Globenewswire·2026-01-13 20:26Core Viewpoint - A class action lawsuit has been filed against SLM Corporation and certain officers for alleged violations of federal securities laws during the Class Period from July 25, 2025, to August 14, 2025, seeking to recover damages for investors [1]. Company Overview - SLM Corporation, commonly known as Sallie Mae, primarily originates and services private education loans (PELs) to students and their families, emphasizing its "high-quality" PELs and loss mitigation programs [4]. - The company classifies its PELs as in repayment when customers are making interest-only or fixed payments, or when they have entered full principal and interest repayment status [5]. Allegations and Misleading Statements - The lawsuit claims that SLM's executives made materially false and misleading statements regarding the company's business and operations, which artificially inflated the prices of SLM's securities during the Class Period [6]. - Specifically, it is alleged that SLM was experiencing a significant increase in early-stage delinquencies, contradicting the company's public assurances about the stability of its delinquency rates and the effectiveness of its loss mitigation programs [6]. Impact of Delinquency Rates - Delinquency rates on SLM's PELs are a critical metric for investors, as the cost to service a delinquent borrower is significantly higher than servicing a current or in-school borrower [5]. - A report from TD Cowen on August 14, 2025, indicated that July 2025 delinquencies were up 49 basis points month-over-month, which was worse than the expected seasonal performance, leading to a significant drop in SLM's stock price by $2.67 per share, or 8.09% [7].