MOHELA Tells Republican States It is Not Involved in Lawsuit

“Major student-loan company (MOHELA) just undermined the GOP-led lawsuit halting Biden’s debt cancellation,” (, Ayelet Sheffey.

Oct 12, 2022, Biden’s Student-Debt Relief Goes to Court Today. Here’s the GOP Argument, (, Ayelet Sheffey.

Republicans representing Arkansas, South Carolina, Iowa, Kansas, Nebraska, and Missouri all said the states could suffer revenue loss from student-loan forgiveness, even as Biden’s defense said any loss was “too speculative and attenuated.”

The resulting Republicans complaint caused the 8th Circuit Court of Appeals (October 21) to place a temporary stay on Biden’s student-loan forgiveness program. The stay was in response to the complaint filed in Missouri by six Republican-led states. The states arguing student loan debt relief would hurt their states’ tax revenues along with Missouri-based student-loan company MOHELA.

Republican comments were raising the concerns amongst congressional lawmakers and advocates about MOHELA’s involvement in the lawsuit. Missouri Congressional Rep. Cori Bush sent a letter to MOHELA CEO Scott Giles asking for clarification in the legal challenges. The subject being MOHELA’s relation to the six Republican-led states suing Biden’s administration. Each state was claiming the debt relief would hurt their states’ tax revenues, along with the business operations of MOHELA.

MOHELA CEO Giles took the opportunity to respond to each of Congressional Rep. Cori Bush bullet points in her letter as shown in his return letter below.

On November 1, the US Department of Justice using MOHELA’s detail sent a letter to the COA 8th District. The letter was incorporating the detail in the MOHELA letter sent to Congressional Rep. Cori Bush. The DOJ letter is stating the states have no standing as there was no harm done to MOHELA.

The 8th Circuit will make a decision on whether the debt relief can move forward.