SLM: 3 Key Takeaways for Long-Term Investors
On its third quarter of 2026 earnings call, held on Oct. 22, 2026, SLM (NASDAQ:SLM) announced a new strategic partnership and lowered its full-year earnings guidance after pulling back on planned whole-loan sales. Long-term investors get clarity from this shift, as management prioritized multiyear loan yields over quick transaction premiums. Building alternative funding channels protects the business against volatile interest rate cycles. Three key takeaways from the call explain how these strategic decisions shape the company's trajectory. SLM completed a three-year strategic agreement with Sixth Street to sell off newly originated private education loans, securing recurring program management fees and servicing revenue. This second partnership diversifies funding options alongside traditional bank deposits and loan sales. Management chose not to execute a planned whole loan sale because choppy capital markets pushed indicated prices below its minimum threshold. Retaining these assets lets the bank capture a 5% net interest margin (the difference between interest earned on loans and interest paid on deposits), even though it reduces 2026 earnings per share (a company's net income divided by its outstanding stock) guidance to $1.95 to $2.05. Continue reading