Core Viewpoint - A class action has been filed against SLM Corporation (Sallie Mae) for allegedly misleading investors regarding its loss mitigation and loan modification programs during a specific period in 2025 [1][2]. Group 1: Allegations and Findings - The complaint alleges that SLM Corporation failed to disclose a significant increase in early stage delinquencies, leading to an overstatement of the effectiveness of its loss mitigation and loan modification programs [2]. - A report from TD Cowen on August 14, 2025, indicated that July 2025 delinquencies increased by 49 basis points month-over-month, which was worse than the expected seasonal increase of 10 basis points, driven by a 45 basis point rise in early stage delinquencies [3]. - The findings from TD Cowen contradicted SLM's previous assurances that delinquency rates were following normal seasonal trends, resulting in a stock price drop of $2.67 per share, or 8.09%, closing at $30.32 on August 15, 2025 [3]. Group 2: Class Action Participation - Shareholders may be eligible to participate in the class action against SLM Corporation, with the option to serve as lead plaintiff, representing other class members in the litigation [4]. - Shareholders do not need to participate in the case to be eligible for recovery and can remain absent class members if they choose [4]. Group 3: Company Background - Robbins LLP is a recognized leader in shareholder rights litigation, dedicated to helping shareholders recover losses and improve corporate governance since 2002 [5].

Core Viewpoint - Rosen Law Firm has initiated a class action lawsuit against SLM Corporation (Sallie Mae) for allegedly misleading investors about its business operations during a specific period in 2025 [1][2]. Group 1: Allegations - The lawsuit claims that SLM Corporation made false and misleading statements regarding its business, specifically that it was experiencing a significant increase in early-stage delinquencies [3]. - It is alleged that SLM overstated the effectiveness of its loss mitigation and loan modification programs, as well as the overall stability of its private education loan delinquency rates [3]. - The misleading public statements created a materially false impression about SLM's business operations and prospects, leading to investor damages when the truth was revealed [3]. Group 2: Legal Proceedings - Investors who wish to participate in the class action must file motions to serve as lead plaintiffs by February 17, 2026 [4]. - A lead plaintiff represents other class members in directing the litigation, but participation is not required to be eligible for recovery [4]. Group 3: Rosen Law Firm Overview - Rosen Law Firm specializes in shareholder rights litigation and has a track record of recovering over $1 billion for shareholders [6]. - The firm operates on a contingency fee basis, meaning shareholders incur no fees or expenses unless they recover losses [5].

Core Insights - Sallie Mae will host an investor forum on December 8, 2025, at 5 p.m. ET, with a live audio webcast available for participants [1][2] Group 1: Corporate Developments - Sallie Mae has announced a multi-year strategic partnership with KKR, expecting KKR to purchase an initial seed portfolio of private education loans, followed by a minimum of $2 billion in newly originated private education loans annually for an initial three-year term [5] - The company has awarded $500,000 in scholarships through its Bridging the Dream Scholarship Program, benefiting 40 high school students and 10 graduate students [6] Group 2: Industry Context - November is recognized as National Scholarship Month, highlighting the importance of scholarship opportunities, yet nearly 40% of families miss out on these opportunities due to misconceptions [7]

Core Insights - Sallie Mae has announced a multi-year strategic partnership with KKR to enhance its private student lending capabilities and generate fee income [1][3] - KKR plans to purchase an initial seed portfolio of private education loans and commit to a minimum of $2 billion in newly originated loans annually for an initial three-year term [2][4] - The partnership aims to improve Sallie Mae's loan origination capacity and provide ongoing servicing fees for managing the loans sold to KKR [3][4] Company Overview - Sallie Mae is a leader in private student lending, focusing on providing financing and resources to support access to college [7] - KKR is a global investment firm that specializes in alternative asset management and aims to generate attractive investment returns through disciplined investment strategies [6] Financial Implications - The partnership is expected to create a more resilient and capital-light earnings profile for Sallie Mae, allowing it to serve more students and families [4] - KKR's investment will come from its managed credit funds and accounts, indicating a strategic move to deploy long-term, flexible capital in high-quality financial institutions [4][6]

