The Flawed Supreme Court Case against Student Debt Cancellation
Last August, President Biden announced his plan to relieve more than 43 million borrowers of up to $20,000 in student debt.
In a case that’s gone straight to the Supreme Court—Biden v. Nebraska—six Republican attorneys general have sued to block this cancellation based on the claim that Missouri’s loan servicing company, the Higher Education Loan Authority of the State of Missouri (MOHELA), would suffer financial revenue losses if enacted.
That’s not true, new analysis from the Roosevelt Institute and the Debt Collective reveals.
As authors Thomas Gokey, Eleni Schirmer, Braxton Brewington, and Louise Seamster find, MOHELA would actually see a substantial increase in its direct loan revenue for 2023, should the cancellation proposal be enacted—a fact that MOHELA’s internal documents confirm.
“This should have never come to court, and it did make it to court and yet didn’t actually have a fair day in court,” Brewington said in a New Republic exclusive about the brief.
“It is critical that the Supreme Court understands the true facts of this case and its potential impacts on borrowers, our broader economy, and our democracy,” said Seamster.
The outcome, they write, could threaten the financial survival of millions and further threaten the legitimacy of the court.
Read the full brief, and coverage of the bombshell findings in The Guardian, The American Prospect, and Essence.
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