Shares of SoFi Technologies Inc. SOFI were rising 8% in Tuesday’s session, with the debt-ceiling deal struck by President Joe Biden and House Republicans expected to help the company’s student-lending business, which has slumped amid the moratorium on student-loan payments. While the moratorium had already been expected to end after August, the proposed debt-ceiling arrangement removes the chance for it to be extended further. The company’s first-quarter student-loan originations were down 47% from a year before, with Chief Executive Anthony Noto acknowledging on the latest earnings call that refinancing continued “to be impacted as federal borrowers still await clarity on the end of the moratoria and federal student loan payments.” SoFi had sued over the federal pause.
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