Trump Administration to Restart Student Loan Forgiveness Following Lawsuit - Report
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 21 2025
0mins
Should l Buy SOFI?
Source: SeekingAlpha
Student Loan Forgiveness Resumed: The White House has agreed to resume student loan forgiveness for approximately 2.5 million borrowers enrolled in specific federal repayment plans following a lawsuit from the American Federation of Teachers.
Eligibility and Plans: The agreement allows for loan forgiveness for borrowers in income-driven repayment plans, including IDR, PAYE, and Public Service Loan Forgiveness, provided they have made the required number of payments.
Tax Relief for Borrowers: The deal also ensures that borrowers will not face high tax bills on the forgiven debt this year, providing immediate relief to those affected.
Impact on Borrowers: AFT President Randi Weingarten stated that the agreement offers hope for borrowers who have been in limbo regarding their loan forgiveness status.
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Analyst Views on SOFI
Wall Street analysts forecast SOFI stock price to rise
14 Analyst Rating
5 Buy
6 Hold
3 Sell
Hold
Current: 19.300
Low
18.00
Averages
28.31
High
38.00
Current: 19.300
Low
18.00
Averages
28.31
High
38.00
About SOFI
SoFi Technologies, Inc. is a member-centric, one-stop shop for digital financial services. The Company, through its lending and financial services products, allows members to borrow, save, spend, invest and protect their money. The Company's segments include Lending, Technology Platform and Financial Services. The Lending segment offers personal loans, student loans, home loans and related servicing to help its members with a variety of financial needs. Its platform supports the full transaction lifecycle, including credit application, underwriting, approval, funding and servicing. The Technology Platform segment provides services through a diversified suite of offerings which include an event and authorization platform accessed via application programming interfaces, a cloud-native digital and core banking platform and services related to both platforms. The Financial Services segment offers a suite of financial services solutions, including SoFi Money and SoFi Invest.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Customer Base Expansion: With 13.7 million customers, SoFi added 1 million new users in the fourth quarter, indicating sustained product appeal and market penetration, which enhances future revenue potential.
- Profitability Improvement: Adjusted net income is projected to rise 72% to $825 million in 2026, reflecting a significant enhancement in the company's profitability, which may attract more investor interest.
- Future Growth Expectations: Between 2025 and 2028, adjusted earnings per share are expected to grow at a compound annual rate of 40%, providing strong investment confidence and competitive advantage for investors through ongoing profit growth.
See More
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- Simplified Accounting Policy: This year, LendingClub adopted the fair value option for accounting, streamlining loan processing and aligning revenue recognition with loss timing, which enhances transparency and could bolster institutional investor confidence.
- Increased Loan Origination Targets: Management has set a loan origination target of $12.1 billion for this year, with a long-term goal of ramping up to $18 billion to $22 billion, which could significantly enhance profitability and market competitiveness, driving stock price appreciation.
- Clear Valuation Advantage: LendingClub trades at less than 10 times earnings, significantly lower than SoFi's 34 times, suggesting that if market confidence in its future earnings grows, the stock price could reach $24, indicating strong upside potential.
See More
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- SoFi Stock Performance: SoFi Technologies has seen its stock rise over 37% in the past year, yet it trades at a high valuation of nearly 34 times earnings, which may pose risks to investor confidence moving forward.
- LendingClub Earnings Growth: LendingClub reported earnings per share of $0.45 in 2024, with a projected 154% increase to $1.15 in 2025, and further guidance of $1.65 to $1.80 for 2026, indicating strong potential for profitability.
- Accounting Policy Change: This year, LendingClub adopted the fair value option for loan accounting, simplifying its financial reporting and aligning revenue recognition with loss timing, which could enhance transparency and attract institutional investors.
- Loan Origination Goals: LendingClub aims to ramp up loan originations to between $18 billion and $22 billion by 2025, with a current run rate of $12 billion, showcasing its ambition for business expansion and market opportunities.
See More
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- Impact of Galileo Acquisition: The acquisition of payment processor Galileo in 2020, which operates independently and manages nearly 160 million accounts, has enhanced SoFi's competitive edge and service offerings, with analysts forecasting a 40% CAGR for adjusted EBITDA from 2025 to 2027.
- Adyen's Flexible Payment Solutions: Adyen integrates its backend payment software into merchants' existing platforms, allowing acceptance of over 250 payment methods, with expected revenue and adjusted EBITDA CAGRs of 21% and 24% respectively from 2025 to 2027, showcasing its robust growth potential.
- Valuation Appeal: With an enterprise value of €20.2 billion (approximately $24 billion), Adyen trades at 13 times this year's adjusted EBITDA, presenting an attractive valuation for investors seeking undervalued high-growth opportunities in the fintech sector.
See More
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- User Base Expansion: As of 2025, SoFi's total customer count reached 13.7 million, with 1 million new users added in the fourth quarter, showcasing its strong appeal and market penetration in the digital banking space.
- Profitability Improvement: Adjusted net income is projected to rise 72% to $825 million in 2026, reflecting ongoing enhancements in the company's profitability, which bolsters investor confidence.
- Future Growth Potential: Between 2025 and 2028, adjusted earnings per share are expected to grow at a compound annual rate of 40%, indicating that SoFi will continue to benefit from strong market trends and innovative strategies in the coming years.
See More
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- Shift in Youth Financial Preferences: Thomas Lee, Chairman of BitMine Immersion, highlighted that MrBeast's entry into finance could significantly alter the financial preferences of younger generations, particularly Gen Z and Gen Alpha, who together represent about 120 million people in the U.S., indicating substantial market potential.
- Wealth Transfer Expectations: Lee noted that while these young customers are not wealthy today, a significant wealth transfer of trillions is anticipated in the coming decades, providing long-term growth opportunities for MrBeast's financial platform.
- MrBeast's Influence: With 330 million subscribers, Lee described MrBeast as one of the most impactful entertainment brands globally, and the integration of cryptocurrency into his financial services platform is expected to attract a large number of young users, further solidifying his market position.
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