Sallie Mae at Morgan Stanley Conference: Strategic Shifts and Market Adaptations

On Tuesday, 10 June 2025, Sallie Mae (NASDAQ:SLM) participated in the Morgan Stanley US Financials, Payments & CRE Conference 2025. The company’s CFO, Pete Graham, provided insights into Sallie Mae’s strategic evolution, addressing both opportunities and challenges. The discussion highlighted a hybrid growth strategy, potential impacts from federal student loan reforms, and the company’s proactive measures to adapt to market changes.

Key Takeaways

• Sallie Mae is implementing a hybrid growth and capital return strategy to drive earnings per share (EPS) growth.
• The company is preparing for potential federal student loan reforms, which could benefit the private market.
• A $2 billion loan sale was executed, with alternatives being explored for more resilient funding.
• Credit quality remains strong, with positive long-term guidance on net charge-off rates.
• Strategic priorities include optimizing the Ed Services business and exploring new funding capabilities.

Financial Results

• Sallie Mae reported a 3% balance sheet growth in 2024, surpassing the initial target of 2%.
• Private student loan (PSL) balance growth reached approximately 5%.
• The exit of a major competitor enabled a 10% year-over-year increase in originations.

Operational Updates

• The company is focusing on a hybrid growth strategy, emphasizing modest balance sheet growth and operating leverage.
• Loan sales remain a critical component for managing the balance sheet, with a strong investor base supporting continued execution.
• Alternatives to loan sales are being explored for more durable funding sources.

Future Outlook

• Sallie Mae anticipates federal student loan reforms, positioning itself to support schools, students, and families.
• The company is evaluating opportunities in graduate lending as part of its strategic evolution.
• Preparedness for federal reforms includes being ready with alternative funding sources.

Q&A Highlights

• CFO Pete Graham emphasized the company’s commitment to executing its core strategy and hitting guidance for the year.
• The focus on programs with strong return on investment (ROI) for borrowers is a key adaptation to slower enrollment trends and potential AI impacts.
• New borrower assistance programs and underwriting changes are expected to enhance credit performance.

In conclusion, Sallie Mae’s strategic initiatives and market adaptations were thoroughly discussed at the Morgan Stanley conference. Readers are encouraged to refer to the full transcript for more detailed insights.

Full transcript - Morgan Stanley US Financials, Payments & CRE Conference 2025:

Unidentified speaker, Interviewer, Morgan Stanley: Hi. Good morning, everybody. Before we get started, I’m just gonna read some disclosures real quickly. For important disclosures, please see the Morgan Stanley research disclosure website at morganstanley.com/researchdisclosures. The taking of photographs and use of recording devices is not allowed.

If you have any questions, please reach out to your Morgan Stanley sales representative. So with that, happy to welcome Pete Graham, CFO of Sallie Mae to our conference. year Good morning. Good morning. Good to be here.

Thanks for coming. Maybe, Pete, we could just kick off with the evolution of Sallie Mae here before we get into the nitty gritty. Talk to us about the Sallie Mae story, how it’s evolved in recent years. Anything you think that’s unappreciated about your story?

Pete Graham, CFO, Sallie Mae: Yeah. Great. Thanks thanks for having us here. Good to be here again this year. I think that a good starting point really for talking about where we are in our evolution is the investor forum that we did in December of twenty twenty three.

And there, we laid out kind of a a hybrid growth and capital return strategy that called for us to begin to grow the balance sheet modestly after we got past the CECL phase in, which the final piece of that was the part of this year. We would continue to use loan sales to moderate the rate of growth of the balance sheet, continue to optimize the business and drive operating leverage into the business. And really, the idea is modest but accelerating growth of organic earnings, call it mid- to high single digits, coupled with operating leverage that should lead to double digit earnings per share growth over time, all the while generating meaningful capital for return to shareholders. And it’s a really balanced profile. That modest rate of growth allows us to grow the balance sheet, doesn’t create extra stress on the funding of the bank’s balance sheet.

So we’ve been really pleased with our performance under that framework. 2024 was the full year. We took advantage of the exit of a big competitor, and we’re able to take a good amount of market share upon that exit. And so grew in exceeding our expectations for the year, grew 10% year over year growth in originations. That enabled us to grow the balance sheet a little bit faster than what we had in that initial framework.

