The largest private student lender hired a Bank of America data-and-analytics technology head to run a data-first transformation, uses AI conversation simulation to train call-centre agents, and treats AI's effect on graduate employment as a credit question it has studied and dismissed.
How is Sallie Mae using AI?
Sallie Mae, formally SLM Corporation, the Newark, Delaware parent of Sallie Mae Bank, a Utah industrial bank with about $29 billion of assets and the leading private student lender, made its AI move through a hire. On 2 February 2026 it named Steve Turner chief technology and enablement officer, giving him technology architecture and delivery, IT innovation, data, and information and physical security; Turner ran data, analytics, insights and marketing technology at Bank of America and was CIO at Walgreens, and CEO Jon Witter said his experience with 'large-scale, customer-focused platforms' would 'strengthen our technology foundation, drive innovation across the business, and deepen our relationships with our customers'. The 2026 proxy frames technology as improvements to 'underwriting, credit administration, marketing, and other key functions' and a push into graduate lending; the second-quarter earnings deck lists 'risks related to artificial intelligence' alongside cyber risk. The 2025 10-K goes further: the company is 'in the initial phases of integrating AI into our business operations with the objective of enhancing employee productivity, client outreach, and customer experience in general', and it warns that it 'could lose market share' if it cannot keep pace with technology, including AI. At its December 2025 investor forum, preparing for federal loan reform, it listed 'operational staffing and automation investments, including opportunities to leverage AI capabilities'. In the contact centre the company uses Zenarate's AI Coach conversation simulator to train agents. AI also matters to Sallie Mae as a credit variable: on the January 2026 earnings call Witter said that 'as AI transforms the professional landscape', education would become more important, while acknowledging that unemployment among new college graduates was 'slightly elevated'; at RBC's financial-institutions conference in March he said the company had 'looked long and hard at the AI threat' and cited a 93% cosigner rate as a source of confidence in its loans; in April he said the gap in recent-graduate unemployment versus historical norms had closed in March, and the company reported a 95% cosigner rate on new originations. Business is growing: second-quarter 2026 private education loan originations were $716 million, up 4.5%, with graduate originations up 29%, and 2026 guidance calls for 12% to 14% origination growth as federal Grad PLUS reforms open what management sizes as a $4.5 billion to $5 billion annual opportunity. In April 2026 CFO Peter Graham and COO Kerri Palmer became co-presidents. Sallie Mae Bank is supervised by the FDIC and the Utah regulator; its lending brings CFPB adverse-action duties to any automated decisioning.
Lead bank
Sallie Mae Bank
Assets (lead bank, Mar 31, 2026)
$29 billion
Charter
Utah industrial bank (FDIC)
Headquarters
Newark, DE
Flagship platform
Technology and enablement organisation under Steve Turner
AI leadership
Jon Witter · Steve Turner · Kerri Palmer · Peter Graham · Diane Porter
- Steve Turner appointed chief technology and enablement officer on 2 February 2026: technology, IT innovation, data and security; ex-Bank of America head of data, analytics and marketing technology and ex-Walgreens CIO.
- Technology agenda per the 2026 proxy: improve underwriting, credit administration and marketing in the core private student-loan business; grow graduate lending.
- AI risk is disclosed ('risks related to artificial intelligence') in earnings materials; no AI vendor, model inventory or budget is named.
- AI conversation simulation (Zenarate AI Coach) trains new and tenured contact-centre agents.
- Management tracks AI's effect on graduate employment as a credit question: at RBC's March 2026 conference the CEO said it had 'looked long and hard at the AI threat', citing a 93% cosigner rate; on the January and April 2026 calls it called recent-graduate unemployment slightly elevated, then said the gap to historical norms closed in March; the Q1 2026 cosigner rate on new originations was 95%.
- 2025 10-K: 'in the initial phases of integrating AI' for employee productivity, client outreach and customer experience; AI named as a competitive, regulatory and demand risk. December 2025 investor forum: automation investments including AI to scale for Grad PLUS reform.
- Q2 2026 originations $716 million (+4.5%), graduate originations +29%; 2026 guidance 12% to 14% origination growth on Grad PLUS reforms.
