SOFI - Students Just Started Paying Their Loans Back SoFi Analyst Sees A Tailwind | Benzinga
Bank of America Securities analyst Mihir Bhatia issued a note Wednesday concerning the uptrend in student loan repayments and the beneficiaries of student loan payments.
What Happened: Bhatia noticed that by the end of August, student loan repayments started picking up momentum, and it could spell good news for companies like SoFi Technologies Inc (NASDAQ: SOFI).
Here’s what you need to know.
The analyst looked at data from the Daily Treasury Statement which showed that Department of Education (ED) deposits for August soared, marking the highest since the "onset of loan forbearance” in March 2020.
Bhatia noted the deposits in the last week of August alone eclipsed monthly collections seen since March 2020.
Read also: Is A College Degree Worth It? New Study On Student Loans Shows Stark Differences
The question is, what’s driving the trend? The analyst gave two plausible theories:
Bank of America said borrowers ...