So the initial framework called for us to grow 2%. We actually grew about 3%. But if you peel that back, we exited a legacy FELP portfolio, kind of low yielding legacy non core business. And our actual PSL balance growth was more in the 5% range. So really kind of jumped a year ahead in the overall strategy.

We were really happy with that. And it’s been well received by investors.

Unidentified speaker, Interviewer, Morgan Stanley: K. Great. And and maybe as we think about the next step in your evolution, you know, there’s been a lot of discussion over student loan reform recently. We have the federal student loan program potentially moving to the private market in a few years, in particular, the plus programs depending on what makes it through the senate at this juncture. Can you talk about how meaningful some of those proposed changes from the house are?

Can and how meaningful that can be for the private industry in in Sallie Mae?

Pete Graham, CFO, Sallie Mae: Yeah. I think, you know, this this whole congressional process is one that, you know, sometimes is a little puzzling when you’re sitting on on the outside looking in. You know, the the the reconciliation process itself, we know that the house has put a bill that does have some elements of federal student loan reform as part of that proposal from the from the house republicans. We also know that that’s only, you know, half the story and that the Senate still has to act. As of today, they have not, completed their process, but we do expect for there to be, some common elements of of reform in the federal program that will ultimately come out of this process.

It’s too early to kinda put a pin in the opportunity just given, you know, the actual elements of the final bill will matter. But I think the the really great news is that, you know, we’re, you know, kinda weeks, months away from something that we’ve been advocating for for for many years, which is reform in the federal programs. It’s long been our belief, and I think there’s bipartisan consensus that the federal program does too much for too many and not enough for the for the ones who truly need it. And the way that the federal programs are run with, you know, sort of unlimited ability to borrow under certain programs, the fact that they’re not underwritten, it’s really created this situation where students and their families are borrow truly borrowing too much and beyond their capacity to repay. So we’re optimistic that in the coming months, there’ll be some meaningful reform, and we’re, you know, preparing ourselves to be ready for that.

Unidentified speaker, Interviewer, Morgan Stanley: And you touched on some of the common elements that might come out. Still early here, obviously, but maybe touch on what you think comes out or what’s more likely to get pulled back. Is it more the some of the more complex elements perhaps?

Pete Graham, CFO, Sallie Mae: Yeah. There were some features in the house, Bill, that I think, you know, like average cost of program and things like that that would would be pretty difficult to sorta operationalize in in in terms of running an an overall program. So I would expect that, you know, perhaps some things like that might get modified or simplified. But, again, it’s too early to to kind of really, give a report card on exactly what what’s gonna happen until we see that final bill.

Unidentified speaker, Interviewer, Morgan Stanley: Okay. Great. And, you know, if if we think about the potential competition in this market that opens up down the line here, Sally Mae has had a distribution advantage over the competition. In today’s world, you’ve got more than 2,000 college relationships across The US. Do you think that advantage is gonna carry over to the graduate side as well?

And maybe just comment on the structural setup there. I mean, I think there’s been some speculation that the graduate borrower maybe is a little bit savvier. Can they get a loan outside of the preferred list or not? Yeah. I think I think

Pete Graham, CFO, Sallie Mae: one thing that is important to understand is that both with regard to undergrad as well as graduate loans, they still have to go through kind of a certification process with the school. And so we do believe that the relationships that we have built over many decades and we’ve got the largest relationship management and sales force in the industry, we’ve got, as you said, relationships with over 2,000 schools, we do think that’s going to still continue to be a differentiator for us. To your point on our graduate students different or savvier, I guess what I would say, the typical, you know, graduate student has generally, you know, got their undergrad, gone and worked for a period of time before making the decision to go back to grad school. And so they’re different in a number of ways from our typical undergrads. Right?

They’ve got an actual credit history. Our undergrad borrowers generally are, you know, sort of high school grads. They might have had part time work. They are, you know, very thin file, you know, credit profiles if they have a file at all. And so that’s heavily dependent on the cosigner, typically a parent, and the the credit rating that comes with that.

The graduate borrowers, you know, in large part tend to have their own credit profile. They’ve they’ve got a work history. They’ve got a payment history. And so there is a bit of a different sort of credit dynamic to that. We still do have the option for cosigning in the grad space.

