Class Action Alleges SLM Misstated Loan Performance, Hid Rising Early-Stage Delinquencies

Introduction — Lawsuit alleges SLM misstates loan performance

Levi & Korsinsky, LLP announces a class action against SLM Corporation (NASDAQ: SLM), accusing the student loan lender and servicer of misleading investors about the condition of its loan portfolio and the effectiveness of its loss mitigation programs. The complaint covers purchases of SLM common stock between July 25, 2025 and August 14, 2025 and alleges the company concealed a significant rise in early-stage delinquencies and overstated the stability of private education loan delinquency rates.

Allegations Focus on Rising Early-Stage Delinquencies and Loss Mitigation

The firm alleges SLM’s public statements create a materially false impression of the company’s business, operations and prospects by underreporting early-stage delinquencies and overstating loan-modification and loss-mitigation outcomes. In the view of the plaintiffs’ lawyer, those representations mask deterioration in credit performance that is central to underwriting, servicing and risk-management practices for private student loans. The complaint frames the issue as not merely an accounting or disclosure dispute but a question of how effectively SLM is managing borrower defaults and rehabilitation.

For SLM and the wider student-lending industry, the allegations underscore operational risks tied to borrower repayment behavior and the quality of loan-servicing programs. If early delinquencies are rising and remediation programs are less effective than described, lenders may face higher charge-offs, increased servicing costs and greater regulatory or investor scrutiny. The complaint’s focus on program efficacy also highlights how disclosures about borrower outcomes and modification success are increasingly material to assessments of financial stability for education finance companies.

How to Join the Suit

The proposed class includes all persons and entities that purchased SLM common stock during the class period and suffered damages. Potential plaintiffs have a February 17, 2026 deadline to seek appointment as lead plaintiff; participation and potential recovery do not require serving as lead plaintiff. Interested parties may obtain information or submit claims via https://zlk.com/pslra-1/slm-corporation-lawsuit-submission-form, by emailing [email protected], or by calling (212) 363-7500.

Plaintiff Firm Background

Levi & Korsinsky emphasizes roughly 20 years of experience, a team of over 70 staff, a consecutive seven-year ranking in ISS Securities Class Action Services’ Top 50, and a history of recovering hundreds of millions for shareholders. The firm states it works on a contingent-fee basis, so there is no requirement for plaintiffs to pay attorneys’ fees or case expenses up front.