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1 Confidential and proprietary information. © 2025 Sallie Mae Bank. All rights reserved. Earnings Presentation 2nd Quarter 2025
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2 Confidential and proprietary information. © 2025 Sallie Mae Bank. All rights reserved. 2 The following information is current as of July 24, 2025 (unless otherwise noted) and should be read in connection with the press release of SLM Corporation announcing its financial results for the quarter ended June 30, 2025, furnished to the Securities and Exchange Commission (“SEC”) on July 24, 2025, and subsequent reports filed with the SEC. This Presentation contains “forward-looking statements” and information based on management’s current expectations as of the date of this Presentation. Statements that are not historical facts, including statements about the Company’s (as hereinafter defined) beliefs, opinions, or expectations and statements that assume or are dependent upon future events, are forward-looking statements. These include, but are not limited to: strategies; goals and assumptions of SLM Corporation and its subsidiaries, collectively or individually as the context requires (the “Company”); the Company’s expectation and ability to execute loan sales and share repurchases; the Company’s expectation and ability to pay a quarterly cash dividend on our common stock in the future, subject to the approval of our Board of Directors; the Company’s 2025 guidance; the Company’s three-year horizon outlook; the impact of acquisitions we have made or may make in the future; the Company’s projections regarding originations, net charge-offs, non-interest expenses, earnings, balance sheet position, and other metrics; any estimates related to accounting standard changes; and any estimates related to the impact of credit administration practices changes, including the results of simulations or other behavioral observations. Forward-looking statements are subject to risks, uncertainties, assumptions, and other factors, many of which are difficult to predict and generally beyond the control of the Company, which may cause actual results to be materially different from those reflected in such forward-looking statements. There can be no assurance that future developments affecting the Company will be the same as those anticipated by management. The Company cautions readers that a number of important factors could cause actual results to differ materially from those expressed in, or implied or projected by, such forward-looking statements. These factors include, among others, the risks and uncertainties set forth in Item 1A. “Risk Factors” and elsewhere in the Company’s most recently filed Annual Report on Form 10-K and subsequent filings with the SEC; increases in financing costs; limits on liquidity; increases in costs associated with compliance with laws and regulations; failure to comply with consumer protection, banking, and other laws or regulations; changes in laws, regulations, and supervisory expectations, especially in light of the goals of the Trump administration; our ability to timely develop new products and services and the acceptance of those products and services by potential and existing customers; changes in accounting standards and the impact of related changes in significant accounting estimates, including any regarding the measurement of our allowance for credit losses and the related provision expense; any adverse outcomes in any significant litigation to which the Company is a party; credit risk associated with the Company’s exposure to third parties, including counterparties to the Company’s derivative transactions; the effectiveness of our risk management framework and quantitative models; and changes in the terms of education loans and the educational credit marketplace (including changes resulting from new laws and the implementation of existing laws). We could also be affected by, among other things: changes in our funding costs and availability; reductions to our credit ratings; cybersecurity incidents, cyberattacks, and other failures or breaches of our operating systems or infrastructure, including those of third-party vendors; the societal, demographic, business, and legislative/regulatory impacts of pandemics, other public health crises, severe weather events, and/or natural disasters; damage to our reputation; risks associated with restructuring initiatives, including failures to successfully