Discover Financial Services is best-known for its credit cards but the Chicago-area company sees opportunity if the federal government, as widely expected, curtails its student loan lending under a Trump administration.
Only about 6 percent of student loans are private. If the federal government were to phase out its student loan programs, private lenders might be the only ones able to fill a gap that can mean the difference between living on campus or at home, or even attending college.
Investors see opportunity too.
Since the election, stocks of some student loan issuers and servicers have outperformed the Standard & Poor's 500. Shares of Sallie Mae, a private...