Biden Wipes More Than $7M In Student Debt For 277K Borrowers: 'Too Many People Feel The Strain And Stress'
Portfolio Pulse from Anthony Noto
President Joe Biden announced the cancellation of over $7.4 billion in student loan debt for 277,000 borrowers, primarily public sector workers, under the SAVE plan. This plan includes an income-driven repayment plan and measures to prevent balance growth from unpaid interest. The Biden administration has now forgiven $153 billion in student loan debt. The plan faces criticism from Republican officials, but the Education Department defends its authority. Student loan-related stocks like SoFi Technologies, SLM Corp., Discover Financial Services, Navient Corp., and Nelnet Inc. showed mixed reactions in the market.
April 12, 2024 | 3:58 pm
News sentiment analysis
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NEGATIVE IMPACT
Discover Financial Services, in the process of selling its student-loan unit, saw its stock price fall by 1.05% to $121.65.
The decrease in Discover Financial Services' stock price could be attributed to the overall market reaction to the student debt cancellation, even as the company is exiting the student loan business.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Navient Corp.'s stock price decreased by 0.81%, trading at $16.52, following the announcement of student debt cancellation.
Navient Corp., as a student loan servicer, likely experienced a stock price drop due to potential impacts on its loan servicing business from the announced debt forgiveness.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
SLM Corp.'s stock price decreased by 1.4%, trading at $20.70, in response to the student debt cancellation news.
SLM Corp., known for its student loan services, likely saw its stock price decrease due to concerns over reduced loan servicing and origination opportunities as a result of the debt cancellation.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
SoFi Technologies saw a decrease of 1.96% in its stock price to $7.49, following Biden's student debt cancellation announcement.
The announcement of student debt cancellation could impact SoFi Technologies' business, as it may reduce the volume of student loans serviced or refinanced by the company, leading to a negative market reaction.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Nelnet Inc. saw a slight increase of 0.27% in its stock price to $94.58, amidst the broader context of student debt cancellation.
Nelnet Inc.'s stock price increase could be due to its diversified business model, which may be less affected by the student debt cancellation or possibly seen as benefiting from other aspects of the SAVE plan.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70