Here's Why SoFi Stock Is Spiking Higher Today
The stock market was having a generally strong morning on Tuesday on the news that a tentative agreement had been reached to lift the debt ceiling and avoid a catastrophic default. And banking disruptor SoFi Technologies (NASDAQ: SOFI) was handily outperforming all of the major benchmark indexes. As of 9:50 a.m. ET today, SoFi was higher by 7%, making it one of the best-performing stocks in the financial sector.
The debt ceiling bill itself is good news for bank stocks and the economy in general, but there is one provision that is particularly good for SoFi. According to the agreement, the pause in student loan repayments, which has been in effect since early 2020, will end in August. While it was set to end regardless once the Supreme Court rules on President Biden's student loan forgiveness plan, this creates a definitive end date for the first time.
SoFi has just over $5 billion in student loans on its balance sheet, but the payment pause hasn't affected private student loans like these -- just federal loans.
Source Fool.com
