These 3 Stocks Benefit From Student Loan Repayments, but Only 1 Is a Long-Term Buy
In response to the pandemic and its pressures on the economy, the federal government paused student loan payments and interest accruals. The action gave millions of Americans a temporary reprieve. As part of the debt ceiling deal reached earlier this year, those same millions of Americans will soon have to begin repaying student loans. In a related matter, the Supreme Court recently ruled against President Joe Biden's efforts to forgive up to $20,000 in student loans for qualified borrowers.
The stocks of companies that specialize in student loans got a boost from the news that student loan payments will resume in October. SoFi Technologies (NASDAQ: SOFI), Navient (NASDAQ: NAVI), and (NASDAQ: SLM) all saw their stock prices jump.
But only one of these three stocks is a long-term buy. Here's what you need to know.
Source Fool.com