2024-03-310001032033us-gaap:NondesignatedMember2023-12-310001032033us-gaap:DepositsMember2024-03-310001032033us-gaap:DepositsMember2023-12-310001032033us-gaap:DesignatedAsHedgingInstrumentMember2024-01-012024-03-310001032033us-gaap:DesignatedAsHedgingInstrumentMember2023-01-012023-03-310001032033us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-01-012024-03-310001032033us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-01-012023-03-310001032033us-gaap:NondesignatedMember2024-01-012024-03-310001032033us-gaap:NondesignatedMember2023-01-012023-03-310001032033us-gaap:CommonStockMember2024-03-3100010320332023-09-012023-09-3000010320332022-09-012022-09-300001032033us-gaap:CommonStockMemberslm:A2022ShareRepurchaseProgramMember2022-01-260001032033us-gaap:CommonStockMemberslm:A2022ShareRepurchaseProgramMember2023-01-012023-03-310001032033us-gaap:CommonStockMemberslm:A2024ShareRepurchaseProgramMember2024-01-240001032033us-gaap:CommonStockMemberslm:A2024ShareRepurchaseProgramMember2024-01-012024-03-310001032033us-gaap:CommonStockMemberslm:Rule10b51TradingPlanMember2024-01-012024-03-310001032033us-gaap:CommonStockMemberslm:Rule10b51TradingPlanMember2023-01-012023-03-310001032033us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2024-03-310001032033us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2024-03-310001032033us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2024-03-310001032033us-gaap:FairValueMeasurementsRecurringMember2024-03-310001032033us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2023-12-310001032033us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2023-12-310001032033us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310001032033us-gaap:FairValueMeasurementsRecurringMember2023-12-310001032033us-gaap:FairValueInputsLevel3Member2024-03-310001032033us-gaap:FairValueInputsLevel3Member2023-12-310001032033slm:DebtSecuritiesTradingMember2024-01-012024-03-310001032033slm:DebtSecuritiesTradingMember2023-01-012023-03-310001032033srt:MinimumMemberslm:MeasurementInputCPRRateMember2024-03-310001032033slm:MeasurementInputCPRRateMembersrt:MaximumMember2024-03-310001032033srt:WeightedAverageMemberslm:MeasurementInputCPRRateMember2024-03-310001032033srt:MinimumMemberus-gaap:MeasurementInputDefaultRateMember2024-03-310001032033srt:MaximumMemberus-gaap:MeasurementInputDefaultRateMember2024-03-310001032033srt:WeightedAverageMemberus-gaap:MeasurementInputDefaultRateMember2024-03-310001032033slm:PrivateEducationLoansMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2024-03-310001032033slm:PrivateEducationLoansMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2024-03-310001032033slm:PrivateEducationLoansMember2024-03-310001032033slm:PrivateEducationLoansMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-12-310001032033slm:PrivateEducationLoansMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2023-12-310001032033slm:PrivateEducationLoansMember2023-12-310001032033us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2024-03-310001032033us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2024-03-310001032033us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember2024-03-310001032033us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-12-310001032033us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2023-12-310001032033us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember2023-12-310001032033us-gaap:EstimateOfFairValueFairValueDisclosureMember2024-03-310001032033us-gaap:CarryingReportedAmountFairValueDisclosureMember2024-03-310001032033us-gaap:EstimateOfFairValueFairValueDisclosureMember2023-12-310001032033us-gaap:CarryingReportedAmountFairValueDisclosureMember2023-12-310001032033us-gaap:EstimateOfFairValueFairValueDisclosureMemberslm:MoneyMarketandSavingsAccountsMember2024-03-310001032033us-gaap:CarryingReportedAmountFairValueDisclosureMemberslm:MoneyMarketandSavingsAccountsMember2024-03-310001032033slm:MoneyMarketandSavingsAccountsMember2024-03-310001032033us-gaap:EstimateOfFairValueFairValueDisclosureMemberslm:MoneyMarketandSavingsAccountsMember2023-12-310001032033us-gaap:CarryingReportedAmountFairValueDisclosureMemberslm:MoneyMarketandSavingsAccountsMember2023-12-310001032033slm:MoneyMarketandSavingsAccountsMember2023-12-310001032033us-gaap:CertificatesOfDepositMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2024-03-310001032033us-gaap:CertificatesOfDepositMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2024-03-310001032033us-gaap:CertificatesOfDepositMember2024-03-310001032033us-gaap:CertificatesOfDepositMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-12-310001032033us-gaap:CertificatesOfDepositMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2023-12-310001032033us-gaap:CertificatesOfDepositMember2023-12-310001032033srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2020-01-012020-01-010001032033srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2020-01-010001032033slm:CumulativeEffectPeriodOfAdoptionAdjustedPhaseInAmountsRemainingMember2021-12-310001032033srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2022-12-310001032033srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2023-12-310001032033srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2024-03-310001032033slm:CumulativeEffectPeriodOfAdoptionAdjustedPhaseInAmountsRemainingMember2024-03-310001032033slm:PrivateEducationLoansMemberus-gaap:SubsequentEventMember2024-04-090001032033slm:PrivateEducationLoansMemberus-gaap:SubsequentEventMemberslm:SMBPrivateEducationLoanTrust2024BMember2024-04-112024-04-110001032033us-gaap:SubsequentEventMemberslm:SMBPrivateEducationLoanTrust2024BMember2024-04-112024-04-110001032033slm:NicolasJafariehMember2024-01-012024-03-310001032033slm:NicolasJafariehMember2024-03-310001032033slm:RobertStrongMember2024-01-012024-03-310001032033slm:RobertStrongMember2024-03-31


 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
 
(Mark One)
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2024
or
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from              to             
Commission File Number: 001-13251
 
SLM Corporation
(Exact name of registrant as specified in its charter)
 
Delaware52-2013874
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
300 Continental DriveNewark,Delaware19713
(Address of principal executive offices)(Zip Code)
(302) 451-0200
(Registrant’s telephone number, including area code)
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stock, par value $.20 per shareSLMThe NASDAQ Global Select Market
Floating Rate Non-Cumulative Preferred Stock, Series B, par value $.20 per shareSLMBPThe NASDAQ Global Select Market
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
 
Large accelerated filer Accelerated filer
Non-accelerated filer(Do not check if a smaller reporting company)Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  No  
As of March 31, 2024, there were 220,275,834 shares of common stock outstanding.





