Two Securities Suits Allege SLM Misled Investors on Private Loan Delinquencies

Sallie Mae Faces Twin Securities Lawsuits Over Private Education Loan Performance

Two plaintiff firms are pressing SLM Corporation, better known as Sallie Mae, with securities fraud claims that center on the performance of its private education loan (PEL) portfolio and the company’s disclosure practices. The Law Offices of Frank R. Cruz and Levi & Korsinsky, LLP announce separate actions covering the period July 25, 2025 through Aug. 14, 2025, alleging that SLM failed to disclose a sharp rise in early‑stage delinquencies, overstated the effectiveness of its loss‑mitigation and loan‑modification programs, and misrepresented the stability of PEL delinquency rates. Both filings contend that public statements about the lender’s business, operations and prospects are materially misleading or lack a reasonable basis.

The complaints focus squarely on SLM’s credit performance metrics, saying investor reliance on the company’s disclosures causes financial harm when underlying loan delinquency trends are worse than portrayed. Plaintiffs argue that management’s positive characterizations of loss‑mitigation outcomes and delinquency stability mask deteriorating portfolio health and have induced investors to hold or buy securities under false pretenses. The allegations heighten scrutiny on how nonbank student lenders measure and report private loan servicing results amid rising consumer stress.

Both firms are actively soliciting investors to seek lead‑plaintiff status as the litigation progresses. They say class members need not take immediate action to remain in the class but must move for lead‑plaintiff appointment by a court‑set deadline. The cases seek to recover investor losses allegedly tied to the contested disclosures and to pursue damages on behalf of the proposed class.

How investors can respond

The Cruz office distributes its notice via PR Newswire and sets a Feb. 17, 2026 deadline for lead‑plaintiff motions, inviting affected investors to contact the firm by email at [email protected], phone at 310‑914‑5007, or through www.frankcruzlaw.com; the notice cautions that it may be considered attorney advertising in some jurisdictions and that class membership does not require immediate action. Inquiries are requested to include addresses, phone numbers and number of shares purchased.

Firm backgrounds and next steps

Levi & Korsinsky posts a case portal and provides contact via [email protected] and (212) 363‑7500, emphasizing its two decades of securities litigation experience and past recoveries for shareholders. Both firms encourage investors with quantifiable losses to submit claims for evaluation and stress there is no obligation or upfront cost to participate in the class action process.