The Secretary Of Education Does Not Have Authority Under The Higher Education Relief Opportunities For Students Act Of 2003 To Establish A Student Loan Forgiveness Program That Will Cancel Roughly $430B In Debt Principal And Affect Nearly All Borrowers
Portfolio Pulse from Happy Mohamed
The Supreme Court has ruled that the Secretary of Education does not have the authority under the Higher Education Relief Opportunities for Students Act of 2003 to establish a student loan forgiveness program that would cancel roughly $430B in debt principal and affect nearly all borrowers.
June 30, 2023 | 2:39 pm
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NEUTRAL IMPACT
The SPDR S&P 500 ETF (SPY) may see a neutral impact as the ruling does not directly affect the broad market.
The Supreme Court's ruling on student loans is a specific issue that does not directly affect the broad market. Therefore, the impact on the SPDR S&P 500 ETF, which tracks the performance of the S&P 500 Index, is expected to be neutral.
CONFIDENCE 90
IMPORTANCE 50
RELEVANCE 50
POSITIVE IMPACT
Navient Corporation, a student loan servicer, may see a neutral to positive impact as the ruling ensures the continuation of student loan repayments.
As a student loan servicer, Navient Corporation's revenue is largely dependent on the continuation of student loan repayments. The Supreme Court's ruling ensures that these repayments will continue, potentially benefiting Navient.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
SLM Corporation, commonly known as Sallie Mae, may also see a neutral to positive impact as the ruling ensures the continuation of student loan repayments.
As a student loan servicer, SLM Corporation's revenue is largely dependent on the continuation of student loan repayments. The Supreme Court's ruling ensures that these repayments will continue, potentially benefiting Sallie Mae.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
SoFi, a personal finance company, may see a neutral to positive impact as the ruling ensures the continuation of student loan repayments.
As a personal finance company that offers student loan refinancing, SoFi's revenue is partially dependent on the continuation of student loan repayments. The Supreme Court's ruling ensures that these repayments will continue, potentially benefiting SoFi.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70