UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported): February 21, 2023
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||
(Address of principal executive offices) | (Zip Code) | |||||||||||||
Registrant's telephone number, including area code: (302 ) 451-0200
(Former name or former address, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
ITEM 7.01 REGULATION FD DISCLOSURE.
SLM Corporation (the “Company”) frequently provides relevant information to its investors via posting to its corporate website. On or about February 21, 2023, a presentation entitled “Sallie Mae — Smart Option Student Loan — Historical Performance Data — Period ended December 31, 2022” was made available on the Company’s website at https://www.salliemae.com/investors/webcasts-and-presentations/. In addition, the document is being furnished herewith as Exhibit 99.1.
The presentation at Exhibit 99.1 and incorporated by reference herein is being furnished and shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that Section and shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, or the Exchange Act, except as otherwise expressly stated in such filing.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.
(d) Exhibits
Exhibit Number | Description | |||||||
| 99.1* | ||||||||
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL) | |||||||
| * | Furnished herewith. | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| SLM CORPORATION | ||||||||
| Date: February 21, 2023 | By: | /s/ STEVEN J. MCGARRY | ||||||
| Steven J. McGarry | ||||||||
| Executive Vice President and Chief Financial Officer | ||||||||
Confidential and proprietary information. © 2023 Sallie Mae Bank. All rights reserved. Period ended December 31, 2022 Exhibit 99.1
Confidential and proprietary information. © 2023 Sallie Mae Bank. All rights reserved. 2 Cautionary Note Regarding Forward-Looking Statements The following information is current as of December 31, 2022 (unless otherwise noted) and should be read in connection with the press release of SLM Corporation (the “Company”) dated February 1, 2023 announcing its financial results for the quarter and full year that ended December 31, 2022 (the “Earnings Press Release”), and subsequent reports filed with the Securities and Exchange Commission (the “SEC”). This report contains “forward-looking” statements and information based on management’s current expectations as of the date of this report. Statements that are not historical facts, including statements about our beliefs, opinions, or expectations and statements that assume or are dependent upon future events, are forward-looking statements. This includes, but is not limited to: statements regarding future developments surrounding COVID-19 or any other pandemic, including, without limitation, statements regarding the potential impact of COVID- 19 or any other pandemic on the Company’s business, results of operations, financial condition, and/or cash flows; our expectation and ability to pay a quarterly cash dividend on our common stock in the future, subject to the determination by our Board of Directors, and based on an evaluation of our earnings, financial condition and requirements, business conditions, capital allocation determinations, and other factors, risks, and uncertainties; the Company’s 2023 guidance; the Company’s three-year horizon outlook; the Company’s expectation and ability to execute loan sales and share repurchases; the Company’s projections regarding originations, net charge-offs, non-interest expenses, earnings, balance sheet position and other metrics; any estimates related to accounting standard changes; and any estimates related to the impact of credit administration practices changes, including the results of simulations and other behavioral observations. Forward-looking statements are subject to risks, uncertainties, assumptions, and other factors that may cause actual results to be materially different from those reflected in such forward-looking statements. These factors include, among others, the risks and uncertainties set forth in Item 1A. “Risk Factors” and elsewhere in the Company’s annual report on Form 10-K for the year ended December 31, 2021 (filed with the SEC on February 24, 2022) and subsequent filings with the SEC; the societal, business, and legislative/regulatory impact of pandemics and other public heath crises; increases in financing costs; limits on liquidity; increases in costs associated with compliance with laws and regulations; failure to comply with consumer protection, banking, and other laws; changes in accounting standards and the impact of related changes in significant accounting estimates, including any regarding the measurement of the Company’s allowance for loan losses and the related provision expense; any adverse outcomes in any significant litigation to which we are a party; credit risk associated with our exposure to third-parties, including counterparties to our derivative transactions; and changes in the terms of education loans and the educational credit marketplace (including changes resulting from new laws and the implementation of existing laws). We could also be affected by, among other things: changes in our funding costs and availability; reductions to our credit ratings; cybersecurity incidents, cyberattacks, and other failures or breaches of our operating systems or infrastructure, including those of third- party vendors; damage to our reputation; risks associated with restructuring initiatives, including failures to successfully implement cost-cutting programs and the adverse effects of such initiatives on our business; changes in the demand for educational financing or in financing preferences of lenders, educational institutions, students, and their families; changes in law and regulations with respect to the student lending business and financial institutions generally; changes in banking rules and regulations, including increased capital requirements; increased competition from banks and other consumer lenders; the creditworthiness of our customers; changes in the general interest rate environment, including the rate relationships among relevant money-market instruments and those of our earning assets versus our funding arrangements; rates of prepayment on the loans that we own; changes in general economic conditions and our ability to successfully effectuate any acquisitions; and other strategic initiatives. The preparation of our consolidated financial statements also requires us to make certain estimates and assumptions, including estimates and assumptions about future events. These estimates or assumptions may prove to be incorrect. All forward-looking statements contained in this report are qualified by these cautionary statements and are made only as of the date of this report. We do not undertake any obligation to update or revise these forward- looking statements to conform such statements to actual results or changes in our expectations. The Company reports financial results on a GAAP basis and also provides certain non-GAAP “Core Earnings” performance measures. The difference between the Company’s non-GAAP “Core Earnings” and GAAP results for the periods presented were the unrealized, mark-to-fair value gains/losses on derivative contracts (excluding current period accruals on the derivative instruments), net of tax. These are recognized in GAAP, but not in non-GAAP “Core Earnings” results. The Company provides a non-GAAP “Core Earnings” measure because it is one of several measures management uses when making management decisions regarding the Company’s performance and the allocation of corporate resources. The Company’s non-GAAP “Core Earnings” is not a defined term within GAAP and may not be comparable to similarly titled measures reported by other companies. For additional information, see the Earnings Press Release and our previous 2022 filings with the SEC.
