SoFi Drops Lawsuit Challenging Student Loan Repayment Pause
By Hugh T. Ferguson, NASFAA Managing Editor
SoFi, a personal financing company that oversees student loan refinancing products, on Monday announced it is dropping its lawsuit against the Department of Education (ED).
The lawsuit, which SoFi filed in March, had taken issue with the Biden administration’s justification for continuing the student loan repayment pause and argued that the continuation was both unlawful and harmful to its business.
However, now that the bipartisan debt ceiling deal has been signed into law, SoFi is dropping its challenge since the agreement provides a clear timeline for the resumption of repayment.
“Pursuant to this provision, interest will begin to accrue and the obligation to make payments will resume for federal student loans beginning sixty days after June 30, 2023,” the joint court filing with the Department of Justice states. “The parties therefore stipulate that the above-captioned action should be and hereby is dismissed without prejudice.”
Publication Date: 6/6/2023
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