Best four years of your life
College years are sometimes referred to as the “best four years of your life.”
Whether or not this is true, they sure beat the last four years of life for a Sallie Mae shareholder. (negative 76% total return).
And the next four years don’t look good either.
From Bloomberg: “SLM Corp, the biggest US student loan company, tapped the bond market for the first time in two years, paying more in interest than it charges [college students for their loans.]”
SLM sold $1.5 Billion of 8 percent notes due in 2020 at a yield of 8.25%. Stafford federal studen loans have a fixed interest rate of 5.6%.
Bright college years … ahh.