Confidential and proprietary information. © 2023 Sallie Mae Bank. All rights reserved. 3 Date Transaction Date Transaction Date Transaction July 2015 SMB Private Education Loan Trust 2015-B March 2018 SMB Private Education Loan Trust 2018-A August 2020 SMB Private Education Loan Trust 2020-B May 2016 SMB Private Education Loan Trust 2016-A June 2018 SMB Private Education Loan Trust 2018-B May 2021 SMB Private Education Loan Trust 2021-B July 2016 SMB Private Education Loan Trust 2016-B September 2018 SMB Private Education Loan Trust 2018-C August 2021 SMB Private Education Loan Trust 2021-D October 2016 SMB Private Education Loan Trust 2016-C March 2019 SMB Private Education Loan Trust 2019-A November 2021 SMB Private Education Loan Trust 2021-E February 2017 SMB Private Education Loan Trust 2017-A June 2019 SMB Private Education Loan Trust 2019-B August 2022 SMB Private Education Loan Trust 2022-C November 2017 SMB Private Education Loan Trust 2017-B February 2020 SMB Private Education Loan Trust 2020-A • • • • • • • •
Confidential and proprietary information. © 2023 Sallie Mae Bank. All rights reserved. 4 Smart Option Serviced Portfolio: 30-59 Day Delinquencies 0% 2% 4% 6% 8% 10% M ar -1 5 Ju n -1 5 S ep -1 5 D ec -1 5 M ar -1 6 Ju n -1 6 S ep -1 6 D ec -1 6 M ar -1 7 Ju n -1 7 S ep -1 7 D ec -1 7 M ar -1 8 Ju n -1 8 S ep -1 8 D ec -1 8 M ar -1 9 Ju n -1 9 S ep -1 9 D ec -1 9 M ar -2 0 Ju n -2 0 S ep -2 0 D ec -2 0 M ar -2 1 Ju n -2 1 S ep -2 1 D ec -2 1 M ar -2 2 Ju n -2 2 S ep -2 2 D ec -2 2 P e rc e n t o f P & I R e p a ym e n t B a la n c e Smart Option Student Loans - Serviced Portfolio 30-59 Day Delinquencies(4) as a % of Loans in P&I Repayment (1) Data for Sallie Mae Bank Aggregate of P&I Repayment Vintages 2015-2022 (2), (3) Data as of December 31, 2022. (1) Loans in P&I Repayment include only those loans for which scheduled principal and interest payments were due at the end of the applicable monthly reporting period. (2) P&I Repayment Vintage is defined as the calendar year during which a borrower is first required to make full principal and interest payments on the loan. (3) Vintage performance history excludes data points for a vintage when the balance of loans in P&I Repayment outstanding in that vintage constitutes less than 1% of total balance of loans in P&I Repayment outstanding for all vintages. (4) Data for delinquencies occurring prior to Q1 2021 and reflected in the graph above is based on delinquency bucket period previously used (i.e., 31-60 days). Data for delinquencies occurring Q1 2021 onwards is based on an updated delinquency bucket period (i.e., 30-59 days) to conform with delinquency bucket periods defined by the FFIEC. 0% 2% 4% 6% 8% 10% M ar -1 5 Ju n -1 5 S ep -1 5 D ec -1 5 M ar -1 6 Ju n -1 6 S ep -1 6 D ec -1 6 M ar -1 7 Ju n -1 7 S ep -1 7 D ec -1 7 M ar -1 8 Ju n -1 8 S ep -1 8 D ec -1 8 M ar -1 9 Ju n -1 9 S ep -1 9 D ec -1 9 M ar -2 0 Ju n -2 0 S ep -2 0 D ec -2 0 M ar -2 1 Ju n -2 1 S ep -2 1 D ec -2 1 M ar -2 2 Ju n -2 2 S ep -2 2 D ec -2 2 P e rc e n t o f P & I R e p a ym e n t B a la n c e Smart Option Student Loans - Serviced Portfolio 30-59 Day Delinquencies(4) as a % of Loans in P&I Repayment (1) Data for Sallie Mae Bank P&I Repayment Vintages 2015-2022 (2), (3) SLM Bank 2015 Vintage SLM Bank 2016 Vintage SLM Bank 2017 Vintage SLM Bank 2018 Vintage SLM Bank 2019 Vintage SLM Bank 2020 Vintage SLM Bank 2021 Vintage SLM Bank 2022 Vintage
Confidential and proprietary information. © 2023 Sallie Mae Bank. All rights reserved. 