Class Action Filed Against SLM Corporation by Shareholders
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 29 2026
0mins
Should l Buy SLM?
Source: Globenewswire
- Lawsuit Background: Robbins LLP reminds shareholders that a class action has been filed on behalf of all investors who purchased SLM Corporation (NASDAQ: SLM, SLMBP) securities between July 25 and August 14, 2025, alleging the company failed to disclose significant increases in early-stage delinquencies.
- Delinquency Data: According to a report from TD Cowen, July 2025 delinquencies rose by 49 basis points month-over-month, significantly worse than the expected seasonal increase of 10 basis points, indicating that SLM's loss mitigation and loan modification programs were overstated.
- Stock Price Reaction: Following the TD Cowen report, SLM's stock price fell by $2.67, or 8.09%, closing at $30.32 per share on August 15, 2025, reflecting market concerns regarding the company's financial stability.
- Shareholder Action Advice: Shareholders are encouraged to contact Robbins LLP to participate in the class action as lead plaintiffs, representing the interests of other class members, highlighting the need for improved corporate governance and shareholder rights protection.
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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: 21.740
Low
23.00
Averages
31.09
High
37.00
Current: 21.740
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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- Borrower Deadline: Borrowers must select a new repayment plan by July 1, 2026, as communicated by the Department of Education, with those failing to do so automatically placed into the Standard Repayment Plan, which may result in higher monthly payments than under SAVE.
- Interest Resumption Impact: With interest resuming for SAVE borrowers in August 2024, the average loan balance of $57,000 at a 6.7% interest rate means borrowers have seen their debt increase by over $2,500 since interest accrual resumed, exacerbating their financial burden.
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See More
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- Challenges in Applying for New Plans: With the U.S. Department of Education's limited capacity to process applications, borrowers who wait until the end of the SAVE plan to apply for new income-driven repayment options may face longer wait times, increasing their financial risks.
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See More
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- Impact on Defaulted Borrowers: Currently, around 9 million borrowers are in default, and the Treasury's involvement may increase uncertainty for these borrowers, although experts note that the Treasury's collection efficiency may be lower than that of private companies, prompting borrowers to monitor their repayment history closely.
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See More
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- Loan Application Backlog: As of the end of February, over 576,000 federal student loan borrowers are still awaiting processing for income-driven repayment plan applications, indicating significant inefficiencies within the Department of Education that could exacerbate financial pressures on borrowers.
- Public Service Loan Forgiveness: An additional 88,170 borrowers are pending responses on their Public Service Loan Forgiveness buyback applications, a program designed to cancel debt for non-profit and government workers, highlighting the complexities and delays in government student loan relief efforts.
- Repayment Plan Changes: The Trump administration's policy shifts may impact existing repayment plans, particularly with the impending cancellation of the SAVE plan, which is expected to increase repayment burdens on borrowers and further strain their financial situations.
- Rising Default Rates: By December 2025, approximately 9 million borrowers were in default, with 42% of federal student loan borrowers reporting that their monthly payments hinder their ability to meet basic needs, underscoring the severe challenges posed by the current economic climate for borrowers.
See More
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- Flexible Repayment Plans: The new loan options include flexible in-school repayment plans that allow students to defer payments, make interest-only payments, or pay a fixed amount during their studies, helping ease financial burdens with an extended grace period of up to 96 months.
- Increased Scholarship Opportunities: Sallie Mae offers various scholarship resources, including a $5,000 Grad School No Essay Scholarship awarded quarterly and the Bridging the Dream Scholarship in partnership with Thurgood Marshall College Fund, which has awarded $500,000 to graduate students since 2021.
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See More
