Sallie Mae Faces Securities Class Action Over Alleged Hidden Delinquency Spike

Overview

• The putative case, Zappia v. SLM Corporation a/k/a Sallie Mae, No. 25-cv-18834 (D.N.J.), accuses SLM and certain executives of Securities Exchange Act violations.
• Plaintiffs allege SLM failed to disclose a significant rise in early-stage private education loan delinquencies and overstated the effectiveness of its loss-mitigation and loan-modification programs.
• TD Cowen reported on August 14, 2025 that July delinquencies rose 49 basis points month over month, driven by a 45 bp increase in early-stage delinquencies, allegedly contradicting late-July assurances from CFO Peter M. Graham about normal seasonal trends.
• Following the report, SLM’s shares fell about 8%, with one notice citing a $2.67 drop to $30.32 at the August 15, 2025 close.
• Investors who bought SLM securities from July 25 to August 14, 2025 may seek lead-plaintiff appointment by February 17, 2026, as firms including Robbins Geller, Holzer & Holzer, Bernstein Liebhard, Bronstein Gewirtz & Grossman, Portnoy, Rosen, and Robbins LLP solicit participation, and no class has been certified.