'Buying Votes' With Other People's Money, Says Elon Musk, As Biden Announces Additional Student Loan Forgiveness; Bill Ackman Calls It 'Illegal'
Portfolio Pulse from Shanthi Rexaline
President Joe Biden announced a $7.4 billion student debt forgiveness for 277,000 people, sparking criticism from Elon Musk and Bill Ackman, who argue it's a vote-buying strategy using taxpayer money. Critics are concerned about the impact on the fiscal deficit, with the national debt already at $34.65 trillion. The Wharton School estimates the plan's cost at $84 billion, in addition to the $475 billion for the SAVE plan. Following the announcement, shares of private student loan companies like SoFi Technologies, Inc. (NASDAQ:SOFI) fell.
April 13, 2024 | 5:03 pm
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SoFi Technologies, Inc. shares fell following President Biden's announcement of a $7.4 billion student debt forgiveness plan, amid concerns over its impact on private student loan providers.
The announcement of student debt forgiveness directly impacts private student loan companies like SoFi Technologies, Inc., as it potentially reduces the volume of loans serviced by these companies. The negative market reaction reflects concerns over future earnings and the competitive landscape, leading to a likely short-term decrease in SOFI's stock price.
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