• CrazyDuck@lemmy.world
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    1 year ago

    I simply cannot grasp how a judicial system that’s entirely based on standing, suddenly decides that 6 random states that have 0 stake in this whole FEDERAL student loan thing have standing to sue over this forgiveness plan

    • BombOmOm@lemmy.world
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      1 year ago

      Missouri proved they have standing via direct injury:

      “At least Missouri has standing to challenge the Secretary’s program. Article III requires a plaintiff to have suffered an injury in fact—a concrete and imminent harm to a legally protected interest, like property or money—that is fairly traceable to the challenged conduct and likely to be redressed by the lawsuit. Lujan v. Defenders of Wildlife, 504 U. S. 555, 560–561. Here, as the Government concedes, the Secretary’s plan would cost MOHELA, a nonprofit government corporation created by Missouri to participate in the student loan market, an estimated $44 million a year in fees. MOHELA is, by law and function, an instrumentality of Missouri: Labeled an “instrumentality” by the State, it was created by the State, is supervised by the State, and serves a public function. The harm to MOHELA in the performance of its public function is necessarily a direct injury to Missouri itself. The Court reached a similar conclusion 70 years ago in Arkansas v. Texas, 346 U. S. 368.”

      • xdre@kbin.social
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        1 year ago

        Missouri proved no such thing.

        Meanwhile, last October, MOHELA admitted in a letter to Rep. Cori Bush (D-MO) that its executives “were not involved with the decision of the Missouri Attorney General’s Office to file for the preliminary injunction in federal court.” The Missouri attorney general had to obtain documents from MOHELA through state sunshine law requests in order to use them in the lawsuit. As I wrote last month, if this is successful, “the Supreme Court would be allowing the plaintiffs to win their case thanks to an unwilling conspirator.”

        The internal documents from MOHELA reinforce this. They were obtained through those same state sunshine laws by the Student Borrower Protection Center.

        https://prospect.org/justice/2023-06-19-student-loan-cancellation-supreme-court-mohela/