How Sallie Mae’s KKR Partnership Could Shape Funding and Growth for SLM (SLM) Investors

• On November 12, 2025, Sallie Mae (SLM) announced a multi-year partnership with KKR, under which KKR will purchase a minimum of US$2 billion in new private education loans annually and acquire an initial portfolio of loans.
• This collaboration allows Sallie Mae to scale its loan origination capacity and capital efficiency while maintaining direct customer relationships and servicing responsibilities.
• We'll explore how this private credit partnership with KKR could influence Sallie Mae's ability to fund and grow its loan portfolio.

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SLM Investment Narrative Recap

To own SLM shares, I believe you need confidence in the company’s capacity to capture private student loan growth as federal reforms push more borrowers away from government programs. The new multi-year partnership with KKR directly addresses the biggest short-term catalyst, scaling originations to meet policy-driven demand, and partially reduces dependence on capital markets for funding, although credit risk from rising delinquencies still bears close watching.

Among recent announcements, third quarter results showed a return to profitability with net income of US$135.85 million after last year’s loss, highlighting improved loan performance and supporting SLM's case for expanding its origination capacity. This earnings momentum is relevant as SLM prepares to grow its loan book under the KKR partnership, potentially boosting near-term results while testing the sustainability of credit quality and borrower repayment.

But while this funding partnership is a key step, persistent credit risk from rising delinquencies remains a factor that investors should pay attention to if...

Read the full narrative on SLM (it's free!)

SLM's outlook anticipates $2.0 billion in revenue and $918.9 million in earnings by 2028. This scenario implies 17.4% annual revenue growth and a $493.6 million increase in earnings from the current $425.3 million.

Uncover how SLM's forecasts yield a $34.73 fair value, a 30% upside to its current price.

Exploring Other Perspectives

Two distinct fair value estimates from the Simply Wall St Community range from US$34.73 to US$57.95 per share. Investor confidence in SLM’s ability to capture new private loan growth after federal policy shifts remains a dividing line for future performance debates.

Explore 2 other fair value estimates on SLM - why the stock might be worth just $34.73!

Build Your Own SLM Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your SLM research is our analysis highlighting 4 key rewards and 3 important warning signs that could impact your investment decision.
• Our free SLM research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate SLM's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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