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Fight Over Student Debt Cancellation Hits Supreme Court

Diverse: Issues in Higher Education

Nebraska , from a collection of states arguing that the program hurt their potential revenues, and one, Department of Education v. The state of Missouri argued that it would be damaged by the debt forgiveness through loss of revenue to the Missouri Higher Education Loan Authority (MOHELA), a quasi-state loan servicer.

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Skepticism abounds at Supreme Court hearing on debt relief

Confessions of a Community College Dean

As expected, the hearing focused on whether federal statute allows the Biden administration to forgive student loans, whether the plaintiffs have standing to challenge the plan and whether the justices should apply a stricter standard in their review of the two lawsuits before the court. ” U.S.

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Supreme Court Rules Student Loan Forgiveness Unconstitutional

Diverse: Issues in Higher Education

The court ruled 6-3 along partisan lines that a program with such a large impact was beyond the power of the Department of Education to enact without the approval of Congress. The court ruled that although MOHELA is distinct from the state itself, Missouri may still sue to remedy harm involving the non-profit.