Of the many commercials and advertisements displayed during Super Bowl LVI on Sunday, perhaps the most prominent was for the personal finance company with naming rights to SoFi Stadium, the game’s multibillion-dollar venue in Inglewood, California.
SoFi offers a range of financial products and services, but what drew the most attention — and ire — during Sunday’s game was the company’s role in the lucrative student loan refinancing business, which is set to receive a major boost if President Joe Biden allows the federal student debt repayment moratoriumTo expire May 1.
“How does it happen that SoFi, a student loan refinancing company, could spend $625 million to put its name on the LA Rams football stadium when 45 million Americans are drowning in $1.8 trillion in student debt?” Sen. Bernie Sanders (I-Vt.) tweeted during Sunday’s game. “Today would be a good day for the president to cancel student debt.”
Despite pressure from former students indebted, civil rights groups and progressive lawmakers, he says he is able to do so despite the constant pressure executive orderPresident Joe Biden so far has refused to cancel student loan debt on a broad basis. He prefers to focus on more narrow forgiveness.
According to dataThe Department of Education estimates that borrowers could be able to cancel federal student loans worth $50,000 per borrower and completely erase their debts. many of whom fear they won’t be able to make their monthly payments amid pandemic-related financial struggles.
Biden is still alive and well. signaledIn December, he said that he plans to let the repayment moratorium expire by May without any sweeping cancellation. political disasterFor his party in the upcoming midterms.
SoFi — which also offers private student loans — stands to benefit hugely from the fast-approaching end of the repayment pause, which has been in place since March 2020 and has saved borrowers tens of billions of dollars. In November, SoFi CEO Anthony Noto said his company’s “student loan business got cut in more than half” following implementation of the federal moratorium on repayment.
“It was our largest business, it was our oldest business,” said Noto. “That business has been running at about 50% of the pre-Covid volume for the last 20 months.”
SoFi made it clear Sunday that the Super Bowl was an opportunity for SoFi to promote its services in front a large audience massive audience. According to reports, the company is set to pay $625 millionFor the naming rights to SoFi Stadium for the next 20 years.
Did you see the SoFi commercial? Turns out you’ve been watching it for the last *checks watch* three quarters. 😉 #SoFiStadium #SBLVI
— SoFi (@SoFi) February 14, 2022
“I still can’t believe this game is being played at Student Debt Stadium,” Nina Turner, an Ohio congressional candidateAnd an outspoken proponentCancellation of student debt lamentedDuring the Super Bowl.
“Student loan providers shouldn’t have $625,000,000 sitting around to buy naming rights to a stadium,” Turner tweeted. “It’s immoral.”
The Debt Collective, a debtors’ union pushing for total cancellation of federal student loan debt, echoed Turner’s message.
“Remember,” the group tweeted, “your debt is someone else’s profit.”