5 Smart Option Serviced Portfolio: 60-89 Day Delinquencies 0% 2% 4% 6% 8% 10% M ar -1 5 Ju n -1 5 S ep -1 5 D ec -1 5 M ar -1 6 Ju n -1 6 S ep -1 6 D ec -1 6 M ar -1 7 Ju n -1 7 S ep -1 7 D ec -1 7 M ar -1 8 Ju n -1 8 S ep -1 8 D ec -1 8 M ar -1 9 Ju n -1 9 S ep -1 9 D ec -1 9 M ar -2 0 Ju n -2 0 S ep -2 0 D ec -2 0 M ar -2 1 Ju n -2 1 S ep -2 1 D ec -2 1 M ar -2 2 Ju n -2 2 S ep -2 2 D ec -2 2 P e rc e n t o f P & I R e p a ym e n t B a la n c e Smart Option Student Loans - Serviced Portfolio 60-89 Day Delinquencies(4) as a % of Loans in P&I Repayment (1) Data for Sallie Mae Bank Aggregate of P&I Repayment Vintages 2015-2022 (2), (3) 0% 2% 4% 6% 8% 10% M ar -1 5 Ju n -1 5 S ep -1 5 D ec -1 5 M ar -1 6 Ju n -1 6 S ep -1 6 D ec -1 6 M ar -1 7 Ju n -1 7 S ep -1 7 D ec -1 7 M ar -1 8 Ju n -1 8 S ep -1 8 D ec -1 8 M ar -1 9 Ju n -1 9 S ep -1 9 D ec -1 9 M ar -2 0 Ju n -2 0 S ep -2 0 D ec -2 0 M ar -2 1 Ju n -2 1 S ep -2 1 D ec -2 1 M ar -2 2 Ju n -2 2 S ep -2 2 D ec -2 2 P e rc e n t o f P & I R e p a ym e n t B a la n c e Smart Option Student Loans - Serviced Portfolio 60-89 Day Delinquencies(4) as a % of Loans in P&I Repayment (1) Data for Sallie Mae Bank P&I Repayment Vintages 2015-2022 (2), (3) SLM Bank 2015 Vintage SLM Bank 2016 Vintage SLM Bank 2017 Vintage SLM Bank 2018 Vintage SLM Bank 2019 Vintage SLM Bank 2020 Vintage SLM Bank 2021 Vintage SLM Bank 2022 Vintage Data as of December 31, 2022. (1) Loans in P&I Repayment include only those loans for which scheduled principal and interest payments were due at the end of the applicable monthly reporting period. (2) P&I Repayment Vintage is defined as the calendar year during which a borrower is first required to make full principal and interest payments on the loan. (3) Vintage performance history excludes data points for a vintage when the balance of loans in P&I Repayment outstanding in that vintage constitutes less than 1% of total balance of loans in P&I Repayment outstanding for all vintages. (4) Data for delinquencies occurring prior to Q1 2021 and reflected in the graph above is based on delinquency bucket period previously used (i.e., 61-90 days). Data for delinquencies occurring Q1 2021 onwards is based on an updated delinquency bucket period (i.e., 60-89 days) to conform with delinquency bucket periods defined by the FFIEC.
Confidential and proprietary information. © 2023 Sallie Mae Bank. All rights reserved. 6 Smart Option Serviced Portfolio: 90+ Day Delinquencies 0% 2% 4% 6% 8% 10% M ar -1 5 Ju n -1 5 S ep -1 5 D ec -1 5 M ar -1 6 Ju n -1 6 S ep -1 6 D ec -1 6 M ar -1 7 Ju n -1 7 S ep -1 7 D ec -1 7 M ar -1 8 Ju n -1 8 S ep -1 8 D ec -1 8 M ar -1 9 Ju n -1 9 S ep -1 9 D ec -1 9 M ar -2 0 Ju n -2 0 S ep -2 0 D ec -2 0 M ar -2 1 Ju n -2 1 S ep -2 1 D ec -2 1 M ar -2 2 Ju n -2 2 S ep -2 2 D ec -2 2 P e rc e n t o f P & I R e p a ym e n t B a la n c e Smart Option Student Loans - Serviced Portfolio 90+ Day Delinquencies(4) as a % of Loans in P&I Repayment (1) Data for Sallie Mae Bank Aggregate of P&I Repayment Vintages 2015-2022 (2), (3) 0% 2% 4% 6% 8% 10% M ar -1 5 Ju n -1 5 S ep -1 5 D ec -1 5 M ar -1 6 Ju n -1 6 S ep -1 6 D ec -1 6 M ar -1 7 Ju n -1 7 S ep -1 7 D ec -1 7 M ar -1 8 Ju n -1 8 S ep -1 8 D ec -1 8 M ar -1 9 Ju n -1 9 S ep -1 9 D ec -1 9 M ar -2 0 Ju n -2 0 S ep -2 0 D ec -2 0 M ar -2 1 Ju n -2 1 S ep -2 1 D ec -2 1 M ar -2 2 Ju n -2 2 S ep -2 2 D ec -2 2 P e rc e n t o f P & I R e p a ym e n t B a la n c e Smart Option Student Loans - Serviced Portfolio 90+ Day Delinquencies(4) as a % of Loans in P&I Repayment (1) Data for Sallie Mae Bank P&I Repayment Vintages 2015-2022 (2), (3) SLM Bank 2015 Vintage SLM Bank 2016 Vintage SLM Bank 2017 Vintage SLM Bank 2018 Vintage SLM Bank 2019 Vintage SLM Bank 2020 Vintage SLM Bank 2021 Vintage SLM Bank 2022 Vintage Data as of December 31, 2022. (1) Loans in P&I Repayment include only those loans for which scheduled principal and interest payments were due at the end of the applicable monthly reporting period. (2) P&I Repayment Vintage is defined as the calendar year during which a borrower is first required to make full principal and interest payments on the loan. (3) Vintage performance history excludes data points for a vintage when the balance of loans in P&I Repayment outstanding in that vintage constitutes less than 1% of total balance of loans in P&I Repayment outstanding for all vintages. (4) Data for delinquencies occurring prior to Q1 2021 and reflected in the graph above is based on delinquency bucket period previously used (i.e., 91 days and greater). Data for delinquencies occurring Q1 2021 onwards is based on an updated delinquency bucket period (i.e., 90 days and greater) to conform with delinquency bucket periods defined by the FFIEC.
