{"id":1184535,"date":"2023-03-07T12:12:47","date_gmt":"2023-03-07T17:12:47","guid":{"rendered":"https:\/\/bugaluu.com\/news\/student-loan-lender-sofi-sues-biden-admin-to-end-payment-pause-extension\/1184535\/"},"modified":"2023-03-07T12:12:47","modified_gmt":"2023-03-07T17:12:47","slug":"student-loan-lender-sofi-sues-biden-admin-to-end-payment-pause-extension","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/student-loan-lender-sofi-sues-biden-admin-to-end-payment-pause-extension\/1184535\/","title":{"rendered":"Student Loan Lender SoFi Sues Biden Admin To End Payment Pause Extension"},"content":{"rendered":"
\"\"<\/a><\/div>\n

Student Loan Lender SoFi Sues Biden Admin To End Payment Pause Extension<\/span><\/p>\n

\n

Authored by Katabella Roberts via The Epoch Times,<\/em><\/a><\/p>\n

A major banking institution and federal student loan refinancing company\u00a0has called on a federal court to end the Biden administration\u2019s pause on student loan payments, arguing that\u00a0the moratorium has no legal basis.<\/p>\n<\/p>\n

San Francisco-based\u00a0SoFi Bank and SoFi Lending Corp.\u2014a student loan refinancing company\u2014sued the Department of Education (DOE) on Friday, according to a complaint (pdf<\/a>) filed in the District Court for the District of Columbia.<\/p>\n

That complaint asked that President Joe Biden\u2019s latest extension of the\u00a0student-loan payment pause be deemed \u201cinvalidated and set aside\u201d or, at a minimum, that the DOE be\u00a0ordered to require repayment by borrowers who are not eligible for student-debt cancellation.<\/p>\n

It also asked that the court issue a\u00a0permanent injunction preventing the administration from \u201cenforcing, applying, or implementing the eighth extension of the loan moratorium.\u201d<\/strong><\/p>\n

Biden announced in November that his administration would\u00a0extend its moratorium on\u00a0student loan repayments,\u00a0interest, and collections through June 30, 2023, marking the eighth extension.<\/p>\n

In its filing with the\u00a0court,\u00a0SoFi Bank argued that\u00a0the moratorium has no legal basis and has cost the bank, along with its refinancing business, millions of dollars in profits.<\/strong><\/p>\n

Specifically,\u00a0SoFi Bank and\u00a0SoFi Lending Corp. said the pause\u00a0violates the Administrative Procedure Act (APA) because the department failed to follow\u00a0notice-and-comment procedures, through which the administration should have first sought the\u00a0public\u2019s input or comment on the program.<\/p>\n

<\/a><\/p>\n

Headquarters of the American online personal finance company SoFi Technologies Inc. in San Francisco in June 2021. (Google Maps\/Screenshot via The Epoch Times)<\/em><\/p>\n

SoFi Says Loan Refinancing Business Declining<\/h2>\n

Additionally, they argued that Biden\u00a0does not have the authority to continue extending the\u00a0moratorium under the Higher Education Relief Opportunities for Students (HEROES) Act of 2003 because it provides \u201climited authority to relieve transitory burdens for federal student borrowers who are temporarily unable to make payments on their loans due to active military service or national emergencies.\u201d<\/p>\n

The\u00a0HEROES<\/a>\u00a0act allows the DOE\u00a0to grant waivers or relief to recipients of student financial aid programs under Title IV of the Higher Education Act of 1965 in connection with a war or other military operation or national emergency.<\/p>\n

\n

\u201cBut the eighth extension applies to all federal borrowers in the country, not just those suffering hardship as a result of the current phase of the pandemic,\u201d the SoFi complaint says. <\/strong><\/em><\/p>\n

\u201cIndeed, the eighth extension does not even attempt to redress harm from the pandemic at all, but rather to\u00a0alleviate \u2018uncertainty\u2019 caused by the debt-cancellation litigation\u2014a justification that the Act does not recognize or allow.\u201d<\/strong><\/em><\/p>\n<\/blockquote>\n

SoFi claimed that the loan moratorium has caused its\u00a0federal student loan refinancing business to \u201cdecline dramatically\u201d by approximately\u00a0$9 million to $11 million in total revenues and\u00a0$6 million to $8 million in profits since the\u00a0eighth extension went into effect.<\/p>\n

SoFi expects to lose\u00a0$40 million to $45 million in total revenues and approximately $25 million to $30 million in total profits if the latest extension remains in effect through\u00a0August, the company said.<\/strong><\/p>\n

…<\/p>\n

here…<\/em><\/a><\/p>\n

\u00a0<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nTue, 03\/07\/2023 – 15:10<\/span><\/p>\n

From:Zerohedge<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Student Loan Lender SoFi Sues Biden Admin To End Payment Pause Extension Authored by Katabella Roberts via The Epoch Times, A major banking institution and…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1184535","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1184535","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1184535"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1184535\/revisions"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1184535"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1184535"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1184535"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}