But they will likely have an ability to qualify for underwritten loans outside of the federal program in a way that maybe undergrad borrowers would not be able to. So again, we’re evaluating the potential for reform and grad lending reform is a big piece of that. On your savviness point, also, I would say it’s our hope, they’re grad students or whether they’re undergrads, that they are doing their sort of due diligence around the loan terms and making sure that there’s a good return on the investment for them in terms of how much they’re borrowing versus their ultimate, you know, sort of earnings potential after after graduation.

Unidentified speaker, Interviewer, Morgan Stanley: And, you know, one thing we one question we’ve gotten is there there is a small in school graduate market today, and, you know, less than 10% of your volumes last year, I believe, were were graduate based. So can you just comment on why that market exists today and how that might structurally compare or defer to what comes out?

Pete Graham, CFO, Sallie Mae: Yeah. I think it’s, without a doubt the primary competitor we have currently in the grad space is the plus program. It’s an it’s an unlimited borrowing, ununderwritten program. So it’s very hard to compete with a, you know, with a responsible lending product against that type of competition. So that’s, you know, probably indicative of why the size of our grad program is what it is.

And so I think, look, I think that the potential for reform here will drive good public policy, but it’ll also create some opportunity you know, for the private market to step in and and fill a responsible role, and we’re looking forward to being ready to do that.

Unidentified speaker, Interviewer, Morgan Stanley: Okay. And, you know, you you touched on the graduates, having history and and potentially having worked already. So how should we think about the credit quality of that potential new borrower or that new market as compared to maybe where your 2% or so loss rate is today and your 3% delinquency rate sits?

Pete Graham, CFO, Sallie Mae: Yeah. Again, we follow a risk based pricing, you know, methodology. We’ll continue to do that even as we expand in the grad space. As I said, they have a slightly different credit profile, a more developed credit profile than the typical undergrad borrower. But we’ll keep the same sort of underwriting and pricing discipline that we currently employ as we move forward and look to take advantage of that change in the market.

At this juncture, I don’t think that changes in any way our view of our long term sort of credit trajectory and getting to that kind of high ones, low 2% annualized net charge off rate.

Unidentified speaker, Interviewer, Morgan Stanley: Okay. Maybe switching gears a bit. Also, on the student policy side, there has maybe been maybe not policy, but just relevant, news is, you know, there’s been some concern over international students, maybe not going to The US as much anymore. How large of a base is that for Sallie Mae today, and and how impactful might some of the recent actions we’ve seen out there affect you?

Pete Graham, CFO, Sallie Mae: Yeah. Our programs that we have in place require that either the the borrower or the cosigner be a citizen or a legal US resident. And so as a result of that, we have a very low exposure to that sort of international student base. You can debate the merits of the policies around that, but I don’t think it’s really gonna have any material impact on on our business.

Unidentified speaker, Interviewer, Morgan Stanley: Okay. And and just if we also switch gears again, focus more on the capital market side, you did a $2,000,000,000 loan sale earlier this year. You you saw a really strong execution of nearly 10%. Talk to us about what we should be expecting over the remainder of the year. How do market conditions look today?

And what does the demand look like in comparison to the prior sale?

Pete Graham, CFO, Sallie Mae: Yes. I think this loan sale strategy that we’ve had in place has really critical for us in terms of managing the overall size of the balance sheet. We’ve executed on that strategy now for a number of years through different sort of both interest rate as well as sort of market dynamics, and that’s proved to be a continuing source of capacity for us. The other dynamic that’s happened in the market is the exit of now two major bank competitors from this space over the last few years. And as those processes have been run, there have been large portfolios for bid at one time, a lot of investors doing work around those portfolios, getting smarter on the asset class.

And obviously, in a process like those, only one group wins the bid. And so the backdrop of that, though, has created a much more a much broader sort of investor base that understands the asset class, that has done the work, and is interested in, you know, the profile of the assets. I mean, it’s it’s kind of a unique consumer credit type. It has got duration. It’s got high credit quality, low losses.

And so it is very attractive in the context of, you know, the the broader sort of trends around private credit. We have seen strong interest from private credit in being involved, not so much directly with us, but in the background as investors in the takeout securitizations that the buyers ultimately tend to do. In the context of current year, really the expectation you should have around additional loan sales, it will be just like it was last year, which is the growth of our balance sheet is really going to be the governor of the amount of loan sale, and timing will be somewhat dependent on when we think there is an optimal window for us to do another loan sale this year. The environment’s changed fairly dramatically since February when we closed that loan sale. April ushered in a period of a lot more uncertainty in the capital markets.

