With a strong upgrade and such a nice jump for SLM, it is strange that the preferred SLM-PB lost 9% that same day. Of course, their yield is low (connected to LIBOR), but the price ($29) is far from $100 par value - so it's very promising.
Second preferred SLM-PA, with yield around 15%, also dropped a bit.
Why do you keep thinking that SLM will be "seized"? You really think the government can come up with almost a trillion dollars to buy all the existing student loan portfolios? The government has already printed plenty of money & will need to figure out a way to fund $80-$100 billion in new originations a year. Where is this new money going to come from?
I own the bonds, they rallied from an 18% yield down to about 13-14, there are ahead of the pref. stock, and they were recently downgraded to Junk by Moody's. This is why their debt is having a hard time rallying, and will for sometime, until an upgrade occurs, or if bond holders get a couple of more semi-aanual interest payments!