Confidential and proprietary information. © 2023 Sallie Mae Bank. All rights reserved. 7 Smart Option Serviced Portfolio: Forbearance 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% M ar -1 5 Ju n -1 5 S ep -1 5 D ec -1 5 M ar -1 6 Ju n -1 6 S ep -1 6 D ec -1 6 M ar -1 7 Ju n -1 7 S ep -1 7 D ec -1 7 M ar -1 8 Ju n -1 8 S ep -1 8 D ec -1 8 M ar -1 9 Ju n -1 9 S ep -1 9 D ec -1 9 M ar -2 0 Ju n -2 0 S ep -2 0 D ec -2 0 M ar -2 1 Ju n -2 1 S ep -2 1 D ec -2 1 M ar -2 2 Ju n -2 2 S ep -2 2 D ec -2 2 P e rc e n t o f P & I R e p a ym e n t a n d F o rb e a ra n c e B a la n c e Smart Option Student Loans - Serviced Portfolio Forbearance as a % of Loans in P&I Repayment and Forbearance (1), (2) Data for Sallie Mae Bank Aggregate of P&I Repayment Vintages 2015-2022 (3),(4) 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% M ar -1 5 Ju n -1 5 S ep -1 5 D ec -1 5 M ar -1 6 Ju n -1 6 S ep -1 6 D ec -1 6 M ar -1 7 Ju n -1 7 S ep -1 7 D ec -1 7 M ar -1 8 Ju n -1 8 S ep -1 8 D ec -1 8 M ar -1 9 Ju n -1 9 S ep -1 9 D ec -1 9 M ar -2 0 Ju n -2 0 S ep -2 0 D ec -2 0 M ar -2 1 Ju n -2 1 S ep -2 1 D ec -2 1 M ar -2 2 Ju n -2 2 S ep -2 2 D ec -2 2 P e rc e n t o f P & I R e p a ym e n t a n d F o rb e a ra n c e B a la n c e Smart Option Student Loans - Serviced Portfolio Forbearance as a % of Loans in P&I Repayment and Forbearance (1),(2) Data for Sallie Mae Bank P&I Repayment Vintages 2015-2022(3),(4) SLM Bank 2015 Vintage SLM Bank 2016 Vintage SLM Bank 2017 Vintage SLM Bank 2018 Vintage SLM Bank 2019 Vintage SLM Bank 2020 Vintage SLM Bank 2021 Vintage SLM Bank 2022 Vintage Data as of December 31, 2022. (1) Loans in P&I Repayment include only those loans for which scheduled principal and interest payments were due at the end of the applicable monthly reporting period. (2) COVID-related disaster forbearance includes activity of current as well as delinquent accounts. (3) P&I Repayment Vintage is defined as the calendar year during which a borrower is first required to make full principal and interest payments on the loan. (4) Vintage performance history excludes data points for a vintage when the balance of loans in P&I Repayment outstanding in that vintage constitutes less than 1% of total balance of loans in P&I Repayment outstanding for all vintages.
Confidential and proprietary information. © 2023 Sallie Mae Bank. All rights reserved. 8 Smart Option Serviced Portfolio: Annualized Gross Defaults 0% 2% 4% 6% 8% 10% M ar -1 5 Ju n -1 5 S ep -1 5 D ec -1 5 M ar -1 6 Ju n -1 6 S ep -1 6 D ec -1 6 M ar -1 7 Ju n -1 7 S ep -1 7 D ec -1 7 M ar -1 8 Ju n -1 8 S ep -1 8 D ec -1 8 M ar -1 9 Ju n -1 9 S ep -1 9 D ec -1 9 M ar -2 0 Ju n -2 0 S ep -2 0 D ec -2 0 M ar -2 1 Ju n -2 1 S ep -2 1 D ec -2 1 M ar -2 2 Ju n -2 2 S ep -2 2 D ec -2 2 P e rc e n t o f P & I R e p a ym e n t B a la n c e Smart Option Student Loans - Serviced Portfolio Annualized Gross Defaults as a % of Loans in P&I Repayment(1) Data for Sallie Mae Bank Aggregate of P&I Repayment Vintages 2015-2022 (2), (3) 0% 2% 4% 6% 8% 10% M ar -1 5 Ju n -1 5 S ep -1 5 D ec -1 5 M ar -1 6 Ju n -1 6 S ep -1 6 D ec -1 6 M ar -1 7 Ju n -1 7 S ep -1 7 D ec -1 7 M ar -1 8 Ju n -1 8 S ep -1 8 D ec -1 8 M ar -1 9 Ju n -1 9 S ep -1 9 D ec -1 9 M ar -2 0 Ju n -2 0 S ep -2 0 D ec -2 0 M ar -2 1 Ju n -2 1 S ep -2 1 D ec -2 1 M ar -2 2 Ju n -2 2 S ep -2 2 D ec -2 2 P e rc e n t o f P & I R e p a ym e n t B a la n c e Smart Option Student Loans - Serviced Portfolio Annualized Gross Defaults as a % of Loans in P&I Repayment(1) Data for Sallie Mae Bank P&I Repayment Vintages 2015-2022 (2), (3) SLM Bank 2015 Vintage SLM Bank 2016 Vintage SLM Bank 2017 Vintage SLM Bank 2018 Vintage SLM Bank 2019 Vintage SLM Bank 2020 Vintage SLM Bank 2021 Vintage SLM Bank 2022 Vintage Data as of December 31, 2022. (1) Loans in P&I Repayment include only those loans for which scheduled principal and interest payments were due at the end of the applicable monthly reporting period. (2) P&I Repayment Vintage is defined as the calendar year during which a borrower is first required to make full principal and interest payments on the loan. (3) Vintage performance history excludes data points for a vintage when the balance of loans in P&I Repayment outstanding in that vintage constitutes less than 1% of total balance of loans in P&I Repayment outstanding for all vintages.
