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S.C. STATE EDUC. ASSISTANCE AUTH. v. CAVAZOS

Nos. 89-2975, 89-2978, 89-2976, 89-2982.

897 F.2d 1272 (1990)

SOUTH CAROLINA STATE EDUCATION ASSISTANCE AUTHORITY, Plaintiff-Appellee, v. Lauro F. CAVAZOS, etc., et al., in his official capacity as Secretary, United States Department of Education; U.S. Department of Education, Defendants-Appellants, National Council of Higher Education Loan Programs, Inc.; Virginia State Higher Education Assistance Authority, Amici Curiae. SOUTH CAROLINA STATE EDUCATION ASSISTANCE AUTHORITY, Plaintiff-Appellee, v. Lauro F. CAVAZOS, Secretary of Education; U.S. Department of Education, Defendants-Appellants, National Council of Higher Education Loan Programs, Inc.; Virginia State Education Assistance Authority, Amici Curiae. MARYLAND HIGHER EDUCATION LOAN CORPORATION, a nonprofit Maryland Corporation, Plaintiff-Appellee v. Lauro F. CAVAZOS, Secretary of the United States Department of Education, Defendant-Appellant National Council of Higher Education Loan Programs, Inc.; Virginia State Education Assistance Authority, Amici Curiae. STATE OF NORTH CAROLINA; The North Carolina State Education Assistance Authority, Plaintiffs-Appellants, v. UNITED STATES of America; Lauro F. Cavazos, Secretary of the United States Department of Education; U.S. Department of Education, Defendants-Appellees, National Council of Higher Education Loan Programs, Inc.; Virginia State Education Assistance Authority, Amici Curiae.

United States Court of Appeals, Fourth Circuit.

Decided March 7, 1990.

Rehearing and Rehearing Denied March 28, 1990.

Attorney(s) appearing for the Case

Neil H. Koslowe, Sp. Litigation Counsel (Stuart E. Schiffer, Acting Asst. Atty. Gen., William Kanter, Deputy Director, Civ. Div., Dept. of Justice, Edward C. Stringer, Gen. Counsel, Harold Jenkins, Brian Seigel, Attys., Dept. of Educ., on brief), for defendants-appellants.

Andrew H. Baida, Asst. Atty. Gen. (J. Joseph Curran, Jr., Atty. Gen., William F. Howard, Mary L. Preis, Asst. Attys. Gen., on brief), James Emory Smith, Jr. (Joseph D. Shine, Atty. Gen.'s Office, on brief), Thomas J. Ziko, Asst. Atty. Gen. (Lacy H. Thornburg, Atty. Gen., Edwin M. Speas, Jr., Sp. Deputy Atty. Gen., on brief), for plaintiffs-appellees.

(Jean Frohlicher, NCHELP, Inc., George G. Olsen, Robert E. Jensen, Williams and Jensen, P.C., on brief), for amicus curiae Nat. Council of Higher Educ. Loan Programs, Inc.

(Mary Sue Terry, Atty. Gen., R. Claire Guthrie, Deputy Atty. Gen., Paul J. Forch, Sr. Asst. Atty. Gen. and Chief, Educ. Section, Richard C. Kast, Asst. Atty. Gen., on brief), for amicus curiae Va. State Educ. Assistance Authority.

Before RUSSELL, WIDENER and HALL, Circuit Judges.

Rehearing and Rehearing In Banc Denied March 28, 1990.

K.K. HALL, Circuit Judge:

These consolidated appeals arise from actions filed by three different state-created agencies against the Secretary of the United States Department of Education ("Secretary") seeking to have certain portions of the 1987 amendments to the Higher Education Act of 1965 ("the Act") declared unconstitutional and to enjoin the Secretary from withholding payments to them in accordance...

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