The Biden administration says the states' claims are highly speculative and indirect, undermining their legal standing to bring the case in the first place.
, they'll have to first answer the critical question of how, exactly, they are harmed.
Lower courts and legal scholars from across the ideological spectrum have divided on the question of injury, setting the stage for the justices to have the final say on whether the Biden debt relief plan inflicts clear harm on state governments. "Joe Biden had no legal authority whatsoever. I think the larger issue is it's unfair to people who paid off their loans. It's unfair to people who didn't take out loans," Sen. Eric Schmitt, Missouri's Republican former attorney general who first brought the case, told ABC News in an interview.
State law also requires MOHELA to pay $350 million to help fund improvements to state colleges and universities. "MOHELA is completely separate and distinct from the state of Missouri. Its operations are distinct from Missouri. Its treasury and finances are completely walled off from the Missouri treasury," he said.
David Nahmias, a staff attorney at the Berkeley Center for Consumer Law and Economic Justice, is defending the Biden administration's student debt relief plan on behalf of Missouri consumer advocates, talks to ABC's Devin Dwyer via video conference."The states have shown no link between debt cancellation and the effect of debt cancellation on MOHELA's effect to even pay into the fund, even if they wanted to," said Nahmias.
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