The Supreme Court dealt another blow to Joe Biden’s efforts to forgive student loan debt on Wednesday by denying his administration’s request to lift a block on the Saving on a Valuable Education (SAVE) plan.
The ruling has plunged millions of borrowers into limbo as they await further developments on the financial relief initiative, aimed at encouraging college graduates to vote for Democrats, critics have charged.
The SAVE plan represents a more modest approach to student debt relief following the Supreme Court’s earlier rejection of a broader proposal to cancel over $400 billion in loans. Biden’s efforts have faced ongoing legal challenges, especially from GOP-led states and from the nation’s highest court, all of whom have said he does not have the constitutional authority to grant hundreds of billions of dollars in student loan relief.
A federal appeals court in Missouri recently halted the entire SAVE program while legal proceedings continue in lower courts. In reaction, the Biden administration, through the Department of Justice, requested urgent relief from the Supreme Court.
Justice Brett Kavanaugh, who is responsible for hearing cases that originate in Missouri, handled the request. Millions of borrowers who signed up for the SAVE plan, which adjusts monthly payments based on household size and earnings, are uncertain about their financial future.
However, the ongoing legal battles cast doubt on the Biden administration’s ability to fulfill its promises of debt relief. The Supreme Court’s order indicated that the justices anticipate a U.S. Court of Appeals will provide its own ruling on the issue.
Biden introduced the SAVE plan following the Supreme Court’s rejection of his broader student loan forgiveness proposal. The White House has promoted SAVE as a substantial relief measure, asserting it could reduce monthly payments to zero for some borrowers, cut costs by half for others, and save those making payments at least $1,000 annually.
Moreover, borrowers with an original balance of $12,000 or less could have their remaining debt forgiven after just 10 years of payments. Republicans have argued that the plan amounts to Democrat vote-buying.
The $276 billion plan was a key promise of Biden’s 2020 campaign to progressive voters and is now facing uncertainty. As the two legal challenges proceed through the courts, the future of this expensive initiative hangs in the balance.
The White House’s attempts to advance the plan have encountered numerous obstacles, raising doubts about its ultimate success.
