Private Lender Company Files Lawsuit Against Biden Administration

At this time payments are set to resume 60 days after the Supreme Court issues its ruling on the student loan forgiveness program. If an official decision is not made by August, payments will then restart.

The Biden Administration is facing a lawsuit as a private lender company is suing in efforts to end the pause on federal student loan payments.

The pause has been in effect since March of 2020. It was originally put in place during the Trump Administration to assist people during the COVID-19 pandemic.

It has since been extended eight times while the most recent pause extension was placed by President Biden in November. Private lender, SoFi, argues that the last extension is different and unlawful because of the situation that will determine the loan payments restart date.

The pause lift now depends on the pending litigation over the Biden Administration’s proposed student loan forgiveness program.

At this time payments are set to resume 60 days after the Supreme Court issues its ruling on the program. If an official decision is not made by August, payments will then restart.

The justices have now heard oral arguments in two cases over the student loan forgiveness program and are expected to release a decision in late June or early July.