Biden’s student loan headaches pile up as lawsuit targets repayment pause

THe Biden administration the courtroom once more. student loansThis time, it is about the 3-year-old repayment pause.

SoFi Bank is a publicly traded company that refinances student loan debts. sued He argued that there is no connection between the pandemic and the pause.

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“The eighth extension does not even attempt to redress harm from the pandemic at all, but rather to alleviate ‘uncertainty’ caused by the debt-cancellation litigation,” SoFi claims in the suit.

The lawsuit claims that this is different from the previous seven extensions which were meant to assist struggling borrowers in the wake of the pandemic. The lawsuit states that this pretense has been abandoned and that the Education Department is unable to use the HEROES Law of 2003 as legal justification.

Then-President Donald Trump The President initiated the pause in March 2020, extended it two times before he resigned. Joe Biden he has added his own extensions to it.

Biden will benefit from the suit. student loan headaches. On the presidential campaign trail, he pledged to eliminate student debt. announced a $400 billion debt transfer The Supreme Court could be a factor in the outcome of the midterm elections 2022 rule that plan illegal.

Republican leaders were pleased with the latest suit.

“President Biden sees the writing on the wall,” Virginia Foxx, Chairwoman of the House Education and Workforce Committee (R-NC), said. “His student loan bailout plan is floundering in the Supreme Court, and he’s clinging to this half-measure to make good on a campaign promise that he doesn’t have the authority to keep. I support SoFi’s efforts to lift the pause on loan repayments and urge this administration to work with Congress to tackle student loan reform head-on.”

SoFi is an American company based in California. It started out refinancing Stanford University students’ student loans. Later, it expanded its reach to other universities and financial products. The $5 billion SoFi Stadium is where the NFL’s Los Angeles Rams & Chargers plays. It is reportedly $30 million per year.

According to the company, it will lose $6 million due to borrowers who have effectively extended their pause.