On Wednesday, the United States Supreme Court handed down a decision to not reinstate President Joe Biden’s federal student loan forgiveness plan.
In a brief order, the High Court denied an emergency request filed by the Biden administration to lift a nationwide injunction on the plan that was put in place by a federal appeals court this year.
BREAKING: The Supreme Court just ruled against Biden on his plan to unilaterally use tax dollars to cancel student loan debt
— Greg Price (@greg_price11) August 28, 2024
... Again pic.twitter.com/jzQsjzORZC
According to several outlets, there were no noted dissents.
The Saving on a Valuable Education (SAVE) plan was issued in July 2023. A previous plan by the Biden administration to forgive student loans was blocked by the Supreme Court. Many conservative states, led by Missouri, challenged the Biden administration’s newer effort (via NBC News):
The new proposal has several provisions, including one that would cap the amount people have to repay for undergraduate loans at 5% of their incomes. Previously the cap was 10%.
Challengers say it would require spending up to $475 billion that was not authorized by Congress. They say it should be blocked for the same reason that the Supreme Court blocked Biden’s earlier plan.
“This is a HUGE victory for the working Americans who won't have to foot the bill for the Biden-Harris Ivy League bailout,” Missouri Attorney General Andrew Bailey wrote on X.
🚨BREAKING: The Supreme Court unanimously upheld our court order BLOCKING @KamalaHarris and @JoeBiden' illegal student loan cancellation scheme.
— Attorney General Andrew Bailey (@AGAndrewBailey) August 28, 2024
This is a HUGE victory for the working Americans who won't have to foot the bill for the Biden-Harris Ivy League bailout. pic.twitter.com/iK8G1yORHt
Reportedly, the states sued in April to block the plan. They argued that the Biden administration’s “assertion of unfettered authority to cancel every penny of every loan is staggering.” Additionally, the states noted that federal agencies cannot initiate policies of this nature without having authorization from Congress.
A federal judge in Missouri ruled that one provision of the plan could be put on hold. After, the 8th U.S. Circuit Court of Appeals halted the entire plan.
Reportedly, more than 8 million people are enrolled in the SAVE program.
The Washington Post noted that the case could be appealed to the Supreme Court again this fall, that is, if the appeals court rules quickly.