On October 22, 2026, SLM Corporation (Nasdaq: SLM) released its financial results for the third quarter ended September 30, 2026. The company reported a GAAP net loss per common share of $0.19 for the quarter, a decrease from the prior year. This loss was primarily attributed to provisions for credit losses and expenses related to the company's highest year-over-year growth in originations.
Originations for the quarter totaled $3.4 billion, representing a 15% increase from the year-ago quarter. This figure marks the largest single quarter of originations in the company's history. The growth was driven by a 119% increase in Graduate Loan originations during the first academic year following PLUS reform. The company noted that origination credit quality remained strong, with an average winning FICO score at approval of 757 and a cosigner rate of 92%.
On the credit performance side, third-quarter net charge-offs totaled $90 million, an increase from the year-ago quarter. The company attributed this rise to misaligned third-party debt resolution practices affecting a small, high-ability-to-pay segment of borrowers. Despite the increase in net charge-offs, delinquencies represented 4.2% of loans in repayment as of September 30, 2026, and the total allowance for credit losses as a percentage of Private Education Loan exposure improved to 5.89%.
SLM Corporation returned capital to shareholders during the quarter, repurchasing 5.1 million shares of common stock for $132.2 million. For the nine months ended September 30, 2026, the company repurchased 18.1 million shares for $415.6 million, with $111 million of capacity remaining under its 2026 Share Repurchase Program. The company also executed a strategic partnership with a leading global investment firm, including an initial seasoned portfolio loan sale of $143 million.
Regarding the outlook for the remainder of 2026, the company provided updated guidance. It expects diluted earnings per common share to range from $1.95 to $2.05, net charge-offs to be between $400 million and $420 million, and non-interest expenses to be between $750 million and $780 million. Private Education Loan originations growth is expected to remain between 12% and 14% for the full year.
