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After a win in the U.S. Supreme Court last year, Missouri Attorney General Andrew Bailey is leading a coalition of states challenging the Department of Education’s second attempt at loan forgiveness. The federal program could waive or help with payments for more than 8 million borrowers.
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The department is withholding payment from the Higher Education Loan Authority of the State of Missouri, its largest loan servicer, as 2.5 million borrowers didn't receive timely billing statements.
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Federal student loan payments are resuming this month for about 1.2 million Missourians and Kansans after being paused in 2020. But the landscape has changed in the last three years: Borrowers now have new options for payment plans, and their loans could be held by different entities than the last time they paid.
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Last week, the U.S. Supreme Court struck down President Joe Biden's student loan forgiveness plan. Now, borrowers in Kansas City and around the country are figuring out what that means for them.
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The Missouri Higher Education Loan Authority — MOHELA — is named 85 times in the U.S. Supreme Court’s opinion striking down the Biden administration's student loan forgiveness program. The ruling affects more than 777,000 Missourians with federal student loans who would have received $10,000-$20,000 of relief.
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On Friday, the Supreme Court handed down a decision that dismayed millions of people who were hoping for debt relief through President’s Biden program. Many of those borrowers live in the Midwest states that brought the case to the high court.
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The court unanimously dismissed on standing grounds a challenge to President Biden's groundbreaking plan to forgive some or all federal student loan debt for tens of millions of Americans.
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On Tuesday, the justices will hear expedited arguments in a challenge to the Biden plan brought by six states — Missouri, Nebraska, Iowa, Arkansas, Kansas and South Carolina.
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The Missouri General Assembly is already fielding legislation on college students and campus life.
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“This is a big win for our office and for Americans across the country, and we will keep up the fight," said Missouri Attorney General Eric Schmitt, one of six Republican attorneys general who sued over the loan relief program.
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The Eighth Circuit Court of Appeals issued the stay, ordering the Biden administration not to act on the program while it considers a motion from six Republican-led states — including Missouri and Kansas — to block loan cancellation.
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A federal judge dismissed an effort by six Republican-led states, including Missouri and Kansas, to block the Biden administration's plan to reduce student loan debt for tens of millions of Americans.