The Supreme Court opted Wednesday against restoring President Biden’s student loan handout — at least for now.
The high court rebuffed a request by the Harris-Biden administration’s Justice Department to lift an injunction imposed by a lower court halting the write-off while lawsuits opposing the plan make their way through the legal system.
“The [Supreme] Court expects that the Court of Appeals will render its decision with appropriate dispatch,” the brief unsigned order said. There were no noted dissents.
Seven Republican-led states have sued to block Biden’s Saving on a Valuable Education (SAVE) plan, the president’s latest attempt to cancel hundreds of billions in federally held student loan debt after the justices nixed his bid to do so under the HEROES Act in 2023.
Under the SAVE plan, monthly income-based repayments would be reduced from 10% to 5% of a borrower’s discretionary income. The plan also wouldn’t require borrowers to make payments if they earn less than 225% of the federal poverty line — $32,800 a year for a single person.
Opponents say the plan, which could cost as much as $475 billion, is an unconstitutional bailout that amounts to a payoff of key Democratic Party constituencies — young and college-educated voters.
Two separate legal challenges to the SAVE plan have been making their way through courts. In June, judges in Kansas and Missouri issued separate rulings that blocked much of the administration’s plan. Debt that already had been forgiven under the plan was unaffected. --->READ MORE HERE
The Supreme Court of the United States (SCOTUS) denied the Biden administration’s request to lift a block on the Saving on a Valuable Education (SAVE) plan, which is designed to ease the burden of student loan debt for millions of borrowers.
A federal appeals court in Missouri blocked the entire SAVE program from being enforced while litigation over the merits continues in the lower courts. The Department of Justice, which is part of the Biden administration, most recently asked the high court for emergency relief.
The request went to Justice Brett Kavanaugh, who has jurisdiction over time-sensitive applications from Missouri.
The Supreme Court justice asked Missouri and six other GOP-led states to respond to the appeal in writing by Aug. 19.
On Wednesday, Kavanaugh denied the request. The order states the Court expects the Court of Appeals to render its own decision.
In its appeal, the Biden administration said the 8th Circuit U.S. Court of Appeals went too far when it issued a nationwide injunction, which effectively put a temporary freeze on the SAVE plan.
"Our Administration will continue to aggressively defend the SAVE Plan – which has helped over 8 million borrowers access lower monthly payments, including 4.5 million borrowers who have had a zero dollar payment each month," a White House spokesperson told Fox News Digital. "And, we won’t stop fighting against Republican elected officials’ efforts to raise costs on millions of their own constituents’ student loan payments."
Missouri Attorney General Andrew Bailey said the court's decision was "a huge win for every American who still believes in paying their own way." --->READ MORE HERE
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