implement cost-cutting programs and the adverse effects of such initiatives on our business; changes in the demand for educational financing or in financing preferences of lenders, educational institutions, students, and their families, including changes as a result of new limits on, or reductions in, funding that certain educational institutions receive from the Federal government; changes in law and regulations with respect to the student lending business and financial institutions generally; changes in banking rules and regulations, including increased capital requirements; increased competition from banks and other consumer lenders; the creditworthiness of our customers, or any change related thereto; changes in the general interest rate environment, including the rate relationships among relevant money-market instruments and those of our earning assets versus our funding arrangements; rates of prepayments on the loans owned by us; changes in general economic conditions, including as a result of the impact of tariffs or trade wars or other current initiatives of the Federal government, that may impact the demand for student loans and the risk of default of outstanding loans; our ability to successfully effectuate any acquisitions; and other strategic initiatives. The preparation of our consolidated financial statements also requires management to make certain estimates and assumptions, including estimates and assumptions about future events. These estimates or assumptions may prove to be incorrect. All oral and written forward-looking statements attributed to the Company are expressly qualified in their entirety by the factors, risks, and uncertainties set forth in the foregoing cautionary statements, and are made only as of the date of this Presentation or, where the statement is oral, as of the date stated. We do not undertake any obligation to update or revise any forward-looking statements to conform to actual results or changes in our expectations, nor to reflect events or circumstances that occur after the date on which such statements were made. In light of these risks, uncertainties, and assumptions, you should not put undue reliance on any forward- looking statements discussed. CAUTIONARY NOTE AND DISCLAIMER REGARDING FORWARD-LOOKING STATEMENTS
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3 $67M GAAP Net Income attributable to common stock in Q2 2025. $0.32 Q2 2025 GAAP diluted earnings per common share. 5.31% Net interest margin for Q2 2025; a decrease of 5 basis points from Q2 2024. $167M Total non-interest expenses in Q2 2025, as compared to $159M total non-interest expenses in the year-ago quarter. 2nd Quarter 2025 Highlights $686M Private Education Loan Originations(1) in Q2 2025 as compared to $691M in the year-ago quarter. $0.13 Common stock dividend per share paid in Q2 2025. 12.6% Return on Common Equity (2) for Q2 2025. 12.8% Total risk-based capital ratio; CET1 capital ratio of 11.5%. 2.4M Shares repurchased in Q2 2025 under the 2024 share repurchase program at an avg. price of $29.46 per share; $302 million of capacity left under repurchase program authorization as of June 30, 2025. Balance Sheet & Capital Allocation Income Statement & Earnings Summary
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4 $149M Q2 2025 provision for credit losses; an increase from Q2 2024 due to loan sale timing, net commitments, as well as macroeconomic factors. 3.5% Percentage of Private Education Loans delinquent 30+ days as of 6/30/2025. $94M Private Education Loan net charge- offs for Q2 2025; 2.36% of average loans in repayment (annualized), compared with 2.19% in Q2 2024. 0.9% Percentage of Private Education Loans in an extended grace period as of 6/30/2025 (3) ; 0.9% of Private Education Loans in hardship and other forbearance (4) as of 6/30/2025. 80%+ Percentage of borrowers with Modified Loans, since inception of the current loan modification programs, that successfully made their first three payments at the modified rate. Additional Key Performance Metrics Credit Performance Funding & Liquidity Deposit portfolio balances at the end of Q2 2025 were 1% lower than at the end of Q2 2024; Q2 2025 mix of brokered vs. retail and other was approximately 42% and 58%, respectively. $539M Successfully settled the first student loan ABS transaction of the year on 5/7/25. 17.8% Liquidity ratio as of June 30, 2025. ABS transaction pricing was aligned with last year’s deals, with strong investor demand despite a volatile market.
