Here's Why SoFi Soared Despite Another Student Loan Pause Extension

By Neil Rozenbaum – Aug 25, 2022 at 7:00AM

NASDAQ: SOFI

SoFi Technologies

Market Cap

$8B

Today's Change

(5.06%) $0.36

Current Price

$7.47

Price as of May 14, 2024, 4:00 p.m. ET

There seems to be light at the end of the tunnel.

In this video, I will explain why SoFi Technologies (SOFI 5.06%) is up despite President Biden's announcement that the student loan pause will be extended until Dec. 31, 2022.

The Biden Administration announced that the Department of Education will provide up to $20,000 in debt cancellation to Pell Grant recipients with loans held by the Department of Education, and up to $10,000 in debt cancellation to non-Pell Grant recipients.

Only those that have an individual income of less than $125,000 are eligible.
SoFi's guidance already assumes that the student loan moratorium lasts until 2023.
The average student loan size for SoFi is $70,000.
Now that the market has clarity, SoFi stock could finally break out of its shackles.

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*Stock prices used in the below video were during the trading day of Aug. 24, 2022. The video was published on Aug. 24, 2022.

Neil Rozenbaum has positions in SoFi Technologies, Inc. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Neil is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.