SLM (SLM) risk factors, FY2025 10-K

Other

1. 01CONCENTRATION & COMPETITIVE RISKNew
2. 02Our core product offerings are primarily concentrated in Private Education Loan products and services. Such concentrations and the competitive environment for those products and services subject us to risks that could adversely affect our financial position66% rewritten
3. 032025 Form 10-K — SLM CORPORATION 23100% rewritten
4. 04Consumer access to alternative means of financing the costs of education and other factors may reduce demand for, or adversely affect our ability to retain, Private Education Loans, which could have a material adverse effect on our business, financial condition, results of operations, and/or cash flows44% rewritten
5. 05Consolidation or refinancing of existing Private Education Loans could have a material adverse effect on our business, financial condition, results of operations, and/or cash flows
6. 06Our deposit funding base is primarily concentrated in online deposit products, including high-yield savings accounts, money market accounts, and certificates of deposit. This concentration subjects us to risks that could adversely affect our liquidity, funding costs, and overall financial conditionNew

MACROECONOMIC RISK

1. 07A deterioration in economic or macroeconomic conditions, or instability in the macroeconomic environment, could have a material adverse effect on our business, financial condition, and/or results of operationsNew
2. 082025 Form 10-K — SLM CORPORATION 25100% rewritten
3. 09Defaults on our Private Education Loans could adversely affect our business, financial condition, results of operations, and/or cash flows35% rewritten
4. 1026 SLM CORPORATION — 2025 Form 10-K100% rewritten
5. 11Our allowance for credit losses may not be adequate to cover actual losses in all possible scenarios, and we may be required to materially increase our allowance, which may adversely affect our capital, financial condition, and/or results of operations
6. 12We are subject to the creditworthiness of third parties other than borrowers and exposure to those third parties could adversely affect our business, financial condition, results of operations, and/or cash flows
7. 13The levels of or changes in interest rates could adversely affect our results of operations, financial condition, regulatory capital, and/or liquidity72% rewritten
8. 142025 Form 10-K — SLM CORPORATION 27100% rewritten
9. 15The interest rate and maturity characteristics of our earning assets do not fully match the interest rate and maturity characteristics of our funding arrangements, which may negatively impact the level of our net interest income
10. 16We are subject to repayment and prepayment risks, which can increase uncertainty as we manage our interest rate risk and can adversely affect our business, financial condition, results of operations, and/or cash flows
11. 17Our use of derivatives to manage interest rate sensitivity exposes us to credit and market risk that could have a material adverse effect on our earnings
12. 1828 SLM CORPORATION — 2025 Form 10-K99% rewritten
13. 192025 Form 10-K — SLM CORPORATION 29100% rewritten
14. 20Adverse developments, and/or a continuation of recent turmoil, in the financial services industry could adversely affect our financial condition and results of operations77% rewritten
15. 2130 SLM CORPORATION — 2025 Form 10-K100% rewritten
16. 22Unfavorable results from the periodic stress scenarios we model under regulatory guidance may adversely affect our business and result in regulatory action that could adversely affect our cost of capital and liquidity position
17. 23Changes in accounting standards, or incorrect estimates and assumptions by management in connection with the preparation of our consolidated financial statements, could adversely affect our capital levels, results of operations, and/or financial condition29% rewritten
18. 242025 Form 10-K — SLM CORPORATION 31100% rewritten

REGULATORY RISK

1. 25We operate in a highly regulated environment and the laws and regulations that govern our operations, or changes in these laws and regulations, or our failure to comply with them, may adversely affect us
2. 26prospects. Restrictions or limitations on our operations, or other directives, imposed by our regulators may be confidential and thus, in some instances, we may not be permitted to publicly disclose the actionsNew
3. 27Failure to comply with consumer protection, privacy, data protection, or cybersecurity laws and requirements could subject us to civil and criminal penalties or litigation, including class actions, and have a material adverse effect on our business66% rewritten
4. 282025 Form 10-K — SLM CORPORATION 33New
5. 29Proposals of federal and state governments, or of various political officials or candidates, affecting the student loan industry in particular, subject us to political risk and could have a material adverse impact on our business, results of operations, financial condition, and/or cash flows
6. 30We are subject to reputational and other risks, which could damage our brand and have a material adverse impact on our business, results of operations, financial condition, and/or cash flows70% rewritten
7. 31our employees, or our vendors, or public opinion of the broader student loan industry or other relevant industries generally, could damage our reputation and business and adversely impact the price of our common stock or other securitiesNew
8. 32Additionally, as described above, actions or proposals of political candidates, administrations, or legislators that may affect the financial industry, or the student loan industry, in particular, could impact our reputation and/or business and adversely impact the price of our common stock
9. 33Failure or significant interruption of our operating systems or infrastructure or the inability to adapt to changes could disrupt our business, cause significant losses, result in regulatory action or litigation, or damage our reputation
10. 34Our business processes are becoming increasingly dependent upon technological advancement, and we could lose market share if we are not able to keep pace with rapid changes in technology94% rewritten
11. 352025 Form 10-K — SLM CORPORATION 35New
12. 36The development and use of AI presents risks and challenges that may adversely impact our businessNew
13. 37commit resources to the design, implementation, maintenance, security, and monitoring of our networks and systems, there is no guarantee that our security controls, or those of our third-party service providers, will protect against all threatsNew
14. 38While we maintain insurance coverage that may apply to various cybersecurity risks and liabilities, there is no guarantee that any or all costs or losses incurred would be partially or fully covered
15. 392025 Form 10-K — SLM CORPORATION 37New

OPERATIONAL RISK

1. 40We may face risks from our operations related to litigation or regulatory or supervisory actions that could result in significant legal expenses and settlement or damage awards
2. 41Our internal controls over financial reporting and disclosure controls, as well as other internal controls, may be ineffective, which could have a material adverse effect on our financial condition and/or results of operations66% rewritten
3. 42Our framework for managing risks, including model risk and data governance risk, may not be effective in mitigating our risk of loss in all possible scenarios and, if the framework is ineffective, could have a material adverse effect on us and our business27% rewritten
4. 4338 SLM CORPORATION — 2025 Form 10-KNew
5. 44Our origination expansion initiative and strategic partnership funding model are new and untested and may expose us to a broad range of potential risksNew

RISKS RELATED TO SPIN-OFF

1. 45We may have exposure to risks related to the Spin-Off, indemnification claims, and/or Navient’s creditworthiness

GENERAL RISK

1. 46Our business could be negatively affected if we are unable to attract, retain, and motivate skilled employees61% rewritten
2. 4740 SLM CORPORATION — 2025 Form 10-KNew
3. 48The holders of our preferred stock have rights that are senior to those of our common stockholders
4. 49We may be limited in our ability to receive dividends from the Bank, pay dividends on and repurchase our common stock, and make payments on our corporate debt