Lawsuit filed to end student loan payment pause

[Yo_Mama_Been_Loggin]

A company with a significant student loan refinancing business is suing the federal government to end its moratorium on federal student loan payments, calling it "an illegal overreach of power."

SoFi filed its suit in U.S. District Court in the District of Columbia late last week. The 32-page filing appears to be one of the first efforts to end the payment pause through litigation.

Federal student loan payments have been paused for roughly 43.5 million borrowers since March 2020, at the onset of the COVID-19 pandemic. The Education Department under presidents Donald Trump and Joe Biden have extended the pause multiple times.

The current pause, which costs the federal government about $5 billion a month, could last through August, but that depends on when the Supreme Court rules on Biden’s mass student loan forgiveness plan.

https://www.msn.com/en-us/news/us/lawsuit-filed-to-end-student-loan-payment-pause/ar-AA18ivsO

[scarletlib]

1. The meaness of the monsters!

[FemDemERA]

2. How dispicable! SoFi is PRIVATE loan company

That makes their money off people who refinance their federal student loans into private loans. Private loans do not qualify for the pause on federal student loans.

https://studentaid.gov/announcements-events/covid-19/payment-pause-zero-interest

SoFi is suing, not because they are losing money due to a pause on their currently held PRIVATE loans, but because, with a pause on FEDERAL loans, they are not able to easily expand their already billions-dollar portfolio of refinanced loans. It would seem that most people are not willing to trade their currently paused, deferred, zero interest federal loans for a loan that has none of the regulations/benefits that a federal student loan has.

Truly repugnant of them. What next? Credit card companies suing the administration because with all the money from the pause, people are paying down credit card debt instead of using credit cards to buy groceries? I hope Sofi loses i not only the court case, but in the court of public opinion. (rant over)

When looking at financing options, it is always best to first contact your federal loan servicer for information and to work out a consolidation or payment plan with them so that you keep your options open for Public Service Loan Forgiveness, Income Based repayment plans, forbearance, etc.

You can find more information on financial aid and federal student loans at https://studentaid.gov

[liberal_mama]

3. Wow, that's some disgusting greed! n/t

[Yo_Mama_Been_Loggin]

4. Sounds like they don't have standing then.

At least in my opinion.