Credit: ShutterstockProfessional/Shutterstock.com Federal Judge Turns Back MOHELA's Sovereign Immunity Defense in Student-Debt Cancellation Case
"MOHELA's reliance on Biden to argue that it is 'part of' the State of Missouri is unpersuasive considering that the Supreme Court did not address sovereign immunity," U.S. District Judge Leonie M. Brinkema wrote in Tuesday's opinion.
January 03, 2024 at 06:37 PM
4 minute read
A federal judge in Virginia declined to extend sovereign immunity protection to student loan servicer MOHELA in a credit reporting dispute, finding MOHELA's reliance on the U.S. Supreme Court's student-debt cancellation case Biden v. Nebraska did not address whether one of the nation's largest servicers was entitled to such defense.
Francis Pellegrino brought a lawsuit against Higher Education Loan Authority of the State of Missouri, or MOHELA, and the Pennsylvania Higher Education Assistance Agency, or PHEAA, for allegedly reporting inaccurate information to credit bureaus, Equifax, TransUnion and Experian, that he was delinquent on seven of his loans during a time when the loans were on forbearance or deferred status.
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