Sallie Mae posts 1st-qtr profit, reversing year-ago loss; as bad loans ease, newlending rises

Sallie Mae posts 1st-qtr profit, increases lending

RESTON, Va. — Sallie Mae, the nation’s largest student lender, says it earned a profit for the first quarter, reversing a year-ago loss, as bad loans eased and it lent to more students.

After paying preferred dividends, Sallie Mae, formally known as SLM Corp., earned $240.1 million, or 45 cents per share, compared with a loss of $21.4 million, or 10 cents per share, last year.

The results topped the 29-cents-per-share profit Wall Street expected.

Sallie Mae originated $7.7 billion in federal student loans in the first quarter, up 16 percent from a year ago.

The profit came even as the government moved during the quarter to take over student lending done through private banks.