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5Confidential and proprietary information. © 2025 Sallie Mae Bank. All rights reserved. $5,423 $5,975 $6,383 $7,013 2021 2022 2023 2024 2025 87%748 56% 86%747 57% 86%750 59% Private Education Loan Trends Second quarter 2025 originations at approximately $686 million, comparable to the year-ago quarter. Cosigned rate for originations improved 4% from the year ago quarter and average FICO at approval(5) for the portfolio was up 2 points. Average FICO at Approval(5) In School Payment Cosigned Private Education Loan Originations(1) + 7% + 10% 754 Average FICO at Approval(5) 56% In School Payment 84% Cosigned Q2 2025 752 Average FICO at Approval(5) 54% In School Payment 80% Cosigned Q2 2024 + 10% * $3,457 YTD Full Year 2025* $3,273 YTD 90%752 56% * The shaded block representing full year 2025 originations is a projected estimate. These estimates and related comments constitute forward-looking statements and are based on performance during the first six months of 2025 and management’s current expectations and beliefs. There can be no guarantee as to whether and to what extent these estimates will be achieved. The Company undertakes no obligation to revise or release any revision or update to these forward-looking statements. See our Forward-Looking Statements disclosures on pg. 2 for more information. Q2
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6 Federal Student Loan Reform Update On July 4th, 2025, H.R.1., which contains major federal student lending reforms, was signed into law. Setting reasonable limits on parent and graduate lending better aligns these programs with the broader federal loan system and reduces the likelihood the government will lend families more than they can reasonably repay. Eliminates Grad PLUS Loans and Expands Unsubsidized Stafford Loans for Professional Graduate Students - Unsubsidized Stafford loans to graduate students remain capped at $20,500 annually; lowered to $100,000 aggregate. - Unsubsidized Stafford loans to professional graduate students raised to $50,000 annually; $200,000 aggregate. Caps Parent PLUS Loans - Introduces a $20,000 annual cap; added $65,000 aggregate (per student). Leaves Undergraduate Loan Limits at Current Levels All federal student loan program changes are to be effective for new borrowers beginning July 1, 2026, and will not apply to borrowers who begin borrowing prior to that date. Key Provisions
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7Confidential and proprietary information. © 2025 Sallie Mae Bank. All rights reserved. Q2 2025 Q1 2025 Q2 2024 Income Statement ($ Millions) Total interest income 657 656 641 Total interest expense 280 281 269 Net Interest Income 377 375 372 Less: provisions for credit losses 149 23 17 Total non-interest income 27 206 142 Total non-interest expenses 167 155 159 Income tax expense 16 99 87 Net Income 71 305 252 Preferred stock dividends 4 4 5 Net income attributable to common stock 67 301 247 Ending Balances ($ Millions) Private Education Loans held for investment, net 21,160 21,091 18,433 FFELP Loans held for investment, net - - 483 Deposits 20,482 20,073 20,744 Brokered 8,592 8,689 10,033 Retail and other 11,890 11,384 10,711 Q2 2025 Q1 2025 Q2 2024 Key Performance Metrics ($ in millions) Net Interest Margin 5.31% 5.27% 5.36% Yield—Total Interest-earning assets 9.25% 9.22% 9.25% Private Education Loans 10.62% 10.59% 10.91% Cost of Funds 4.22% 4.23% 4.16% Return on Assets (“ROA”)(6) 1.0% 4.2% 3.6% Return on Common Equity (“ROCE”)(2) 12.6% 60.1% 50.6% Private Education Loan Sales $ - $2,003 $1,589 Per Common Share GAAP diluted earnings per common share $0.32 $1.40 $1.11 Average common and common equivalent shares outstanding (millions) 213 215 222 Quarterly Financial Highlights
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8Confidential and proprietary information. © 2025 Sallie Mae Bank. All rights reserved. Credit Performance (7)(8)(9) Private Education Loans Held for Investment * Total Allowance % of Private Education Loan Exposure defined as total allowance for credit losses as a percentage of the en ding total loan balance plus unfunded loan commitments and total accrued interest receivable on Private Education Loans, where total allowance for credit losses represents the sum of the allowance for Privat e Education Loans and the allowance for unfunded loan commitments. ($ Thousands) Balance % Balance % Balance % Loans in repayment and percentage of each status: Loans current 15,661,996$ 96.5% 15,333,672$ 96.4% 13,756,538$ 96.7% Loans delinquent 30-59 days 300,116$ 1.8% 276,279$ 1.7% 224,445$ 1.5% Loans delinquent 60-89 days 143,633$ 0.9% 152,612$ 1.0% 125,384$ 0.9% Loans 90 days or greater past due 125,449$ 0.8% 141,234$ 0.9% 125,214$ 0.9% Total private education loans in repayment 16,231,194$ 100.0% 15,903,797$ 100.0% 14,231,581$ 100.0% Delinquencies as % of loans in repayment 3.5% 3.6% 3.3% Loans in forbearance 303,704$ 464,601$ 259,192$ Percentage of loans in forbearance: Percentage of loans in an extended grace period(8) 0.9% 1.9% 0.8% Percentage of loans in hardship and other forbearances(9) 0.9% 0.9% 1.0% 5.95% 5.97% 5.90% Net charge-offs as a % of average loans in repayment (annualized) 2.36% 1.88% 2.19% Total Allowance % of Private Education Loan Exposure* JUN 30, 2024 Quarters Ended JUN 30, 2025 MAR 31, 2025 (3) (4)
