Positive Outlook for SLM: Improved Early-Stage Delinquencies and Better-Than-Expected Net Charge-Offs Support Buy RatingWe lower 3Q NCOs, but offset w/ higher DQs in 3Q, NCOs in 4Q. The good news? 3Q25 NCOs look set for a beat, early-stage trust DQs stabilizing following the July deterioration. For a second consecutive month, early-stage delinquencies declined m/m while y/y growth slowed. Additionally, trust net charge- offs, despite stepping up in September, looks to be tracking better vs. consensus estimates; we calculate the trusts tracking NCOs in repay (for balance sheet trusts only) at ~2.50%. Over the prior 2 years, SLM's held portfolio NCO rate has run at ~80% of the on balance sheet trusts NCOs (also ~60bps below), which could imply 3Q25 GAAP NCOs (in repay) of 2% or below... better vs consensus estimates of ~2.2%). Further, despite the increase in 90+ day DQs (more below), roll rates did improve.