Another one bites the dust! The Supreme Court continues to block President Joe Biden on his journey to help students in debt as they still refuse to pump life into his multi-billion-dollar revamped student loan debt relief plan.
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According to NBC News, Biden’s new plan (the SAVE program) was part of a larger proposal that the justices rejected last year — which would have canceled more than $400 billion in student loans. As of Wednesday (August 28), the Supreme Court has continued to keep its finger on the pause button of President Biden’s attempt to wipe out potentially hundreds of billions of dollars of student loan debt.
In Biden’s revamped plan, which has since been rejected, his Administration looked to forgive student debt after the Supreme Court shut down his even more ambitious $400 billion loan forgiveness proposal last year. Instead, Biden and his campaign recently placed more limits on borrowers who could qualify for forgiveness.
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This included people on disability and other existing refined programs, plus public service workers. Due to the latest rejection from the Supreme Court, millions of borrowers seeking debt relief are now left in forgiveness limbo and having to remain in the Biden Administration’s SAVE program — which about 7.5 million people signed up for. The plan is left stalled until the Eighth Circuit Court of Appeals issues a fuller decision on the plan “with appropriate dispatch.”
The Saving on a Valuable Education Plan replaced the REPAYE Plan (Revised Pay As You Earn), which was an income-driven repayment plan (IDR) offering borrowers lower monthly payments and an end to interest growth. The SAVE program acts similarly by connecting monthly payments to the household size and earnings of the borrower.
The plan has since been upended by an appeals court decision last month. Additionally, the Supreme Court’s order, which arrived after an emergency request by the Biden Administration, was one of two related applications to the plan that the justices rejected on Wednesday.
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