Confidential and proprietary information. © 2023 Sallie Mae Bank. All rights reserved. 9 3.5% 2.8% 2.6% 2.3% 2.3% 1.7% 1.3% 0.8%0% 2% 4% 6% 8% 10% 12% 0 1 2 3 4 5 6 7 8 C u m u la ti ve D e fa u lt s a s a % o f D is b u rs e d P ri n c ip a l E n te ri n g P & I R e p a ym e n t Years Since First P&I Repayment Period Smart Option Student Loans - Serviced Portfolio: Interest Only Cumulative Defaults by P&I Repayment Vintage and Years Since First P&I Repayment Period (1) 2015⁽²⁾ 2016⁽²⁾ 2017⁽²⁾ 2018⁽²⁾ 2019⁽²⁾ 2020⁽²⁾ 2021⁽²⁾ 2022⁽²⁾ 6.6% 5.5% 4.8% 3.9% 3.5% 2.4% 2.0% 0.6% 0% 2% 4% 6% 8% 10% 12% 0 1 2 3 4 5 6 7 C u m u la ti ve D e fa u lt s a s a % o f D is b u rs e d P ri n c ip a l E n te ri n g P & I R e p a ym e n t Years Since First P&I Repayment Period Smart Option Student Loans - Serviced Portfolio: Fixed Pay Cumulative Defaults by P&I Repayment Vintage and Years Since First P&I Repayment Period(1) 2015⁽²⁾ 2016⁽²⁾ 2017⁽²⁾ 2018⁽²⁾ 2019⁽²⁾ 2020⁽²⁾ 2021⁽²⁾ 2022⁽²⁾ 10.6% 9.4% 8.4% 7.6% 6.6% 4.8% 4.4% 0.1% 0% 2% 4% 6% 8% 10% 12% 0 1 2 3 4 5 6 7 8 9 C u m u la ti ve D e fa u lt s a s a % o f D is b u rs e d P ri n c ip a l E n te ri n g P & I R e p a ym e n t Years Since First P&I Repayment Period Smart Option Student Loans - Serviced Portfolio: Deferred Cumulative Defaults by P&I Repayment Vintage and Years Since First P&I Repayment Period(1) 2015⁽²⁾ 2016⁽²⁾ 2017⁽²⁾ 2018⁽²⁾ 2019⁽²⁾ 2020⁽²⁾ 2021⁽²⁾ 2022⁽²⁾ (1) Please see page 17 for a description and explanation of the data and calculations underlying these charts. (2) Data as of December 31, 2022. All loans covered are serviced by Sallie Mae Bank, regardless of whether the loans were included in an ABS trust. Note: Historical trends may not be indicative of future performance. 7.7% 6.6% 5.8% 5.1% 4.5% 3.3% 2.8% 0.4%0% 2% 4% 6% 8% 10% 12% 0 1 2 3 4 5 6 7 8 C u m u la ti ve D e fa u lt s a s a % o f D is b u rs e d P ri n c ip a l E n te ri n g P & I R e p a ym e n t Years Since First P&I Repayment Period Smart Option Student Loans - Serviced Portfolio: Total Portfolio Cumulative Defaults by P&I Repayment Vintage and Years Since First P&I Repayment Period (1) 2015⁽²⁾ 2016⁽²⁾ 2017⁽²⁾ 2018⁽²⁾ 2019⁽²⁾ 2020⁽²⁾ 2021⁽²⁾ 2022⁽²⁾
Confidential and proprietary information. © 2023 Sallie Mae Bank. All rights reserved. 10 Data as of December 31, 2022. (1) Please see pages 18 & 19 for a description and explanation of the data and calculations underlying these charts. (2) Data for all loans from initial disbursement, whether or not scheduled payments are due. Voluntary CPR includes only voluntary prepayments. (3) Loans in a particular annual Disbursement Vintage are disbursed at different times during the Disbursement Vintage year. Prepayment data is not reported for loans in a particular annual Disbursement Vintage until all loans in that annual Disbursement Vintage have been disbursed. Once reporting starts, data reflects prepayments that occurred in a particular period based on the number of months all loans in that annual Disbursement Vintage have been disbursed. For example, in the charts above: (i) prepayment data reported for loans in the 2021 Disbursement Vintage represents prepayments occurring during the first 12 months (i.e., first four quarters) after a loan was disbursed regardless of the month in 2021 during which such loan was disbursed; and (ii) prepayment data for loans in the 2020 Disbursement Vintage represents prepayments occurring during the first 24 months (i.e., first eight quarters) after a loan was disbursed regardless of the month in 2020 during which such loan was disbursed. 0% 5% 10% 15% 20% 25% 1 3 5 7 9 11 13 15 17 19 21 23 25 27 % C P R Quarters Since Disbursement Smart Option Student Loans - Serviced Portfolio: All Products Voluntary CPR by Disbursement Vintage (1), (2), (3) 2015 2016 2017 2018 2019 2020 2021 0% 5% 10% 15% 20% 25% 1 3 5 7 9 11 13 15 17 19 21 23 25 27 % C P R Quarters Since Disbursement Smart Option Student Loans - Serviced Portfolio: Interest Only Voluntary CPR by Disbursement Vintage (1), (2), (3) 2015 2016 2017 2018 2019 2020 2021 0% 5% 10% 15% 20% 25% 1 3 5 7 9 11 13 15 17 19 21 23 25 27 % C P R Quarters Since Disbursement Smart Option Student Loans - Serviced Portfolio: Fixed Pay Voluntary CPR by Disbursement Vintage (1), (2), (3) 2015 2016 2017 2018 2019 2020 2021 0% 5% 10% 15% 20% 25% 1 3 5 7 9 11 13 15 17 19 21 23 25 27 % C P R Quarters Since Disbursement Smart Option Student Loans - Serviced Portfolio: Deferred Voluntary CPR by Disbursement Vintage (1), (2), (3) 2015 2016 2017 2018 2019 2020 2021