SLM CORPORATION

CONSOLIDATED FINANCIAL STATEMENTS
INDEX



2 SLM CORPORATION




 
CONSOLIDATED BALANCE SHEETS (Unaudited)
March 31,December 31,
(Dollars in thousands, except share and per share amounts)20242023
Assets
Cash and cash equivalents$3,584,013 $4,149,838 
Investments:
Trading investments at fair value (cost of $44,978 and $43,412, respectively)
58,166 54,481 
Available-for-sale investments at fair value (cost of $2,423,183 and $2,563,984, respectively)
2,271,108 2,411,622 
Other investments89,765 91,567 
Total investments2,419,039 2,557,670 
Loans held for investment (net of allowance for losses of $1,350,058 and $1,339,772, respectively)
20,200,789 20,306,357 
Restricted cash 147,809 149,669 
Other interest-earning assets7,572 9,229 
Accrued interest receivable1,386,487 1,379,904 
Premises and equipment, net127,414 129,501 
Goodwill and acquired intangible assets, net67,496 68,711 
Income taxes receivable, net277,733 366,247 
Other assets58,930 52,342 
Total assets$28,277,282 $29,169,468 
Liabilities
Deposits$20,903,456 $21,653,188 
Long-term borrowings4,976,882 5,227,512 
Other liabilities283,205 407,971 
Total liabilities26,163,543 27,288,671 
Commitments and contingencies
Equity
Preferred stock, par value $0.20 per share, 20 million shares authorized:
Series B: 2.5 million and 2.5 million shares issued, respectively, at stated value of $100 per share
251,070 251,070 
Common stock, par value $0.20 per share, 1.125 billion shares authorized: 440.2 million and 438.2 million shares issued, respectively
88,032 87,647 
Additional paid-in capital1,163,838 1,148,689 
Accumulated other comprehensive loss (net of tax benefit of ($24,752) and ($24,176), respectively)
(77,291)(75,104)
Retained earnings3,884,694 3,624,859 
Total SLM Corporation stockholders’ equity before treasury stock5,310,343 5,037,161 
Less: Common stock held in treasury at cost: 219.9 million and 217.9 million shares, respectively
(3,196,604)(3,156,364)
Total equity2,113,739 1,880,797 
Total liabilities and equity$28,277,282 $29,169,468 






See accompanying notes to consolidated financial statements.
SLM CORPORATION 3



 
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

(Dollars in thousands, except per share amounts)
Three Months Ended 
 March 31,
20242023
Interest income:
Loans$596,607 $582,784 
Investments14,507 11,331 
Cash and cash equivalents52,444 43,483 
Total interest income663,558 637,598 
Interest expense:
Deposits220,445 183,531 
Interest expense on short-term borrowings3,562 3,018 
Interest expense on long-term borrowings52,535 45,981 
Total interest expense276,542 232,530 
Net interest income387,016 405,068 
Less: provisions for credit losses12,041 114,112 
Net interest income after provisions for credit losses374,975 290,956 
Non-interest income:
Gains (losses) on sales of loans, net143,039 (9)
Gains on securities, net2,118 1,711 
Other income 29,001 20,009 
Total non-interest income174,158 21,711 
Non-interest expenses:
Operating expenses:
Compensation and benefits96,476 87,649 
FDIC assessment fees13,312 11,529 
Other operating expenses50,645 55,361 
Total operating expenses160,433 154,539 
Acquired intangible assets amortization expense1,215 2,272 
Total non-interest expenses161,648 156,811 
Income before income tax expense 387,485 155,856 
Income tax expense97,554 37,338 
Net income 289,931 118,518 
Preferred stock dividends4,653 4,063 
Net income attributable to SLM Corporation common stock$285,278 $114,455 
Basic earnings per common share $1.29 $0.47 
Average common shares outstanding220,416 241,497 
Diluted earnings per common share$1.27 $0.47 
Average common and common equivalent shares outstanding223,845 243,549 
Declared dividends per common share$0.11 $0.11 





See accompanying notes to consolidated financial statements.
4 SLM CORPORATION




 
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

(Dollars in thousands)
Three Months Ended 
 March 31,
20242023
Net income$289,931 $118,518 
Other comprehensive income (loss):
Unrealized gains on investments286 35,556 
Unrealized losses on cash flow hedges(3,049)(14,999)
Total unrealized gains (losses)(2,763)20,557 
Income tax (expense) benefit576 (5,020)
Other comprehensive income (loss), net of tax (expense) benefit(2,187)15,537 
Total comprehensive income$287,744 $134,055 






















See accompanying notes to consolidated financial statements.
SLM CORPORATION 5





CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited)
Common Stock Shares
(In thousands, except share and per share amounts)Preferred Stock SharesIssuedTreasuryOutstandingPreferred StockCommon StockAdditional Paid-In CapitalAccumulated
Other
Comprehensive
Loss
Retained EarningsTreasury StockTotal Equity
Balance at December 31, 20222,510,696 435,121,140 (194,445,696)240,675,444 $251,070 $87,025 $1,109,072 $(93,870)$3,163,640 $(2,789,967)$1,726,970 
Net income— — — — — — — — 118,518 — 118,518 
Other comprehensive loss, net of tax— — — — — — — 15,537 — — 15,537 
Total comprehensive income— — — — — — — — — — 134,055 
Cash dividends declared:
Common stock ($0.11 per share)
— — — — — — — — (26,635)— (26,635)
Preferred Stock, Series B ($1.62 per share)
— — — — — — — — (4,063)— (4,063)
Issuance of common shares— 2,523,744 — 2,523,744 — 505 474 — (982)— (3)
Stock-based compensation expense— — — — — — 11,536 —  — 11,536 
Shares repurchased related to employee stock-based compensation plans— — (949,431)(949,431)— — — — — (14,765)(14,765)
Balance at March 31, 20232,510,696 437,644,884 (195,395,127)242,249,757 $251,070 $87,530 $1,121,082 $(78,333)$3,250,478 $(2,804,732)$1,827,095 













