SoFi Bank sues to block Biden's student loan payment pause
A private 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
By COLLIN BINKLEY
Published - Mar 07, 2023, 08:36 PM ET
Last Updated - Jun 22, 2023, 05:31 PM EDT
WASHINGTON (AP) — 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.
In a federal lawsuit filed Friday in Washington, SoFi Bank N.A. asked a federal judge to overturn President Joe Biden’s latest extension of the payment pause. Student loan payments first were halted at the start of the pandemic by President Donald Trump's administration. The pause has been extended eight times over three years.
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.
