Debt Ceiling Deal Leads to SoFi Ending Student Loan Pause Suit

SoFi Bank will dismiss its attempt to force an end to the Covid-19 student loan repayment pause in light of the bipartisan debt ceiling legislation mandating an August sunset date.

The lender had argued that the eighth extension of the pause, issued by President Joe Biden while his loan-debt forgiveness plan is tied up in litigation, exceeded the administration’s authority. The US Department of Education disagreed and said that the private lender was an inappropriate plaintiff.

“Interest will begin to accrue and the obligation to make payments will resume for federal student loans beginning sixty days after June 30, 2023,” ...