Supreme Court declines to lift block on President Biden’s federal student loan forgiveness program
The SAVE Plan’s fate was handed down to the Eighth Circuit Court of Appeals by the Supreme Court who refused to rule on an overhaul that would reinstate the plan.
The plan by the Biden Administration would clear amounts owed by borrowers less than or equal to $12,000 if a borrower has made payments for 10 years.
The Supreme Court has denied a Biden administration’s attempt to revive a multimillion-dollar plan for federal student loan debt forgiveness.
In the Wednesday decision, the court declined to lift a block on President Joe Biden’s student loan forgiveness program that would have cost $276 billion in student loan payments outstanding by borrowers, as reported by CNN.
The decision was handed down with the court stating that it expects the appeals court to further rule on the student loan plan “with appropriate dispatch,” as reported by the Associated Press.
In the brief unsigned order, the Supreme Court stated that the application “to vacate injunction presented to Justice Kavanaugh and by him referred to the Court is denied. The Court expects that the Court of Appeals will render its decision with appropriate dispatch.”
NBC News reported that Missouri’s Attorney General Andrew Bailey, who has heavily criticized the Biden Administration’s SAVE Plan, stated that the measure is “a huge win for every American who still believes in paying their own way.”
Saying that they are “disappinted in this decision” a spokesperson for the Education Department voiced concern about the Supreme Court’s denial for the Biden Administration.
“The Department will work to minimize further harm and disruption to borrowers as we await a final decision from the Eighth Circuit” the spokesperson stated.
CBS News reported that the SAVE plan was initially introduced by the Biden Administration in July, 2023, and would allow for borrowers who owed $12,000 or less in student loan payments to have their debt wiped after 10 years of payment.
The Biden Administration previously stated in April that the plan’s implementation would “provide debt relief to over 30 million Americans” in addition to other measures the administration has taken to “cancel student debt over the past three years.”
The release also defended the SAVE Plan as one that aligns with the president’s agenda that would assist the “entire economy” and “not only benefits borrowers.”
Key elements of the Biden SAVE Plan touted that it would lower payments for “almost all borrowers,” base monthly incomes of income and family size, and would allow for the federal government to cover interest if borrowers paid the full monthly payment.
Campus Reform has contacted The Department of Education for comment. This article will be updated accordingly.
