In a remarkable turn of events, SoFi Technologies, Inc. (NASDAQ: SOFI) witnessed a significant surge of 11.46% in its shares, reaching a price of $6.03 on Tuesday. This astounding rise in share value can be attributed to the recent breakthrough in a tentative debt limit agreement, which is set to reinstate student loan payments.
Recent reports indicate that President Joe Biden and House Speaker Kevin McCarthy have tentatively finalized the terms of a debt ceiling deal over the weekend. This deal aims to reactivate student loan payments and allow interest to accrue again, with the resumption expected to take place towards the end of August. Furthermore, the agreement also proposes the suspension of the debt limit until early 2025.
House Speaker Kevin McCarthy expressed his optimism, stating, “The pause is gone within 60 days of this being signed. So that is another victory because that brings in $5 billion each month to the American public.”
Despite the current temporary ban on student loan payments, mounting pressure to lift the pause suggests that a change may be imminent. Furthermore, President Biden’s student debt forgiveness plan faces delays as it awaits resolution in the Supreme Court.
SoFi Technologies, renowned for its provision of student loan refinancing services, took legal action earlier this year, suing the government in an attempt to bring an end to the loan payment pause.
On May 30th, the trading volume for SoFi Technologies nearly doubled compared to the three months average volume of 36.63 million. The share price has increased 14.64% over the past week, and 30.80% year-to-date.