by Luzi Ann Santos | moomoo News
Sofi Technologies and Affirm Holdings shares advanced as fintech stocks rallied, after the Biden administration said Friday, it approved $4.9 billion in student debt relief, helping ease consumers' debt load.
Shares of $SoFi Technologies (SOFI.US)$ gained for a second day, rallying 5.7% to $7.92 Monday morning. $Affirm Holdings (AFRM.US)$ shares climbed 7.3% $45.26.
The debt relief covers 73,600 borrowers including teachers, social workers and other public servants and those who qualify for income-driven repayment forgiveness, according to a press release from the Department of Education.
News of the debt forgiveness program came days after the Federal Reserve Bank of Philadelphia released a report that showed credit card delinquency rates surpassed pre-pandemic levels in the third quarter.
"Greater consumer fragility is also evident in payment behavior, with a growing share of consumers revolving all or some portion of their cycle end balance," according to the Philadelphia Fed report.
The debt relief could free up more money for borrowers to pay their other consumer debt.