See accompanying notes to consolidated financial statements.
6 SLM CORPORATION




CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited)
Common Stock Shares
(In thousands, except share and per share amounts)Preferred Stock SharesIssuedTreasuryOutstandingPreferred StockCommon StockAdditional Paid-In CapitalAccumulated
Other
Comprehensive
Loss
Retained EarningsTreasury StockTotal Equity
Balance at December 31, 20232,510,696 438,230,416 (217,886,532)220,343,884 $251,070 $87,647 $1,148,689 $(75,104)$3,624,859 $(3,156,364)$1,880,797 
Net income— — — — — — — — 289,931 — 289,931 
Other comprehensive loss, net of tax— — — — — — — (2,187)— — (2,187)
Total comprehensive income— — — — — — — — — — 287,744 
Cash dividends declared:
Common stock ($0.11 per share)
— — — — — — — — (24,278)— (24,278)
Preferred Stock, Series B ($1.85 per share)
— — — — — — — — (4,653)— (4,653)
Issuance of common shares— 1,925,920 — 1,925,920 — 385 1,359 — (1,165)— 579 
Stock-based compensation expense— — — — — — 13,790 — — — 13,790 
Common stock repurchased— — (1,310,723)(1,310,723)— — — — — (26,639)(26,639)
Shares repurchased related to employee stock-based compensation plans— — (683,247)(683,247)— — — — — (13,601)(13,601)
Balance at March 31, 20242,510,696 440,156,336 (219,880,502)220,275,834 $251,070 $88,032 $1,163,838 $(77,291)$3,884,694 $(3,196,604)$2,113,739 

















See accompanying notes to consolidated financial statements.




SLM CORPORATION 7



CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Three Months Ended 
 March 31,
(Dollars in thousands)20242023
Operating activities
Net income$289,931 $118,518 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Provisions for credit losses12,041 114,112 
Income tax expense97,554 37,338 
Amortization of brokered deposit placement fee2,803 3,121 
Amortization of Secured Borrowing Facility upfront fee713 723 
Amortization of deferred loan origination costs and loan premium/(discounts), net3,229 3,421 
Net amortization of discount on investments(601)(622)
Increase in tax indemnification receivable (42)
Depreciation of premises and equipment4,705 4,524 
Acquired intangible assets amortization expense1,215 2,272 
Stock-based compensation expense13,790 11,536 
Unrealized (gains) losses on derivatives and hedging activities, net20 (56)
(Gains) losses on sales of loans, net(143,039)9 
Gains on securities, net(2,118)(1,711)
Other adjustments to net income, net2,939 3,063 
Changes in operating assets and liabilities:
Increase in accrued interest receivable(287,000)(257,888)
Increase in non-marketable securities(283) 
Decrease (increase) in other interest-earning assets1,657 (1,869)
Increase in other assets(23,046)(26,632)
(Decrease) increase in income taxes payable, net(6,463)2,483 
(Decrease) increase in accrued interest payable(15,738)20,358 
Decrease in other liabilities(29,020)(23,770)
Total adjustments(366,642)(109,630)
Total net cash (used in) provided by operating activities(76,711)8,888 
Investing activities
Loans acquired and originated(2,593,293)(2,463,358)
Net proceeds from sales of loans held for investment and loans held for sale2,149,774 (9)
Proceeds from FFELP Loan claim payments10,819 11,274 
Net decrease in loans held for investment and loans held for sale (other than loans acquired and originated, and loan sales)751,120 912,681 
Purchases of available-for-sale securities(25,790)(4,992)
Proceeds from sales and maturities of available-for-sale securities279,700 73,352 
Total net cash provided by (used in) investing activities572,330 (1,471,052)
Financing activities
Brokered deposit placement fee (2,634)
Net increase in certificates of deposit31,555 515,909 
Net decrease in other deposits(787,295)(167,836)
Borrowings collateralized by loans in securitization trusts - issued 569,871 
Borrowings collateralized by loans in securitization trusts - repaid(253,176)(293,120)
Fees paid on Secured Borrowing Facility (16)
Common stock dividends paid(24,278)(26,635)
Preferred stock dividends paid(4,653)(4,063)
Common stock repurchased(25,457)(4,005)
Total net cash (used in) provided by financing activities(1,063,304)587,471 
Net decrease in cash, cash equivalents and restricted cash(567,685)(874,693)
Cash, cash equivalents and restricted cash at beginning of period4,299,507 4,772,836 
Cash, cash equivalents and restricted cash at end of period$3,731,822 $3,898,143 
Cash disbursements made for:
Interest$284,041 $198,874 
8 SLM CORPORATION


Income taxes paid$7,280 $4,700 
Income taxes refunded$(1,001)$(7,273)
Reconciliation of the Consolidated Statements of Cash Flows to the Consolidated Balance Sheets:
Cash and cash equivalents$3,584,013 $3,716,379 
Restricted cash147,809 181,764 
Total cash, cash equivalents and restricted cash$3,731,822 $3,898,143 



















See accompanying notes to consolidated financial statements.
SLM CORPORATION 9





1. Significant Accounting Policies
Basis of Presentation
The accompanying unaudited, consolidated financial statements of SLM Corporation (“Sallie Mae,” “SLM,” the “Company,” “we,” or “us”) have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information. Accordingly, they do not include all the information and footnotes required by GAAP for complete consolidated financial statements. The consolidated financial statements include the accounts of SLM Corporation and its majority-owned and controlled subsidiaries after eliminating the effects of intercompany accounts and transactions. In the opinion of management, all adjustments considered necessary for a fair statement of the results for the interim periods have been included. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Operating results for the three months ended March 31, 2024 are not necessarily indicative of the results for the year ending December 31, 2024 or for any other period. These unaudited financial statements should be read in conjunction with the audited financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 Form 10-K”).
Consolidation
The consolidated financial statements include the accounts of the Company and its majority-owned and controlled subsidiaries after eliminating the effects of intercompany accounts and transactions.
We consolidate any variable interest entity (“VIE”) where we have determined we are the primary beneficiary. The primary beneficiary is the entity which has both: (i) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance; and (ii) the obligation to absorb losses or receive benefits of the entity that could potentially be significant to the VIE.