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9Confidential and proprietary information. © 2025 Sallie Mae Bank. All rights reserved. Factors affecting the Provision for Credit Losses 2nd Quarter 2025 Allowance for Credit Losses Consolidated Statements of Income – Provision for Credit Losses Reconciliation • Provision for credit losses with focused impact from increased uncertainty in the macroeconomic outlook. • Total Allowance % of Private Education Loan Exposure was stable at 5.95%, slightly down from Q1 2025. 9 Quarter Ended June 30, 2025($ THOUSANDS) Private Education Loan provision for credit losses: Provision for loan losses 92,189$ Provision for unfunded loan commitments 56,529 Provisions for credit losses reported in consolidated statements of income 148,718$ Confidential and proprietary information. © 2025 Sallie Mae Bank. All rights reserved.
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10 2025 Guidance* For the full year 2025, the Company expects: $3.00 - $3.10 GAAP Diluted Earnings Per Common Share 6% - 8% Private Education Loan Originations Year-over-Year Growth 2.0% - 2.2% Total Loan Portfolio Net Charge-Offs as a Percentage of Average Loans in Repayment $655 - $675 Million Non-Interest Expenses * The 2025 Guidance and related comments constitute forward-looking statements and are based on management’s current expectations and beliefs. There can be no guarantee as to whether and to what extent this guidance will be achieved. The Company undertakes no obligation to revise or release any revision or update to these forward-looking statements. See our Forward-Looking Statements disclosures on pg. 2 for more information.
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11 1. Originations represent loans that were funded or acquired during the period presented. 2. We calculate and report our Return on Common Equity (“ROCE”) as the ratio of (a) GAAP net income (loss) attributable to SLM Corp oration common stock numerator (annualized) to (b) the net denominator, which consists of GAAP total average equity less total average preferred stock. 3. We calculate the percentage of loans in an extended grace period as the ratio of (a) Private Education Loans in forbearance i n an extended grace period numerator to (b) Private Education Loans in repayment and forbearance denominator. An extended grace period aligns with The Office of the Comptroller of the Cur rency definition of an additional, consecutive, one-time period during which no payment is required for up to six months after the initial grace period. We typically grant this exten ded grace period to customers who may be having difficulty finding employment before the full principal and interest repayment period starts or once it has begun. 4. We calculate the percentage of loans in hardship and other forbearances as the ratio of (a) Private Education Loans in hardsh ip and other forbearances (excluding loans in an extended grace period and delinquent loans in disaster forbearance) numerator to (b) Private Education Loans in repayment and forbearance de nominator. If the customer is in financial hardship, we work with the customer and/or cosigner and identify any available alternative arrangements designed to reduce monthly payment obli gations, which may include a short-term hardship forbearance. 5. Represents the higher credit score of the cosigner or the borrower. 6. We calculate and report our Return on Assets (“ROA”) as the ratio of (a) GAAP net income (loss) numerator (annualized) to (b) the GAAP total average assets denominator. 7. For purposes of this slide, loans in repayment include loans making interest only or fixed payments, as well as loans that ha ve entered full principal and interest repayment status after any applicable grace period (but do not include loans in the “loans in forbearance” metric). 8. For purposes of this slide, loans in forbearance include loans for customers who have requested extension of grace period gen erally during employment transition or who have temporarily ceased making full payments due to hardship or other factors (other than delinquent loans in disaster forbearance), consisten t with established loan program servicing policies and procedures. 9. The period of delinquency is based on the number of days scheduled payments are contractually past due. Footnotes