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Published February 2, 2026
SLM Corporation thought it had a steady story. High quality student loans. Strong credit. Delinquencies under control. That was the pitch. But behind the scenes, the cracks were already showing.
In late July 2025, Sallie Mae told investors rising delinquencies were just seasonal. Executives said their loan modification programs were working. Everything was “normal.” Then the data told a different story.
By mid-August, an analyst report revealed early stage delinquencies were surging far beyond seasonal levels. Not a small bump. A serious spike. The market reacted fast.
SLM shares fell about 8% in a single day as investors realized the risks had been downplayed. The loans weren’t as stable as promised. And the mitigation programs weren’t fixing the problem.
Confidence disappeared. Investors were blindsided. Now, shareholders say they were misled about the true health of Sallie Mae’s loan book. And more investors are joining the lawsuit.