By Bryan O'Keefe
While CCAP does not expect huge changes in higher education with the Democrats now in charge, at least one higher ed related company has already experienced a huge financial loss because of the coming change of political power.
Sallie Mae’s stock (SLM) is down more than 5 percent in the past two days – which is a loss of about a billion dollars for the company. One theory goes that investors are unloading the stock because they fear that the Democrats will promote student loan programs that deal directly with the government and eliminate middlemen, like Sallie Mae. We at CCAP will have more to say about this issue in the future. For the time being however it’s worth noting what the markets are predicting will happen in higher education financing – and it’s not pretty for Sallie Mae.