SLM Corporation Faces Securities Class Action Investigation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy SLM?
Source: Businesswire
- Investigation Launched: Faruq & Faruq LLP is investigating SLM Corporation for potential violations of federal securities laws, urging investors to apply for lead plaintiff status by February 17, 2026, highlighting serious governance concerns within the company.
- Rising Delinquency Rates: According to TD Cowen's report, SLM experienced a 49 basis point month-over-month increase in early-stage delinquencies in July 2025, significantly exceeding normal seasonal performance, indicating that the effectiveness of the company's loss mitigation and loan modification programs may have been overstated, potentially undermining investor confidence.
- Stock Price Decline: Following the release of TD Cowen's 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 health and operational stability.
- Call for Investor Action: Faruq & Faruq LLP encourages anyone with information regarding SLM's conduct, including whistleblowers and former employees, to come forward to support the potential class action lawsuit, emphasizing the importance of transparency and accountability in corporate governance.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy SLM?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
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: 24.040
Low
23.00
Averages
31.09
High
37.00
Current: 24.040
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.
- Investigation Launched: Faruq & Faruq LLP is investigating SLM Corporation for potential violations of federal securities laws, urging investors to apply for lead plaintiff status by February 17, 2026, highlighting serious governance concerns within the company.
- Rising Delinquency Rates: According to TD Cowen's report, SLM experienced a 49 basis point month-over-month increase in early-stage delinquencies in July 2025, significantly exceeding normal seasonal performance, indicating that the effectiveness of the company's loss mitigation and loan modification programs may have been overstated, potentially undermining investor confidence.
- Stock Price Decline: Following the release of TD Cowen's 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 health and operational stability.
- Call for Investor Action: Faruq & Faruq LLP encourages anyone with information regarding SLM's conduct, including whistleblowers and former employees, to come forward to support the potential class action lawsuit, emphasizing the importance of transparency and accountability in corporate governance.
See More
- Class Action Initiation: The Portnoy Law Firm has issued a class action notice to SLM Corporation investors who purchased securities between July 25 and August 14, 2025, with a deadline for lead plaintiff motions set for February 17, 2026.
- Allegations of Misrepresentation: The lawsuit alleges that SLM failed to disclose a significant rise in early-stage delinquencies during the class period, misleading investors regarding the effectiveness of its loss mitigation and loan modification programs, which could impact investment decisions.
- Impact of TD Cowen Report: On August 14, 2025, TD Cowen reported a 49 basis point month-over-month increase in delinquencies for July, contradicting assurances from SLM's CFO about normal seasonal trends, which has led to diminished investor confidence.
- Stock Price Reaction: Following the report, SLM's stock price fell by approximately 8%, indicating market concerns over the company's financial stability and exposing investors to potential significant losses.
See More
- Lawsuit Background: Rosen Law Firm has initiated a class action lawsuit on behalf of investors who purchased securities of SLM Corporation, also known as Sallie Mae, between July 25, 2025, and August 14, 2025, alleging that the company misled investors, resulting in financial losses.
- Allegation Details: The lawsuit claims that SLM failed to disclose a significant rise in early-stage delinquencies during the class period and overstated the effectiveness of its loss mitigation and loan modification programs, creating a misleading impression of the company's operations and prospects.
- Investor Losses: Following the revelation of the true circumstances, investors suffered damages, indicating serious concerns regarding the company's financial stability, which could adversely affect its future market performance.
- Next Steps: Investors wishing to participate in the lawsuit must file motions to serve as lead plaintiffs by February 17, 2026, with lead plaintiffs representing other class members in directing the litigation, while absent members can still be eligible for recovery.
See More
- Class Action Notice: Investors who purchased SLM Corporation securities between July 25 and August 14, 2025, must apply by February 17, 2026, to become lead plaintiff in a class action lawsuit against SLM and its executives for violations of the Securities Exchange Act of 1934.
- Allegations: The lawsuit alleges that SLM failed to disclose a significant increase in early-stage delinquencies during the class period, misleading investors about the effectiveness of its loan mitigation and modification programs, which impacted their investment decisions.
- Market Reaction: A report from TD Cowen on August 14, 2025, indicated that SLM's delinquency rates rose by 49 basis points month-over-month, significantly worse than seasonal trends, leading to an approximate 8% drop in SLM's stock price, reflecting market concerns over the company's financial health.
- Law Firm Background: Robbins Geller Rudman & Dowd LLP is a leading law firm in securities fraud and shareholder rights litigation, recovering over $916 million for investors in 2025, showcasing its strong capabilities and influence in the securities class action space.
See More
- Class Action Reminder: The Schall Law Firm alerts investors of a class action lawsuit against SLM Corporation for violations of §§10(b) and 20(a) of the Securities Exchange Act, concerning securities purchased between July 25 and August 14, 2025, with a deadline to contact the firm by February 17, 2026.
- False Statement Allegations: The complaint alleges that SLM made false and misleading statements during the class period, overstating its loss mitigation capabilities and loan modification programs, which led to investor losses once the truth emerged.
- Rising Delinquency Rates: SLM experienced a significant increase in early-stage delinquencies, failing to adequately disclose the rise in private education loan delinquency rates, which heightened the risk of losses for investors.
- Legal Consultation Opportunity: The Schall Law Firm specializes in securities class action lawsuits and encourages affected shareholders to participate before class certification to safeguard their rights and recover potential losses.
See More
- Class Action Deadline: Investors must apply to be lead plaintiffs in the SLM class action by February 17, 2026, and those who purchased SLM securities between July 25 and August 14, 2025, may be entitled to compensation without any out-of-pocket costs.
- Lawsuit Allegations: The lawsuit alleges that SLM made false and misleading statements during the class period, failing to disclose a significant rise in early-stage delinquencies, which misled investors about the company's business stability and prospects.
- Law Firm Credentials: The Rosen Law Firm specializes in securities class actions and has recovered over $438 million for investors in 2019 alone, being ranked first in 2017 for the number of securities class action settlements, showcasing its strong reputation in the field.
- Investor Guidance: Investors are advised to choose qualified counsel with a proven track record, as many firms issuing notices may lack the necessary litigation experience and could merely act as intermediaries without actual legal representation.
See More






