Investment OutlookThe analyst maintains an Overweight rating for SLM, indicating a strong investment opportunity driven by market shifts to private student lenders.
Loan PerformanceNCOs on total loans were 20 bps lower to 1.81%, and NCOs on loans in full P&I down 23 bps to 2.77%, indicating an improvement.
Market OpportunitiesThe anticipated discontinuation of Grad PLUS loans and caps on Parent PLUS loans is expected to create a $4.5B-$5.0B opportunity for SLM based on its current ~60% market share of private student loans.