SLM
Financial ServicesSLM Corporation · Financial - Credit Services · $4B
What is SLM Corporation?
SLM Corporation — widely recognized by its Sallie Mae brand — is a leading private education lender in the United States. Founded in 1972 and headquartered in Newark, Delaware, the company helps students and families bridge the gap between federal aid and the full cost of higher education.
SLM originates and services private student loans, connecting borrowers with financing for tuition, housing, and other education-related costs. Beyond lending, the company operates a retail banking arm that gathers deposits through certificates of deposit, money market accounts, and high-yield savings products. These deposits fund the loan portfolio, giving SLM a relatively stable and diversified funding base. The company also offers credit card products, broadening its relationship with student and family customers beyond the initial loan.
SLM Corporation was founded in 1972 and is headquartered in Newark, Delaware.
- Private education loans for undergraduate and graduate students
- Certificates of deposit and high-yield savings accounts
- Money market deposit accounts for retail customers
- Credit card loans targeting student borrowers
- Financial aid resources and family education planning tools
Is SLM a Good Stock to Buy?
UQS Score rates SLM as Good overall, reflecting a mixed profile that rewards income-focused investors while raising flags for growth-oriented ones.
SLM's strongest pillar is Quality, suggesting the business generates returns that hold up well relative to peers in the financial services sector. The Valuation pillar is rated Attractive, meaning the stock appears reasonably priced — or better — compared to what the underlying business fundamentals would typically command.
The Moat, Growth, and Risk pillars all register as Weak, pointing to limited competitive insulation, subdued expansion prospects, and elevated exposure to credit and regulatory headwinds common in consumer lending.
See the exact pillar breakdown and full financial metrics by signing up for a UQS Pro account. Sign up free →
Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does SLM pay dividends?
Yes — SLM Corporation pays a dividend.
SLM pays a regular dividend, which aligns with its position as a mature, deposit-funded lender rather than a high-growth technology firm. The dividend reflects management's choice to return capital to shareholders alongside share repurchases. Income-seeking investors may find the payout cadence appealing, though the sustainability of dividends in consumer lending depends on credit quality and regulatory conditions.
When does SLM report earnings?
SLM Corporation reports earnings on a quarterly cadence, typical for US-listed financial services companies.
Quarterly results tend to focus on loan origination volumes, net interest margin trends, and credit loss provisions — all of which can shift meaningfully with interest rate cycles and student enrollment patterns. The company's retail deposit base adds another layer of sensitivity to rate movements that investors watch closely each quarter.
For the most recent quarter's results and guidance, visit SLM Corporation's investor relations page directly.
SLM Price History
+25.5% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
What if I invested in SLM Corporation?
Based on SLM Corporation's historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.
SLM Long-term Outlook
The UQS Growth pillar for SLM is rated Weak, suggesting the near-term expansion trajectory is below what many financial services peers are delivering. Private student loan demand is tied closely to enrollment trends, tuition inflation, and the availability of federal aid — factors that can compress or expand origination volumes in ways that are difficult to predict. The Weak Risk pillar adds further caution, as credit losses and regulatory scrutiny of consumer lending remain persistent concerns. That said, the Attractive Valuation pillar indicates the market may already be pricing in these headwinds, leaving room for re-rating if fundamentals stabilize.
Growth drivers
- Tuition inflation driving demand for private loan supplements beyond federal aid limits
- Retail deposit growth supporting lower-cost funding for the loan book
- Expansion of credit card and ancillary financial products to existing student customers
Key risks
- Rising credit losses if unemployment among recent graduates increases
- Regulatory changes to student lending or federal aid programs reducing private loan demand
- Interest rate sensitivity compressing net interest margins across the deposit-funded portfolio
SLM vs Peers
SLM operates in a niche corner of consumer finance alongside a handful of specialized education and alternative lenders.
Enova focuses on online consumer and small business lending to underserved borrowers, operating outside the education-specific niche that defines SLM's core market.
Nelnet is deeply embedded in federal student loan servicing and education technology, giving it a different revenue mix and regulatory exposure compared to SLM's private-loan-first model.
Navient, which was spun out of SLM, primarily services legacy federal student loans and has been winding down that portfolio — a contrasting strategic direction to SLM's focus on new private originations.
Frequently Asked Questions
What does SLM Corporation do?
SLM Corporation, operating under the Sallie Mae brand, originates and services private education loans for students and families in the United States. It also gathers retail deposits through savings and certificate-of-deposit products and offers credit card loans, creating a vertically integrated consumer finance model centered on higher education.
Does SLM pay dividends?
Yes, SLM pays a regular dividend. The company's mature, deposit-funded business model supports returning capital to shareholders. Investors should review the current dividend rate and payout history on SLM's investor relations page, as dividend levels can change based on earnings and capital requirements.
When does SLM report earnings?
SLM reports earnings on a quarterly basis, consistent with US-listed financial companies. Exact dates vary each quarter. For confirmed upcoming reporting dates, check SLM Corporation's investor relations page or a financial calendar service.
