SLM Eyes Next Growth Phase as Grad PLUS Reforms Fuel 12%-14% Origination Outlook

5 days ago 4

MarketBeat

Wed, February 11, 2026 astatine 6:35 AM CST 8 min read

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SLM forecasts 12–14% year-over-year backstage indebtedness origination maturation successful 2026 driven by national Grad PLUS reforms, and estimates a $5 billion graduate-lending accidental that volition ramp implicit two to 3 years.
The steadfast is moving to a strategical concern backing exemplary (initially with KKR) that sells recently originated loans — successful immoderate cases earlier afloat disbursement — to supply durable, capital-efficient backing and fee-based income; SLM expects the indebtedness portfolio to beryllium flat to somewhat down near-term portion returning to humble balance-sheet maturation later.
Management expects astir a 16% summation successful operating expenses astatine the midpoint arsenic it invests successful grad merchandise development, caller recognition models and marketing, and cautions the archetypal twelvemonth of postgraduate selling volition beryllium inefficient.
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SLM (NASDAQ:SLM) Chief Financial Officer Peter Graham said the institution is preparing for what helium described arsenic a “next phase” of growth, driven by changes to national pupil lending rules and supported by a caller strategical partnerships exemplary that the institution began gathering with an statement signed with KKR successful the 4th fourth of past year.

Speaking astatine a Bank of America league successful a league hosted by expert Mihir Bhatia, Graham said the reforms to national pupil lending passed past twelvemonth make an accidental for Sallie Mae to grow originations into portions of the marketplace wherever it has not historically competed, peculiarly successful postgraduate lending. He added that strategical partnerships are intended to supply durable and capital-efficient backing for that opportunity, portion generating fee-based income implicit time.

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Graham discussed the company’s 2026 outlook, including guidance for 12% to 14% year-over-year maturation successful backstage indebtedness originations. He said absorption expects the interaction from Grad PLUS betterment to statesman “filter[ing] through” starting successful the highest play this year, affecting some the company’s accepted undergraduate products and a newer postgraduate opportunity.

While helium characterized the postgraduate conception arsenic the larger incremental opportunity, Graham emphasized the phase-in timing. The caller rules use to caller enrollments opening successful the 2nd fractional of this year, which limits the first-year impact. He said the institution estimates a $5 billion Grad PLUS-related accidental erstwhile afloat scaled, but expects it to ramp implicit a two- to three-year play arsenic much cohorts travel nether the modified rules.