But I would say that over the course of the last few years as we’ve executed on this strategy, we’ve had good transactions done in a variety of different markets. So we’re confident that there is still broad demand for the asset class and you know, TBD on when and where we do we do another loan sale this year.

Unidentified speaker, Interviewer, Morgan Stanley: Okay. Understood. And and as we kind of touch upon the strategic vision you laid out at the investor forum once again, You know, you touched on how you’ve been able to execute on this plan so far. But as it relates to the potential of a new private market opening, could you talk us through how your strategic priorities might shift if that comes through? Does it change your views on balance sheet growth, how much you wanna hold?

And then I think, you know, you’ve alluded to potential new avenues to the whole loan sales strategy or alternatives. Could you touch upon that a little bit and what that looks like?

Pete Graham, CFO, Sallie Mae: Yeah. I think maybe it’d be a opportune time to sort of rewind the tape a little bit on the strategy. You know, when John took over as the CEO in 2020, he realized three things very quickly, And that was that you couldn’t grow the balance sheet in a meaningful way, phase

Unidentified speaker, Interviewer, Morgan Stanley: in

Pete Graham, CFO, Sallie Mae: the CECL requirements, and return capital to shareholders. Big believers in capital return to shareholders, didn’t really have an option on implementing CECL. So the phase of the strategy was hold the balance sheet flat while we did the CECL phase in and continue to return meaningful capital to shareholders from the loan sale proceeds. That was a huge success over the course of that time period depending on when you cut the tape, dollars 14,000,000,000, $15,000,000,000 of loan sales and repurchased over half the outstanding flow to the company. The phase of that strategy really started in 2023, as I kind of highlighted some of the points on that previously, Really focused on modest growth of the balance sheet, continue to do loan sales to moderate the rate of growth, focused on growing earnings per share at kind of a double digit level through both organic growth and driving operating leverage into the business.

And that, again, we feel like we’re off to a good start on that. We’re in year two of a five year framework. So as we sit here today, I think about kind of four key priorities for business in order of priority. And and foremost is for us to continue to execute on our core strategy as we outlined in 2023, continue to invest and optimize the core business and continue to deliver the value that that sort of framework provides, committed to hitting our guidance for this year and continuing to strive to meet or exceed the five year framework. With the guidance this year, it’s interesting.

We’re about a year ahead of where we thought we would be in that five year framework, so that feels good. The priority for us is really being ready for that potential for meaningful federal reform from both an operating perspective, product perspective. You know, we don’t know the exact form that it will take, but we do know it’s imminent. And so we wanna make sure that our organization is really ready to help the schools, the students, and their families deal with whatever the impacts are that come from from reform in the federal program. So that’s that’s really the area of focus.

The is getting to your question, which is sort of funding. And, you know, we have been thinking for some time about alternatives to our loan sale process, particularly in the context of creating something that isn’t as dependent on sort of specific transactions in capital markets that can be very dependent on market conditions as and on the day, and trying to think about ways that we can build more durable and resilient alternatives to both our bank funding as well as the existing loan sale programs. And that’s something that we’ve got a big focus on. I think that will be important from a perspective of creating a different earnings profile and one that might be valued more positively by investors versus a series of capital markets transactions. But I think it will also create a more resilient source of capital for expanding originations in the business.

So as we think about that in the context of volume that could come from potential reform in the federal system, I think that will be a big benefit there. But over time, it could also be a way for us to maximize on our originations capabilities and expand originations beyond what we would want to put into our bank funding model. So that’s item number three. And then the is really to achieve our sort of aspirations around education services. We bought a couple of small companies in the last few years, Nitro and Scali.

Those have formed the base of an organic content based customer engagement engine that’s really had a dramatic impact on our core business in terms of pull through into the front of the customer relationship and creating a lower overall marketing cost for the business. But I think there’s more potential there, and we’re exploring creation of additional products and services that will further engage our customers, fulfill our mission and create additional capital light sources of fee based revenue over time. So those are the four areas of focus. Again, and foremost is meeting our expectations on guidance for this year and continuing to execute on the forum framework. But we have some other exciting things in the hopper as well for the future.

Unidentified speaker, Interviewer, Morgan Stanley: And if I just double click on number three there for a minute, any sort of early thoughts on what you’d be looking at, and and when should investors be on the lookout for what what that could be or timing of that?