Is SLM a good stock to buy?
UQS Score rates SLM as Good overall. The Quality and Valuation pillars are notable positives, while Moat, Growth, and Risk are rated Weak. Whether SLM fits a portfolio depends on an investor's tolerance for credit and regulatory risk and their interest in dividend income. The full pillar breakdown is available to Pro members.
Is SLM overvalued?
The UQS Valuation pillar for SLM is rated Attractive, suggesting the stock is not obviously overpriced relative to its fundamentals. In a sector where credit risk and regulatory uncertainty can weigh on multiples, an Attractive valuation label may reflect the market pricing in known headwinds. View the complete valuation metrics with a Pro account.
How does SLM compare to its competitors?
SLM's closest peers include Nelnet, Enova International, and Navient. Nelnet leans heavily on federal loan servicing and education technology, while Enova targets broader consumer and small business credit. Navient is winding down its legacy federal portfolio. SLM stands apart through its focus on new private student loan originations and its retail deposit funding model.
What is SLM's market cap bracket?
SLM Corporation is classified as a mid-cap company. This places it in a range that typically offers more liquidity than small-cap peers but less institutional coverage than mega-cap financial firms. Mid-cap financials can carry meaningful sector-specific risks alongside growth potential.
Who founded SLM Corporation?
SLM Corporation traces its origins to the Student Loan Marketing Association, a government-sponsored enterprise established in 1972. The company was privatized over time and rebranded under the Sallie Mae name. Detailed founding history is widely available through the company's official corporate profile and public filings.
Is SLM a long-term quality investment?
As a long-term quality indicator, SLM's UQS profile is mixed. The Strong Quality pillar suggests the business has demonstrated durable return characteristics, but the Weak Moat and Weak Growth pillars raise questions about whether those returns can expand over time. Long-term investors should weigh the Attractive Valuation against the structural challenges in private student lending.
What is SLM's main competitive advantage?
SLM's primary edge comes from its brand recognition under the Sallie Mae name and its established relationships with colleges, universities, and financial aid offices. Its retail deposit base also provides a relatively stable and lower-cost funding source compared to competitors reliant on wholesale markets. However, the UQS Moat pillar is rated Weak, suggesting these advantages may not be deeply entrenched.
What sector does SLM belong to?
SLM operates in the Financial Services sector, specifically within consumer lending and retail banking. It sits at the intersection of education finance and deposit-taking, making it sensitive to both credit cycles and interest rate movements. Investors can explore other [financial services stocks](/sector/financial-services) on UQS Score for comparison.
Is SLM a growth stock or a value stock?
Based on UQS pillar labels, SLM leans toward the value end of the spectrum. The Growth pillar is rated Weak, indicating limited near-term expansion momentum, while the Valuation pillar is rated Attractive — a combination more consistent with a value-oriented profile than a high-growth one. Income from dividends may be a larger part of the total return story here.
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Pro Analysis
SLM — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| May 12, 2026 | 57.5 | 94.4 | 35.0 | 23.3 | 36.5 | 100.0 | +0.4 |
| Apr 26, 2026 | 57.1 | 93.9 | 35.0 | 23.3 | 36.4 | 98.2 | +0.1 |
| Apr 25, 2026 | 57.0 | 93.9 | 35.0 | 23.1 | 36.4 | 98.0 | +0.1 |
| Apr 20, 2026 | 56.9 | 93.9 | 35.0 | 22.8 | 36.4 | 98.0 | -0.1 |
| Apr 18, 2026 | 57.0 | 93.9 | 35.0 | 22.9 | 36.4 | 98.0 | -0.3 |
| Apr 14, 2026 | 57.3 | 93.9 | 35.0 | 22.9 | 36.4 | 100.0 | +1.7 |
| Apr 13, 2026 | 55.6 | 93.9 | 50.0 | 22.9 | 0.0 | 100.0 | -1.6 |
| Apr 2, 2026 | 57.2 | 93.9 | 35.0 | 22.6 | 36.4 | 100.0 | — |
SLM — Pillar Breakdown
Quality
— 94.4/100 (25%)SLM Corporation demonstrates outstanding capital efficiency and profitability, placing it among the highest-quality businesses in the market.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Free cash flow relative to market value.
Growth
— 23.3/100 (20%)SLM Corporation faces growth headwinds with declining or stagnant revenue trends.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 36.5/100 (15%)SLM Corporation has some risk factors including moderate leverage or solvency concerns.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 100.0/100 (15%)SLM Corporation appears attractively valued relative to its earnings, cash flows, and sector peers.
Inverse of forward P/E — higher yield means cheaper stock.
How many years of FCF the market cap represents.
Enterprise value multiple relative to sector median.
Moat
— 35/100 (25%)SLM Corporation possesses some competitive advantages but faces meaningful competition. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for SLM.
Score Composition
Financial Data
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How is the SLM UQS Score Calculated?
The UQS (Unified Quality Score) for SLM Corporation is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses SLM Corporation's competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether SLM Corporation is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.