SoFi Optimistic as Student Loan Moratorium Nears End
By Isabelle Castro Margaroli
In early October, federal student loan payments will begin again, marking the end of a three-year-long moratorium.
Music to lenders’ ears.?
"I think it's an exciting opportunity, and we're glad to be back in the business," said SoFi CEO Anthony Noto,?during the company’s earnings call yesterday.
Over 40 million Americans have federal student loans, making up?92% of the student loan landscape. Lenders, like SoFi, made refinancing these loans their bread and butter - until COVID brought the moratorium into play.?
The move made the sector much less lucrative, so much so, SoFi decided?to sue the government earlier this year. They claimed it had cost them over $300 million in revenues since March 2020.?
They needn’t have worried, Q2 earnings showed the company is “well on track for profitability” towards the end of this year.?
With the possible reinstatement of the student loan refinancing arm, growth could be even higher than expected.?
FEATURED
By Polo Rocha,?The San Francisco company's student loan business suffered from the moratorium on federal borrowers' loans. But executives see a rebound ahead despite high interest rates dampening appetite for refinancing.
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