Lawsuit Claims SLM Concealed Rising Early-Stage Delinquencies, Misleading Investors

Hidden surge in early-stage delinquencies prompts class action against SLM

Levi & Korsinsky, LLP is filing a class action against SLM Corporation, alleging the student loan servicer and its executives conceal a significant rise in early-stage delinquencies and overstate the effectiveness of its loss mitigation and loan modification programs. The complaint, lodged on Feb. 11, 2026, covers purchases of SLM common stock between July 25, 2025 and Aug. 14, 2025 and claims company statements during that period create a materially false and misleading picture of its business, operations and prospects.

The firm says SLM misrepresents the stability of private education loan delinquency rates and the capacity of its remediation efforts to prevent defaults, which investors rely on to assess credit quality and servicing performance. The allegations focus on disclosures and public statements by management that, if proven, would indicate shortcomings in SLM’s credit risk monitoring, borrower outreach and modification workflows — areas that are central to a loan servicer’s operational integrity and regulatory compliance.

The suit underscores wider industry scrutiny of student loan servicers as lenders and servicers navigate higher delinquency trends and evolving loss-mitigation standards. Analysts and regulators are increasingly attentive to how servicers report delinquency metrics and the practical efficacy of borrower assistance programs; the litigation highlights the operational and disclosure risks SLM faces even as servicers contend with shifting repayment patterns and programmatic changes across the sector.

Class definition and lead plaintiff timeline

The proposed class includes all persons and entities who purchased or otherwise acquired SLM common stock during the class period and were damaged thereby. Investors harmed during the relevant period may seek appointment as lead plaintiff by Feb. 17, 2026; participation in the class and potential recovery do not require serving as lead plaintiff. Interested parties can obtain information or submit claims via https://zlk.com/pslra-1/slm-corporation-lawsuit-submission-form or by contacting Joseph E. Levi at [email protected] or (212) 363-7500.

Counsel background and fee structure

Levi & Korsinsky states it has roughly 20 years of experience, a team of more than 70 employees and consecutive recognition in ISS Securities Class Action Services’ Top 50. The firm notes it works on a contingent-fee basis, meaning class members are not required to pay attorneys’ fees or case-related expenses up front.