According to the most recent data from the Federal Reserve System, American households hold a collective student loan balance of approximately $1.765 trillion as of June 30, 2023.
As student loan repayments resume this month, the current status of student loan balances in the U.S. is under scrutiny
This figure marks a slight decrease from the $1.775 trillion reported on March 30, 2023. However, the Federal Reserve Bank of New York presents slightly lower estimates, placing total student loan balances at $1.57 trillion on June 30, reflecting a $35 billion reduction over the past quarter.
In response to the mounting debt, the Biden administration is actively pursuing measures to alleviate the burden. In a recent development, $9 billion in student loans were forgiven through adjustments to income-driven payment plans, the public service forgiveness program, and disability provisions. To date, the administration has greenlit a total of $127 billion for cancellation.
As student loan repayment resumes after a three-year hiatus, stocks associated with student loan balance face scrutiny
Over the past three months, all four stocks have experienced a downturn, with SLM dropping 20%, SoFi falling 13%, Navient down 10%, and Nelnet off 9.3%. In contrast, their performance over the last three years tells a different tale. SLM saw a gain of 68%, NAVI rose by 118%, and NNI increased by 43%, all surpassing the S&P 500’s 24% growth. SoFi (SOFI), having gone public on June 1, 2021, has seen a 29% drop in its stock value since then.
As of Thursday midday trading, SoFi (SOFI) remains steady, Navient (NAVI) is up by 0.5%, SLM (SLM) is down by 0.2%, and Nelnet (NNI) has gained 0.7%.
READ ALSO: Drivers Seek Relief With Low Insurance Rate Cars Amidst Soaring Premiums
Leave a Reply