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Sofi Stock Rises. What Trump’s Changes to Student Loans Could Mean for the Fintech.

Oct 07, 2025 12:20:00 -0400 by Mackenzie Tatananni | #Fintech

SoFi Technologies stock rose following a report that said the Trump administration was weighing a sale of parts of the federal government’s student loan portfolio to the private market. (Dreamstime)

Key Points

Shares of SoFi Technologies gained Tuesday following a report that said the Trump administration would consider selling parts of the federal government’s roughly $1.6 trillion student loan portfolio to the private market.

Senior officials at the Treasury and Department of Education have discussed selling high-performing portions of the portfolio, Politico reported, citing people familiar with the matter. Barron’s wasn’t immediately able to verify the report.

The news appeared to be giving SoFi stock a boost. Shares of the fintech, which operates across segments including student loan financing and investing, were up 3.1% at $27.18 on Tuesday. The benchmark S&P 500 index was falling 0.5%.

If the federal government were to take a smaller role in student lending, this could push more borrowers toward SoFi’s private refinancing options. As of the second quarter of 2025, federal student loan debt comprised more than 90% of all student loan debt, with private lenders like SoFi making up a sliver of the market.

President Donald Trump has strived to dismantle the Department of Education, styling those efforts as a bid to return oversight to the states. Earlier this year, Trump indicated that he planned to shift the federal student loan portfolio to the Small Business Administration, though a judge issued a preliminary injunction to block this from happening in May.

The Supreme Court ruled in July that the overhaul of the Department of Education ultimately could continue, clearing the way for an uncertain regulatory landscape.

Just last week, the Education Department convened its Reimagining and Improving Student Education Committee to discuss proposals for provisions in Trump’s “One Big Beautiful Bill” that limit how much students can borrow from the government.

SoFi is keeping an eye out for any opportunity that could benefit the company, and management has indicated that SoFi would step in if the U.S. government elected to limit federal student lending.

“If the government backs away from providing in-school loans, GRAD Plus, et cetera, et cetera, we’ll absolutely capture that opportunity,” CEO Anthony Noto said on a call in April. “We would love to do as much as we can in that market.”

The fintech is set to report fiscal third-quarter earnings before markets open on Oct. 28.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com