Back/Legal Notices Say SLM Misstated Private Education Loan Delinquency Trends
stocks·February 5, 2026·slm

Legal Notices Say SLM Misstated Private Education Loan Delinquency Trends

ED
Editorial
Cashu Finance·2 min read
TL;DR
  • Law firms allege SLM misled investors about private education loan portfolio performance.
  • Complaints say SLM failed to disclose a rise in early‑stage delinquencies July 25–Aug 14, 2025.
  • Plaintiffs assert SLM overstated effectiveness of loss mitigation and loan modification programs.

Legal Notices Point to Alleged Misstatements in Sallie Mae Loan Performance

Suits Target Sallie Mae's Loan Performance Claims

Two law firms are pressing securities fraud claims against SLM Corporation, doing business as Sallie Mae, alleging the company misleads investors about the performance of its private education loan (PEL) portfolio. The complaints, filed and announced in early February, cover the period July 25, 2025 through August 14, 2025 and assert defendants failed to disclose a notable rise in early‑stage delinquencies. Plaintiffs say public statements touting the stability of PEL delinquency rates and the effectiveness of SLM’s loss mitigation and loan modification programs are materially false or lack a reasonable basis.

The filings center on borrower performance metrics that are core to SLM’s underwriting and servicing narratives. The complaints allege the company concealed a significant uptick in early delinquency trends and overstated the impact and reach of remediation efforts, which plaintiffs contend masks deterioration in loan quality. The actions seek to tie investor losses to reliance on the alleged misstatements about SLM’s business, operations and prospects, emphasizing the PEL portfolio as the focal operational vulnerability.

Both notices set procedural steps for investors and outline potential class membership. They request that eligible investors move to be appointed lead plaintiff by a February 17, 2026 deadline and describe the range of alleged damages and avenues for recovery. The announcements are positioning the litigation to evaluate potential recoveries on behalf of a class of shareholders who purchased or held SLM securities during the specified window.

Where Investors Can Get More Information

The Law Offices of Frank R. Cruz distributes a notice via PR Newswire on Feb. 3, 2026 inviting affected investors to contact the firm at [email protected], by phone at 310‑914‑5007 or through www.frankcruzlaw.com; the notice explains that no immediate action is required to remain a class member. Levi & Korsinsky, LLP on Feb. 4, 2026 files a complaint and directs investors to its case portal or to Joseph E. Levi at [email protected] or (212) 363‑7500 for submissions.

Firms’ Claims on Procedure and Fees

Levi & Korsinsky highlights its experience and invites claimants to submit through zlk.com/pslra-1/slm-corporation-lawsuit-submission-form, stressing there is no cost to participate and no obligation. Frank R. Cruz’s notice similarly encourages timely contact to preserve rights, noting the announcement may constitute attorney advertising under some jurisdictions’ rules.