Sallie Mae sharply cuts earnings outlook as student-loan charge-offs rise

Sallie Mae, the private student-loan company formally known as SLM Corporation, released its third-quarter results on October 22, 2026.^[1] It lowered its full-year earnings-per-share outlook to $1.95–$2.05 from $3.10–$3.20.^[2]

The cut followed higher charge-offs—the amounts a lender writes off its books because it considers them uncollectible.^[2]

At the midpoint, the new earnings outlook is about 37% below the previous forecast, showing a substantial hit to expected shareholder earnings alongside the rise in charge-offs.^[2] Lenders earn money by collecting principal and interest; more uncollectible loans reduce the return on lending. If repayment problems persist, lenders may raise rates on new loans or tighten approvals to limit future losses.^[2]

For other private student lenders, the key question is whether their own borrowers' repayment performance is also weakening. The supplied reporting establishes higher charge-offs and lower earnings expectations at Sallie Mae, but provides no evidence of rising losses at its rivals.^[2]

Impact