October 10, 2003

Supreme Court to Rule on Case Involving State-Backed Loans

By JEFFREY SELINGO

The U.S. Supreme Court announced last week that it would take up the question of whether states are exempt from lawsuits that ask for debts, including student loans, to be canceled.

The justices agreed to review a case involving the Tennessee Student Assistance Corporation, a state agency that oversees the distribution of student aid. It was sued by Pamela Hood after a bankruptcy court refused to cancel more than $4,169 in state-backed education loans that she had received between 1988

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