10 SLM CORPORATION


2. Investments
Trading Investments
We periodically sell Private Education Loans (as hereinafter defined) through securitization transactions where we are required to retain a five percent vertical risk retention interest (i.e., five percent of each class issued in the securitizations). We classify those vertical risk retention interests related to the transactions as available-for-sale investments, except for the interest in the residual classes, which we classify as trading investments recorded at fair value with changes recorded through earnings. At March 31, 2024 and December 31, 2023, we had $58 million and $54 million, respectively, classified as trading investments.
Available-for-Sale Investments
The amortized cost and fair value of securities available for sale are as follows:

As of March 31, 2024
(dollars in thousands)
Amortized Cost
Allowance for credit losses(1)
Gross Unrealized GainsGross Unrealized LossesEstimated Fair Value
Available-for-sale:
Mortgage-backed securities$485,026 $ $353 $(71,171)$414,208 
Utah Housing Corporation bonds3,201   (292)2,909 
U.S. government-sponsored enterprises and Treasuries1,396,341   (63,613)1,332,728 
Other securities538,615  2,385 (19,737)521,263 
Total $2,423,183 $ $2,738 $(154,813)$2,271,108 
As of December 31, 2023
(dollars in thousands)
Amortized Cost
Allowance for credit losses(1)
Gross Unrealized GainsGross Unrealized LossesEstimated Fair Value
Available-for-sale:
Mortgage-backed securities$468,204 $ $703 $(62,480)$406,427 
Utah Housing Corporation bonds3,408   (279)3,129 
U.S. government-sponsored enterprises and Treasuries1,645,609   (66,870)1,578,739 
Other securities446,763  603 (24,039)423,327 
Total $2,563,984 $ $1,306 $(153,668)$2,411,622 

(1) Represents the amount of impairment that has resulted from credit-related factors and that was recognized in the consolidated balance sheets (as a credit loss expense on available-for-sale securities). The amount excludes unrealized losses related to non-credit factors.

SLM CORPORATION 11


2.Investments (Continued)
The following table summarizes the amount of gross unrealized losses for our available-for-sale securities and the estimated fair value for securities having gross unrealized loss positions, categorized by length of time the securities have been in an unrealized loss position:

(Dollars in thousands)
Less than 12 months12 months or moreTotal
Gross
Unrealized
Losses
Estimated
Fair Value
Gross
Unrealized
Losses
Estimated
Fair Value
Gross
Unrealized
Losses
Estimated
Fair Value
As of March 31, 2024:
Mortgage-backed securities$(1,650)$98,678 $(69,521)$286,434 $(71,171)$385,112 
Utah Housing Corporation bonds  (292)2,909 (292)2,909 
U.S. government-sponsored enterprises and Treasuries  (63,613)1,232,727 (63,613)1,232,727 
Other securities(1,226)63,358 (18,511)201,538 (19,737)264,896 
Total$(2,876)$162,036 $(151,937)$1,723,608 $(154,813)$1,885,644 
As of December 31, 2023:
Mortgage-backed securities$(531)$51,391 $(61,949)$300,318 $(62,480)$351,709 
Utah Housing Corporation bonds  (279)3,129 (279)3,129 
U.S. government-sponsored enterprises and Treasuries  (66,870)1,578,739 (66,870)1,578,739 
Other securities(2,221)90,725 (21,818)241,253 (24,039)331,978 
Total$(2,752)$142,116 $(150,916)$2,123,439 $(153,668)$2,265,555 

At March 31, 2024 and December 31, 2023, 228 of 258 and 213 of 248, respectively, of our available-for-sale securities were in an unrealized loss position.
Impairment
For available-for-sale securities in an unrealized loss position, we first assess whether we intend to sell, or it is more likely than not that we will be required to sell, the security before recovery of its amortized cost basis. If either of these criteria are met, the security’s amortized cost basis is written down to fair value through net income. For securities in an unrealized loss position that do not meet these criteria, we evaluate whether the decline in fair value has resulted from credit loss or other factors. In making this assessment, we consider the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, adverse conditions specifically related to the security, as well as any guarantees (e.g., guarantees by the U.S. Government) that may be applicable to the security. If this assessment indicates a credit loss exists, the credit-related portion of the loss is recorded as an allowance for losses on the security.
Our investment portfolio contains mortgage-backed securities issued by Ginnie Mae, Fannie Mae, and Freddie Mac, as well as Utah Housing Corporation bonds. We own these securities to meet our requirements under the Community Reinvestment Act (“CRA”). We also invest in other U.S. government-sponsored enterprise securities issued by the Federal Home Loan Banks, Freddie Mac, and the Federal Farm Credit Bank. Our mortgage-backed securities that were issued under Ginnie Mae programs carry a full faith and credit guarantee from the U.S. Government. The remaining mortgage-backed securities in a net loss position carry a principal and interest guarantee by Fannie Mae or Freddie Mac, respectively. Our Treasury and other U.S. government-sponsored enterprise bonds are rated Aaa by Moody’s Investors Service or AA+ by Standard and Poor’s. We have the intent and ability to hold these bonds for a period of time sufficient for the market price to recover to at least the adjusted amortized cost of the security. Based on this qualitative analysis, we have determined that no credit impairment exists.
We periodically sell Private Education Loans through securitization transactions where we are required to retain a five percent vertical risk retention interest. We classify the non-residual vertical risk retention interests as available-for-sale investments. We have the intent and ability to hold each of these bonds for a period of time sufficient for the market price to recover to at least the adjusted amortized cost of the security. We expect to receive all contractual cash flows related to these investments and do not consider a credit impairment to exist.

