Two federal judges blocked Trump administration rules that would have made a student loan forgiveness program harder to access. The program already existed. The administration tried to narrow who could use it. The judges said no.
This matters to people with student loans. It does not matter to your portfolio. It will not move the market. It will not change your positions. You're still holding those calls that expire worthless on Friday.
The forgiveness program lets borrowers cancel debt if their college defrauded them or collapsed. Trump's Education Department wanted stricter eligibility rules. Federal courts in two different jurisdictions stopped the changes before they took effect. The old rules stay in place.
Retail traders will somehow convince themselves this headline means something for their ED-tech stock picks. It does not. Chegg is still down 80% from its peak. Coursera is still bleeding cash. Your thesis was wrong then and it's wrong now.
The judges issued their rulings independently. Both reached the same conclusion. The administration argued it was protecting taxpayers from fraud. The courts disagreed with the new limitations. Students who already qualified under existing rules will keep that status.
None of this changes the fact that you bought Navient at $18 because someone on Reddit said student loan servicers were "undervalued." They were not undervalued. You were just wrong. The company trades at $14 now. You're still holding because you "believe in the thesis."
The blocked policy would have required borrowers to prove more direct harm from their schools. The judges found the rule changes violated procedural requirements. The administration could try again with proper process. It probably will not matter by the time you read this.
Student loan policy shifts every four years and your trading account shifts closer to zero every four weeks.
Photo by Ian Hutchinson on Unsplash
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