Strong Financial Performance
Sallie Mae reported GAAP diluted EPS of $0.32 per share for the second quarter. Net interest income was $377 million, up $5 million from the prior year quarter, and net interest margin was 5.31%, 4 basis points ahead of the prior quarter.
Improved Credit Quality
The credit quality of originations showed incremental improvement compared to the second quarter of 2024. The cosigner rate increased to 84% from 80%, and the average FICO score at approval rose to 754 from 752.
Significant Share Repurchase
Sallie Mae repurchased 2.4 million shares at an average price of $29.46 per share, reducing shares outstanding by over 53% since 2020.
Positive Momentum from Federal Loan Reforms
Recent federal student loan reforms are expected to generate an additional $4.5 billion to $5 billion in annual private education loan origination volume for Sallie Mae once fully realized.