12 SLM CORPORATION


2.Investments (Continued)
As of March 31, 2024, the amortized cost and fair value of securities, by contractual maturities, are summarized below. Contractual maturities versus actual maturities may differ due to the effect of prepayments.
As of March 31, 2024
Year of Maturity
(dollars in thousands)
Amortized CostEstimated Fair Value
2024449,757 442,325 
2025299,063 290,830 
2026548,807 504,757 
202798,713 94,816 
203868 68 
2039581 566 
20422,252 1,928 
20434,079 3,626 
20444,467 4,047 
20454,898 4,300 
20467,451 6,498 
20477,409 6,533 
20482,008 1,923 
204915,238 13,344 
2050106,282 83,558 
2051153,057 119,243 
205251,825 44,160 
2053242,958 235,101 
205486,866 79,516 
205582,255 79,089 
2056210,422 209,947 
205844,727 44,933 
Total$2,423,183 $2,271,108 

Some of the mortgage-backed securities and a portion of the government securities have been pledged to the Federal Reserve Bank (the “FRB”) as collateral against any advances and accrued interest under the Primary Credit lending program sponsored by the FRB. We had $578 million and $612 million par value of securities pledged to this borrowing facility at March 31, 2024 and December 31, 2023, respectively, as discussed further in Notes to Consolidated Financial Statements, Note 8, “Borrowings” in this Form 10-Q.
Other Investments
Investments in Non-Marketable Securities
We hold investments in non-marketable securities and account for these investments at cost, less impairment, plus or minus observable price changes of identical or similar securities of the same issuer. Changes in market value are recorded through earnings. Because these are non-marketable securities, we use observable price changes of identical or similar securities of the same issuer, or when observable prices are not available, use market data of similar entities, in determining any changes in the value of the securities. At both March 31, 2024 and December 31, 2023, our total investment in these securities was $14 million.




SLM CORPORATION 13


2.Investments (Continued)
Low Income Housing Tax Credit Investments
We invest in affordable housing projects that qualify for the low-income housing tax credit (“LIHTC”), which is designed to promote private development of low-income housing. These investments generate a return mostly through realization of federal tax credits and tax benefits from net operating losses on the underlying properties. Total carrying value of the LIHTC investments was $70 million at March 31, 2024 and $72 million at December 31, 2023. We are periodically required to provide additional financial support during the investment period. Our liability for these unfunded commitments was $23 million at March 31, 2024 and $30 million at December 31, 2023.
Related to these investments, we recognized tax credits and other tax benefits through tax expense of $1 million at March 31, 2024 and $11 million at December 31, 2023. Tax credits and other tax benefits are recognized as part of our annual effective tax rate used to determine tax expense in a given quarter. Accordingly, the portion of a year’s expected tax benefits recognized in any given quarter may differ from 25 percent.

3. Loans Held for Investment
Loans held for investment consist of Private Education Loans and FFELP Loans. We use “Private Education Loans” to mean education loans to students or their families that are not made, insured, or guaranteed by any state or federal government. Private Education Loans do not include loans insured or guaranteed under the previously existing Federal Family Education Loan Program (“FFELP”).
Our Private Education Loans are made largely to bridge the gap between the cost of higher education and the amount funded through financial aid, government loans, and customers’ resources. Private Education Loans bear the full credit risk of the customer. We manage this risk through risk-performance underwriting strategies and qualified cosigners. Private Education Loans may be fixed-rate or may carry a variable interest rate indexed to SOFR, the Secured Overnight Financing Rate. As of March 31, 2024 and December 31, 2023, 29 percent and 33 percent, respectively, of all of our Private Education Loans were indexed to SOFR. We provide incentives for customers to include a cosigner on the loan, and the vast majority of Private Education Loans in our portfolio are cosigned. We also encourage customers to make payments while in school.
FFELP Loans are insured as to their principal and accrued interest in the event of default, subject to a risk-sharing level based on the date of loan disbursement. These insurance obligations are supported by contractual rights against the United States. For loans disbursed on or after July 1, 2006, we receive 97 percent reimbursement on all qualifying claims. For loans disbursed after October 1, 1993 and before July 1, 2006, we receive 98 percent reimbursement on all qualifying claims. For loans disbursed prior to October 1, 1993, we receive 100 percent reimbursement on all qualifying claims.
In the first three months of 2024, we recognized $143 million in gains from the sale of approximately $2.10 billion of Private Education Loans, including $1.95 billion of principal and $151 million in capitalized interest, to an unaffiliated third party. There were VIEs created in the execution of certain of these loan sales; however, based on our consolidation analysis, we are not the primary beneficiary of these VIEs. These transactions qualified for sale treatment and removed the balance of the loans from our balance sheet on the respective settlement dates. We remained the servicer of these loans pursuant to applicable servicing agreements executed in connection with the sales. For additional information, see Notes to Consolidated Financial Statements, Note 8, “Borrowings - Unconsolidated VIEs” in this Form 10-Q. There were no loan sales in the first three months of 2023.


14 SLM CORPORATION


3.Loans Held for Investment (Continued)
Loans held for investment are summarized as follows:
March 31,December 31,
(Dollars in thousands)20242023
Private Education Loans:
Fixed-rate$14,788,341 $13,985,791 
Variable-rate6,164,005 7,040,053 
Total Private Education Loans, gross20,952,346 21,025,844 
Deferred origination costs and unamortized premium/(discount)80,868 81,554 
Allowance for credit losses(1,345,431)(1,335,105)
Total Private Education Loans, net19,687,783 19,772,293 
FFELP Loans516,363 537,401 
Deferred origination costs and unamortized premium/(discount)1,270 1,330 
Allowance for credit losses(4,627)(4,667)
Total FFELP Loans, net513,006 534,064 
Loans held for investment, net$20,200,789 $20,306,357 
 
The estimated weighted average life of education loans in our portfolio was approximately 5.4 years and 5.0 years at March 31, 2024 and December 31, 2023, respectively.

