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SLM - SLM Corp


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Spin-off is coming and when-issued starts trading Thursday April 17th. Anyone done the work? Seems well-telegraphed but I want to compare notes. My range for SpinCo is $12.5-17 =). Stock seems fairly valued to me and is a 5-10% grinder every year until stuff blows up.

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SERVICING the student loans can be a HUGE cash cow.  This is especially true if they are collecting on defaulted student loans.  Government regulations will allow the collector to take a TREMENDOUS amount of money in fees.  We can be talking about TENS of thousands of dollars.

 

These "fees" are simply that...they don't count towards interest OR principal on the loan.

 

The only problem with this is that an outraged public might demand reform in the future.

 

There is also a problem that student loans may be changed at some point in the future also....

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