TBA Law Blog


Posted by: Julia Wilburn on Mar 7, 2023

The Hill reports that SoFi, a personal finance company that sells products for student loan refinancing, is suing to end the Biden administration’s pandemic-era pause on federal student loan payments, claiming it is an overreach of power. President Biden in November extended the federal pause on student loan payments and interest accrual, which was first enacted by then-President Trump at the beginning of the coronavirus pandemic. Biden said last year that the freeze was extended until beyond June while his administration faces legal challenges to its own debt forgiveness plan. In the SoFi filing, the company argues that the administration’s pause extension was to “alleviate ‘uncertainty’ for borrowers during the pendency of ongoing litigation regarding the debt-cancellation program,” as opposed to help borrowers impacted by the COVID-19 pandemic.