Sallie Mae, or SLM Corp., (NYSE: SLM) is soaring this morning. In fact, it looks like the stock was briefly trading above $9.00 for the first time since it became a political target. This move comes on the heels of the company announcing that the U.S. Department of Education selected the former GSE for a student loan servicing contract.
The Department of Education has selected Sallie Mae for its Federal Student Aid Title IV Student Loan Management/Servicing procurement. Sallie Mae was one among four contract awardees. This servicing contract is for federal student loans owned by the Department of Education and does not include loan origination or other Title IV services.
The terms for this contract are five-years and actual terms of the award are unknown. This does not give SLM the same strength of its old topdog lender position, but it is at least gives more the company more of a chance for survival.
Sallie Mae shares were trading north of $9.00 in early pre-market trading. The last trade seen now was $8.75 at 9:22 AM EST and we have crossed the 1 million share mark. Shares closed at $7.69 yesterday and the 52-week trading range is $3.11 to $24.51.
Jon C. Ogg
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