Student loan company launches new legal attack to block America's student loan borrowers from receiving relief
We are outraged by SoFi's lawsuit aimed at halting the pause on federal student loan payments. It is a shameful attempt by wealthy corporations to dismantle policies that working families depend on.
“The actions of student loan lenders and servicers are nothing short of an attack on America's students, parents, and borrowers. They are using their enormous wealth to block President Biden's debt cancellation plan and the pandemic payment pause. We condemn SoFi’s actions and call on the Biden Administration to take every necessary step to protect borrowers from these egregious legal maneuvers,” said Natalia Abrams, President of the Student Debt Crisis Center.
The federal student loan payment pause is a vital lifeline for millions of families. It has helped those impacted by the COVID-19 pandemic keep food on the table and a roof over their heads. For others, it has provided the stability needed to get back on their feet after years of economic disruption. A recent SDCC survey of 31,000 borrowers clearly showed that 83% of student loan borrowers rely on the payment pause to make ends meet, and two-thirds do not feel that the COVID-19 pandemic is over.
SDCC firmly believes that federal student loan payments should remain paused until the Biden Administration fulfills its promise to broadly cancel student debt. Last week's People's Rally for Student Debt Cancellation, attended by over 23,000 people in person and online, highlighted the urgent need for long-term debt relief, including continuing the payment pause and permanently erasing debt.