SoFi Bank is trying to force the Biden administration to end its pause on federal student loan payments, arguing that the moratorium has no legal basis and has cost the bank millions of dollars in profits.
Catch up on the developing stories making headlines.A private bank is trying to force the Biden administration to end its pause on federal student loan payments, arguing the moratorium has no legal basis and has cost the bank, known for its refinancing business, millions of dollars in profits.
Biden’s latest extension, which was announced in November and could stretch as far as this summer, is unlawful on “multiple grounds,” the lawsuit claims. SoFi argues that isn't a valid reason authorized by the HEROES Act, the federal law the Biden administration has invoked to continue the pause. The bank also argues the extension violated the Administrative Procedure Act because the administration failed to invite feedback from the public.
The Education Department defended the legality of the pause, calling the lawsuit “an attempt by a multi-billion dollar company to make money while they force 45 million borrowers back into repayment.”
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