Student Loan Debt Forgiveness Canceled?

As you may already know, the government put a pause on the federal student loan payments that people who attended college were paying when the COVID-19 pandemic began.

Now it appears that SoFi Bank is suing to end the the Biden administration’s pause on student loan payments because they are losing money.

According to Fox, SoFi has filed a federal lawsuit on Friday, requesting that a federal judge revoke the most recent extension of Biden’s pause.

Initially paused during President Trump’s administration, student loan payments have since been extended eight times over a period of three years.

“We have supported and continue to support targeted student loan forgiveness, in addition to the student loan payment moratorium during the economic crisis at the height of the COVID-19 pandemic. However, it’s time for the administration to follow through on its word to end the federal student loan payment moratorium,” SoFi bank said.

According to the lawsuit filed by SoFi bank, the latest extension of the pause by the Biden administration is illegal for “multiple reasons” and could potentially be prolonged until this summer.

Biden is now stuck between a rock and a hard place. He doesn’t want to make student loan debt holders start paying back their debts but he can’t get student loan debt forgiven by the government.