SoFi's Lawsuit Seeks to End Student Loan Payment Pause
Originally Published 2 years ago — by The New York Times
SoFi, an online personal finance company, is suing the Department of Education to end the pause on federal student loan payments and force tens of millions of debtors to repay their debts faster. The company, which has over $1 billion in revenue from private student loans and other offerings, is a competitor to the U.S. government, luring away borrowers who have high balances and the incomes to make the debt affordable. SoFi's lawsuit comes after pandemic relief legislation made it possible for federal student loan borrowers to stop making payments without any financial penalty, causing a 54% drop in new SoFi student loan originations.