SLM's Series B Preferred Stock Exceeds 8.5% Yield Threshold
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 09 2025
0mins
Should l Buy SLM?
Source: NASDAQ.COM
SLMBP Performance: The one-year performance of SLMBP shares is compared to SLM shares, with SLMBP currently trading flat while SLM shares are down approximately 14.2%.
Dividend History: A chart detailing the historical dividend payments for SLM Corp.'s Floating-Rate Non-Cumulative Preferred Stock, Series B, is provided.
Current Trading Status: On Tuesday, SLMBP shares are noted to be stable, contrasting with the decline in common shares of SLM.
Author's Views: The opinions expressed in the article are those of the author and do not necessarily represent the views of Nasdaq, Inc.
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Analyst Views on SLM
Wall Street analysts forecast SLM stock price to rise
11 Analyst Rating
7 Buy
2 Hold
2 Sell
Moderate Buy
Current: 20.640
Low
23.00
Averages
31.09
High
37.00
Current: 20.640
Low
23.00
Averages
31.09
High
37.00
About SLM
SLM Corporation is a holding company, which operates through various subsidiaries and is a financial brand for higher education. The Company’s primary business is to originate and service loans it makes to students and their families to finance the cost of their education. It also offers a range of deposit products insured by the Federal Deposit Insurance Corporation. Its primary private education loan product is the Smart Option Student Loan, which emphasizes in-school payment features that can produce shorter terms and reduce customers’ total finance charges. The Smart Option Student Loan generally runs for six months after the borrower separates from school but can run for up to 36 months for a small subset of graduate loans. It also offers six loan products for specific graduate programs of study. These include the Sallie Mae Law School Loan, the Sallie Mae MBA Loan, the Sallie Mae Graduate School Loan for Health Professions, the Sallie Mae Medical School Loan, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Debt Growth Risk: The average SAVE enrollee has a loan balance of approximately $57,000 with a 6.7% interest rate, and since interest resumed in August, their debt is projected to have increased by over $2,500, exacerbating financial strain on borrowers.
- Challenges in Applying for New Plans: With the U.S. Department of Education's limited capacity to process applications, borrowers who wait until the end of the SAVE plan to apply for new income-driven repayment options may face longer wait times, increasing their financial risks.
- Cost of Switching Repayment Plans: While the Income-Based Repayment (IBR) plan is viewed as a better option, borrowers switching from SAVE could see their monthly payments double, adding further financial burden to those already under stress.
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- Impact on Defaulted Borrowers: Currently, around 9 million borrowers are in default, and the Treasury's involvement may increase uncertainty for these borrowers, although experts note that the Treasury's collection efficiency may be lower than that of private companies, prompting borrowers to monitor their repayment history closely.
- Policy Context: The Trump administration emphasizes that the Treasury has the unique experience and capability to manage this massive debt portfolio, aiming to clean up years of mismanagement; however, borrower reactions to this transition are marked by concern and anxiety.
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- Termination of SAVE Plan: A federal appeals court has ordered the end of the SAVE plan, leaving over 7.2 million borrowers facing increasing debt, as they have been in forbearance since July 2024 without progress towards loan forgiveness.
- Debt Growth Risk: The average SAVE enrollee has a loan balance of approximately $57,000 with a 6.7% interest rate, and since interest resumed in August, their debt is projected to have increased by over $2,500, exacerbating financial strain on borrowers.
- Challenges in Applying for New Plans: With the U.S. Department of Education's limited capacity to process applications, borrowers who wait until the end of the SAVE plan to apply for new income-driven repayment options may face longer wait times, increasing their financial risks.
- Cost of Switching Repayment Plans: While the Income-Based Repayment (IBR) plan is viewed as a better option, borrowers switching from SAVE could see their monthly payments double, adding further financial burden to those already under stress.
See More
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- Treasury's New Role: The U.S. Treasury will take over the collection of nearly $1.7 trillion in federal student loans, providing 'operational support' for approximately 42 million borrowers, marking a significant reform by the Trump administration that may lead to further decentralization of education management.
