Lawsuit Accuses SLM of Concealing Rising Private Student Loan Delinquencies

Lawsuit targets SLM’s private student loan disclosures

A securities class action is challenging SLM Corporation’s public statements about its private education loan portfolio, alleging the company concealed a sharp rise in early-stage delinquencies and overstated the effectiveness of its loss mitigation and loan modification programs. The complaint, filed by Levi & Korsinsky, LLP on Feb. 4, 2026, covers the period July 25, 2025 through Aug. 14, 2025 and says those alleged misrepresentations rendered SLM’s statements about its business, operations and prospects materially false and misleading.

The suit focuses on SLM’s disclosures and servicing practices for private student loans, saying the company knowingly misrepresented the stability of delinquency rates and the performance of borrower relief programs. If proven, those allegations raise questions about how SLM identifies early borrower distress and administers modifications, which are central to credit loss estimates and portfolio risk management in the private education lending sector.

The litigation underscores broader concerns for the student-loan servicing industry about transparency and the adequacy of borrower support mechanisms as private loan delinquencies emerge. Regulators and investors increasingly scrutinize servicers’ reporting of delinquency trends and loss-mitigation outcomes, and the case could prompt heightened attention to disclosure practices and internal controls among competitors and overseers.

Class details and claims process

The complaint seeks recovery for investors who purchased or held SLM securities during the class period; potential class members may pursue appointment as lead plaintiff by Feb. 17, 2026. Levi & Korsinsky says there is no cost to participate and no obligation to be named lead plaintiff in order to share in any recovery, and it invites affected investors to review case specifics and submit claims through its online form.

Filers’ background and contact information

Levi & Korsinsky emphasizes its roughly 20 years of experience, a team of more than 70 employees, and past recoveries for shareholders, noting consecutive ranking in ISS Securities Class Action Services’ Top 50 Report. Investors can contact the firm via its case portal, by email to Joseph E. Levi, Esq., or by phone at (212) 363-7500 for more information.