SLM Corp (NASDAQ:SLM)

STSC Feb 2013

Fidelity BBBB by P/S, 1 of 3.

Student loan default rate is rising again...

http://www.investmentnews.com/article/20120702/FREE/120629915

Cooperman

good bye slm

Huge debt/cash ratio. Students cannot pay off their loans in this economy. P/E ratio in the hundreds. Shrinking revenues. No profit. Highly overvalued at $13

Simply undervalued.

value screen

College costs are exploding, university students aren't making enough money out of university to pay off their ballooning payments. These students will default, the same way that mortgage buyers defaulted. Who is to blame? The student or the government?

lowpricevaluestocks15

Cooperman and Pamet are large stake holder

General distrust for public companies of US government holdings

From CNN....."The House voted 220-211 on Sunday to make Washington the one-stop-shop for cheap student loans and to boost funding for need-based scholarships."

Sallie Mae is toast.

It's ridiculous to imagine that the government can bear the burden in between what scholarships/grants/federal loans provide and what college ACTUALLY COSTS. The development of education reform on a scale that would completely wipe out private loans would take nearly the time/energy that health care reform, and we know how well that's going/gone. The demand for private loans will only increase from here out; it's the risk that fluctuates.

Sallie Mae has excellent customer service and flexible payments--when my income was unstable they worked with me until I was back on my feet again--all without one late/missed payment.

In tough times they've cut back their overeager loaning practices to a far more manageable level, and they will be better off for it. Anything higher than $60K in private loans for a kid with a BA fresh out of college will soon send him straight to the poor house, and there's no profit in that.

Sallie Mae has challenges ahead and some investment risks, but at $11/share I still find it a bargain.

Students graduating without jobs and their parents trying to recover from the financial hit of 2008. Fat chance collecting loan repayments.

The government will bail out students by allowing them to declare bankruptcy and defaulting on their loans. The government will then take over new student loans and kill whatever is left of their business.

The tipping point has come. Normal consumer protections will be restored to student debt - including bankruptcy, refinancing, statutes of limitations, and fair debt collection practices.

Government will not be able to fully service student loans. SLM will change to fee for service and thrive. Uncertainty bringing stock to below market levels.

Almost everyone I know has student loans that they have no means to pay back. The loans may escape bankruptcy filings but even so, that capital is gone FOREVER.