Confidential and proprietary information. © 2023 Sallie Mae Bank. All rights reserved. 11 ► Data as of December 31, 2022. (1) Please see pages 18 & 19 for a description and explanation of the data and calculations underlying these charts. (2) Data for all loans from initial disbursement, whether or not scheduled payments are due. (3) Loans in a particular annual Disbursement Vintage are disbursed at different times during the Disbursement Vintage year. Prepayment data is not reported for loans in a particular annual Disbursement Vintage until all loans in that annual Disbursement Vintage have been disbursed. Once reporting starts, data reflects prepayments that occurred in a particular period based on the number of months all loans in that annual Disbursement Vintage have been disbursed. For example, in the charts above: (i) prepayment data reported for loans in the 2021 Disbursement Vintage represents prepayments occurring during the first 12 months (i.e., first four quarters) after a loan was disbursed regardless of the month in 2021 during which such loan was disbursed; and (ii) prepayment data for loans in the 2020 Disbursement Vintage represents prepayments occurring during the first 24 months (i.e., first eight quarters) after a loan was disbursed regardless of the month in 2020 during which such loan was disbursed. 0% 5% 10% 15% 20% 25% 1 3 5 7 9 11 13 15 17 19 21 23 25 27 % C P R Quarters Since Disbursement Smart Option Student Loans - Serviced Portfolio: Interest Only Total CPR by Disbursement Vintage (1), (2), (3) 2015 2016 2017 2018 2019 2020 2021 0% 5% 10% 15% 20% 25% 1 3 5 7 9 11 13 15 17 19 21 23 25 27 % C P R Quarters Since Disbursement Smart Option Student Loans - Serviced Portfolio: All Products Total CPR by Disbursement Vintage (1), (2), (3) 2015 2016 2017 2018 2019 2020 2021 0% 5% 10% 15% 20% 25% 1 3 5 7 9 11 13 15 17 19 21 23 25 27 % C P R Quarters Since Disbursement Smart Option Student Loans - Serviced Portfolio: Fixed Pay Total CPR by Disbursement Vintage (1), (2), (3) 2015 2016 2017 2018 2019 2020 2021 0% 5% 10% 15% 20% 25% 1 3 5 7 9 11 13 15 17 19 21 23 25 27 % C P R Quarters Since Disbursement Smart Option Student Loans - Serviced Portfolio: Deferred Total CPR by Disbursement Vintage (1), (2), (3) 2015 2016 2017 2018 2019 2020 2021
Confidential and proprietary information. © 2023 Sallie Mae Bank. All rights reserved. 12 (1) Please see page 17 for a description and explanation of the data and calculations underlying these charts. (2) Data as of December 31, 2022 for Sallie Mae Bank serviced loans only. (3) Numerator is the Periodic Defaults in each P&I Repayment Vintage. Denominator is the amount of Disbursed Principal for that P&I Repayment Vintage. (4) Most recent data point for any P&I Repayment Vintage is for a full year. Note: Historical trends may not be indicative of future performance. 0 1 2 3 4 5 6 7 8 9 Total 2015(2) 2490 0.3% 1.9% 1.5% 1.1% 0.8% 0.7% 0.6% 0.8% 7.7% 2016(2) 3177 0.3% 1.4% 1.5% 1.0% 0.8% 0.8% 1.0% 6.6% 2017(2) 3801 0.3% 1.3% 1.5% 0.9% 0.8% 1.1% 5.8% 2018(2) 4197 0.2% 1.2% 1.4% 1.0% 1.2% 5.1% 2019(2) 4485 0.3% 1.3% 1.5% 1.5% 4.5% 2020(2) 4350 0.2% 1.3% 1.7% 3.3% 2021(2) 4998 0.2% 2.6% 2.8% 2022(2) 4789 0.4% 0.4% 0 1 2 3 4 5 6 7 8 9 Total 2015(2) 2220 0.2% 1.6% 1.4% 1.0% 0.8% 0.6% 0.6% 0.8% 7.0% 2016(2) 2845 0.2% 1.3% 1.4% 0.9% 0.7% 0.8% 1.0% 6.2% 2017(2) 3411 0.2% 1.1% 1.4% 0.8% 0.8% 1.0% 5.5% 2018(2) 3774 0.2% 1.1% 1.4% 1.0% 1.2% 4.8% 2019(2) 4041 0.3% 1.1% 1.5% 1.4% 4.2% 2020(2) 3938 0.2% 1.2% 1.6% 3.0% 2021(2) 4558 0.2% 2.4% 2.6% 2022(2) 4359 0.4% 0.4% 0 