What is Technology and enablement organisation under Steve Turner?
In February 2026 Sallie Mae appointed Steve Turner chief technology and enablement officer, responsible for technology architecture and delivery, IT innovation, data, and information and physical security, with a brief to 'harness data to deliver faster, simpler, and more reliable experiences'. Turner was previously managing director and head of data, analytics, insights and marketing technology at Bank of America and, before that, chief information officer at Walgreens. The company's 2026 proxy describes using its product and credit knowledge to improve 'underwriting, credit administration, marketing, and other key functions' in the core private student-loan business, and its earnings materials list 'risks related to artificial intelligence' among operating risks. Its contact centre uses Zenarate's AI Coach, in which new and tenured agents role-play life-like conversation and chat simulations with an AI coach before live calls. The 2025 10-K says the company is 'in the initial phases of integrating AI into our business operations with the objective of enhancing employee productivity, client outreach, and customer experience in general'. No model inventory, AI vendor for underwriting or AI budget has been disclosed.[2][3][6][8][13]
What has Sallie Mae done on AI, and when?
- Jul 23, 2026
- Jun 30, 2026
Second-quarter originations reach $716 million[6]
Up 4.5% year on year; graduate originations up 29%.
- Apr 27, 2026
- Apr 23, 2026
Q1 2026 call: schools add AI coursework; cosigner rate 95%[15]
The CEO says schools are integrating AI-related coursework and the recent-graduate unemployment gap to historical norms closed in March; new-origination cosigner rate rises to 95%.
- Mar 11, 2026
RBC conference: 'looked long and hard at the AI threat'[14]
The CEO calls AI a powerful technology that will change how work gets done, says schools are adapting their programmes, and points to a 93% cosigner rate and 20% to 25% returns on equity on its loans as buffers.
- Feb 19, 2026
2025 10-K: 'initial phases of integrating AI'[13]
AI integration aimed at employee productivity, client outreach and customer experience; risk factors cover AI regulation, vendor AI, data disclosure, competition from AI and robotic process automation, and AI's effect on demand for degrees.
- Feb 2, 2026
Steve Turner named chief technology and enablement officer[2]
Data-first mandate; ex-Bank of America and Walgreens.
- Jan 22, 2026
Q4 2025 call: AI and the graduate job market[12]
The CEO says education will matter more 'as AI transforms the professional landscape' and that new-graduate unemployment is slightly elevated but most graduates find work within six months.
- Dec 8, 2025
Investor forum: automation and AI to scale for Grad PLUS reform[10][11]
The deck lists 'operational staffing and automation investments, including opportunities to leverage AI capabilities'; the company sizes the graduate opportunity at $4.5 billion to $5 billion a year by year four; the stock falls 15% on lower EPS projections.
- Jan 8, 2025
Guidance on using AI to write scholarship essays[1]
Consumer education on generative AI.
- Aug 6, 2024
How America Pays for College 2024: families use AI[9]
23% of students and 18% of parents used AI in the college application or decision-making process; 29% of AI users researched financial aid or scholarships with it.
- Jun 27, 2023
Zenarate AI Coach used for agent training[8]
Sallie Mae's director of education and instructional design says the AI simulation tool helped scale skill development and improve new-hire performance.
- Feb 3, 2023
Loss-forecasting analytics rebuilt after charge-offs jump[7]
After 2022 net charge-offs reached $386 million, the CEO says the company has 'ripped apart and reconstructed our analytics around loss forecasting' with new models that track borrower patterns.
Where does Sallie Mae use AI today?
