- Missouri-based student-loan provider MOHELA is part of a GOP lawsuit that targets Biden’s debt relief.
- Missouri Rep. Cori Bus called for the company not to prioritize profits over people
- On Wednesday, a judge heard arguments in the case and will soon decide whether the plan should be halted.
A Democratic lawmaker is calling on Republicans — and a student-loan company — to stop trying to block student-loan forgiveness from reaching millions of Americans.
A federal judge will be appearing Wednesday Heard argumentsBiden’s lawyers and six Republican-led states that sued him for debt relief, claiming it would hurt their tax revenues. The lawsuit was also filed by Missouri-based MOHELA loan company MOHELA. It’s one of several. At least five major lawsuitsFiled by conservatives in an attempt to prevent student-debt cancellation. But this one is different due to MOHELA’s involvementin the case, and that the company has yet publicly commented on the legal proceedings.
Missouri Rep. Cori B. said in an interview that she supports the Missouri Constitution. StatementThe Wednesday hearing concluded that the case was the latest example of Republicans & student loan servicers prioritizing profit over people and corporations over constituencies.
“Missouri-based student loan giant, MOHELA, has remained silent about the pending lawsuit – seemingly complicit in Republican efforts to prevent over 40 million borrowers from receiving the debt relief they have been promised,” she said. “It will be disproportionately harmful to Black and Brown borrowers to prevent or delay this economic program from moving forward.”
Bush, Missouri’s representative in the first congressional district, said that he urged MOHELA and the six Republican Attorney Generals not to place profits above student loan borrowers. He also called on them to halt any activities that hinder the President’s plan to cancel student loan debt. American voters support student debt cancellation. Corporate and partisan interests should not prevent borrowers receiving the life-changing relief that they deserve.
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—Congresswoman Cori Bush (@RepCori) October 12, 2022
As Insider has previously reportedAccording to the Republican plaintiffs’ lawyer, student-loan forgiveness would result in “enormous” financial damage to MOHELA. Biden’s lawyer arguedThe GOP states don’t have standing to use student-loan companies in their argument. However, plaintiffs argued that MOHELA’s revenues directly impact the state and could be used in court as a defense.
Missouri District Judge Henry Edward Autrey was appointed by President George W. Bush. He heard the arguments and said that the lawyers would hear back from him “very soon.”
Biden’s administration continues to move forward with its $20,000 debt relief plan. It released Tuesday its Premiere previewThe student-loan forgiveness form is simple to fill out. Borrowers only need to provide basic information such as their names, Social Security numbers and, if necessary, they could be selected. Submit additional documentationThey will need to confirm that their incomes do not exceed $125,000. The exact date of publication has yet to be determined, though the White House stated that it would happen sometime in October.