The average balance (net of unamortized premium/(discount)) and the respective weighted average interest rates of loans held for investment in our portfolio are summarized as follows:

20242023
Three Months Ended March 31,
(dollars in thousands)
Average BalanceWeighted Average Interest RateAverage BalanceWeighted Average Interest Rate
Private Education Loans$21,442,744 11.01 %$21,755,202 10.66 %
FFELP Loans527,012 7.24 602,072 6.87 
Total portfolio$21,969,756 $22,357,274 


4. Allowance for Credit Losses
Our provision for credit losses represents the periodic expense of maintaining an allowance sufficient to absorb lifetime expected credit losses in the held for investment loan portfolios. The evaluation of the allowance for credit losses is inherently subjective, as it requires material estimates that may be susceptible to significant changes. We believe the allowance for credit losses is appropriate to cover lifetime losses expected to be incurred in the loan portfolios. See Notes to Consolidated Financial Statements, Note 2, “Significant Accounting Policies — Allowance for Credit Losses — Allowance for Private Education Loan Losses, — Allowance for FFELP Loan Losses” in our 2023 Form 10-K for a more detailed discussion.

SLM CORPORATION 15


4.Allowance for Credit Losses (Continued)
Allowance for Credit Losses Metrics
Three Months Ended March 31, 2024
(dollars in thousands)
FFELP
Loans
Private Education
Loans
Total
Allowance for Credit Losses
Beginning balance$4,667 $1,335,105 $1,339,772 
Transfer from unfunded commitment liability(1)
 131,614 131,614 
Provisions:
Provision for current period83 94,476 94,559 
Loan sale reduction to provision (133,204)(133,204)
Total provisions(2)
83 (38,728)(38,645)
Net charge-offs:
Charge-offs(123)(93,874)(93,997)
Recoveries 11,314 11,314 
Net charge-offs(123)(82,560)(82,683)
Ending Balance$4,627 $1,345,431 $1,350,058 
Allowance(3):
Ending balance: collectively evaluated for impairment$4,627 $1,345,431 $1,350,058 
Loans(3):
Ending balance: collectively evaluated for impairment$516,363 $20,952,346 $21,468,709 
Accrued interest to be capitalized(3):
Ending balance: collectively evaluated for impairment$ $1,217,295 $1,217,295 
Net charge-offs as a percentage of average loans in repayment (annualized)(4)
0.12 %2.14 %
Allowance as a percentage of the ending total loan balance and accrued interest to be capitalized(5)
0.90 %6.07 %
Allowance as a percentage of the ending loans in repayment and accrued interest to be capitalized on loans in repayment(4)(5)
1.17 %8.74 %
Allowance coverage of net charge-offs (annualized)9.40 4.07 
Ending total loans, gross$516,363 $20,952,346 
Average loans in repayment(4)
$399,680 $15,407,495 
Ending loans in repayment(4)
$393,820 $14,961,692 
Accrued interest to be capitalized on loans in repayment(6)
$ $440,259 
(1) See Note 5, “Unfunded Loan Commitments,” for a summary of the activity in the allowance for and balance of unfunded loan commitments, respectively.

(2) Below is a reconciliation of the provisions for credit losses reported in the consolidated statements of income. When a new loan commitment is made, we record the CECL allowance as a liability for unfunded loan commitments by recording a provision for credit losses. When the loan is funded, we transfer that liability to the allowance for credit losses.
Consolidated Statements of Income
Provisions for Credit Losses Reconciliation
Three Months Ended March 31, 2024 (dollars in thousands)
Private Education Loan provisions for credit losses:
Provisions for loan losses$(38,728)
Provisions for unfunded loan commitments50,686 
Total Private Education Loan provisions for credit losses11,958 
Other impacts to the provisions for credit losses:
FFELP Loans83 
Total83 
Provisions for credit losses reported in consolidated statements of income$12,041 

(3) For the three months ended March 31, 2024, there were no allowance for credit losses, loans, or accrued interest to be capitalized balances that were individually evaluated for impairment.
(4) Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period (but, for purposes of the table, do not include those loans while they are in forbearance).
(5) Accrued interest to be capitalized on Private Education Loans only.
(6) Accrued interest to be capitalized on loans in repayment includes interest on loans that are in repayment but have not yet entered into full principal and interest repayment status after any applicable grace period (but, for purposes of the table, does not include the interest on those loans while they are in forbearance).
16 SLM CORPORATION


4.Allowance for Credit Losses (Continued)

