Adtalem and Sallie Mae to Develop New Student Financing Models for Healthcare Students.

Adtalem Global Education and Sallie Mae have signed a Letter of Intent to develop new student financing models, specifically tailored for healthcare students. The initiative aims to support students as the federal Grad PLUS loan program phases out in 2026, addressing growing healthcare workforce shortages. The collaboration could serve as a model for alternative financing solutions in higher education.

Adtalem Global Education Inc. (NYSE: ATGE) and Sallie Mae (Nasdaq: SLM) have signed a Letter of Intent to explore alternative financing solutions for healthcare students, as the federal Grad PLUS loan program phases out beginning July 1, 2026 [1]. This strategic partnership aims to address growing healthcare workforce shortages and provide uninterrupted access to responsible student financing.

The initiative, which will focus on developing tailored financing solutions specifically designed for healthcare education, is expected to include deferred repayment options and degree-specific terms [1]. Adtalem's five institutions, representing one of the largest concentrations of future healthcare professionals, will benefit from this program, which aims to expand financing access for students to complete their education and work in communities across the country [1].

According to the U.S. Bureau of Labor Statistics, healthcare occupations are expected to grow much faster than the average for all occupations from 2023-2033, with healthcare workers benefiting from recession-resistant career stability within the $4.3 trillion U.S. healthcare sector [1]. Additionally, the U.S. faces healthcare workforce shortages, with more than 7,000 areas currently designated as Health Professional Shortage Areas by the Health Resources and Services Administration [1]. Moreover, the Association of American Medical Colleges projects a physician shortage of up to 124,000 by 2034, highlighting the urgent need for healthcare workforce expansion [1].

Steve Beard, chairman and chief executive officer of Adtalem Global Education, stated, "Sallie Mae is an exceptional leader in student financing, and an ally in our mission to scale healthcare education nationwide. Our institutions support over 90,000 students in their career aspirations, many of whom form the backbone of the U.S. healthcare system. This anticipated program will deepen our relationship with Sallie Mae and is expected to expand financing access for our students to complete their education and work in communities across the country. Together, we're creating innovative solutions that drive student success while addressing critical healthcare workforce needs—it's a win-win" [1].

Jon Witter, chief executive officer of Sallie Mae, added, "As the market leader for private student lending, we are well-positioned to create innovative and scalable solutions that meet the evolving needs of our school partners and help as many students as possible access and responsibly fund their higher education. This proposed initiative with Adtalem will not only assist their students pursuing critical, in-demand healthcare professions but also could serve as a model for other institutions seeking alternative financing solutions as they navigate changes to the federal student loan program" [1].

The planned program will seek to establish a framework for developing tailored financing solutions specifically designed for healthcare education [1]. The companies expect to finalize a definitive agreement and announce financing products in the coming months, subject to regulatory processes and final agreements.

References:
[1] https://news.salliemae.com/news-releases/news-releases-details/2025/Adtalem-Global-Education-and-Sallie-Mae-Sign-Letter-of-Intent-to-Explore-New-Student-Financing-Model/default.aspx
[2] https://www.stocktitan.net/news/SLM/adtalem-global-education-and-sallie-mae-sign-letter-of-intent-to-mm5e1my9jsuz.html