SoFi Sues Biden Administration , Over Student Loan Payment Pause.
SoFi Sues Biden Administration , Over Student Loan Payment Pause.
A pause on federal student loan payments has been in place since March 2020.
The moratorium was instituted during Trump's time in office to help those struggling amid the pandemic.
To date, it has been extended eight times.
CNN reports that SoFi sued the White House last week to put an end to it.
According to the personal finance company, the last extension was unlawful because the payment restart date was tied to pending litigation surrounding the Biden administration's student loan forgiveness program.
The case is now being heard by the U.S. Supreme Court.
Unlike the other extensions, the Department (of Education) did not claim that continuing the moratorium was necessary to address harm caused to borrowers affected by the pandemic, SoFi, via lawsuit.
Instead, the Department asserted that the further extension was intended to alleviate ‘uncertainty’ for borrowers during the pendency of ongoing litigation regarding the debt-cancellation program, SoFi, via lawsuit.
As a result, SoFi says it at least wants borrowers who aren't eligible for Biden's student loan forgiveness program to resume payments.
The Department of Education issued a statement in response.
This lawsuit is an attempt by a multi-billion dollar company to make money while they force 45 million borrowers back into repayment – putting many at serious risk of financial harm, Department of Education, via statement
