SOFI - Why did SoFi stock jump today? Debt ceiling bill to end student loan pause
2023-05-31 16:28:51 ET
- SoFi Technologies ( NASDAQ: SOFI ) stock surged 15% in Wednesday trading as the debt ceiling package, negotiated by the White House and Republican leaders, advanced to the U.S. House of Representatives for a vote.
- The legislation includes a provision that sets a definitive end for the pause on the repayments of federal student loans, which had started soon after the pandemic hit the U.S. in 2020. As set in the bill, student loan repayments will start 60 days after the last moratorium extension ends on Aug. 31, 2023.
- With the end of the student loan payment moratorium, demand may increase for SoFi's ( SOFI ) student loan refinancing services, which was a large part of the company's business before the pandemic.
- Even with Wednesday's advance, the stock has declined 7.2% from a year ago and it has dropped 73% since its merger with Chamath Palihapitiya's SPAC in June 2021.
- Earlier, BTIG pointed out that SoFi ( SOFI ), Intuit ( INTU ), H&R Block ( HRB ), Equitrans Midstream ( ETRN ) and defense companies are likely to benefit from the debt limit agreement that was reached over the weekend.
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Why did SoFi stock jump today? Debt ceiling bill to end student loan pause