| System | What it does | Status | Use case |
|---|---|---|---|
| AI-simulated training for contact-centre agents[8] | Zenarate AI Coach: new-hire onboarding and tenured-agent upskilling through life-like conversation and chat simulations role-played with an AI coach. | In production | Customer-facing chatbots |
| Underwriting and credit-administration improvements[3][2] | Data-led enhancements to the core private student-loan process under the new technology organisation. | Rolling out | Credit scoring & underwriting |
| AI as a credit-risk variable[12][14][15] | Management tracks AI's effect on graduate employment and cosigner strength, discussed on the January and April 2026 earnings calls and at RBC's March 2026 conference. | In production | Model risk management |
| AI risk-factor disclosure[13][7] | The 10-K's dedicated AI risk factor covers evolving federal and state AI regulation, vendors' use of AI, inadvertent disclosure of confidential information and the opacity of AI models; the loss-forecasting models were rebuilt in 2023. | In production | Model risk management |
| AI integration for productivity and client outreach[13][10] | In its initial phases: aimed at employee productivity, client outreach and customer experience; the investor forum paired it with operational automation investments for Grad PLUS reform. | Rolling out | Generative & agentic AI |
| Information and physical security under the CTEO[2] | Security consolidated with technology and data. | In production | Cybersecurity |
| Unit21 fraud and AML platform[16] | Unit21's April 2026 release names Sallie Mae among its customers for a platform that combines fraud and AML detection, investigation and regulatory filing, with AI agents that gather evidence and draft narratives; the release does not describe Sallie Mae's deployment. | In production | AML / KYC |
Use-case links open the tracker's rules-by-use-case matrix: which documents govern each system type.
Which AI vendors and fintechs does Sallie Mae work with?
| Company | What Sallie Mae uses it for | Status | Category |
|---|---|---|---|
| Unit21 | Fraud and BSA/AML compliance platform; Sallie Mae's BSA/AML officer describes switching to Unit21, testing it in a sandbox and rolling it out in phases, and Unit21's 2026 releases name Sallie Mae as a customer. | In production | AML compliance |
Each vendor and fintech page cites the source for the relationship, and vendor pages list products, pricing and other bank customers. Compare AI tools for banks by category, or read the fintech and neobank AI dossiers.
What has Sallie Mae disclosed in numbers?
| Metric | Value | As of |
|---|---|---|
| Private education loan originations, Q2 2026 | $716 million (+4.5% year on year; graduate +29%)[6] | Jul 23, 2026 |
| Diluted EPS, Q2 2026 | $0.29[6] | Jul 23, 2026 |
| 2026 guidance: origination growth / diluted EPS | 12% to 14% / $3.10 to $3.20[6] | Jul 23, 2026 |
| Cosigner rate on borrowers cited at the RBC conference | 93%[14] | Mar 11, 2026 |
| Cosigner rate on new originations, Q1 2026 | 95% (86% five years earlier)[15] | Mar 31, 2026 |
| Annual Grad PLUS reform opportunity (year four) | $4.5 billion to $5 billion of originations[10][11] | Dec 8, 2025 |
| Students / parents using AI in the college application or decision process | 23% / 18%[9] | Aug 6, 2024 |
“I look forward to leading our technology organization to accelerate innovation and harness data to deliver faster, simpler, and more reliable experiences for the students and families we serve.”[2]
Steve Turner · Chief Technology and Enablement Officer · Feb 2, 2026
“Steve's deep experience managing large-scale, customer-focused platforms makes him the right leader to strengthen our technology foundation, drive innovation across the business, and deepen our relationships with our customers.”[2]
Jon Witter · Chief Executive Officer · Feb 2, 2026
“As AI transforms the professional landscape, we believe education will be even more important as students acquire the skills necessary to remain competitive in the future.”[12]
Jon Witter · Chief Executive Officer · Jan 22, 2026
“While I'm not a futurist, you know, we've obviously looked long and hard at the AI threat.”[14]
Jon Witter · Chief Executive Officer · Mar 11, 2026
“We knew that we needed a solution that would allow training managers to scale skill development and improve new hire performance, so agents are confident and prepared when they take their first call. Zenarate AI Coach helped us achieve that goal.”[8]
Diane Porter · Director of Education and Instructional Design · Jun 27, 2023
Who runs AI at Sallie Mae?
