Here's Why SoFi Is Rising Today
The stock market was nearly flat Wednesday morning, with all three of the major averages nearly unchanged as of 9:45 a.m. ET. However, banking disruptor SoFi Technologies (NASDAQ: SOFI) was a major outperformer, with shares rising by as much as 9%.
The short answer is that the stock is higher in anticipation of President Joe Biden's student loan forgiveness announcement, which is expected to come as soon as today. While there are no official details, the president is expected to announce $10,000 in loan forgiveness for borrowers who earn $125,000 or less. Along with the forgiveness plan, Biden is widely expected to extend the repayment pause that has been in effect for more than two years.
For SoFi, this is significant because a large part of its business is student loan refinancing. In fact, that was the company's original focus, and until the pandemic, was a major growth driver. As of the end of the second quarter, SoFi had $3.25 billion in outstanding student loan balances, making up 40% of the bank's total loan portfolio.
Source Fool.com
