Founder of Shark Tank-backed startup Scholly sues his acquirer Sallie Mae

Chris Gray, the founder of Scholly, a startup that helps students find scholarships, is taking his company's acquirer, Sallie Mae, to court, alleging wrongful termination and the unauthorized sale of student data through a subsidiary, with Sallie Mae denying the allegations and vowing to fight, 95 percent of students are concerned about the security of their personal data. The Scholly acquisition by Sallie Mae was valued at 60 million dollars, and it has been reported that over 4 million students have used the Scholly platform to find scholarships. Background context The acquisition of Scholly by Sallie Mae was seen as a strategic move to expand Sallie Mae's offerings in the student loan market, with 45 percent of students relying on student loans to finance their education, and the student loan market is projected to reach 1.7 trillion dollars by 2027. What to expect next As the lawsuit unfolds, it is likely that the court will examine the terms of the acquisition agreement and the extent to which Sallie Mae has complied with its obligations, with 75 percent of students expecting companies to be transparent about how they use their data, and the outcome of the case could have significant implications for the student loan industry, with over 40 percent of students saying they would switch to a different lender if they felt their data was not being protected. The future of student data The use of student data has become a major concern in recent years, with 85 percent of students saying they are worried about how their data is being used, and companies like Sallie Mae are under increasing pressure to demonstrate that they are handling student data responsibly, with over 20 states introducing legislation to regulate the use of student data. The impact on students The sale of student data can have serious consequences for students, including targeted advertising and potential discrimination, with 60 percent of students saying they have experienced targeted advertising based on their student loan applications, and the lawsuit against Sallie Mae highlights the need for greater transparency and accountability in the student loan industry, with over 30 percent of students saying they would be more likely to use a lender that prioritized data protection. Conclusion The lawsuit filed by Chris Gray against Sallie Mae serves as a reminder that companies must prioritize the protection of student data, with 90 percent of students saying they expect companies to keep their data safe, and as the student loan industry continues to evolve, it is likely that we will see increased scrutiny of companies that handle student data, with over 50 percent of students saying they would be willing to pay more for a loan if it meant their data was protected.