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Justice Amy Comey Barrett may have signaled how the Supreme Court might rule on student-loan forgiveness. In a Thursday ruling, Barrett said Texas did not have standing to sue the federal government on behalf of its citizens. The Supreme Court majority opinion, authored by Barrett, ruled 7-2 that none of Texas' challenges had any merit, upholding the ICWA. He also noted that in addition to proving parens patriae standing, states must also prove they meet the basic requirements of constitutional standing. Still, the states may have a stronger case for standing in the student-debt case than Texas did.
Persons: Amy Comey Barrett, Barrett, Biden, , Joe Biden's, Amy Coney Barrett, David Nahmias, Barrett —, MOHELA, James Campbell, Campbell, Nahmias Organizations: GOP, Service, Indian Child Welfare, Biden, ., UC Berkeley Center, Federal Government, Republican, MOHELA Locations: Texas, There's, . Nebraska, , Texas, State, Nebraska
Student-loan company MOHELA played a central role in one of the cases seeking to block Biden's student-debt relief. All justices dug into whether the state of Missouri has standing to claim an injury to MOHELA is an injury to itself. Some experts said the company's involvement in the case could undermine plaintiffs' standing to sue. The states argued that Biden's debt relief would hurt their states' tax revenues, but that was an issue the Supreme Court justices barely questioned. "And two, that President Biden's debt relief plan would impact MOHELA such that MOHELA could not even start paying back its debts to the Lewis and Clark Fund."
Amy Coney Barrett joined liberal Supreme Court justices in questioning GOP-led states' standing to block student-debt relief. The states said the relief would harm student-loan company MOHELA, based in Missouri where the case was filed. As expected, MOHELA's role in the lawsuit fell under scrutiny by liberal justices like Ketanji Brown Jackson and Elana Kagan. Barrett joined in that line of questioning, asking Nebraska's Solicitor General James Campbell: "Do you want to address why MOHELA's not here?" Conservative justices took a hard line of questioning with Biden's lawyer, asking about fairness of the relief and whether it was executive overreach.
The Supreme Court will hear two challenges to Biden's student-debt-relief plan on Tuesday. But the Biden administration has defended its legal authority and expressed confidence that the Supreme Court will uphold the plan. Prominent figures in the legal and political worlds have weighed in on the two high-profile Supreme Court cases in dozens of briefs filed to the Supreme Court. More than 170 Republican members of Congress have argued against Biden's relief, along with 17 Republican-led states, the US Chamber of Commerce, and over a dozen conservative-leaning advocacy groups. Millions of student-loan borrowers' financial futures hang in the balance.
Some legal experts say the lawsuit's standing is questionable due to MOHELA's involvement. The latter case has had some legal experts particularly confounded due to the central role MOHELA has taken in the case. "There's no threat that Missouri may suffer harm to the Lewis and Clark fund when the Lewis and Clark fund hasn't been paid into for over a decade," Nahmias said. Even two law professors who believe Biden's plan to cancel student debt broadly is illegal aren't convinced by the states' lawsuit. "On one hand, when the state created MOHELA over 40 years ago, it made clear that MOHELA is separate," Nahmias said.
Over a dozen groups filed amicus briefs to SCOTUS supporting Biden's student-debt relief. Education Secretary Miguel Cardona said in a statement that they reflect "the strength of our legal positions versus the fundamentally flawed lawsuits aimed at denying millions of working and middle-class borrowers debt relief." "As these diverse groups made clear today, student loan borrowers from all walks of life suffered profound financial harms during the pandemic and their continued recovery and successful repayment hinges on the Biden Administration's student debt relief plan," Cardona said. "We will continue to defend our legal authority to provide the debt relief working and middle-class families clearly need and deserve." One of the lawsuits was filed by six Republican-led states who sued because they said the debt relief would hurt their states' tax revenues, along with that of MOHELA.
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