SLM Corporation a/k/a Sallie Mae (SLM) Securities Class Action Lawsuit Filed [December 26, 2025]

Introduction to SLM Corporation a/k/a Sallie Mae (SLM) Securities Class Action Lawsuit

A federal securities fraud class action has been filed against SLM Corporation a/k/a Sallie Mae (NASDAQ: SLM) in the U.S. District Court, District of New Jersey, alleging violations of the Securities Exchange Act of 1934, including Rule 10b-5. The case covers investors who purchased SLM securities (NASDAQ: SLM) between July 25, 2025 and August 14, 2025, both dates inclusive. Investors allege the company and its senior executives misrepresented the stability of private education loan delinquency trends and the effectiveness of SLM's loss mitigation and loan modification programs. 

The truth began to emerge when a third-party analyst (TD Cowen investment bank) reported that July 2025 delinquencies worsened far beyond normal seasonal patterns (seasonal benchmark roughly +10 basis points), driven by a jump in early-stage delinquencies (approximately +45 basis points). Following these revelations, SLM's stock declined, including an 8.09% drop on August 15, 2025 that closed the trading day at $30.32 per share (a corrective disclosure-driven decline on the NASDAQ).

SLM Corporation a/k/a Sallie Mae (SLM) Securities Lawsuit Case Details

Case Name: Zappia v. SLM Corporation a/k/a Sallie Mae et al.

Case No.: 2:25-cv-18834

Jurisdiction: U.S. District Court, District of New Jersey

Filed on: December 19, 2025

SLM Corporation a/k/a Sallie Mae (SLM) Company Profile

SLM, commonly known as Sallie Mae, a publicly traded student loan servicer and originator on the NASDAQ, primarily originates and services private education loans to students and their families, operating a private education loan origination and servicing business model. The company emphasizes its "high-quality" private education loans and highlights loss mitigation and loan modification programs intended to improve collectability, including efforts to manage early-stage delinquencies and reduce charge-offs at 120 days delinquent.

SLM Corporation a/k/a Sallie Mae (SLM) Securities Lawsuit Class Period

July 25, 2025-August 14, 2025, inclusive.

All persons and entities other than Defendants that invested in SLM securities by purchasing or acquiring shares during the Class Period may be eligible to join the SLM Corporation a/k/a Sallie Mae (SLM) class action lawsuit.

Allegations in the SLM Corporation a/k/a Sallie Mae (SLM) Securities Class Action Lawsuit

The lawsuit names SLM Corporation a/k/a Sallie Mae, Chief Executive Officer Jonathan W. Witter, and Executive Vice President, Chief Financial Officer, and Treasurer Peter M. Graham, alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. According to the complaint, they presented a picture of steady performance and normal seasonal patterns in loan delinquencies while emphasizing the effectiveness of SLM's mitigation efforts, and failed to disclose material adverse facts about early-stage delinquencies. 

The narrative begins on July 24, 2025, on the company's second quarter 2025 earnings materials and conference call. CEO Jonathan W. Witter touted the "strength of our core business, resilience of our customers, and continued execution of our strategy." That same day, CFO Peter M. Graham told investors that private education loans 30+ days delinquent were 3.5% of loans in repayment, down from the first quarter, and said they were "pleased with the continued positive performance" of modification programs, noting late-stage delinquencies were flat year over year despite growth in loans in repayment. Graham also reassured the market on July 24, 2025 that trends in delinquencies and grace programs were "following the normal seasonal trends that we would expect in the business," creating, investors allege, a false impression of normal seasonal performance. Those statements, made just before the start of the Class Period, set expectations about stability and seasonality across SLM's portfolio. 

According to investors, however, SLM was experiencing a significant increase in early-stage delinquencies during this time. The complaint alleges Defendants overstated the effectiveness of loss mitigation and loan modification programs and the stability of private education loan delinquency rates, leaving investors with a materially incomplete picture of SLM's business, operations, and prospects, failed to disclose material facts, and misled investors in violation of Rule 10b-5.

The Truth Emerges

The first crack appeared on August 14, 2025, when a third-party analyst (TD Cowen investment bank) issued a corrective disclosure that overall July 2025 delinquencies were up 49 basis points (month-over-month basis point measurement)-worse than the typical July seasonal increase of about 10 basis points (a deviation from the normal seasonal benchmark)-driven by a 45 basis point jump in early-stage delinquencies, contradicting management assurances. This third-party analysis directly contradicted Graham's late-July assurance that delinquency trends were following normal seasonal patterns, flagging instability in early-stage performance. 

The picture continued to develop later. On October 23, 2025, Graham stated that at the end of the third quarter, 4% of private education loans in repayment were 30 or more days delinquent, up from 3.6% a year earlier, attributing the increase largely to changes made the prior year to loan modification eligibility criteria, a disclosure acknowledging higher delinquency rates. Together, these events suggested deterioration at odds with the stability previously described, a disclosure the complaint cites as inconsistent with prior statements.

Market Reaction

The market reacted swiftly to the August 14, 2025 TD Cowen report. On August 15, 2025, SLM's stock (on NASDAQ: SLM) fell $2.67, or 8.09%, to close at $30.32 per share. Later in the year, after SLM held its Investor Forum 2025 presentation during post-market hours on December 8, 2025, the stock declined, an additional adverse price reaction. On December 9, 2025, shares fell $4.61, or 14.94%, to close at $26.24 per share.

Next Steps

• Submissions for lead plaintiff are due: February 17, 2026.

• The Court will issue its order for lead plaintiff and counsel in the weeks after submissions are due.

• The Court will then consider motion for class certification.

• The Court will later consider a Motion to Dismiss.

To learn if you are eligible for recovery under the SLM securities class action lawsuit, visit the case submission page here.

Disclaimer: This shareholder alert is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for personalized guidance. No specific outcomes are guaranteed.