$37M In Student Debt Forgiven: Biden Administration Rectifies University Of Phoenix Fraud
Portfolio Pulse from AJ Fabino
The Biden administration has forgiven $37 million in student debt for borrowers defrauded by the University of Phoenix. This comes after a multi-year investigation by the Federal Trade Commission (FTC) that led to a $191 million settlement in 2019. The current situation escalates uncertainty for roughly 40 million Americans holding federal student loans. The uncertainty affects long-term financial planning, forcing borrowers to rely on existing programs that can potentially reduce their monthly repayments. This has led to an uptick in Google trend data for 'student loan refinance', a boon for student loan refinancing providers like SoFi Technologies Inc (NASDAQ:SOFI).
September 22, 2023 | 4:37 pm
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The uncertainty around student loan repayments has led to an increase in searches for 'student loan refinance', which could benefit SoFi Technologies, a provider of student loan refinancing.
The news of the Biden administration forgiving student debt increases the uncertainty for student loan borrowers. This has led to an increase in searches for 'student loan refinance', indicating that more people are looking into refinancing their student loans. As SoFi Technologies is a provider of student loan refinancing, this could potentially lead to an increase in their business, positively impacting their stock price in the short term.
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