SLM (SLM) Shifts Strategy to High-Quality Student Loan Origination

Core Insights - SLM Corporation is considered one of the most undervalued financial stocks by Wall Street analysts [1] - The company is shifting its strategy to focus on issuing high-quality student loans rather than merely increasing its loan volume [2] Group 1: Strategic Shift - SLM has lowered its origination growth target to 5-6%, prioritizing higher credit quality over loan volume growth [2] - The company is tightening its credit standards, resulting in higher quality loans despite a slight increase in early delinquencies [2] Group 2: Market Opportunities - Legislative changes in Grad PLUS and Parent PLUS loans present a market opportunity valued between $4.5 billion to $5 billion [3] - These products target borrowers with stronger credit, aligning with SLM's risk appetite [3] - SLM is pursuing private credit funding partnerships to create capital-light, fee-based revenue streams [3] Group 3: Company Overview - SLM Corporation operates as Sallie Mae Bank, focusing on originating, servicing, and managing private education loans for various educational purposes across the United States [4]