Sofi Bank has requested Joe Biden to end its pause on federal student loan payments. The bank added that the moratorium has no legal basis and has cost the bank. The bank is known for its refinancing business therefore, since this extension, the bank has gone through a loss of at least $6 million. If this continues the loss might go up to $30 million.
During the pandemic, Student loan payments were halted by President Donald Trump’s administration. This has been extended eight times over three years.
“The eighth extension does not even attempt to redress harm from the pandemic at all, but rather to alleviate ‘uncertainty’ caused by the debt-cancellation litigation,” the bank said in the lawsuit.
The case is being fought in the Supreme court. The decision might be out by June 2023.
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