SoFi student-loan business may not 'see the tsunami the stock seems to be reflecting,' JPM warns

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SoFi has long been a polarizing stock, and the impending end of the student-loan payment pause has become another issue drawing strong opinions on both sides.

SoFi Technologies Inc. has long been a polarizing stock, and the impending end of the student-loan payment pause has become yet another issue drawing strong opinions from both sides.

Shares of SoFi SOFI have surged 63% over the past month, a move that partly reflects optimism about the company’s ability to benefit from the debt-ceiling deal that codified an end to the student-loan payment moratorium. But SoFi already had expected the pause to culminate at the end of August, and some more skeptical analysts have questioned how much upside there is to SoFi’s student-lending business from the move.

He estimated that fewer than 2% of outstanding student loans were refinanced in 2019, even with low interest rates.

 

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