Comprehensive Overview: SLM Investor Notice and Ongoing Securities Investigation

Date: January 18, 2026

This article provides a detailed and SEO-optimized summary and analysis of the recent investor notice regarding SLM Corporation, including the investigation led by Faruqi & Faruqi, LLP. The article explains the reasons for the investigation, what it means for investors, the background of SLM Corporation's stock price decline, and the steps investors might take if they were affected.

The information in this article is based on the official investor notice issued by Faruqi & Faruqi, LLP via Newsfile Corp. and related publicly reported details about the SLM Corporation and the broader securities litigation context.

1. Introduction to the SLM Investor Notice

On January 18, 2026, Faruqi & Faruqi, LLP, a national securities law firm, published an investor notice announcing that it is investigating potential claims on behalf of investors in SLM Corporation (NASDAQ: SLM). This notice is targeted at investors who bought or acquired shares of SLM during the period between July 25, 2025 and August 14, 2025.

The firm reminds investors of the approaching lead plaintiff deadline of February 17, 2026. This important date represents the last day for eligible investors to formalize their request to serve as the lead plaintiff in a class action lawsuit.

In this section, we explain what this notice means, why it has been issued, and how it fits into the broader legal and financial landscape.

2. Background on SLM Corporation (Sallie Mae)

SLM Corporation, often referred to as “Sallie Mae,” is a publicly traded financial company listed on the NASDAQ stock exchange under the ticker symbol “SLM.” The firm’s business centers on originating and servicing private education loans and related financial products. Like many companies in the financial services sector, SLM’s performance and stock price can be affected by economic conditions, loan performance, and investor sentiment.

During the period highlighted in the investor notice (late July to mid-August 2025), SLM faced elevated scrutiny due to reported increases in loan delinquencies and concerns about how effectively its loan mitigation strategies were performing. These issues led to an official complaint and allegations of potentially misleading statements by company executives.

3. What Triggered the Securities Investigation?

The Faruqi & Faruqi, LLP investor notice states that certain executives at SLM Corporation may have violated federal securities laws by making statements that were alleged to be false or misleading, or by failing to disclose material information that would have been important to investors.

Key Allegations Included in the Complaint

• Increase in Early Stage Delinquencies: The firm alleges that SLM was experiencing a noticeable and significant rise in early stage loan delinquencies, which may not have been fully disclosed to investors.
• Overstated Effectiveness of Loan Programs: According to the notice, the company may have overstated the success of its loss mitigation and loan modification programs. Such programs are typically designed to help borrowers stay current on loans, and any overstatement could mislead investors about the company’s financial health.
• Misleading Public Statements: As a result of the above issues, the firm alleges that public statements by SLM and certain executives may have given investors a materially misleading impression of the company’s stability and prospects.

4. Market Reaction and Stock Price Impact

A significant development occurred after investment research firm TD Cowen published a report on August 14, 2025. The report noted that overall delinquencies for July had increased more than expected, rising by 49 basis points month-over-month and significantly above seasonal norms.

This finding directly contradicted assurances from SLM’s leadership regarding the stability of delinquency rates. Following the publication of the TD Cowen report, SLM’s share price fell by approximately $2.67 per share — or about 8.09% — as investors reacted to the new information.

For shareholders and market observers, such a drop can be significant, particularly when it follows statements that later appear to have been overly optimistic or incomplete. This type of market movement is often central to securities lawsuits, as affected investors may claim that they were misled into holding or purchasing shares at inflated prices.

5. Understanding Class Action Lawsuits and Lead Plaintiffs

A securities class action lawsuit allows a group of investors who suffered losses to seek legal remedies collectively. These cases are typically filed under federal laws meant to protect investors from fraud, including violations of the Securities Exchange Act of 1934.

What Is a Lead Plaintiff?

The lead plaintiff is a representative investor chosen to act on behalf of the entire class. This person or entity is usually someone who suffered significant losses and is considered typical of the class. The lead plaintiff plays a key role in guiding the case and selecting legal counsel.

Choosing a lead plaintiff is an important step in securities litigation. Investors who wish to serve as lead plaintiff must file a motion with the court by the specified deadline — in this case, February 17, 2026. Failing to meet this deadline can limit an investor’s role in the lawsuit, though they may still remain a class member.

6. How Investors Can Respond

If you purchased or acquired SLM securities during the specified period and believe you suffered financial losses because of potentially misleading information, there are several important steps to consider:

• Contact Legal Counsel: Reaching out to experienced securities lawyers is crucial. The investor notice specifically encourages investors who suffered losses in SLM stock to contact Faruqi & Faruqi, LLP partner James (Josh) Wilson to discuss options.
• Evaluate Eligibility: Not all investors may be eligible for certain claims. It depends on when you purchased or sold shares, and whether you can show losses directly tied to alleged misrepresentations.
• Consider Lead Plaintiff Status: If you have substantial losses, you might want to pursue designation as lead plaintiff. Acting as lead plaintiff can give you a leadership role in the litigation.

7. Why This Matters for the Financial Community

Securities investigations like this one serve to uphold transparency and accountability in public markets. When companies issue public statements — especially about financial performance or business prospects — investors rely on that information to make informed decisions. Allegations that such statements were materially misleading can undermine trust and lead to regulatory scrutiny.

Legal action also signals to other companies that accurate disclosure is legally required and that deviations from this expectation may result in litigation and consequences for both management and shareholders. For the broader financial community, effective enforcement of securities laws helps maintain market integrity and protect investor rights.

8. Conclusion: What Investors Should Know

The Faruqi & Faruqi, LLP investor notice regarding SLM Corporation highlights a complex legal and financial situation affecting shareholders during a specific period in 2025. Investors who were active in the stock between July 25 and August 14, 2025 should consider reviewing the details, understanding the legal process involved, and deciding whether to participate in or lead the class action lawsuit.

Seeking advice from legal professionals and reviewing all available documentation — including the official investor notice — will help ensure that your rights and financial interests are safeguarded as the case moves forward.

#SLMInvestigation #InvestorRights #SecuritiesClassAction #FaruqiLaw #SlimScan #GrowthStocks #CANSLIM