Christopher Gray, founder of Scholly, has sued Sallie Mae, alleging wrongful termination and the sale of student data, including that of minors. Gray built the mobile app to help students find scholarships and claims that Sallee Mae sold data collected through the Scholly app, including personal information about minors, to third parties without properly informing users. The company acquired Scholly in 2023 as part of a strategy to reposition itself beyond its core student lending business into what it calls student financial wellness. Gray alleges that when he raised concerns about data privacy about the sale, the company laid off his co-founders and terminated him in July 2024. Gray is seeking back pay, punitive damages, and legal costs. SallIE Mae denies these allegations and plans to fight them.