--- title: "SoFi Stock Surges As Trump Administration Considers Selling $1.6 Trillion Student Loan Portfolio To Private Lenders" description: "Shares of SoFi Technologies Inc. surged over 6% following reports that the Trump administration is considering selling parts of the $1.6 trillion federal student loan portfolio to private lenders. Thi" type: "news" locale: "en" url: "https://longbridge.com/en/news/260259646.md" published_at: "2025-10-08T09:04:35.000Z" --- # SoFi Stock Surges As Trump Administration Considers Selling $1.6 Trillion Student Loan Portfolio To Private Lenders > Shares of SoFi Technologies Inc. surged over 6% following reports that the Trump administration is considering selling parts of the $1.6 trillion federal student loan portfolio to private lenders. This potential shift could benefit SoFi, which specializes in student loan refinancing and banking services. CEO Anthony Noto expressed optimism about capturing market opportunities if the government reduces its lending role. Recent federal loan caps may further drive students towards private lenders like SoFi, enhancing growth prospects for the fintech company. Shares of **SoFi Technologies Inc.** (NASDAQ:SOFI) jumped on Tuesday amid reports that the President **Donald Trump** administration may sell parts of the federal government's $1.6 trillion student loan portfolio to private lenders, fueling optimism for the fintech's growth. ## **Trump Administration Weighs Selling Federal Student Loans To Private Lenders** Senior officials at the Treasury Department and the Department of Education have discussed transferring "high-performing" student loans to the private sector, according to Politico The report, which has not been independently verified, sent SoFi's stock up more than 3% to $27.18, even as the broader S&P 500 slipped. ## **SoFi CEO Sees Opportunity If Washington Steps Back From Lending** SoFi, which offers student loan refinancing, investing, and banking services, could benefit if the federal government reduces its role in lending, reported Barron. "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 during an April earnings call. "We would love to do as much as we can in that market," he added. The Trump administration has pushed to restructure the Department of Education, at times suggesting it could shift oversight of student loans to the Small Business Administration. Although a judge temporarily blocked the plan in May, the Supreme Court cleared the way in July for further restructuring. ## **Federal Student Loan Caps Could Boost Private Lenders Like SoFi** In July, President Trump signed legislation and the tax and spending bill that imposed new limits on federal student loans. Parent PLUS loans were capped at $65,000 per student, graduate students at $100,000, and professional students at $200,000, with annual limits set to take effect July 1, 2026. These restrictions are expected to leave many students unable to cover their full education costs with federal loans, likely pushing more borrowers toward private lenders such as SoFi. "Given borrowing limits, many students…may be unable to finance their education costs with just federal loans, forcing many to private lenders," Tim Switzer of Keefe, Bruyette & Woods. Noto said the company would "absolutely capture that opportunity" if federal loan restrictions were implemented, highlighting potential growth for the fintech in the changing student lending landscape. **Price Action:** SoFi Technologies shares rose 6.75% on Tuesday to $28.14 and gained an additional 1.21% in Wednesday pre-market trading, according to Benzinga Pro. - **Elon Musk's Ex-Wife Reveals His Success Secret, And It Comes Down to This One Powerful Word** *Photo courtesy: Shutterstock* ### Related Stocks - [SOFI.US - SoFi Tech](https://longbridge.com/en/quote/SOFI.US.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | SoFi Stock Is Trending Today: What's Going On? | SoFi Technologies Inc ( NASDAQ:SOFI ) shares are pulling back on Wednesday after surging more than 3% on Tuesday followi | [Link](https://longbridge.com/en/news/260321836.md) | | 1 Reason Now Is a Great Time to Buy SoFi Stock | SoFi Technologies (SOFI) has shown impressive growth, achieving profitability and attracting new members. 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