SLM Corp Faces Class Action Lawsuit Over Misleading Statements
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 04 2026
0mins
Should l Buy SLM?
Source: Globenewswire
SLM Corp's stock has dropped significantly, hitting a 52-week low amid a class action lawsuit filed against the company.
The lawsuit, initiated by Bronstein, Gewirtz & Grossman LLC, alleges that SLM made false statements between July 25 and August 14, 2025, which misled investors about the company's financial health. Specifically, the complaint claims that SLM failed to disclose a rise in early-stage delinquencies and overstated the effectiveness of its loss mitigation programs. This has raised serious concerns among investors, leading to a decline in stock price and investor confidence.
The implications of this lawsuit could be severe for SLM Corp, as it not only threatens the company's reputation but also indicates potential financial instability. Investors are encouraged to apply for lead plaintiff status, which may further influence the stock's performance in the coming months.
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Analyst Views on SLM
Wall Street analysts forecast SLM stock price to rise
11 Analyst Rating
7 Buy
2 Hold
2 Sell
Moderate Buy
Current: 18.740
Low
23.00
Averages
31.09
High
37.00
Current: 18.740
Low
23.00
Averages
31.09
High
37.00
About SLM
SLM Corporation is a holding company, which operates through various subsidiaries and is a financial brand for higher education. The Company’s primary business is to originate and service loans it makes to students and their families to finance the cost of their education. It also offers a range of deposit products insured by the Federal Deposit Insurance Corporation. Its primary private education loan product is the Smart Option Student Loan, which emphasizes in-school payment features that can produce shorter terms and reduce customers’ total finance charges. The Smart Option Student Loan generally runs for six months after the borrower separates from school but can run for up to 36 months for a small subset of graduate loans. It also offers six loan products for specific graduate programs of study. These include the Sallie Mae Law School Loan, the Sallie Mae MBA Loan, the Sallie Mae Graduate School Loan for Health Professions, the Sallie Mae Medical School Loan, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- False Statement Allegations: The complaint claims that SLM failed to disclose a significant rise in early-stage delinquencies and overstated the effectiveness of its loss mitigation and loan modification programs, misleading investors regarding the company's operations and prospects.
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See More
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- Borrower Benefits: As of Q4, over 7 million student loan borrowers are enrolled in the SAVE plan, and although they were in forbearance during legal challenges, their loans have been accruing interest since August, indicating the plan provides significant financial relief under economic pressures.
- Repayment Plan Advantages: The SAVE plan allows borrowers with loans of $12,000 or less to qualify for forgiveness after 10 years, significantly shortening the repayment timeline compared to other income-driven repayment plans that typically require 20 to 25 years, enhancing borrowers' financial flexibility.
- Future Uncertainty: While the court ruling offers temporary protection for the SAVE plan, the Trump administration's intention to phase it out by July 1, 2028, introduces uncertainty regarding future policies, which could impact borrowers' long-term financial planning.
See More
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- Meeting Schedule: Sallie Mae has announced that its 2026 annual meeting of stockholders will take place on June 16, 2026, at 1 p.m. ET, ensuring timely participation in annual decision-making.
- Virtual Format: The meeting will be held virtually, enhancing accessibility and participation for all stockholders of record, thereby increasing engagement in corporate governance.
- Eligibility Confirmation: Only stockholders on record as of the close of business on April 20, 2026, will be eligible to participate, ensuring the legitimacy of the meeting and protection of shareholder rights.
- Subsequent Information Disclosure: Additional details will be provided in the proxy statement to be filed with the SEC in late April, ensuring stockholders have comprehensive information to make informed decisions.
See More
Sallie Mae Announces 2026 Annual Meeting of Stockholders
- Meeting Date Set: Sallie Mae has announced that its 2026 annual meeting of stockholders will take place on June 16, 2026, at 1 p.m. ET, allowing shareholders to plan their participation in advance.
- Virtual Format: The annual meeting will be held virtually, making it easier for all registered shareholders to attend, reflecting the company's commitment to shareholder convenience.
- Registration Deadline: Shareholders must register by the close of business on April 20, 2026, to ensure their participation rights, enhancing shareholder engagement in corporate governance.
- Further Information Disclosure: Additional details will be provided in the proxy statement to be filed with the Securities and Exchange Commission in late April, ensuring transparency and timely communication of information.
See More
Student Loan Delinquency Rate Surges to 25%
- Delinquency Rate Surge: Research from The Century Foundation reveals that nearly 25% of student loan borrowers were delinquent in the first three quarters of 2025, a significant increase from 9% in 2019, indicating the adverse impact of Trump administration policies on borrowers' repayment capabilities.
- Rising Borrower Numbers: Approximately 7.9 million student loan borrowers entered delinquency in the first three quarters of 2025, which not only affects their credit scores but also hinders their ability to achieve life milestones such as home and car ownership.
- Credit Score Decline: The study estimates that around 2 million delinquent borrowers have seen their credit scores drop to an average of 580 from 680, significantly below the acceptable range, which will directly impact their future borrowing ability and costs.
- Severe Issues in Southern States: The analysis indicates that states like Louisiana and Mississippi have delinquency rates nearing 40%, with over 48% of Black borrowers being delinquent, highlighting significant racial disparities in repayment capabilities that could exacerbate socioeconomic inequalities.
See More
Trump Administration Increases Pressure on Student Loan Repayment
- Loan Default Risk: The U.S. Department of Education warns that over 1,800 higher education institutions have student loan default rates exceeding 25%, which could jeopardize their eligibility for federal student aid programs, thereby impacting their financial stability and enrollment appeal.
- Policy Implementation Requirements: The Education Department mandates that colleges prioritize reducing student delinquency rates not only through financial aid offices but also at the institutional leadership level, prompting schools to adopt more proactive measures in student loan management.
- Borrower Dilemma Intensifies: Last year, approximately 10 million borrowers were nearing default, with the Education Department revealing that over 600,000 federal student loan holders face a backlog in applications for affordable repayment plans, highlighting delays in policy execution and the pressures on borrowers.
- Household Financial Impact: Research indicates that a median U.S. household of four earning $81,000 could see its monthly bills surge from $36 to $440 due to legislative changes, reflecting the potential negative economic impact of these policy shifts on family finances.
See More
SLM Corporation Faces Class Action Lawsuit
- Lawsuit Background: Bronstein, Gewirtz & Grossman LLC has filed a class action lawsuit against SLM Corporation, alleging that false statements made between July 25 and August 14, 2025, artificially inflated the company's securities prices, adversely affecting investors' interests.
- False Statement Allegations: The complaint claims that SLM failed to disclose a significant rise in early-stage delinquencies and overstated the effectiveness of its loss mitigation and loan modification programs, misleading investors regarding the company's operations and prospects.
- Investor Action: Affected investors are encouraged to apply to be lead plaintiffs by February 17, 2026, indicating the lawsuit's potential impact on investor sentiment and the likelihood of further fluctuations in the company's reputation and stock price.
- Law Firm's Advantage: Bronstein, Gewirtz & Grossman LLC operates on a contingency fee basis, only charging fees upon successful recovery, demonstrating their commitment to investor rights and confidence in the case's success.
See More