- Impact on Defaulted Borrowers: Currently, around 9 million borrowers are in default, and the Treasury's involvement may increase uncertainty for these borrowers, although experts note that the Treasury's collection efficiency may be lower than that of private companies, prompting borrowers to monitor their repayment history closely.
- Policy Context: The Trump administration emphasizes that the Treasury has the unique experience and capability to manage this massive debt portfolio, aiming to clean up years of mismanagement; however, borrower reactions to this transition are marked by concern and anxiety.
- Borrower Rights Protection: Despite the change in management, borrowers' rights remain protected, and experts advise borrowers to download their loan data to prevent information loss while also keeping an eye on future Treasury support measures for non-defaulted loans.
See More
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- Scholarship Amount: The Sallie Mae Fund's Bridging the Dream Scholarship offers up to $10,000 each to 30 high school seniors, significantly alleviating financial burdens associated with higher education costs.
- Eligibility Criteria: Applicants must be Pell Grant-eligible high school seniors planning to attend an accredited two- or four-year college or an eligible certificate or technical program, ensuring that funds are directed to students in genuine need.
- Educational Investment: The Sallie Mae Fund has awarded nearly $5 million in scholarships to over 1,300 students, demonstrating its commitment to educational equity and providing resources to help students successfully complete higher education.
- Application Timeline: The application window for this scholarship is open until April 24, 2026, encouraging interested students to apply early to secure support and pave the way for future success.
See More
Sallie Mae Initiates $200 Million Share Repurchase Program
- Repurchase Agreement Signed: Sallie Mae announced a $200 million accelerated share repurchase agreement with Goldman Sachs, aimed at enhancing earnings per share by reducing outstanding shares, despite a 4.02% drop in stock price post-announcement.
- Prefunding Arrangement: The company plans to prefund the $200 million repurchase on March 10, 2026, ensuring an immediate reduction in shares outstanding during the repurchase period, thereby boosting market confidence.
- Authorization Background: This repurchase will occur under the $500 million stock repurchase authorization approved by the board on January 22, 2026, reflecting the company's confidence in its future financial health.
- Future Growth Outlook: Sallie Mae anticipates a 12%-14% growth in loan originations for 2026 while launching a new $500 million share repurchase program, aiming to enhance shareholder value through effective capital management.
See More
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- Meeting Schedule: Sallie Mae has announced that its 2026 annual meeting of stockholders will take place on June 16, 2026, at 1 p.m. ET, ensuring timely participation in annual decision-making.
- Virtual Format: The meeting will be held virtually, enhancing accessibility and participation for all stockholders of record, thereby increasing engagement in corporate governance.
- Eligibility Confirmation: Only stockholders on record as of the close of business on April 20, 2026, will be eligible to participate, ensuring the legitimacy of the meeting and protection of shareholder rights.
- Subsequent Information Disclosure: Additional details will be provided in the proxy statement to be filed with the SEC in late April, ensuring stockholders have comprehensive information to make informed decisions.
See More
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- Delinquency Rate Surge: Research from The Century Foundation reveals that nearly 25% of student loan borrowers were delinquent in the first three quarters of 2025, a significant increase from 9% in 2019, indicating the adverse impact of Trump administration policies on borrowers' repayment capabilities.
- Rising Borrower Numbers: Approximately 7.9 million student loan borrowers entered delinquency in the first three quarters of 2025, which not only affects their credit scores but also hinders their ability to achieve life milestones such as home and car ownership.
- Credit Score Decline: The study estimates that around 2 million delinquent borrowers have seen their credit scores drop to an average of 580 from 680, significantly below the acceptable range, which will directly impact their future borrowing ability and costs.
- Severe Issues in Southern States: The analysis indicates that states like Louisiana and Mississippi have delinquency rates nearing 40%, with over 48% of Black borrowers being delinquent, highlighting significant racial disparities in repayment capabilities that could exacerbate socioeconomic inequalities.
See More