Core Insights - SLM Corporation is considered one of the most undervalued financial stocks by Wall Street analysts [1] - The company is shifting its strategy to focus on issuing high-quality student loans rather than merely increasing its loan volume [2] Group 1: Strategic Shift - SLM has lowered its origination growth target to 5-6%, prioritizing higher credit quality over loan volume growth [2] - The company is tightening its credit standards, resulting in higher quality loans despite a slight increase in early delinquencies [2] Group 2: Market Opportunities - Legislative changes in Grad PLUS and Parent PLUS loans present a market opportunity valued between $4.5 billion to $5 billion [3] - These products target borrowers with stronger credit, aligning with SLM's risk appetite [3] - SLM is pursuing private credit funding partnerships to create capital-light, fee-based revenue streams [3] Group 3: Company Overview - SLM Corporation operates as Sallie Mae Bank, focusing on originating, servicing, and managing private education loans for various educational purposes across the United States [4]

Core Insights - Navient reported second-quarter 2025 adjusted earnings per share (EPS) of 21 cents, missing the Zacks Consensus Estimate of 29 cents and down from 48 cents in the prior-year quarter [2] - The company's GAAP net income was $14 million compared to $36 million in the prior-year quarter [3] - The decline in net interest income (NII) and higher provisions for loan losses were significant factors affecting performance [2][4] Financial Performance - NII decreased by 3.7% year over year to $131 million, missing estimates by 9.2% [4] - Total other income fell 76.1% year over year to $28 million [4] - Provision for loan losses increased to $37 million from $14 million in the prior-year quarter [4] - Total expenses decreased by 45.4% year over year to $101 million [4] Segment Performance - Federal Education Loans segment generated a net income of $30 million, up 7.1% year over year [5] - Consumer Lending segment reported a net income of $26 million, down 56.7% from the year-ago quarter [5] - The private education loan delinquency rate greater than 30 days increased to 6.4% from 5.2% in the prior-year quarter [5] Liquidity and Capital Management - As of June 30, 2025, the company had $712 million in total unrestricted cash and liquid investments [8] - In the second quarter, Navient paid $16 million in common stock dividends and repurchased shares for $35 million [9] 2025 Outlook - Core EPS is now expected to be in the range of $0.95–$1.05, down from the previous range of $1.00–$1.20 [10] - FFELP segment NIM is now expected to be 55–65 basis points, an increase from the previous guidance of 45–60 basis points [10] - Full-year loan originations are now expected to be between $1.8 billion and $2.2 billion, compared to earlier expectations of 30% growth [11] Market Sentiment - Since the earnings release, there has been a downward trend in estimates revision, with a consensus estimate shift of -8.74% [12] - Navient has a subpar Growth Score of D and a value score of B, resulting in an aggregate VGM Score of D [13] - The stock has a Zacks Rank 4 (Sell), indicating expectations of below-average returns in the coming months [14] Industry Comparison - Navient belongs to the Zacks Financial - Consumer Loans industry, where Capital One has gained 5.7% over the past month [15] - Capital One reported revenues of $12.49 billion, representing a year-over-year change of +31.4% [15] - The overall direction of estimate revisions for Capital One translates into a Zacks Rank 2 (Buy) [17]

Core Insights - Navient Corporation (NAVI) reported second-quarter 2025 adjusted earnings per share (EPS) of 21 cents, missing the Zacks Consensus Estimate of 29 cents and down from 48 cents in the prior-year quarter [1][8] - The results were impacted by a decrease in net interest income (NII) and other income, alongside higher provisions for loan losses, although lower expenses provided some support [2][10] Financial Performance - Navient's GAAP net income was $14 million, compared to $36 million in the prior-year quarter [2] - NII declined 3.7% year over year to $131 million, missing the Zacks Consensus Estimate by 9.2% [3] - Total other income decreased 76.1% year over year to $28 million [3] - Provision for loan losses increased to $37 million from $14 million in the prior-year quarter [3] - Total expenses decreased 45.4% year over year to $101 million [3][8] Segment Performance - Federal Education Loans segment generated a net income of $30 million, up 7.1% year over year, with net FFELP loans at $29.6 billion, down 2.1% sequentially [4] - Consumer Lending segment reported a net income of $26 million, down 56.7% from the year-ago quarter, with a private education loan delinquency rate greater than 30 days at 6.4%, compared to 5.2% in the prior-year quarter [4] - As of June 30, 2025, private education loans were $15.5 billion, a decrease of 1% from the prior quarter [5] Liquidity and Capital Management - As of June 30, 2025, the company had $712 million in total unrestricted cash and liquid investments [7] - To meet liquidity needs, NAVI plans to utilize various sources, including cash, investment portfolio, and operating cash flows, and may draw down on secured loan facilities or issue additional debt [6] Capital Distribution Activities - In the second quarter, the company paid $16 million in common stock dividends and repurchased shares for $35 million, with $52 million remaining in share-repurchase authority as of June 30, 2025 [9]