SLM Corporation (SLM) or commonly know as Sallie Mae, reported third quarter core earnings of $164 million or 26 cents per share. Results were well ahead of the Zacks Consensus Estimate of 8 cents per share. The company had earned 19 cents in the year-ago period. Results reflected improvements in the credit market and an increase in loan originations. However, loan loss provisions remain high. Quarterly results included a gain of $74 million on the repurchase of debt and a $55 million accounting adjustment to reflect slower loan prepayments. Sallie Mae posted a net income attributable to common stock of $116.5 million, or 25 cents per share, compared with a loss of $186 million, or 40 cents, in the year-ago period. Core earnings return on assets was 0.31%, up 6 basis points (bps) year-over-year. Sallie Mae originated $6.9 billion in federal student loans in ...

The corporate ratings of student lender SLM Corp. or Sallie Mae (SLM) was downgraded by Fitch Ratings yesterday. The outlook assigned was negative. The ratings downgrade reflects the agency’s concern about the company’s business model. Fitch expects the company to continue to shift to a fee-for-service business model with its subsidiary Sallie Mae Bank originating higher-risk private education loans.   Fitch downgraded the long-term issuer default and senior debt ratings to "BBB-" from "BBB", while preferred stock was downgraded to "BB" from "BB+". The short-term issuer default rating and short-term debt ratings were affirmed at "F3". About $34.4 billion of debt and preferred stock is affected by these actions.   To restore the $92 billion student loan market, the House Education committee approved a legislation, which closes the Federal Family Education Loan Program and shifts most of the student lending into the Education Department's Direct Loan program. ...

SLM Corporation (SLM) substantially topped expectations with adjusted profits of 32 cents per share. The second-quarter results were aided by 325 million gains on debt repurchases, offset partially by $105 million of expenses related to the ongoing dislocation in the commercial paper market and a 109.1% increase in provisions for loan losses.

On a GAAP basis, SLM reported a net loss of $0.32 per share, compared to a net loss of $0.10 per share in the prior quarter and a net income of $0.50 per share in the prior-year quarter. The adjusted results include after-tax restructuring expenses of $2.8 million and other reorganization-related asset impairments of $0.2 million.

The company generated experienced 76.0% year-over-year increase in FFELP internal brand originations. However, FFELP Lender Partner originations declined 30.0% over the prior-year quarter. Private Education Loan (PEL) originations declined 56.4% year-over-year to $372 million in the reported quarter.

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On July 7, 2009, SLM Corporation (SLM), commonly known as Sallie Mae, announced its support for the Student Loan Community's proposal to reform the student loan program.

The alternative proposal, put forth by a diverse group that includes non-profit, for-profit and state-based service providers and guaranty agencies seeks to enhance the Administration’s plan to better serve students, families, schools, and taxpayers. The plan also aims at retaining a significant role for private lenders in the student loan market.

The Administration’s plan is framed to provide certainty that funding will be available to students and save nearly $90 billion over the next decade by ending unnecessary public subsidies paid to banks. It would use the freed up resources to partially cover the cost of a permanent increase in grants for students from lower-income families.

Consequently, this would end all private originations of student loans and use only a small panel of financial firms

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Highlights include Sallie Mae (SLM), Nelnet Corp (NNI) and Student Loan Corp (STU).Budget Proposals Hurt Student LendersPresident Obama's budget proposals for fiscal 2010 include the elimination of private lenders from the student-loan market and having the federal government make all such loans directly. Beginning in 2010-2011, all new student loans are proposed to be originated through the direct student loan program.The shift to the Department of Education's direct-lending program is expected to save more than $4 billion a year in subsidies paid to private lenders, and also eliminate uncertainty for students.Since the shift in control of the Congress to the Democrats, there has been, on the whole, more support for direct student lending by the Government. Direct loans, however, only accounted for about 20% of the $68.2 billion in new federal loans during for the 2007-2008 school year, ...

Investors occasionally use a stock trading technique called 'Buying Dividends,' which is the technique of buying stocks before the ex dividend date and selling the stock shortly after the ex date at about the same price, yet still being entitled to the dividend. This technique generally works only in bull markets.If you are interested in buying dividends, there are many stocks in many different industries to choose from. In order to be entitled to the dividend, you have to buy the stock before the ex-dividend date, and you can't sell the stock until after the ex date. The actual dividend may not be paid for another few weeks.All of the following stocks have market caps over $500 million, and yields over 4.5%. The Student Loan Corp. (STU) Ex-dividend date: 11/12/2008 Yield: 12.64% .CIT Group Inc. (CIT) Ex-dividend date: 11/12/2008 Yield: 12.16% ...