States Seek Supreme Court Intervention to Block Biden’s Student Loan Plan

Three states led by Republicans are seeking immediate intervention from the Supreme Court to temporarily prevent the implementation of President Biden’s latest effort to provide student loan relief to millions of borrowers. Alaska, Texas, and South Carolina are asking the highest court to lift a stay issued by a federal appeals court in Denver, which had paused a lower court ruling against the Biden administration’s plan. This plan, known as the Saving on a Valuable Education (SAVE) plan, was announced last year and aims to assist millions of borrowers enrolled in a federal student loan program by reducing their monthly debt payments and offering a path towards debt forgiveness. The plan was scheduled to take effect on July 1st for an estimated 8 million borrowers enrolled in the SAVE program.

In their application to Justice Neil Gorsuch, who could make a decision independently or consult his colleagues, the attorneys general of the three states argue that the Biden administration’s “intransigence” necessitates the Supreme Court’s intervention. They express concern that the administration is continuing to push for student loan debt relief despite the Supreme Court’s previous ruling against a broader debt cancellation plan. They highlight the administration’s proposed rule to spend hundreds of billions of dollars on debt forgiveness, asserting that legal certainty is paramount given the significant financial implications involved. They emphasize the importance of upholding federal law and preventing the administration from unilaterally dispensing such a substantial amount of funds.

Earlier this year, President Biden announced the SAVE plan, which includes debt cancellation for enrolled borrowers who have been repaying for at least 10 years and have $12,000 or less in student loan debt. Those with larger debts will receive relief after an additional year of payments for each additional $1,000 borrowed. In June 2023, the Supreme Court ruled 6-3 that federal law does not authorize Biden’s Secretary of Education to cancel more than $430 billion in student loan debt. Despite the court’s decision, Biden reiterated his administration’s commitment to pursuing student debt relief initiatives. The states’ appeal to the Supreme Court could potentially delay the implementation of the SAVE plan and further fuel the debate surrounding student loan debt forgiveness.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top