Jon WitterLinkedIn ↗
Steve TurnerLinkedIn ↗
Kerri PalmerLinkedIn ↗
Co-President and Head of Financial Services; President, Sallie Mae Bank[4]
Peter GrahamLinkedIn ↗
Co-President and Chief Financial Officer[4]
Diane PorterLinkedIn ↗
Director, Education and Instructional Design (contact-centre training; Zenarate AI Coach)[8]
Which regulators govern Sallie Mae's AI?
| Authority | Why it matters here | Documents |
|---|---|---|
| FDIC | Sallie Mae Bank is an FDIC-supervised industrial bank; model-risk and third-party guidance govern any AI in underwriting or servicing. | FDIC FIL-29-2023 FDIC FIL-15-2026 |
| CFPB | Private student lending carries ECOA adverse-action duties and UDAAP exposure for automated decisions and servicing chatbots. | ECOA / Regulation B adverse action (15 U.S.C. 1691(d); 12 CFR 1002.9) CFPB Chatbots in Consumer Finance (issue spotlight, 2023) |
| SEC | AI-related risk disclosure in earnings materials is subject to SEC scrutiny of AI claims. | Division of Examinations FY2026 Priorities |
Side by side: SR 11-7 vs SR 26-2 · OCC vs CFPB on AI lending · all comparisons.
What does the public record suggest about Sallie Mae's AI strategy?
Analysis by BankingNewsAI from the sources cited on this page. Observations, not advice.
01
The hire tells you the plan
Recruiting Bank of America's data-and-analytics technology head signals a data platform build before visible AI products; expect underwriting and marketing models to follow.
02
AI is a credit-risk input here, not only a tool
A lender whose collateral is future graduate earnings has to model AI's labour-market effect; Sallie Mae has done that analysis and should publish more of it.
03
Training simulation is a low-risk proving ground
AI coaching of agents avoids customer-facing model risk while building the vendor-management muscle regulators will examine.
04
Grad PLUS growth needs scalable decisioning
A $4.5 billion to $5 billion annual opportunity in graduate loans will strain manual underwriting; automation is the enabler and the exam topic.
Does Sallie Mae use AI?
Sallie Mae uses AI conversation simulation (Zenarate AI Coach) to train contact-centre agents, says in its 2025 10-K that it is in the initial phases of integrating AI to enhance employee productivity, client outreach and customer experience, and discloses 'risks related to artificial intelligence' in its earnings materials. In February 2026 it hired Steve Turner from Bank of America as chief technology and enablement officer to run technology, data and security with a mandate to harness data for faster customer experiences. No AI underwriting vendor or model has been named.
How does Sallie Mae view AI's effect on student borrowers?
On the January 2026 earnings call CEO Jon Witter said education will matter more as AI transforms the professional landscape, and that unemployment among new college graduates was slightly elevated but most find work within six months. In April 2026 he said the gap versus historical norms had closed in March, and the company reported a 95% cosigner rate on new originations.
Who runs technology and data at Sallie Mae?
Steve Turner, executive vice president and chief technology and enablement officer since February 2026, oversees technology architecture and delivery, IT innovation, data, and information and physical security. He was previously head of data, analytics, insights and marketing technology at Bank of America and CIO at Walgreens.
- The Do's and Don'ts of Using AI to Write Scholarship Essays
- Sallie Mae Names Steve Turner Chief Technology and Enablement Officer
- SLM Corporation 2026 Proxy Statement
- Sallie Mae Announces Senior Leadership Appointments
- Sallie Mae Reports Second Quarter 2026 Financial Results
- Second Quarter 2026 Earnings Presentation
- Sallie Mae overhauls its credit analytics after charge-offs jump
- Zenarate AI Coach Transforms How Agents Learn and Perform Through Natural Language AI Simulation Training
- Just Released ‘How America Pays for College 2024’ Report Finds College Spending Stable with Family Out-of-Pocket Contributions Covering the Largest Share of Cost
- Sallie Mae Investor Forum, December 8, 2025 (Form 8-K, Exhibit 99.1)
- Sallie Mae's subdued earnings forecast puzzles investors
- SLM (SLM) Q4 2025 Earnings Call Transcript
- SLM Corporation Annual Report on Form 10-K for the fiscal year ended December 31, 2025
- Sallie Mae at RBC Conference: Strategic Growth and AI Challenges
- SLM (SLM) Q1 2026 Earnings Call Transcript
- Unit21 Appoints Tyler Allen as Chief Executive Officer as Company Accelerates AI Risk Infrastructure Vision
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