Scholly Founder Files Lawsuit Against Sallie Mae Over Data Privacy and Employment Disputes

Tue, 28 Apr 2026 17:56:00 +0200

Chris Gray, the founder of Scholly, a scholarship search startup that appeared on Shark Tank, is suing his acquirer, Sallie Mae, alleging wrongful termination and misuse of user data. Gray sold Scholly to the student loan company in 2023 and became a vice president, expecting to scale the platform and keep it free for students. However, he claims Sallie Mae laid off his co-founders and employees, created a subsidiary to sell users' personal data—including information on minors—to third parties, and ignored his concerns about data privacy. Gray asserts he believed federal regulations would protect user information, but Sallie Mae allegedly circumvented these rules through a separate entity called SLM Education Services. He also claims that the subsidiary’s website, Sallie.com, could be confused with the main Sallie Mae site, increasing the risk of unintentional data sharing. Sallie Mae denied the allegations, calling them baseless and promising to defend against the claims. Gray emphasi