By Katelynn Richardson
The Supreme Court declined Wednesday to unblock President Joe Biden’s income-driven student loan repayment program.
In a brief order, the Supreme Court rejected the Biden administration’s request to reinstate the program after it was paused by a federal appeals court. The Saving on a Valuable Education (SAVE) plan, which lowers monthly loan payments based on income and creates a faster path to loan forgiveness, was challenged by a group of red states.
“The Court expects that the Court of Appeals will render its decision with appropriate dispatch,” the Wednesday order states.
The Biden administration argued the appeals court’s injunction “severely harmed millions of borrowers and the Department by blocking long-planned changes and creating widespread confusion and uncertainty.”
Republican Missouri Attorney General Andrew Bailey, who led the states that sued, wrote on X that the Supreme Court’s order was a “huge victory for the working Americans who won’t have to foot the bill for the Biden-Harris Ivy League bailout.”
#BREAKING: The Supreme Court won’t reinstate President Biden’s SAVE student loan repayment plan, which the Eighth Circuit has temporarily blocked. The circuit court is set to rule on the administration’s authority to create the plan soon so no action needed, #SCOTUS says. pic.twitter.com/etW01WsCk5
— Katie Buehler (@bykatiebuehler) August 28, 2024
In June 2023, the Supreme Court blocked a separate plan by the Biden administration to grant student loan forgiveness to nearly 40 million Americans using executive power. (RELATED: Biden’s Latest Ploy To Overhaul Student Loans ‘Flies In The Face’ Of Congress, Report Alleges)
The SAVE plan could cost taxpayers up to $475 billion over 10 years, according to the Penn Wharton Budget Model.
“Just 10 days after the Supreme Court issued its decision in Biden v. Nebraska, the Federal Government published a rule that seeks to ‘cancel’ an even larger amount of student loan debt, forcing American taxpayers to pick up the tab,” the states wrote in their complaint.
