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BIDEN-SAID-TH-MISSOURI-HIGHER-EDUCATION-LOAN-AUTHORITY

The fate of President Joe Biden’s multibillion-dollar student debt relief plan
could hinge on an obscure financial services company just outside of St. Louis.
The Missouri Higher Education Loan Authority, a state-created loan company known
as MOHELA, is at the center of a legal challenge from six Republican states
trying to stop Biden’s plan to forgive student loan debt for more than 40
million Americans. The student loan company being used to attack Biden's debt
relief plan https://www.mixily.com/event/4558102742928896100
https://www.mixily.com/event/2594701820899949586
https://www.mixily.com/event/3554893256376539315
https://www.mixily.com/event/4360484289937095310
https://www.mixily.com/event/2235568114594721143
https://www.mixily.com/event/4976695290674913759
https://www.mixily.com/event/49693790105969559
https://www.mixily.com/event/3029193215181269757
https://www.mixily.com/event/2268024240888211317
https://www.mixily.com/event/5275469051387084649 The lawsuit, which is set to go
before the Supreme Court next year, will decide the future of one of Biden’s
biggest and most contentious domestic policy programs. But it’s also shining a
spotlight on MOHELA, which has quietly emerged as one of the nation’s largest
student loan servicers while deepening its ties to the Education Department over
the past decade. MOHELA now manages the accounts of nearly 7 million federal
student loan borrowers, more than double what it had two years ago. Last yea,r
it brought in more than $130 million in revenue, the bulk of which came from its
federal contract to service student loans.
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MOHELA, like the Education Department’s other loan servicers, had been moving
ahead with implementing the Biden administration’s debt relief until it was
halted by the courts in November. The company had gone so far as to finalize a
letter — co-branded with both MOHELA and federal logos — notifying borrowers
that their debt relief request had been completed, according to documents
obtained by POLITICO under a public records request.
https://player.soundon.fm/p/8b70aaea-f90c-4769-8783-2e6cd5a2c9f0
https://player.soundon.fm/p/85350ef9-54c0-42c5-852c-53cb7c66023c
https://player.soundon.fm/p/04c59f2f-c82f-407f-85fa-d99f7ac1bcc2
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https://player.soundon.fm/p/c79b85b1-a981-4be0-b27f-e0d124a5916b
https://player.soundon.fm/p/2f7e3023-6d94-49f3-a156-521b16bbb51a
https://player.soundon.fm/p/36d09f12-be18-41f1-9467-84fbeadddac5
https://player.soundon.fm/p/d0d55c2f-2284-45d7-b1c1-58270c873927
https://player.soundon.fm/p/4b3424d4-fae1-4ad0-86f8-67484e67a98d But, at the
same time, MOHELA has been drawn into the fight against student debt relief by
Missouri Attorney General Eric Schmitt, one of the lead plaintiffs in the
multi-state lawsuit, even though the company is not a party to the case.
https://www.mixily.com/event/4958435448981433088
https://www.mixily.com/event/845292007742828095
https://www.mixily.com/event/4052515312169883070
https://www.mixily.com/event/4096044729998881234
https://www.mixily.com/event/3307721973894244332
https://www.mixily.com/event/8538773052495229579
https://www.mixily.com/event/7626463301980303761
https://www.mixily.com/event/5764180629162407898
https://www.mixily.com/event/580036485717348540
https://www.mixily.com/event/6522654471818721091
https://www.mixily.com/event/2631206220334925891
https://www.mixily.com/event/2371424789969709215
https://www.mixily.com/event/3155930814699626205
https://www.mixily.com/event/7594603911326218437
https://www.mixily.com/event/2722437463323982926
https://www.mixily.com/event/4157780013125223398
https://www.mixily.com/event/1544249376728746821
https://www.mixily.com/event/9117220722082329842 The other states pursuing the
legal challenge include Nebraska, Iowa, South Carolina, Kansas and Arkansas.
They claim Biden’s debt relief plan will harm them in a range of ways, such as
lowering tax revenue or diminishing the value of investments tied to student
loans. https://www.mixily.com/event/6075814927506502645
https://www.mixily.com/event/6516278173189979240
https://www.mixily.com/event/7148626617584418652
https://www.mixily.com/event/1141330945111783363
https://www.mixily.com/event/1990491370789607319
https://www.mixily.com/event/3945226625076567215
https://www.mixily.com/event/1034034797301867899
https://www.mixily.com/event/72574604809290737
https://www.mixily.com/event/5411155127590198363
https://www.mixily.com/event/3929827852281755225
https://www.mixily.com/event/6708978117450528070
https://www.mixily.com/event/1278094924730743872
https://www.mixily.com/event/2916307087895385997
https://www.mixily.com/event/2509573704349471650
https://www.mixily.com/event/3562301390220907995
https://www.mixily.com/event/1845390280179348773
https://www.mixily.com/event/5602217956668219819
https://www.mixily.com/event/2532905384727888561
https://www.mixily.com/event/6262116405027967324
https://www.mixily.com/event/7824045788459971393
https://www.mixily.com/event/7029921849120970326
https://www.mixily.com/event/5176158595641317961
https://www.mixily.com/event/4241510114834225012
https://www.mixily.com/event/2545818555033157548 But it’s Missouri’s portion of
the case, asserting financial harm to MOHELA, that has occupied much of the
attention from legal observers and lower courts.
