The fate of President Joe Biden’s multibillion-dollar student debt relief plan could hinge on an obscure financial services company just outside of St. Louis.
The other states pursuing the legal challenge include Nebraska, Iowa, South Carolina, Kansas and Arkansas. They claim Biden’s debt relief plan will harm them in a range of ways, such as lowering tax revenue or diminishing the value of investments tied to student loans.But it’s Missouri's portion of the case, asserting financial harm to MOHELA, that has occupied much of the attention from legal observers and lower courts.
When Biden first announced his plan to forgive student debt in August, Republicans and conservative groups vowed to bring legal challenges to the policy. But finding a plaintiff who would have a concrete injury that allows them to bring a lawsuit was a major challenge. Progressives object to the idea that the interests of any Education Department contractor would be used to overturn an administration’s student loan policy.
MOHELA has drastically expanded its loan-servicing business since it received an initial Education Department contract in 2011 to service about 100,000 federal student loans, winning additional contracts and new business from the agency. As of August, MOHELA managed the accounts of 6.7 million borrowers on behalf of the Education Department. It also services the accounts of an additional 330,000 borrowers of private loans.
SenWarren GerryConnolly this sounds like a conflict of interest. Fed gov created student loan program, fed gov wants to change relief terms, Missouri trying to dictate fed terms to benefit itself not the public good. Action please.
MrRJNKNS Explain to me how the US gov’t can give BILLIONS of 💵 every year to “free market” businesses and not forgive all student debt & make college tuition FREE? The ROI would be far greater in economic & cultural terms. Corporate America doesn’t want to give up their welfare!
What’s funny is that being against debt jubilee is the most retarded thing the Republicans can do…. But that never stopped them.
Yawn.
No conflict of interest there, right? I’m just speculating, but if the underlying shell corporations were peeled down, I’m certain you’ll find BetsyDeVos
Tehran doctor AidaRostami was tortured and killed by the murderous Islamic Republic regime for treating injured protesters. Both her hands were broken and her eye removed.
Biden's plan to transfer loan balances from those who owe the money to those who don't, the taxpayers, is obscene, socialist, and degrading. It is an idiotic plan. Students, pay your debts and if you don't have the money, get a job!
Criminals