Pete Graham, CFO, Sallie Mae: Yeah. I think putting an ex an exact time line on it, probably not ready to do that at this point. I think it’s something that is strategic in nature, and so we’ll take the appropriate amount of time. We’ve been thinking about it for some period of time now. But if you put an end point on it, and we’d like for that to be an additional source of capital that will enable us to to be ready for federal student loan reform that kinda gives you an endpoint of, when when we’d like to be ready.

Unidentified speaker, Interviewer, Morgan Stanley: And, you know, assuming student loan reform comes through, does that shift the way you think about operating leverage as you laid it out? Or do you is there potential for more to fall to the bottom line, or do you think you’d wanna kinda stick with the 60%?

Pete Graham, CFO, Sallie Mae: Yeah. I think, you know, the 60% that we laid out in the framework, think, was a good starting point. I think aspirationally, we’d like to continue to optimize our core business. We continue to make investments technology that improve the customer journey, but at the same time, they also give us the additional capacity of digitizing and turning the business into more of a fixed cost base by making those technology investments. And so I don’t think the reform opportunity really changes our mindset around that per se.

I do believe that the business that we’ve created does have you know, the capacity to scale to whatever the opportunity is and scale in a way that probably doesn’t have a a step change in terms of the cost of that. And I would point to kind of the the example of 2024 when we were able to have outsized growth versus our expectations, take market share that came as a result of the exit of a competitor, increased marketing costs and the like, and still came in below the midpoint of our expense guidance, original expense guidance for the year. So I think there’s still that type of capacity for us as we move into next year and think about the the potential for additional volume coming from the federal programs.

Unidentified speaker, Interviewer, Morgan Stanley: Okay. Great. Great. And and as we sort of think about the last ten minutes of the conversation here, wanted to talk about credit. You know, your credit losses have migrated higher versus pre COVID.

Can we just maybe rewind a little bit and talk about why that is? How much of that has to do with a bit of a tougher backdrop for today’s students that are graduating versus maybe some regulatory shifts and some changes in your underwriting and loss mitigation programs?

Pete Graham, CFO, Sallie Mae: Sure. I think the thing to keep in mind when you compare sort of pre COVID to to now is that, you know, pre COVID, we were still in a portfolio build phase. So we really started building our balance sheet at spin in 2014. And so the portfolio then was not seasoned as it is now in terms of full vintages in P and I repayment. And so that’s the main driver for sort of lower losses in that time period compared to the guidance that we’re giving for where we think our loss rates are going to settle in is that seasoning element in the portfolio.

The other thing to keep in mind is pre 2021, we had broad use of judgmental forbearance as our main tool for managing borrowers borrower stress in the portfolio. And when we ceased that practice, that caused a spike in delinquencies and charge offs because we didn’t have a complete tool set to help borrowers. We’ve rolled out these new modification programs and borrower assistance programs and in fourth quarter of twenty twenty three, and we, you know, we feel like they’re performing well. The success metrics within the programs that you know, people that get into the programs are, you know, where we would expect them to be. We did tighten enrollment eligibility in the third quarter of last year.

As we, again, learned from the programs, continue to refine them, we felt like we might be giving mods to people that could survive on their own, and so moved the eligibility period later in the delinquency cycle. All those things really are are going into kind of a stabilization period here in in the programs. The enrollments are down off their peaks, as we go through the months this year. We will have a graduation sort of wave, if you will, from the programs later in the fourth quarter and first quarter of next year, and we’ll be looking to release more information the success metrics and the like become more evident to us there. But we feel good about the program design.

We think that it’s helping borrowers be successful. We like the fact that these programs require payment of some sort versus our old tool, which did not require any payment. So on balance, we think it’s, you know, it’s good for for managing our, you know, our credit losses. It’s good for helping the borrowers get on, you know, solid footing and and establishing good payment habits. And we’re we’re optimistic about, you know, the continued evolution of the programs.

Unidentified speaker, Interviewer, Morgan Stanley: And and, you know, once you start hitting that graduation wave, you’ve talked about the strong success rate so far, how do you think about the credit characteristics or, you know, repayment likely to repayability of those consumers as they roll out going forward once those payment, you know, those terms reset back to normal?