https://www.mixily.com/event/117316038159937341
https://www.mixily.com/event/3852163586925951547
https://www.mixily.com/event/6187254882658119869
https://www.mixily.com/event/2279404904728878465
https://www.mixily.com/event/6070173039810024853
https://www.mixily.com/event/1796473886172681828
https://www.mixily.com/event/4809502772826579529
https://www.mixily.com/event/8183451161104113535
https://www.mixily.com/event/6916934978857882364
https://www.mixily.com/event/2658119202382581438
https://www.mixily.com/event/534341505237024422
https://www.mixily.com/event/6023578582342968801
https://www.mixily.com/event/5102637347072800386
https://www.mixily.com/event/5434256594196914019
https://www.mixily.com/event/6139528430511342860
https://www.mixily.com/event/4928018676061416131
https://www.mixily.com/event/7492737488163726940
https://www.mixily.com/event/7523940465419886524
https://www.mixily.com/event/7505208794503001955
https://www.mixily.com/event/2359528823954252606
https://www.mixily.com/event/5675578955946165947
https://www.mixily.com/event/5120785675824056015
https://www.mixily.com/event/6358906126456009043
https://www.mixily.com/event/3033530368669348393 Missouri argues that MOHELA
will lose money under Biden’s relief plan because it’ll have fewer accounts to
manage. Less revenue for the company, Missouri says, will make it more difficult
for MOHELA to make required payments to a state fund that helps its public
colleges and universities. https://www.mixily.com/event/4994519699315801366
https://www.mixily.com/event/2392713040465133137
https://www.mixily.com/event/248634236398385322
https://www.mixily.com/event/8054860282189565174
https://www.mixily.com/event/270733562467634500
https://www.mixily.com/event/1258649568188418207
https://www.mixily.com/event/2741062051593254791
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https://www.mixily.com/event/5547801894334310347
https://www.mixily.com/event/4343867316137583657
https://www.mixily.com/event/1412449001207585501
https://www.mixily.com/event/1139014412619757711
https://www.mixily.com/event/7402192749812093175
https://www.mixily.com/event/2987299052502295256
https://www.mixily.com/event/5776940330256200659
https://www.mixily.com/event/4285887966496616309
https://www.mixily.com/event/5648043911592642226
https://www.mixily.com/event/4700821107082075492
https://www.mixily.com/event/3136008118582744784
https://www.mixily.com/event/6951325905954730935
https://www.mixily.com/event/903297717029062231
https://www.mixily.com/event/2047523091888031595
https://www.mixily.com/event/8698635558763598992
https://www.mixily.com/event/9107372855625089741
https://www.mixily.com/event/388480350792393227
https://www.mixily.com/event/1911889149788031831
https://www.mixily.com/event/67140382851891800
https://www.mixily.com/event/133742299873679778
https://www.mixily.com/event/6378893081046781335
https://www.mixily.com/event/3323404754622683541 Seizing on the harm to loan
servicers that work for the Education Department, like MOHELA, was “the best
opportunity to bring a successful lawsuit,” said Phil Kerpen, a conservative
political organizer who leads American Commitment and was an early proponent of
the strategy and circulated the idea in conservative circles.
https://www.mixily.com/event/8510656154708785006
https://www.mixily.com/event/2565783190401609511
https://www.mixily.com/event/5076860201733594704
https://www.mixily.com/event/8292224963683689662
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https://www.mixily.com/event/2044123928306278414
https://www.mixily.com/event/8723609122732988988
https://www.mixily.com/event/3162173840889938622
https://www.mixily.com/event/3126890190644626089
https://www.mixily.com/event/3717446697994679943
https://www.mixily.com/event/5998324226936672931
https://www.mixily.com/event/237146235769584091
https://www.mixily.com/event/5001395230820920535
https://www.mixily.com/event/4819277860479164184
https://www.mixily.com/event/4672607237841154220
https://www.mixily.com/event/675858331868031046
https://www.mixily.com/event/2405128772503534349
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https://www.mixily.com/event/3906772934073104940
https://www.mixily.com/event/6406089182275607720
https://www.mixily.com/event/7666061442968046661 All of the loan servicers hired
by the Education Department decided against suing over the debt relief plan.
MOHELA presented a different situation, Kerpen noted, because of the company’s
relationship to a state with a Republican attorney general who could take action
on its behalf. https://www.mixily.com/event/6732511553045155153
https://www.mixily.com/event/1955152810173369216
https://www.mixily.com/event/3640578478697900043
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https://www.mixily.com/event/1164631711683727620 When Biden first announced his
plan to forgive student debt in August, Republicans and conservative groups
vowed to bring legal challenges to the policy. But finding a plaintiff who would
have a concrete injury that allows them to bring a lawsuit was a major
challenge.
