Shares of Sofi Technologies Inc. (Nasdaq: Sofi) made a leap on Tuesday after reporting that the president Donald Trump The US government would be able to sell parts of the Portfolio Study Units of the Federal Government worth 1.6 trillion dollars to private lenders, which stirs out the optimism about the growth of the fintech.
The Trump government is considering the sale of federal study loans to private lenders
High officials from the Ministry of Finance and the Ministry of Education have discussed the transfer of ‘well -performing’ student loans to the private sector. according to to politics
The report, which is not independently verified, raised the shares of Sofi by more than 3% to $ 27.18, even when the wider S&P 500 dropped.
The CEO of Sofi sees opportunities when Washington renounces lending
Sofi, which offers the refinancing of student loans, investments and banking services, could benefit from this if the federal government reduces its role in lending. reported Barron.
“If the government withdraws from providing student loans, Grad Plus, etc., we will absolutely use that opportunity,” said CEO Antonius Noto said during a profit call in April.
“We would like to do that market as much as possible,” he added.
The Trump government has called for a restructuring of the Ministry of Education, sometimes suggested that the supervision of student loans could be shifted to the Small Business Administration.
Although a judge temporarily blocked the plan in May, the Supreme Court paved the way for further restructuring in July.
SEE ALSO: Trump director tries to prevent ‘benefits’ from some student loans under the Bush JR era Loan enminner program, argues for good warning
Federal Study Units can stimulate private lenders such as Sofi
In July, President Trump signed legislation and the tax and expenditure law that imposed new limits on federal student loans.
Parent Plus loans were limited to $ 65,000 per student, graduated students up to $ 100,000 and professional students up to $ 200,000, with the annual limits coming into effect from 1 July 2026.
These limitations are expected to ensure that many students cannot cover their full education costs with federal loans, so that more borrowers will probably be pushed to private lenders such as Sofi.
“Given the loan limits, many students may not be able to finance their education costs with only federal loans, which forces many to be private lenders,” says Tim Switzer of Keeuwe, Bruyette & Woods.
Noto said that the company “would absolutely grab that opportunity” if federal loan restrictions were being introduced, which would emphasize potential growth for the fintech in the changing landscape of student loans.
Price promotion: The shares of Sofi Technologies rose on Tuesday by 6.75% to $ 28.14 and rose another 1.21% in the pre-market trade on Wednesday, according to Pro for petrol.
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Photo with thanks: Shutterstock
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