Three Months Ended March 31, 2023
(dollars in thousands)
FFELP 
Loans
Private
 Education
Loans
Credit Cards(7)
Total
Allowance for Credit Losses
Beginning balance$3,444 $1,353,631 $ $1,357,075 
Transfer from unfunded commitment liability(1)
 148,513  148,513 
Provisions:
Provision for current period739 56,334 730 57,803 
Total provisions(2)
739 56,334 730 57,803 
Net charge-offs:
Charge-offs(256)(95,085)(741)(96,082)
Recoveries 11,986 11 11,997 
Net charge-offs(256)(83,099)(730)(84,085)
Ending Balance$3,927 $1,475,379 $ $1,479,306 
Allowance(3):
Ending balance: collectively evaluated for impairment$3,927 $1,475,379 $ $1,479,306 
Loans(3):
Ending balance: collectively evaluated for impairment$592,318 $21,898,003 $ $22,490,321 
Accrued interest to be capitalized(3):
Ending balance: collectively evaluated for impairment$ $1,150,802 $ $1,150,802 
Net charge-offs as a percentage of average loans in repayment (annualized)(4)
0.23 %2.11 % %
Allowance as a percentage of the ending total loan balance and accrued interest to be capitalized(5)
0.66 %6.40 % %
Allowance as a percentage of the ending loans in repayment and accrued interest to be capitalized on loans in repayment(4)(5)
0.88 %9.00 % %
Allowance coverage of net charge-offs (annualized)3.83 4.44  
Ending total loans, gross$592,318 $21,898,003 $ 
Average loans in repayment(4)
$451,451 $15,764,143 $ 
Ending loans in repayment(4)
$446,214 $15,990,459 $ 
Accrued interest to be capitalized on loans in repayment(6)
$ $408,263 $ 
(1) See Note 5, “Unfunded Loan Commitments,” for a summary of the activity in the allowance for and balance of unfunded loan commitments, respectively.
(2) Below is a reconciliation of the provisions for credit losses reported in the consolidated statements of income. When a new loan commitment is made, we record the CECL allowance as a liability for unfunded loan commitments by recording a provision for credit losses. When the loan is funded, we transfer that liability to the allowance for credit losses.
Consolidated Statements of Income
Provisions for Credit Losses Reconciliation
Three Months Ended March 31, 2023 (dollars in thousands)
Private Education Loan provisions for credit losses:
Provisions for loan losses$56,334 
Provisions for unfunded loan commitments56,309 
Total Private Education Loan provisions for credit losses112,643 
Other impacts to the provisions for credit losses:
FFELP Loans739 
Credit Cards730 
Total1,469 
Provisions for credit losses reported in consolidated statements of income$114,112 
(3) For the three months ended March 31, 2023, there were no allowance for credit losses, loans, or accrued interest to be capitalized balances that were individually evaluated for impairment.
(4) Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period (but, for purposes of the table, do not include those loans while they are in forbearance).
(5) Accrued interest to be capitalized on Private Education Loans only.
(6) Accrued interest to be capitalized on loans in repayment includes interest on loans that are in repayment but have not yet entered into full principal and interest repayment status after any applicable grace period (but, for purposes of the table, does not include the interest on those loans while they are in forbearance).
(7) We use “Credit Cards” to refer to the suite of Credit Card loans that we previously held; we sold the Credit Card portfolio to a third party in May 2023.l
SLM CORPORATION 17


4.Allowance for Credit Losses (Continued)
Allowance for Credit Losses
Our loss model includes forecasts of college graduate unemployment, home price index, and median family income in determining the adequacy of the allowance for credit losses. We obtain forecasts for these inputs from Moody’s Analytics. Moody’s Analytics provides a range of forecasts for each of these inputs with various likelihoods of occurring. We determine which forecasts we will include in our estimation of the allowance for credit losses and the associated weightings for each of these inputs. At March 31, 2023, December 31, 2023, and March 31, 2024, we used the Base (50th percentile likelihood of occurring)/S1 (stronger near-term growth scenario with 10 percent likelihood of occurring)/S3 (downside scenario with 10 percent likelihood of occurring) scenarios and weighted them 40 percent, 30 percent, and 30 percent, respectively. Management reviews both the scenarios and their respective weightings each quarter in determining the allowance for credit losses.
Provisions for credit losses for the three months ended March 31, 2024 decreased by $102 million compared with the year-ago period. During the three months ended March 31, 2024, the provision for credit losses was primarily affected by $133 million in negative provisions recorded as a result of the $2.10 billion Private Education Loan sales during the first three months of 2024, an improved economic outlook, and changes in management overlays and recovery rates, offset by new loan commitments, net of expired commitments, and increases to the provision as a result of decreases in our estimates of the historical long-term average prepayment speeds used after the two-year reasonable and supportable period. In the year-ago quarter, the provision for credit losses was primarily affected by provisions for new loan commitments, net of expired commitments, slower prepayment rates, and changes in economic outlook and recovery rates.
As part of concluding on the adequacy of the allowance for credit losses, we review key allowance and loan metrics. The most significant of these metrics considered are the allowance coverage of net charge-offs ratio; the allowance as a percentage of ending total loans and accrued interest to be capitalized and of ending loans in repayment and accrued interest to be capitalized on loans in repayment; and delinquency and forbearance percentages.
Loan Modifications to Borrowers Experiencing Financial Difficulty
The allowance for credit losses incorporates an estimate of lifetime expected credit losses and is recorded on each asset upon asset origination or acquisition. The starting point for the estimate of the allowance for credit losses is historical information, which includes losses from modifications of receivables whose borrowers are experiencing financial difficulty. We use a discounted cash flow model to determine the allowance for credit losses. An assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification.
The effect of most modifications of loans made to borrowers who are experiencing financial difficulty is already included in the allowance for credit losses because of the measurement methodologies used to estimate the allowance. The forecast of expected future cash flows is updated as the loan modifications occur.
We adjust the terms of loans for certain borrowers when we believe such changes will help our customers manage their student loan obligations and achieve better student outcomes, and increase the collectability of the loans. These changes generally take the form of a temporary forbearance of payments, a temporary or permanent interest rate reduction, a temporary or permanent interest rate reduction with a permanent extension of the loan term, and/or a short-term extended repayment alternative. Forbearance is granted prospectively for borrowers who are current in their payments and may be granted retroactively for certain delinquent borrowers.
When we give a borrower facing financial difficulty an interest rate reduction under our programs, we evaluate their ability to pay and provide customized repayment terms based upon their financial condition. As part of demonstrating the ability and willingness to pay, the customer must make three consecutive monthly payments at the reduced payment to qualify for the program. We believe by tailoring the modification programs to the borrower’s current financial condition and not having a one size fits all approach, we increase the likelihood the borrower will be able to make the modified payments and avoid default. This approach of giving different interest rate reductions to different borrowers experiencing more severe hardship also helps us better manage the overall assistance we provide to borrowers. We currently limit the granting of a permanent extension of the final maturity date of a loan under our loan modification programs to one time over the life of the loan. We also currently permit two consecutive rate reductions so long as the borrower qualifies and makes three consecutive monthly payments at the reduced payment in connection with each rate reduction. We also now limit the number of interest rate reductions to twice over the life of the loan.
Within the Private Education Loan portfolio, we deem loans greater than 90 days past due as nonperforming. FFELP Loans are at least 97 percent guaranteed as to their principal and accrued interest by the federal government in the event
18 SLM CORPORATION


