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Why wouldn't SLM be next?

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November 08, 2010 – Comments (3)

Does anybody here know a good amount about SLM?  Seems to me as if its the same thing as FNM and FRE, except replace "house" with "education".  College tuitions are outrageous, and growing too fast.  Look at all of the education stocks getting crushed lately...such a low repayment rate.  Won't they go bust?

3 Comments – Post Your Own

#1) On November 08, 2010 at 7:52 PM, peterod (84.38) wrote:

as far as I know.... It's alot more difficult to default on a school loan then a mortgage...  If you file for bankruptcy, student loans aren't forgiven from my understanding. therefore you have a huge incentive to payback....  If you have a house you just give back the keys to the bank and the house is theirs....

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#2) On November 08, 2010 at 8:02 PM, ikkyu2 (99.24) wrote:

I have read several articles in the usual places asserting that SLM was, indeed, ripening for an FRE/FNM style bust.  The USG has the same implicit full faith and credit non-guarantee on SLM's loans, but equity common in SLM could easily get wiped out.

My reluctance to own some over the last year when Cramer said buy has deprived me of a double, btw, and not getting a double I could have had is a pretty good counterargument to whatever the hell I was thinking that stopped me from doing it.

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#3) On November 08, 2010 at 8:13 PM, dragonLZ (99.35) wrote:

Valyooo, I don't know why, but my 3-10 says SLM will thrive...

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