Sallie Mae Plunges

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As you know from the Opening Bell, change is in the wind for student loans, but not exactly in the way we expected. Sallie Mae is down 40% today on the news that subsidies for student loans may well be a thing of the past if Obama's budget gets its way.
It will come as no surprise that we are hardly fans of subsidies, but we are hard pressed to find a subsidy we like better. True, this may have the effect of deflating the bubble in higher educational costs, but Sallie is only about a fifth of the size of Fannie.
This isn't exactly the place we'd look to shock the system just now. (Now that we think of it, however, it would get a bunch of those snotty college kids and MBAs into the workforce filling potholes).
Hmmm. Dumb the country down. Reduce the number of property owners. This way we could make millions of jobs building dams and manufacturing solar panels by hand. Could work.
Obama Calls for End to Loan Subsidy for Sallie Mae, Citigroup [Bloomberg]

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