SLM Stock Falls More Than 9% After Charge-Off Disclosure

Shares of SLM Corporation dropped more than 9% at midday on October 23, 2026, a day after the student loan company reported in a quarterly filing that it had halted most of its outside debt-recovery work, according to a notice from law firm Levi & Korsinsky, LLP.

The Form 10-Q, submitted after the close of trading on October 22, 2026, said the company was "pausing the majority of third-party recovery activities" while it builds what it described as a more customer-aligned collections approach. Net charge-offs totaled $90.4 million in the third quarter and $292 million through the first nine months of 2026, compared with $248 million in the same stretch of 2025.

SLM also lifted its full-year charge-off forecast by $35 million, to between $400 million and $420 million, and cut its annual guidance projection by more than a third.

The stock closed at $21.76 on October 22, 2026, then opened 4.4%, or 95 cents, lower the next morning before extending the decline.

Levi & Korsinsky said it is examining whether SLM sufficiently disclosed how shifts in its collection and recovery practices might affect credit losses. The firm's notice was distributed as attorney advertising.

This story was first reported by PR Newswire.