SLM Corp at Barclays Global Financial Services Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Terry Ma - Barclays Services Corp - Analyst : Yes. So I think we'll jump right into it. I wanted to start off with an update on peak origination season. How is it shaping up so far? You guys obviously put out an update this morning. So maybe just talk about that and what in the origination environment.

Question: Terry Ma - Barclays Services Corp - Analyst : Got it. And I guess the lower origination guide that you guys put out this morning. And do you attribute that to the softer demand that you saw in the second quarter kind of just going through? Or is it more just kind of credit actions that you've done earlier this year? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 09, 2025 / 2:30PM, SLM.OQ - SLM Corp at Barclays Global Financial Services Conference

Question: Terry Ma - Barclays Services Corp - Analyst : Got it. Okay. And then, I guess, if we think about the big picture, how are you thinking about the potential upside from the legislative driven market expansion?

Question: Terry Ma - Barclays Services Corp - Analyst : Got it. And how should investors think about the phase-in period for the additional volume of kind of Grad PLUS and Parent PLUS that you called out, when should the additional volume be kind of fully realized?

Question: Terry Ma - Barclays Services Corp - Analyst : Got it. You guys obviously quantified Parent PLUS as an opportunity. Maybe can you briefly touch on the desirability of Parent PLUS to investors? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 09, 2025 / 2:30PM, SLM.OQ - SLM Corp at Barclays Global Financial Services Conference

Question: Terry Ma - Barclays Services Corp - Analyst : Okay. And what about Grad PLUS? How do you think about Grad PLUS fitting into SLM's portfolio? Is that a product that we can think of as having lower credit risk that may be higher consolidation risk?

Question: Terry Ma - Barclays Services Corp - Analyst : Got it. And then you also indicated you're actively exploring funding partnerships in the private credit space. Can you just update us on where you stand in that process? And ultimately, what are you looking for in a partner?

Question: Terry Ma - Barclays Services Corp - Analyst : Can you maybe just expand and talk about how this new funding plan differs from your balance sheet and loan sales strategy today?

Question: Terry Ma - Barclays Services Corp - Analyst : Got it. Maybe we just switch gears and talk about credit. There's more noise than normal in trust data, particularly last month. Can you just remind us what the drivers of the difference between your trust credit results and your consolidated credit results are?

Question: Terry Ma - Barclays Services Corp - Analyst : Okay. And can you provide some color as to why the early-stage delinquencies ticked up in July, kind of what normal seasonal trends should look like or could look like?

Question: Terry Ma - Barclays Services Corp - Analyst : Got it. That's helpful. And can you remind us all the different borrower assistance programs you have out there? How are they differentiated? And ultimately, what are you seeking to accomplish by kind of having those?

Question: Terry Ma - Barclays Services Corp - Analyst : Got it. And maybe just following up. Why did you decide to change the requirements for qualifications for mod from 30 days to 60 plus?

Question: Terry Ma - Barclays Services Corp - Analyst : Got it. That's helpful. Maybe just taking a step back, there has been a rising level of concern on the employment rates of recent college graduates. What are you seeing in your data so far for the class of '23 and '24? And do you have any early indications for '25 graduates? Can you maybe just expand? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 09, 2025 / 2:30PM, SLM.OQ - SLM Corp at Barclays Global Financial Services Conference

Question: Terry Ma - Barclays Services Corp - Analyst : Okay. And yes, the question I get a lot is the resumption of federal student loan payments. Have you seen any additional noise on your portfolio from that impacting your borrowers?

Question: Terry Ma - Barclays Services Corp - Analyst : Got it. So when we put everything together, do you still view your long-term net charge-off range of high one's to low two's, as the right target? And any color on kind of the time line to get back there?

Question: Terry Ma - Barclays Services Corp - Analyst : Okay. Got it. Maybe we'll switch gears a little bit. What are the competitive advantages for Sallie Mae that has allowed you to kind of grow your share and maintain your position as the largest private student loan lender in the market?

Question: Terry Ma - Barclays Services Corp - Analyst : And we think about potential expansion in the market, how do you think that changes landscape? And do you think there is a risk that other competitors will be drawing into the space just given larger market?

Question: Terry Ma - Barclays Services Corp - Analyst : Okay. Got it. And you mentioned doubling the market isn't your base case, but I think if we look at the $4.5 billion to $5 billion run rate that you kind of guided to like where is the area for kind of upside from that? Like how conservative is that?

Question: Terry Ma - Barclays Services Corp - Analyst : Got it. That's helpful. And we think about the areas for expansion within that, like how do we kind of think about the Grad PLUS versus the Parent PLUS, like how much like where can the expansion kind of come from either of those?

Question: Terry Ma - Barclays Services Corp - Analyst : That's helpful. Then you laid out plans a few years ago to kind of slowly build up to this high single-digit receivables growth and also double-digit EPS growth eventually. Is that still the right growth algorithm today as you're under precipice of potential market expansion?

Question: Terry Ma - Barclays Services Corp - Analyst : Got it. You mentioned that you agreed on pricing for $1.8 billion of loan sale in the third quarter. Maybe just talk about what the market for loan sales look like currently. You obviously did a sale earlier this year at almost 10% gains margins. So maybe like how should investors think about the gain on sale medium term? And kind of what are some of the factors that we should be mindful of?

Question: Terry Ma - Barclays Services Corp - Analyst : Got it. We'll shift to NIM. So you guided too low to mid percent NIM is the right way to think about it long term with your NIM right in that range at about 5.3%. How do you expect that could be affected by potential rate cuts going forward?

Question: Terry Ma - Barclays Services Corp - Analyst : Got it. And is there any reason to expect NIM could be impacted by market expansion and the new loans that you may be underwriting?

Question: Terry Ma - Barclays Services Corp - Analyst : Got it. How do you think about the mix of the retained portfolio kind of going forward as you averse this new opportunity, you're doing, call it, $7 billion plus of in-school undergrad potentially up to $5 billion annually of kind of grad, how do you kind of like weight the different kind of characteristics of each of those?

Question: Terry Ma - Barclays Services Corp - Analyst : Got it. And just to be clear, you expect the Grad PLUS credit performance to be consistent with the high 1s to low 2s?

Question: Terry Ma - Barclays Services Corp - Analyst : Got it. So we have a little less than 10 minutes left. Paul is here and see if there's any questions from the audience. You have one question here. There's a mic coming. Unidentified Participant Can you talk about capital return priorities? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 09, 2025 / 2:30PM, SLM.OQ - SLM Corp at Barclays Global Financial Services Conference

Question: Terry Ma - Barclays Services Corp - Analyst : Any more questions from the audience? Maybe one more just on credit. You mentioned you made some tightening earlier this year and also last year. Maybe just remind us like what you see to kind of drive or make you kind of tighten the credit box?

Question: Terry Ma - Barclays Services Corp - Analyst : Okay. Got it. Any more questions from the audience? Okay. I think we will wrap it up on that.