'Financial Vulture' SoFi Sues To Restart Student Loan Payments
Supporters of U.S. President Joe Biden's plan to cancel over $400 billion in college debt to more than 43 million borrowers reacted angrily Monday to a lawsuit filed by an online finance company trying to overturn his administration's latest pause on student loan repayments—a policy that has cost the firm more than $100 million in lost profits.
San Francisco-based SoFi filed suit Friday in the U.S. District Court for the District of Columbia onFriday against the U.S. Department of Education and Education Secretary Miguel Cardona over the agency's rdecision in November to extend a Covid-19-based moratorium on student loan repayments due to ongoing legal battles.
Founded in 2011, SoFi "was once the leader of a booming private student loan refinancing industry," according to to the Student Borrower Protection Center (SBPC), a nonprofit advocacy group. SoFi's stock price has plummeted by more than 70% since its peak.
"SoFi has a long history of misleading student debtors and tricking them into refinancing their loans."