Student Loan Proposals Good for Sallie Mae

I see positive news for private student loan companies Sallie Mae (SLM) and Nelnet (NNI) in the Obama administration's just-released fiscal year 2014 federal budget. And it seems to confirm why investors have bid up shares of both Sallie Mae and Nelnet by 55% since their lows of last spring.

Specifically, the White House has proposed to partially offset the $29 billion (ten-year) costs of four new initiatives for middle class students by assuming a back-loaded $15 billion in savings from shifting to a new and industry-friendly adjustable rate formula for determining federal student loan rates after July 1....582 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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