A right-wing majority of the Supreme Court is on the verge of denying student debt relief to more than 40 million borrowers.
, found that the states did have standing, and issued a nationwide injunction suspending the program while the case moved through the courts.
The court heard arguments about two legal issues in these cases: whether the parties opposing the loan forgiveness plan had standing Jackson said that MOHELA’s “financial interests are totally disentangled from the state, it stands alone, it’s incorporated separately, the state is not liable for anything that happens to MOHELA, I don’t know how that could possibly be a reason to say that an injury to MOHELA should count as an injury to the state.”
Kagan added, “You couldn’t even get documents from MOHELA without filing the state equivalent of a FOIA [Freedom of Information Act] request.”Brown alleged she was excluded from the debt relief program because her loan was privately held. Taylor, the other plaintiff, who would be eligible for $10,000 in debt cancellation, asserted that he was not eligible for $20,000 because he didn’t have a Pell Grant.
But Roberts, Thomas, Alito, Gorsuch and Kavanaugh strongly indicated that they bought the states’ argument that MOHELA gave them standing. When the court wants to decide a case on the merits, it invariably finds the parties have standing. Roberts was unconvinced that the program was a modification of existing student loan programs. “We’re talking about half a trillion dollars and 43 million Americans. How does that fit under the normal understanding of ‘modifying’?”
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