1 2 3 4 5 6 7 8 9 Total 2015(2) 270 1.1% 4.3% 2.6% 1.8% 1.2% 1.1% 0.8% 0.7% 13.5% 2016(2) 332 0.6% 3.0% 2.5% 1.5% 1.1% 0.8% 0.9% 10.4% 2017(2) 391 0.6% 2.9% 1.9% 1.3% 0.9% 1.2% 8.9% 2018(2) 423 0.5% 2.6% 1.9% 1.3% 1.4% 7.7% 2019(2) 445 0.5% 2.4% 2.0% 2.1% 7.0% 2020(2) 412 0.5% 2.5% 2.8% 5.8% 2021(2) 439 0.5% 4.7% 5.2% 2022(2) 429 1.3% 1.3% Smart Option Combined (P&I Repayment - No Co-signer) P&I Repayment Vintage Disbursed Principal Entering P&I Repayment ($m) Smart Option Combined (P&I Repayment - Total) P&I Repayment Vintage Disbursed Principal Entering P&I Repayment ($m) Periodic Defaults Percentage by Years Since First P&I Repayment Period (1), (3), (4) Smart Option Combined (P&I Repayment - Co-signer) P&I Repayment Vintage Disbursed Principal Entering P&I Repayment ($m) Periodic Defaults Percentage by Years Since First P&I Repayment Period (1), (3), (4) Periodic Defaults Percentage by Years Since First P&I Repayment Period (1), (3), (4)
Confidential and proprietary information. © 2023 Sallie Mae Bank. All rights reserved. 13 (1) Please see page 17 for a description and explanation of the data and calculations underlying these charts. (2) Data as of December 31, 2022 for Sallie Mae Bank serviced loans only. (3) Numerator is the Periodic Defaults in each P&I Repayment Vintage. Denominator is the amount of Disbursed Principal for that P&I Repayment Vintage. (4) Most recent data point for any P&I Repayment Vintage is for a full year. Note: Historical trends may not be indicative of future performance. 0 1 2 3 4 5 6 7 8 9 Total 2015(2) 570 0.6% 0.8% 0.6% 0.4% 0.4% 0.3% 0.2% 0.2% 3.5% 2016(2) 747 0.5% 0.6% 0.6% 0.4% 0.3% 0.2% 0.3% 2.8% 2017(2) 951 0.6% 0.5% 0.6% 0.4% 0.3% 0.4% 2.6% 2018(2) 1098 0.5% 0.5% 0.5% 0.4% 0.5% 2.3% 2019(2) 1170 0.6% 0.6% 0.6% 0.5% 2.3% 2020(2) 1129 0.5% 0.5% 0.8% 1.7% 2021(2) 1278 0.4% 0.8% 1.3% 2022(2) 1166 0.8% 0.8% 0 1 2 3 4 5 6 7 8 9 Total 2015(2) 497 0.5% 0.6% 0.6% 0.4% 0.4% 0.2% 0.2% 0.2% 3.0% 2016(2) 650 0.4% 0.5% 0.5% 0.4% 0.3% 0.2% 0.3% 2.5% 2017(2) 829 0.5% 0.4% 0.5% 0.3% 0.3% 0.3% 2.3% 2018(2) 964 0.4% 0.5% 0.4% 0.4% 0.4% 2.1% 2019(2) 1034 0.6% 0.5% 0.5% 0.5% 2.0% 2020(2) 1012 0.4% 0.4% 0.7% 1.5% 2021(2) 1159 0.4% 0.7% 1.1% 2022(2) 1059 0.7% 0.7% 0 1 2 3 4 5 6 7 8 9 Total 2015(2) 73 1.3% 2.0% 1.2% 0.7% 0.47% 0.4% 0.2% 0.4% 6.6% 2016(2) 97 1.0% 1.4% 1.1% 0.8% 0.5% 0.3% 0.3% 5.3% 2017(2) 121 1.1% 1.3% 0.8% 0.6% 0.4% 0.6% 4.8% 2018(2) 134 0.9% 1.1% 1.0% 0.6% 0.6% 4.1% 2019(2) 136 0.9% 1.4% 1.1% 0.8% 4.1% 2020(2) 117 1.0% 1.3% 1.3% 3.7% 2021(2) 118 0.8% 2.3% 3.1% 2022(2) 108 1.9% 1.9% Smart Option Interest Only (P&I Repayment - No Co-signer) P&I Repayment Vintage Disbursed Principal Entering P&I Repayment ($m) Periodic Defaults Percentage by Years Since First P&I Repayment Period (1), (3), (4) Smart Option Interest Only (P&I Repayment - Total) P&I Repayment Vintage Disbursed Principal Entering P&I Repayment ($m) Periodic Defaults Percentage by Years Since First P&I Repayment Period (1), (3), (4) Smart Option Interest Only (P&I Repayment - Co-signer) P&I Repayment Vintage Disbursed Principal Entering P&I Repayment ($m) Periodic Defaults Percentage by Years Since First P&I Repayment Period (1), (3), (4)
Confidential and proprietary information. © 2023 Sallie Mae Bank. All rights reserved. 14 (1) Please see page 17 for a description and explanation of the data and calculations underlying these charts. (2) Data as of December 31, 2022 for Sallie Mae Bank serviced loans only. (3) Numerator is the Periodic Defaults in each P&I Repayment Vintage. Denominator is the amount of Disbursed Principal for that P&I Repayment Vintage. (4) Most recent data point for any P&I Repayment Vintage is for a full year. Note: Historical trends may not be indicative of future performance. 