Pete Graham, CFO, Sallie Mae: Yeah. Again, our expectation is you know? And the and the thing to keep in mind is, you know, the peak stress in our portfolio is the, you know, sort of new to payment, you know, grads. And that kind of twelve to eighteen to twenty four months of of being out on their own, starting to, you know, collect a paycheck in a meaningful way for the time, starting to make their own bill payments. And so that’s sort of what these programs are designed to help with.

You know, obviously, not a 100% of the people in the programs are going to be successful in their exit, but we expect that we will just as we’ve had good success levels of borrowers in the programs making their payments, we expect that there will be good success levels of people stepping back into their contractual terms and setting themselves up for success over the over the longer term.

Unidentified speaker, Interviewer, Morgan Stanley: And could you also maybe just comment on what you’re seeing in the near term, maybe quarter to date, if you have any sort of color on the the credit so far?

Pete Graham, CFO, Sallie Mae: You know, we’ve we’ve continued to see positive trends in terms of, you know, the the overall credit performance. You know, we’re committed to the guidance that we’ve given for the year and don’t see anything in the second quarter results that would cause us concern about hitting guidance for the full year.

Unidentified speaker, Interviewer, Morgan Stanley: Okay. And, you know, one thing we didn’t quite touch on there was you did make some underwriting changes too in in previous years. When do you think those benefits will start to accrue? Is it is it, you know, maybe starting in ’26, ’27 once you get to that repay wave?

Pete Graham, CFO, Sallie Mae: Yeah. I think that, again, you know, we did, over the last few years, as you as you mentioned, sort of at the margins tighten our underwriting box. And that tends to have a lag effect, right? If it’s a freshman, it’s going to be four years. On average, it will be a couple of years before those changes start to manifest themselves.

So we expect that it will start to be a little bit of a credit tailwind as we go into next year, and it will continue to build as those underwritten cohorts come into full P and I. Again, it’s not gonna be a huge step change, but it’s another element that gives us confidence in our overall long term, you know, guide around net charge off rates.

Unidentified speaker, Interviewer, Morgan Stanley: And then just one last for me on credit. As you kind of look at slower enrollment and the prospect of AI may be damaging job growth for new graduates from here, do you view this as an opportunity or a challenge maybe as younger folks go after nontraditional fields?

Pete Graham, CFO, Sallie Mae: Yeah. I think the market continues to evolve. You know, we have we have seen, you know, the reports around demographics and high school grads and the like. I think that’s one that is imminently manageable. It’s sort of a modest decline over a multiyear period.

I think that, you know, the overall core market this year, we’ve seen increased, you know, levels of application on on FAFSA year over year, so that sets us up for a good, I think, peak season this year. But the market does continue to evolve over the last few years. You know, we’ve continued to expand our for profit sort of originations. And, you know, the thing to think about there is in the for profit space, we tend to, you know, focus on sort of high profile things like pilot training programs, nursing programs, and sort of nontraditional but still very meaningful certification type programs that will generate good returns for the borrowers. The other thing I would say is as we engage on these alternative type programs, we do a full underwriting of the programs and the schools themselves.

We wanna make sure that there’s a good ROI for the investment for the borrower, and that’s gonna lead to good credit outcomes for us. And so it’s it’s been exciting to see some of the growth in those opportunities for us, and you know, we continued the evaluation of different, you know, sort of nontraditional, you know, education options. I think that’s gonna be a continuing evolution of the overall marketplace for higher education.

Unidentified speaker, Interviewer, Morgan Stanley: Okay. Great. And and just to wrap up, I mean, you touched on your priorities before, but are there any other strategic priorities you wanted to highlight there, or did we already cover those?

Pete Graham, CFO, Sallie Mae: No. I think those are the four. You know, again, fully committed to guidance for this year and continuing to try and exceed the five year framework. We’re getting ready for for the potential for reform and believe that to be more imminent now than it has been at any time in the past. Mhmm.

We’re ready from a funding capacity and operating capacity to take advantage of that. We continue to explore alternative funding capabilities that’ll be a complement to our bank funding capabilities and our existing loan sale processes. And we’ll look to optimize our Ed Services business and create capital light fee streams over time. So really, really excited about the future, and we feel like those are the right things for us to be focused on as a company.

Unidentified speaker, Interviewer, Morgan Stanley: Alright. Sounds great, Pete. Yeah. Well, I think we’re out of time. So thanks for joining us today.

Pete Graham, CFO, Sallie Mae: Yeah. Thanks for having us. Yep. Pleasure. Take care.

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