Student-loan company MOHELA part of student-debt relief defeat

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A student-loan company that services millions of borrowers played a big role in defeating Biden's debt cancellation plan

The Supreme Court just struck down President Joe Biden's student-loan forgiveness plan. A student-loan company played a central role in that decision., and cannot move forward. The decision came in two separate rulings — the court's majority threw out one of the cases,However, the second case — succeeded in blocking the president's plan.

MOHELA's involvement in the case has been controversial since the lawsuit was filed late last year. Following questions from Missouri Rep. Cori Bush, who requested information on the extent to which MOHELA was involved in the case, the student-loan company denied playing any role in filing the lawsuit.

Still, she ultimately sided with the majority in deciding the interest of MOHELA is the interest of the state. Liberal Justice Elana Kagan, however, blasted MOHELA's involvement in the case in her dissent. The majority didn't see it that way — and Biden's broad student-debt relief plan is effectively blocked. There are still alternate routes the president can pursue to get relief to millions of borrowers, like the Higher Education Act of 1965, but it's unclear what the next steps are. Still, many Democratic lawmakers have made clear that the road cannot end here.

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