How Missouri played a part in student loan debt forgiveness challenges
COLUMBIA, Mo. (KMIZ)
Missouri had a significant role in the legal challenges that led to the U.S. Supreme Court striking down President Joe Biden's student loan debt forgiveness plan Friday.
After the 6-3 decision, those on the hook for loan repayments for about $400 billion worth of loans are expected to resume making payments by late summer.
U.S. Sen. Eric Schmitt (R-Mo.) joined the lawsuit led by the state of Nebraska in December. Schmitt has repeatedly criticized the plan along with several other Republican officials. After the Supreme Court's ruling was released Schmitt took to Twitter to share his reaction.
"I’m proud to have brought this case as Missouri’s Attorney General and save taxpayers a half trillion dollars. This was fundamentally unfair, unlawful and a cynical election ploy by Joe Biden. Working folks who paid off their loans or took another path shouldn’t have to pay for the unpaid loans of the tenured college professor," Schmitt said.
Current Missouri Attorney General Andrew Bailey also took to Twitter, writing that "Missouri has given Joe Biden a lesson on the Constitution once again."
🚨🚨BREAKING: Supreme Court strikes down Biden’s unlawful student loan debt forgiveness scam.
— Eric Schmitt (@Eric_Schmitt) June 30, 2023
I’m proud to have brought this case as Missouri’s Attorney General and save taxpayers a half trillion dollars.
Missouri loan servicer MOHELA was also at the center of the debate in the lower court rulings. The states that challenged the program argued that MOHELA would suffer significant financial losses if the loan forgiveness program went into effect.
The loan forgiveness plan was implemented by Biden as a way to ease the economic costs of the COVID-19 pandemic.
The forgiveness program would have canceled $10,000 in student loan debt for those making less than $125,000 or households with less than $250,000 in income. Pell Grant recipients, who typically demonstrate more financial need, would have had an additional $10,000 in debt forgiven.
Twenty-six million people had applied for relief and 43 million would have been eligible, the administration said. The cost was estimated at $400 billion over 30 years.
The Associated Press contributed to this report.
