But Missouri? In adjudicating Missouri’s claim, the majority reaches out to decide a matter it has no business deciding. “If MOHELA had brought this suit, we would have had to resolve it, however hot or divisive. Thus, Missouri had no standing to bring the lawsuit, she argued.
The dissenting opinion, written by Justice Elena Kagan, said MOHELA qualifies as a third party, not an arm of the government. Projections from the Roosevelt Institute show a steep increase as MOHELA takes over federal loans dropped by other servicers and is paid for each cancellation. Some predict that debt cancellation would increase MOHELA’s revenue. Supreme Court in Washington, D.C., in September 2019. This acknowledged harm to MOHELA in the performance of its public function is necessarily a direct injury to Missouri itself,” Roberts wrote.Īssociated Press Then-Missouri Attorney General Eric Schmitt speaking in front of the U.S. “The secretary’s plan will cut MOHELA’s revenues, impairing its efforts to aid Missouri college students. But the Supreme Court reversed that decision, finding that MOHELA is an “instrumentality of Missouri.” The district-court judge dismissed the case, saying MOHELA can represent itself in litigation. The Supreme Court had to decide whether Missouri’s attorney general could sue on behalf of MOHELA before determining the validity of the loan relief. The attorneys general argued the secretary didn’t have authority and the forgiveness program would hurt state tax revenue. District Court for the Eastern District of Missouri, seeking to bar the Secretary of Education from providing student loan relief.
In addition to Schmitt, five other attorneys general from Arkansas, Iowa, Kansas, Nebraska and South Carolina filed the case in the U.S. The ruling affects more than 777,000 Missourians with federal student loans who would have received $10,000-$20,000 of relief under the proposal. “Today, we have concluded that an instrumentality created by Missouri, governed by Missouri, and answerable to Missouri is indeed part of Missouri that the words ‘waive or modify’ do not mean ‘completely rewrite ’ and that our precedent - old and new - requires that Congress speak clearly before a Department Secretary can unilaterally alter large sections of the American economy,” Roberts wrote. The court then struck down the program, with Chief Justice John Roberts accusing the executive branch of a power grab over the legislature. Supreme Court agreed with Schmitt that, despite the company’s reluctance, MOHELA gave Missouri standing to sue. On Friday, the six conservative justices on the U.S.
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