Zoe Mckey, Staff Writer
The Supreme Court denied the Biden administration’s emergency request to lift a nationwide injunction on the latest federal student loan debt relief plan. The administration had introduced this plan, known as the Saving on a Valuable Education (SAVE) plan, after the Supreme Court ruled against President Biden’s earlier loan forgiveness program. Conservative-leaning states, led by Missouri, challenged the new plan, arguing that it would cost up to $475 billion and lacked congressional authorization.
The court’s decision emphasized the “major questions” doctrine, which requires explicit congressional approval for policies with significant economic impacts. The Education Department expressed disappointment, noting that the injunction prevents benefits like lower payments for borrowers. Despite this setback, the administration pledged to continue its efforts to reduce repayment burdens. The SAVE plan, which has enrolled around 8 million people, includes provisions to cap repayment amounts and shorten payment periods, though its future remains uncertain as the legal battle continues.
