Supreme Court Halts Biden's Student Debt Relief Plan, Boosting GOP-Led States

The U.S. Supreme Court rejected President Joe Biden's student debt relief plan, favoring Republican-led states that sued to block it. Introduced as the Saving on a Valuable Education (SAVE) plan, it aimed to reduce monthly payments and speed up debt forgiveness, but faced legal challenges questioning its authority and cost.

The U.S. Supreme Court declined on Wednesday to revive President Joe Biden's student debt relief plan, giving a boost to Republican-led states that have sued to block it. The justices rejected the administration's request to temporarily lift a judicial decision that paused the plan, which is designed to lower monthly payments for millions of borrowers and speed up loan forgiveness for some.

Following the Supreme Court's June 2023 decision blocking Biden's earlier plan to cancel hundreds of billions of dollars in debt, his administration said it would continue providing student debt relief to as many borrowers as possible. The White House in August 2023 launched a policy called the Saving on a Valuable Education, or SAVE, plan, which it touted as "the most affordable repayment plan ever created."

In June, U.S. District Judge John Ross in St. Louis blocked the administration on a preliminary basis from implementing the provision of the SAVE plan that would grant loan forgiveness to certain borrowers. A ruling by the St. Louis-based U.S. Court of Appeals for the Eighth Circuit on Aug. 9 went further, blocking the administration's debt relief plan in its entirety while that case proceeded. This prompted the administration's emergency filing to the Supreme Court.

(With inputs from agencies.)