The Supreme Court denied a Biden administration request to lift a nationwide injunction on a plan to address federal student loan debt. The plan, known as SAVE, aimed to cap repayment amounts for undergraduate loans at 5% of borrowers’ incomes. However, conservative-leaning states led by Missouri challenged the plan, arguing that it required unauthorized spending. The Supreme Court’s decision was seen as a win for those who believe in paying their own way and a setback for the administration. In response, the Education Department expressed disappointment and vowed to continue working to provide lower repayment options for borrowers.
The administration’s plan, which affects around 8 million borrowers, has faced challenges in several court cases. The 8th U.S. Circuit Court of Appeals issued a sweeping injunction blocking various provisions of the plan, leading to the Supreme Court’s decision. The administration argued that the changes to repayment amounts were authorized under a 1993 federal law, but the court’s conservative justices invoked the “major questions” doctrine, which restricts agencies from implementing significant economic policies without explicit congressional authorization.
Despite the setback, the Education Department is determined to minimize disruption for borrowers while awaiting a final decision. The Supreme Court’s rejection of the administration’s request to lift the injunction reflects ongoing legal battles over the plan’s validity and the broader issue of federal student loan debt relief.
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