In 2018, a group of recent student loan borrowers gathered on a rooftop at a swanky hotel in Williamsburg, Brooklyn, to celebrate paying off their debt.
And indeed, in the years since Santos paid off his student loans, he’s opened up savings and investing accounts with the company, he said recently. But now, he’s thinking of moving his money after the company filed a lawsuit to stop the COVID-era pause on student loan payments, interest and collections.
But the company’s suit against the government has some customers and experts questioning the authenticity of SoFi’s message that it prioritizes its members in a way other financial institutions don’t. SoFi is asking the courts to end the COVID-era pause on student loan payments, collections and interest.
Wealthy high-earning borrowers are exactly the demographic SoFi covets. The company isn’t shy about noting that it caters to HENRYS — people who are high earners, not yet rich. Its student-loan refinance product is based on the idea that because these borrowers are generally a good credit risk, SoFi can provide them with a lower rate than the federal government, which provides the same interest rate to borrowers regardless of their ability to repay the debt.
But filing the lawsuit could have long-term consequences that outweigh the benefits of a resumption to the student loan refinance business, said Paul Argenti, professor of corporate communication at the Tuck School of Business at Dartmouth.“‘To me it seems pretty inconsistent to file a lawsuit that goes against student loan borrowers’”
Though it’s difficult to measure a reputation’s value, it can impact a company’s bottom line. Research indicates a good reputation can help a company convince consumers to spend more on products, recruit better talent and can even have a meaningful impact on a firm’s market value. “I get that it impacts them and their profitability,” Santos said of the payment pause. “At the same time I felt like at first their priority was helping students and helping them tackle their financial debt and financial wellness overall. To me this doesn’t seem like it.”
Too bad!
sounds like they shouldn’t have recklessly spent money on stadium naming rights
Pay your debts... Or not. I went to school but didn't take loans for the cost. Felt pretty sweet the last 2 decades without the debt.
Can’t you use another photo other than SoFi Stadium?
Let them rot. Predatory scum. Americans need relief
70% of college costs used to be paid by the fed. So boomers? You did NOT pay your own way. While I think this payment is not a solution, it is addressing a fundamental problem we have today. We used to invest in our people. Today, we use our young people & make money off them.