Sallie Mae swings to a third-quarter loss and cuts its 2026 earnings guidance to $1.95 to $2.05 a share

Sallie Mae cut its full-year earnings forecast by more than a third. The private student lender now expects 2026 diluted earnings of $1.95 to $2.05 a share, against $3.10 to $3.20 before, according to results filed with the SEC after the close on Thursday. It also raised its forecast for net charge-offs to $400m to $420m, from $365m to $385m.

The quarter lost money. SLM Corporation reported a net loss attributable to common stock of $36m, or 19 cents a diluted share, against earnings of 63 cents a year earlier, and the company put that mainly down to provisions and expenses tied to record origination growth. Provisions for credit losses were $214m against $179m. Net charge-offs rose to $90m from $78m, which the company tied mainly to third-party debt resolution practices it described as misaligned.

Originations grew. Private education loan originations reached $3.4bn, up 15 percent, and graduate loan originations rose 119 percent in what the company called the first academic year following PLUS reform. Chief executive Jonathan Witter pointed to growth in graduate lending after changes to federal student loan programs.