It’s a good day for some debtors out there, as the Biden Administration canceled some more student debt using some kind of arcane measures to work around the issue. The news brought mixed feelings to several student loan-related companies, though it didn’t move needles much either way.
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Both SoFi (NASDAQ:SOFI) and Nelnet (NYSE:NNI) gained fractionally on the news. Meanwhile, Navient (NASDAQ:NAVI) spent quite a bit of time unchanged before ticking slightly up. Meanwhile, SLM (NASDAQ:SLM) slipped a bit, losing nearly 2% at one point in Wednesday afternoon’s trading. The Biden Administration removed another $9 billion of student loan debt from the picture, which brings the total up to $127 billion worth of canceled debt.
The latest debt cancellation involves things that the Biden Administration is apparently allowed to do despite Supreme Court cases weighing in, including changes to income-driven repayment plans. This has left some, including many Republicans, scratching their heads at the seeming end-run around jurisprudence. However, using a series of arcane measures, it’s mostly slipped by. Retailers are also likely breathing a sigh of relief, at least somewhat; Moody’s Analytics’ chief economist, Mark Zandi, looked for a fourth-quarter “struggle” for the economy as a result of student loan payments restarting.
Which Lending Companies’ Stocks Are Good to Buy Now?
While SLM stock was the only one down today, it holds two key distinctions: it’s the only stock on this list with a Moderate Buy rating, and it also has the strongest upside potential, coming in at 42.5% thanks to an average price target of $18.61. Navient, however, offers the weakest upside potential and is currently rated as a Hold. Navient’s upside is just 15.15% due to an average price target of $19.08.
