** Student loan provider SLM Corp SLM.O shares fall 14.7% to $26.33 premarket

** Morgan Stanley downgrades stock to 'equal-weight' from 'overweight', cuts PT to $31 citing potential for higher expenses, lack of clarity around forward EPS

** Brokerage says it previously flagged transition to private credit partnerships as a near-term drag to EPS, the potential decline appears greater than expected on the back of higher expenses in near-term.

** Higher expenses driven by SLM's intention to capture PLUS loans market after government's pullback from the program

** "If investors are willing to pay a meaningfully higher multiple on this newer, recurring fee-related earnings stream from here, shares of SLM may be set for a re-rating from here," brokerage says

** Nine of 11 brokerages rate the stock "buy" or higher, two "hold"; their median PT is $35 - LSEG data

** Up to last close, stock up nearly 12% YTD

(Reporting by Utkarsh Tushar Hathi)

((utkarshtushar.hathi@thomsonreuters.com))