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: 19.950
Low
23.00
Averages
31.09
High
37.00
Current: 19.950
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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- Impact of Legal Challenges: Following its introduction, the SAVE plan faced Republican-led legal challenges, and although a lower court dismissed the main lawsuit, the appellate court's ruling introduces greater uncertainty for borrowers' financial planning and repayment strategies.
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See More
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See More
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See More
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- Investor Engagement: Active investor participation during the marketing process validated the attractiveness of seasoned private education loan assets, showcasing Sallie Mae's strong track record in underwriting, servicing, and performance.
- Pricing Strength: The transaction's pricing strength surpasses that of Sallie Mae's last on-balance sheet ABS deal, highlighting the resilience of its platform and the durability of student loans as an asset class despite ongoing market dislocation.
- Diversified Funding Strategy: This successful pricing further supports Sallie Mae's diversified funding approach and reinforces its position as a programmatic issuer in the student loan ABS market.
See More
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- Strong Market Demand: Sallie Mae Bank successfully priced a $618 million student loan asset-backed securities (ABS) transaction, which garnered robust investor demand following its formal announcement, indicating the ongoing attractiveness of high-quality education loan assets.
- Investor Confidence Boost: The pricing strength of this transaction exceeded that of Sallie Mae's last on-balance sheet ABS deal, reflecting investor confidence in private student loans and their credit performance despite market volatility.
- Diversified Funding Strategy: The successful pricing supports Sallie Mae's diversified funding approach and reinforces its position as a programmatic issuer in the student loan ABS market, demonstrating the company's resilience in uncertain market conditions.
- Leader in Education Financing: As a leader in private student lending, Sallie Mae is committed to providing financing and resources to help customers achieve their educational and lifelong learning goals, fostering personal growth and development.
See More
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- Legal Victory for SAVE: Judge John Ross of the U.S. District Court for the Eastern District of Missouri dismissed the main lawsuit against the SAVE plan, which, despite facing multiple legal challenges, still has over 7 million student loan borrowers enrolled, indicating a potential revival opportunity.
- Borrower Interests in Focus: Consumer advocates are urging the Education Department to restore benefits under the SAVE plan, viewing the court's ruling as a 'golden opportunity' to address the staggering student loan debt, yet the Department has not responded, leaving future policy direction uncertain.
- Alternative Options Recommended: Despite the temporary victory for SAVE, experts advise borrowers to seek other repayment plans, such as the Income-Based Repayment (IBR) plan, to mitigate financial pressures that may arise after the SAVE plan's expiration.
- Future Repayment Choices: Starting July 1, 2026, borrowers will have access to a new Repayment Assistance Plan (RAP), where monthly payments will range from 1% to 10% of income, leading to debt forgiveness after 30 years, thus expanding repayment options for borrowers.
See More
