The novel coronavirus pandemic has impacted almost every aspect of our lives. One area that has drastically changed is the education system. For college students, this means choosing whether to go back to campus, take classes remotely, some mix of the two, or, in some cases, even forgoing college altogether.
Private student loan provider SLM Corp. (NASDAQ: SLM) , better known as Sallie Mae, is all too familiar with the struggles faced by the educational industry amid the pandemic. The future success of Sallie Mae hinges on student borrowers graduating, getting a job, and making payments on their private loans. It also relies on new students enrolling in colleges and universities on a consistent basis as its primary source of loan origination.
Sallie Mae investors are stuck in limbo as far as valuation is concerned, with the stock sitting at what appears to be an attractive price-to-earnings ratio of 7.4, considering the stable bottom-line earnings performance in recent quarters. Is Sallie Mae a good value buy , or is it a value trap?
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Is Sallie Mae a Good Value or Is It a Value Trap?