Suits allege SLM understated delinquencies, overstated loan-modification effectiveness

Suits follow concerns over loan-servicing performance

SLM Corp. faces fresh investor scrutiny after two law firms notify shareholders of securities class actions tied to the company’s loan-servicing performance. The Law Offices of Howard G. Smith and DJS Law Group issue separate notices alleging that Sallie Mae understates early-stage delinquencies and overstates the effectiveness of its loan modification and loss mitigation programs. Both firms set a statutory deadline of Feb. 17, 2026 for investors who bought SLM shares during the July 25, 2025–Aug. 14, 2025 class period to seek lead plaintiff status.

Investor alerts cite rising early-stage delinquencies

Plaintiffs’ filings claim SLM experiences a significant increase in early-stage delinquencies and that the company’s public statements about the stability of post-enrollment loan (PEL) delinquency rates and the efficacy of remediation programs are materially misleading or lack a reasonable basis. The core allegation centers on loan performance metrics and borrower outcomes — key indicators for a company whose business model depends on loan repayment rates and the success of modification programs in limiting losses.

The complaints argue that undisclosed deterioration in early delinquency trends undermines the asserted effectiveness of SLM’s loss mitigation strategies, potentially masking credit risk and exposure across its student and consumer loan portfolios. If proven, such misstatements could prompt closer regulatory attention to servicer reporting practices and accelerate industry-wide scrutiny of how firms quantify and disclose remediation success and delinquency trends to investors.

Law firms press investors to act before deadline

Howard G. Smith and DJS Law Group invite affected shareholders to contact them about pursuing lead plaintiff roles; DJS specifies claims under Sections 10(b) and 20(a) of the Securities Exchange Act and Rule 10b‑5. Both firms note that joining the class does not require taking immediate action to remain a class member, but potential lead plaintiffs must act by Feb. 17 to be considered.

The firms emphasize contingency-fee representation and say they will evaluate proofs of purchase, loss calculations and causation tied to SLM’s disclosures. The notices caution that the announcements may constitute attorney advertising in some jurisdictions and encourage institutional investors and funds to request case materials and consultations.