The U.S. Supreme Court could decide as early as Thursday on President Joe Biden’s student loan forgiveness plan – with Missouri as a focal point in the case.
The high court is expected to rule soon in the president’s plan that would reportedly forgive nearly $500 billion in student debt for more than 40 million borrowers.
The Missouri Higher Education Loan Authority, otherwise known as MOHELA, is one of the largest federal student loan companies in the U.S. In the Biden versus Nebraska case before the Supreme Court, the Nebraska Attorney General’s Office argues that Biden’s effort threatens to cut MOHELA’s operating revenue by 40%. The company is state-created and state-controlled, with some proceeds going to state scholarship programs.
Another argument made is that MOHELA has not paid its share to the Lewis and Clark Discovery Fund, which helps to fund capital improvements at public colleges across Missouri. According to Nebraska Solicitor General James Campbell, the company owes about $105 million to the fund.
The case before the high court involves whether at least one of the six Republican-led states suing the Biden Administration has the legal right to initiate a lawsuit. If the court says yes, then it must decide whether Biden’s plan is constitutional.
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