Next year nearly 20 million students will be enrolled at college. With the average private and public annual tuition expected to be $37,000 and $16,100, respectively, a lot of families will be looking for additional funding sources. One company positioned to benefit is SLM Corp. (SLM), also known as Sallie Mae, the largest private originator of student loans with a 33% market share.
SLM Corp. is no longer able to originate government student loans, known as FFELP loans, following the government?s decision last year to bring the lending in house. This has created both an overhang and opportunity in SLM shares as uncertainty over the company?s future has kept investors on the sidelines.
But, as we move further away from recession and beyond the shift in SLM?s business model to private loans only, shares are positioned to move higher. Especially given that demand for private loans is expanding once again.
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HON HAI PRECISION IND HYNIX SEMICONDUCTOR INFOSYS TECHNOLOGIES INTERNATIONAL BUSINESS MACHINES INVENTEC
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