SoFi Bank to sue Biden administration to end student loan payment pause
SAN FRANCISCO, Calif. (NBC, KYMA/KECY) - SoFi Bank is suing the Biden administration to end the pause on federal student loan payments.
In a lawsuit filed Friday, SoFi Bank National Association asked a federal judge to overturn President Joe Biden's latest extension of the payment pause, which has been in effect for nearly three years.
The bank says it lost at least $6 million in profits due to borrowers having little incentive to refinance while payments and interest remain on hold.
SoFi said the stoppage could lead to a total of $30 million in losses if it continues through August.
At a minimum, the lawsuit asks a judge to limit the pause only to borrowers who would be eligible for Biden's cancellation plan.
President Biden's Student Loan Debt Relief Plan is also being challenged in the Supreme Court.