April Trust: DQs Improve, NCOs Better Than Seasonal, Mods Improve

Research evidence excerpt

April Trust: DQs Improve, NCOs Better Than Seasonal, Mods Improve

TD Cowen SLM Corp

Global Research May 14, 2026

AT A GLANCE

Our Investment Thesis Forthcoming Catalysts

We rate SLM Buy as the company maintains and improves its dominant market share of the ■ Loan sale margins

private student loan market. SLM continues to originate high-quality loans (avg. FICO score of ■ Credit normalization

754, 92% cosigned). The company also offers strong capital returns as it continues to sell loans

at attractive GoS margins while continuing to repurchase shares. Valuation is also attractive vs.

historical.

Base Case Assumptions Upside Scenario Downside Scenario

■ Buying back $500mm of the stock ■ Stock repurchase more than expected ■ Stock repurchase less than expected

through 2026 ■ Increasing its current market share ■ Decreasing its current market share

■ Maintaining dominant market share ■ Admissions returning to above normal ■ Admissions staying below normal levels

■ Admissions returning to normal levels levels

Price Performance Company Description

SLM Corporation (Sallie Mae) is engaged in the business of originating, servicing and collecting

$40

loans for students and/or their parents to finance the cost of their education. The company also

provides online tools and resources for college planning. As of the end of Q4 2024, Sallie Mae

35 holds a private education loan portfolio worth $20.9 billion. The company offers both fixed and

variable rate student loans. As of the end of Q4 2024, SLM’s portfolio comprises 77% fixed-rate

30 loans and 23% variable rate. In 2014, Sallie Mae split into two separate companies: Sallie Mae

and Navient. Sallie Mae maintained its consumer banking business and continued to originate

new private education loans.