According to Mizuho, investors should consider buying a stake in SoFi Technologies as the Biden administration moves toward forgiving student loans. President Joe Biden announced Wednesday that $10,000 in federal student loans will be forgiven to borrowers earning less than $125,000 per year, or $250,000 for married couples who are already married. get married. Biden also said that the moratorium on student loan payments will end in December. Mizuho analyst Dan Dolev cited three reasons why this is upbeat for SoFi: “The moratorium is over. almost in line with the management plan.” “This could spur an increase in refi demand as was the case in Q4 of 21.” “The $125K cap removes the incentive of high earners to wait for more refinancing.” SoFi stock actually jumped as much as 11% on Wednesday following Biden’s announcement. They then added up those profits to trade about 4.8% higher. Dolev noted that SoFi management had forecast the moratorium would end in January 2023, so this news will raise the repayment period to one month. He also said that this could lead to “an increase in refi demand in Q4 of 22, similar to what happened at the end of Q4 of 21”. Dolev has a buy rating on SoFi. His $8 per share price target implies a nearly 30% gain from Tuesday’s closing price. SoFi stock has plummeted in 2022, down nearly 60% in that time. For the quarter, however, the stock is up more than 22%. — Michael Bloom of CNBC contributed to this report.