SLM Corporation (NASDAQ:SLM) is considered one of the most undervalued financial stocks by Wall Street analysts. The company is shifting its strategy towards issuing high-quality student loans over increasing loan volume. SLM has lowered its origination growth target to 5-6% and tightened credit standards to improve credit quality.

Legislative changes in Grad PLUS and Parent PLUS loans present a $4.5 to $5 billion market opportunity for SLM Corporation. The company is seeking private credit funding partnerships to add capital-light, fee-based streams to complement current strategies. Recent loans show higher quality despite a slight increase in early delinquencies.

SLM Corporation operates as Sallie Mae Bank, originating, servicing, and managing private education loans in the US. While SLM offers investment potential, some AI stocks may offer greater upside potential with less downside risk. For those interested in an undervalued AI stock benefiting from current trends, check out Insider Monkey’s free report on the best short-term AI stock.

Read more at Yahoo Finance: SLM (SLM) Shifts Strategy to High-Quality Student Loan Origination