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MOHELA’s role in the case has brought fresh criticism from some Democrats and
consumer advocacy groups. Rep. Cori Bush, the progressive Democrat whose
district neighbors the company’s Chesterfield, Mo. headquarters, for instance,
blasted MOHELA for what she called an “unconscionable” effort to stop debt
relief. MOHELA, she added in a statement to POLITICO, is “a proxy for the six
conservative attorneys general” to challenge the administration’s debt relief
program and “would profit off this challenge’s success.”
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MOHELA responded to Bush’s criticism last month by appearing to distance itself
from the lawsuit. The company explained in a letter to Bush that its “executives
were not involved” with the Missouri attorney general’s decision to file a
lawsuit.
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With much at stake for the company’s federal loan servicing business, MOHELA
officials from the company have also sought to reassure Democratic congressional
aides and Biden administration officials that they were not involved in the
Missouri attorney general’s lawsuit seeking to block debt relief, according to
people familiar with the conversations.
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MOHELA did not respond to a request for comment for this story. Company
executives haven’t detailed publicly — in court or otherwise — how they expect
Biden’s debt relief would affect the company. Some of their competitors in the
industry have forecast some type of financial hit if the plan moves ahead.
Progressives object to the idea that the interests of any Education Department
contractor would be used to overturn an administration’s student loan policy.
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“It’s not just that this could derail debt cancellation, but it sets up a
dynamic where the legal status of these contractors creates veto points in the
student loan system that allows it to become even more partisan and more
dysfunctional,” said Mike Pierce, the executive director of the Student Borrower
Protection Center. “Ultimately borrowers are going to pay the price for that.”
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For decades after it was created by Missouri lawmakers in 1981, MOHELA made
student loans that were guaranteed by the federal government. That changed when
President Barack Obama in 2010 signed legislation to scrap the program, which
Democrats viewed as a wasteful giveaway to lenders. In response to concerns
state entities like MOHELA would go out of business, Congress required the
Education Department to set aside new loan servicing contracts for those
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https://player.soundon.fm/p/d3d4a564-7e61-4816-b223-d2479bc21bbe “I think no one
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new business from the agency. As of August, MOHELA managed the accounts of 6.7
million borrowers on behalf of the Education Department. It also services the
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bridge to reopen less than one year after collapse with help from Biden’s
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Bridge may reopen to traffic before Christmas if installation of railings,
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https://player.soundon.fm/p/cc5bd12f-3ed7-40ae-80c0-ada2fbcd6279 A bus and four
passenger vehicles were on the bridge when it collapsed, according to the
federal safety board’s latest report. At least four people sustained injuries.
The incident remains under investigation. State officials, including Democratic
Gov. Tom Wolf, said that the federal bipartisan infrastructure law that passed
last year is one of the reasons repair of the Fern Hollow Bridge is able to be
completed in just 11 months after it collapsed. https://ideone.com/Qps57H
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https://jsfiddle.net/p4tk85bw/ https://geany.org/p/7ctrv/ The $1.2 trillion
federal infrastructure package was signed into law in November 2021 after
receiving bipartisan support in Congress.
https://sway.office.com/l00h9lBE87SNT1EU?ref=Link
https://ctftime.org/team/210598 https://loop.frontiersin.org/people/2144025/bio
https://mymediads.com/marketing_articles/170137 “Thanks to new funds from the
Bipartisan Infrastructure Law, $25.3 million in federal funds were made
available for the project and the project was able to proceed quickly without
affecting funding for other critical projects in the region,” Alexis Campbell,
press secretary for the Pennsylvania Department of Transportation, said in a
statement sent to CNN on Thursday. Following the collapse of the bridge, the
governor and mayor issued a disaster emergency declaration to speed up the
repair process. This allowed the Pennsylvania Department of Transportation to
manage the design and construction. Once the project is completed, the city of
Pittsburgh will assume jurisdiction over and maintenance responsibility of the
bridge. Some work will continue after the bridge reopens and is expected to last
through the winter and spring. Infrastructure law has funded repairs to 2,400
bridges thus far It will take years to see the full impact of the infrastructure
law, which provides funding for everything from bridges and roads to the
nation’s public transit, broadband, water and energy systems. The money isn’t
released all at once. The law will provide roughly $550 billion of new federal
investments over the next five years. Plus, major infrastructure projects – like
building a new highway, adding a berth to a port or constructing a new airport
terminal – take time. But the fact that states and cities know the money is
coming can allow them to move faster than usual, said Adie Tomer, a senior
fellow at the Brookings Institution who leads a team focused on infrastructure
policies. The Fern Hollow Bridge is just one example. The law has already
supported repairs on more than 2,400 bridges, according to the US Department of
Transportation. “Without the new BIL funds, we would have been scrambling to
find the money to quickly replace the Fern Hollow Bridge, and other important
projects would have been impacted,” said Wolf in a statement released in October
when Biden returned to Pittsburgh to see the bridge repair progress.

 * https://loop.frontiersin.org/people/2144025/bio

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