The Supreme Court has denied a request by President Joe Biden’s administration to lift a block on its latest plan to cancel student loan debt. A federal appeals court had previously blocked the Savings on a Valuable Education (SAVE) plan from being enforced while the plan’s legality is debated in lower courts. The Department of Justice sought emergency relief from the Supreme Court to lift this block.
In its appeal, the Biden administration argued that the 8th Circuit Court of Appeals had overstepped its authority by issuing a nationwide injunction. However, Justice Brett Kavanaugh, who reviewed the request, denied it.
“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,” the Supreme Court wrote in its response.
The SAVE plan was introduced by the Biden administration after the Supreme Court ruled against its broader student loan forgiveness initiative. The plan aimed to lower monthly payments for borrowers and cancel the remaining balance for those who had been making payments for ten years and had an original balance of less than $12,000.
After the plan was announced in June 2023, nearly a dozen conservative states challenged it, claiming it had similar flaws to the original student loan forgiveness plan that the Supreme Court had struck down. In response, the 8th Circuit Court issued a preliminary injunction, preventing the Department of Education from implementing the SAVE plan while the litigation is ongoing.
The Biden administration estimated that the plan could cost $156 billion over several years. However, the states challenging it argued it could cost as much as $475 billion, according to The New York Times.
