
SoFi Bank N.A. filed a federal lawsuit challenging the Biden administration’s pause on federal student loan payments, claiming it has no legal basis and has cost the bank millions of dollars in profits. The bank argues that the pause has caused its federal student loan refinancing business to suffer. SoFi Bank N.A. requested a judge to limit the pause only to borrowers who would be eligible for Biden’s cancellation plan. The lawsuit claims that Biden’s latest extension of the payment pause, which could extend up to this summer, is unlawful on “multiple grounds.” The extension has cost the bank at least $6 million in lost profits and could lead to a total of $30 million in losses if it continues through August. Borrower advocates condemned the lawsuit, calling it a money grab at the expense of those struggling with student debt.