Student Loan Defaults Set To Rise, Analysts Say It's 'A Sizeable Shock' With Ripple Effects: 5 Stocks to Watch
Portfolio Pulse from Piero Cingari
The US student loan market faces potential disruption as the Supreme Court is set to rule on the Biden Administration's plan to alleviate student debt. Regardless of the outcome, the resumption of federal student loan repayments by the end of August is expected to increase delinquency rates, posing challenges to the market. Bank of America research note highlights potential ripple effects in other debt categories.
June 23, 2023 | 1:51 pm
News sentiment analysis
Sort by:
Ascending
POSITIVE IMPACT
Discover Financial Services, which offers private student loans, has seen its stock price surge 12.4% since the start of June.
Discover Financial Services offers private student loans, making it impacted by the student loan market. The potential increase in delinquency rates and market disruption may lead to increased demand for private student loans, positively impacting Discover's stock price.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Navient Corp, a student loan servicer, has seen its stock price gain 19% month-to-date as the student loan market faces potential disruption.
Navient Corp manages and collects payments on student loans, making it directly impacted by the student loan market. The potential increase in delinquency rates and market disruption may lead to increased demand for loan servicing, positively impacting Navient's stock price.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Nelnet, Inc., a diversified education services company offering student loan services, has seen its shares rise 6% in June.
Nelnet, Inc. offers student loan services, making it impacted by the student loan market. The potential increase in delinquency rates and market disruption may lead to increased demand for loan services, positively impacting Nelnet's stock price.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
SLM Corp, a provider of student loans and other financial services for higher education, has seen its stock price rise 5.6% this month.
SLM Corp is directly impacted by the student loan market as a provider of student loans and financial services for higher education. The potential increase in delinquency rates and market disruption may lead to increased demand for their services, positively impacting SLM Corp's stock price.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
SoFi Technologies, a fintech company offering student loan refinancing, has seen its shares rise 22% since the debt ceiling deal.
As a provider of student loan refinancing, SoFi Technologies is directly impacted by the student loan market. The uncertainty surrounding the market and potential increase in delinquency rates may lead to increased demand for refinancing services, positively impacting SoFi's stock price.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80