0 1 2 3 4 5 6 7 8 9 Total 2015(2) 781 0.4% 1.3% 1.4% 0.9% 0.8% 0.6% 0.6% 0.7% 6.6% 2016(2) 1008 0.4% 1.0% 1.2% 0.9% 0.7% 0.6% 0.8% 5.5% 2017(2) 1168 0.3% 0.9% 1.2% 0.8% 0.7% 0.9% 4.8% 2018(2) 1261 0.3% 0.9% 1.0% 0.8% 0.9% 3.9% 2019(2) 1373 0.3% 0.8% 1.2% 1.2% 3.5% 2020(2) 1379 0.2% 0.9% 1.3% 2.4% 2021(2) 1592 0.2% 1.7% 2.0% 2022(2) 1594 0.6% 0.6% 0 1 2 3 4 5 6 7 8 9 Total 2015(2) 704 0.3% 1.1% 1.2% 0.8% 0.7% 0.5% 0.6% 0.7% 5.9% 2016(2) 907 0.3% 0.9% 1.1% 0.8% 0.6% 0.6% 0.8% 5.1% 2017(2) 1051 0.3% 0.8% 1.2% 0.7% 0.7% 0.8% 4.5% 2018(2) 1135 0.2% 0.8% 1.0% 0.7% 0.9% 3.6% 2019(2) 1234 0.3% 0.8% 1.1% 1.1% 3.2% 2020(2) 1239 0.2% 0.8% 1.2% 2.1% 2021(2) 1439 0.2% 1.5% 1.7% 2022(2) 1437 0.4% 0.4% 0 1 2 3 4 5 6 7 8 9 Total 2015(2) 77 1.5% 2.9% 2.8% 1.8% 1.1% 1.0% 0.9% 0.6% 12.6% 2016(2) 102 0.9% 2.3% 2.1% 1.4% 1.2% 0.5% 0.8% 9.2% 2017(2) 117 0.8% 2.1% 1.6% 1.3% 0.9% 1.0% 7.6% 2018(2) 126 0.7% 2.0% 1.6% 1.1% 1.1% 6.4% 2019(2) 139 0.6% 1.6% 1.8% 1.6% 5.6% 2020(2) 139 0.3% 1.9% 2.7% 5.0% 2021(2) 152 0.7% 3.4% 4.1% 2022(2) 157 2.0% 2.0% Smart Option Fixed Payment (P&I Repayment - No Co-signer) P&I Repayment Vintage Disbursed Principal Entering P&I Repayment ($m) Periodic Defaults Percentage by Years Since First P&I Repayment Period (1), (3), (4) Smart Option Fixed Payment (P&I Repayment - Total) P&I Repayment Vintage Disbursed Principal Entering P&I Repayment ($m) Periodic Defaults Percentage by Years Since First P&I Repayment Period (1), (3), (4) Smart Option Fixed Payment (P&I Repayment - Co-signer) P&I Repayment Vintage Disbursed Principal Entering P&I Repayment ($m) Periodic Defaults Percentage by Years Since First P&I Repayment Period (1), (3), (4)
Confidential and proprietary information. © 2023 Sallie Mae Bank. All rights reserved. 15 (1) Please see page 17 for a description and explanation of the data and calculations underlying these charts. (2) Data as of December 31, 2022 for Sallie Mae Bank serviced loans only. (3) Numerator is the Periodic Defaults in each P&I Repayment Vintage. Denominator is the amount of Disbursed Principal for that P&I Repayment Vintage. (4) Most recent data point for any P&I Repayment Vintage is for a full year. Note: Historical trends may not be indicative of future performance. 0 1 2 3 4 5 6 7 8 9 Total 2015(2) 1139 0.1% 2.8% 2.1% 1.5% 1.1% 0.9% 0.9% 1.2% 10.6% 2016(2) 1422 0.1% 2.2% 2.2% 1.3% 1.1% 1.2% 1.4% 9.4% 2017(2) 1683 0.1% 2.1% 2.1% 1.3% 1.3% 1.6% 8.4% 2018(2) 1838 0.1% 1.9% 2.3% 1.6% 1.9% 7.6% 2019(2) 1943 0.1% 2.0% 2.3% 2.3% 6.6% 2020(2) 1843 0.1% 2.2% 2.6% 4.8% 2021(2) 2128 0.1% 4.3% 4.4% 2022(2) 2028 0.1% 0.1% 0 1 2 3 4 5 6 7 8 9 Total 2015(2) 1019 0.1% 2.3% 1.9% 1.4% 1.0% 0.9% 0.9% 1.2% 9.7% 2016(2) 1289 0.1% 1.9% 2.1% 1.3% 1.0% 1.1% 1.4% 8.9% 2017(2) 1531 0.1% 1.8% 2.0% 1.2% 1.2% 1.6% 7.9% 2018(2) 1675 0.1% 1.6% 2.2% 1.5% 1.8% 7.2% 2019(2) 1773 0.1% 1.8% 2.3% 2.2% 6.3% 2020(2) 1687 0.0% 2.0% 2.5% 4.5% 2021(2) 1960 0.1% 4.0% 4.1% 2022(2) 1863 0.1% 0.1% 0 1 2 3 4 5 6 7 8 9 Total 2015(2) 120 0.6% 6.7% 3.4% 2.4% 1.6% 1.5% 1.0% 1.0% 18.2% 2016(2) 133 0.0% 4.8% 3.8% 2.1% 1.5% 1.4% 1.4% 15.0% 2017(2) 152 0.1% 4.8% 3.1% 1.9% 1.4% 1.8% 13.1% 2018(2) 162 0.0% 4.4% 2.9% 2.0% 2.4% 11.7% 2019(2) 170 0.0% 4.0% 3.0% 3.5% 10.5% 2020(2) 155 0.1% 4.0% 4.0% 8.2% 2021(2) 169 0.1% 7.7% 7.7% 2022(2) 165 0.1% 0.1% Smart Option Deferred (P&I Repayment - No Co-signer) P&I Repayment Vintage Disbursed Principal Entering P&I Repayment ($m) Periodic Defaults Percentage by Years Since First P&I Repayment Period (1), (3), (4) Smart Option Deferred (P&I Repayment - Total) P&I Repayment Vintage Disbursed Principal Entering P&I Repayment ($m) Periodic Defaults Percentage by Years Since First P&I Repayment Period (1), (3), (4) Smart Option Deferred (P&I Repayment - Co-signer) P&I Repayment Vintage Disbursed Principal Entering P&I Repayment ($m) Periodic Defaults Percentage by Years Since First P&I Repayment Period (1), (3), (4)
Confidential and proprietary information. © 2023 Sallie Mae Bank. All rights reserved. 16
Confidential and proprietary information. © 2023 Sallie Mae Bank. All rights reserved. 17 o o o o o o
Confidential and proprietary information. © 2023 Sallie Mae Bank. All rights reserved. 18
Confidential and proprietary information. © 2023 Sallie Mae Bank. All rights reserved. 19 𝑃𝑟𝑒𝑝𝑎𝑦𝑚𝑒𝑛𝑡 = 𝑃𝑀𝑇 − 𝑆𝑃 𝑆𝑀𝑀 = 𝑃𝑟𝑒𝑝𝑎𝑦𝑚𝑒𝑛𝑡 𝐸𝑋𝑃⁄ 𝑆𝑅 = 1 − 𝑆𝑀𝑀 𝐶𝑃𝑅 = 1 − 𝑆𝑅 𝑤ℎ𝑒𝑟𝑒: 𝑛 = 𝑞𝑢𝑎𝑟𝑡𝑒𝑟 𝑡 = 𝑚𝑜𝑛𝑡ℎ 𝑜𝑓 𝑞𝑢𝑎𝑟𝑡𝑒𝑟