4 Top Banks Stocks As Student Loan Payments Resume

For more than 40 million people, the bill is due, again. After more than a three-year hiatus, those who are part of the more than $1.7 trillion in outstanding student loan debt now need to resume payments that were halted. (This is not to be confused with President Biden’s just-announced plans to cancel an additional $9 billion worth of student debt.) The grace period is over. And that has implications for the banking sector, and the stocks within it.

While some financial institutions do not have much exposure to the student loan market, others have been active in providing loans. And, with many students likely to seek to refinance their existing loans, these banking firms may again be able to count on additional revenue from what has recently been a fairly dormant segment of their business. Here’s how we got here, and a short list of stocks that may be attractive based on the resumption of student loan payments.