4.Allowance for Credit Losses (Continued)
of default and, therefore, we do not deem FFELP Loans as nonperforming from a credit risk perspective at any point in their life cycle prior to claim payment and continue to accrue interest on those loans through the date of claim.
For additional information, see Notes to Consolidated Financial Statements, Note 2, “Significant Accounting Policies —Allowance for Credit Losses,” and Note 7, “Allowance for Credit Losses” in our 2023 Form 10-K.
Under our current forbearance practices, temporary forbearance of payments is generally granted in one-to-two month increments, for up to 12 months over the life of the loan, with 12 months of positive payment performance by a borrower required between grants (meaning the borrower must make payment in a cumulative amount equivalent to 12 monthly required payments under the loan). See Notes to Consolidated Financial Statements, Note 5, “Loans Held for Investment — Certain Collection Tools - Private Education Loans” in our 2023 Form 10-K. In the first quarter of 2022, we adopted ASU No. 2022-02 (see Notes to Consolidated Financial Statements, Note 2, “Significant Accounting Policies” in our 2023 Form 10-K). Under ASU No. 2022-02, if the debt has been previously restructured, an entity must consider the cumulative effect of past restructurings made within the 12-month period before the current restructuring when determining whether a delay in payment resulting from the current restructuring is insignificant. Due to our current forbearance practices, including the limitations on forbearances offered to borrowers, we do not believe the granting of forbearances will exceed the significance threshold and, therefore, we do not consider the forbearances as loan modifications.
The limitations on granting of forbearances described above apply to hardship forbearances. We offer other administrative forbearances (e.g., death and disability, bankruptcy, military service, disaster forbearance, and in school assistance) that are either required by law (such as by the Servicemembers Civil Relief Act) or are considered separate from our active loss mitigation programs and therefore are not considered to be loan modifications requiring disclosure under ASU No. 2022-02. In addition, we may offer on a limited basis term extensions or rate reductions or a combination of both to borrowers to reduce consolidation activities. For purposes of this disclosure, we do not consider them modifications of loans to borrowers experiencing financial difficulty and they therefore are not included in the tables below.
In the fourth quarter of 2023, we developed additional modification programs tailored to the financial condition of individual borrowers. Pursuant to these additional modification programs, for our borrowers experiencing the most severe financial conditions, we currently may reduce the contractual interest rate on a loan to as low as 2 percent for the remaining life of the loan and also permanently extend the final maturity of the loan. Other borrowers experiencing severe hardship may not require as much assistance, however, given their circumstances. In those instances, we may reduce the contractual interest rate on a loan to a rate greater than 2 percent, and up to 8 percent, for a temporary period of two to four years, and in some instances may also permanently extend the final maturity of the loan. These new programs are reflected in the tables below.
As part of the additional modification programs that were launched in the fourth quarter of 2023, we also offered for a short period of time a permanent term extension with no interest rate reduction program. This program ended in the fourth quarter of 2023. The amortized cost of this program totaled $10.5 million, representing 0.05 percent of the total Private Education Loan portfolio. This program added a weighted average of 6.6 years to the life of loans in the program. As of March 31, 2024, $9.8 million of these loans were in a current or deferred status, $0.4 million of these loans were 30-59 days past due, $0.08 million of these loans were 60-89 days past due, and $0.2 million of these loans were 90 days or greater past due. For the three months ended March 31, 2024, there were $0.2 million modified loans1 (with $0.2 million of unpaid principal balance at the time of default) in this program that defaulted within 12 months of receiving the term extension and no loans charged off within 12 months of receiving the term extension. We define payment default as 60 days past due for purposes of this disclosure.
1 Represents period-end amortized cost basis of Private Education Loans as of March 31, 2024.
SLM CORPORATION 19


4.Allowance for Credit Losses (Continued)
The following tables show the amortized cost basis at the end of the respective reporting periods of the loans to borrowers experiencing financial difficulty that were modified during the period, disaggregated by class of financing receivable and type of modification. When we approve a Private Education Loan at the beginning of an academic year, we do not always disburse the full amount of the loan at the time of approval, but instead have a commitment to fund a portion of the loan at a later date (usually at the start of the second semester or subsequent trimesters). We consider borrowers to be in financial difficulty after they have exited school and have difficulty making their scheduled principal and interest payments.
Loan Modifications Made to Borrowers Experiencing Financial Difficulty
Three Months Ended March 31, 2024
(dollars in thousands)
Interest Rate ReductionCombination - Interest Rate Reduction and Term Extension
Loan Type:Amortized Cost Basis% of Total Class of Financing ReceivableAmortized Cost Basis% of Total Class of Financing Receivable
Private Education Loans$4,991 0.02 %$252,761 1.13 %
Total$4,991 0.02 %$252,761 1.13 %

Loan Modifications Made to Borrowers Experiencing Financial Difficulty
Three Months Ended March 31, 2023
(dollars in thousands)
Interest Rate ReductionCombination - Interest Rate Reduction and Term Extension
Loan Type:Amortized Cost Basis% of Total Class of Financing ReceivableAmortized Cost Basis% of Total Class of Financing Receivable
Private Education Loans$12,902 0.06 %$81,780 0.35 %
Total$12,902 0.06 %$81,780 0.35 %



The following tables describe the financial effect of the modifications made to loans whose borrowers are experiencing financial difficulty:

Three Months Ended March 31, 2024
Interest Rate ReductionCombination - Interest Rate
Reduction and Term Extension
Loan TypeFinancial EffectLoan TypeFinancial Effect
Private Education Loans
Reduced average contractual rate from 13.15% to 3.94%
Private Education Loans
Added a weighted average 8.59 years to the life of loans

Reduced average contractual rate from 12.57% to 3.71%


20 SLM CORPORATION


4.Allowance for Credit Losses (Continued)
Three Months Ended March 31, 2023
Interest Rate ReductionCombination - Interest Rate
Reduction and Term Extension
Loan TypeFinancial EffectLoan TypeFinancial Effect
Private Education Loans
Reduced average contractual rate from 12.47% to 4.00%
Private Education Loans
Added a weighted average