SoFi Student Loan Forgiveness
It has been reported that US President Biden has proposed to forgive or let go of $10,000 of student debt. The moratorium for the same is supposed to end on 31st December 2022 and will be a massive catalyst for SoFi. As only four months are left before the moratorium expires, many loan borrowers are trying to refinance their federal student loans. SoFi’s student loan was operating at less than 50% due to this moratorium.
But since the same is going to end, it will prove to be a significant catalyst for the growth in loan originations. Many predict that SoFi might have a breakout year in 2023 through different combinations. It will be its first full year with a bank charter. Student loans will also not be paused during this time. Also, there will be cost savings from the Technisys Cyberbank platform.
SoFi technology investors have been waiting for 24th August 2023 since President Biden announced the student loan forgiveness plan. The plan placed a moratorium on federal student loans, which paused the payment during the Covid-19 pandemic outbreak. So after more than two years decision has finally been made. SoFi, during that time, had adapted and grown through adversity. It has diversified its revenue away from the refinancing of federal student loans.
Their other business lines got stronger during this period. It has to note when Sofi began operating, it primarily worked as a student refinancing organization. This was until the Covid-19 outbreak. So after four months, the floodgates will finally open as students would have to repayments for the loan now.
But if one looks back during these last two years, one must commend what Anthony Nato and the remaining SoFi management have accomplished in these past two tough years. It has to be said the that the moratorium would be remembered as the single best event in SoFi’s growth. With the moratorium supposed to end in the next four months, all students must make arrangements to repay their respective student loans.
Featured Image Credit: Seeking Alpha
