SCOTUS Denies Biden Admin Request To Allow Temporary Enforcement Of Student Loan Handout

The Supreme Court of the United States (SCOTUS) denied the Biden administration’s request to lift a block on the Saving on a Valuable Education (SAVE) plan, which is designed to ease the burden of student loan debt for millions of borrowers.

A federal appeals court in Missouri blocked the entire SAVE program from being enforced while litigation over the merits continues in the lower courts. The Department of Justice, which is part of the Biden administration, most recently asked the high court for emergency relief.

The request went to Justice Brett Kavanaugh, who has jurisdiction over time-sensitive applications from Missouri.

The Supreme Court justice asked Missouri and six other GOP-led states to respond to the appeal in writing by Aug. 19.

On Wednesday, Kavanaugh denied the request. The order states the Court expects the Court of Appeals to render its own decision.

In its appeal, the Biden administration said the 8th Circuit U.S. Court of Appeals went too far when it issued a nationwide injunction, which effectively put a temporary freeze on the SAVE plan.

Biden introduced SAVE after the Supreme Court struck down his proposed student loan forgiveness plan. The White House said that the SAVE plan could lower borrowers' monthly payments to zero dollars, reduce monthly costs in half and save those who make payments at least $1,000 yearly. Additionally, borrowers with an original balance of $12,000 or less will receive forgiveness of any remaining balance after making 10 years of payments.

Legal challenges from Republican-led states resulted in a temporary block of the program until the litigation concluded. The 8th Circuit Court of Appeals issued a preliminary injunction blocking the SAVE student loan repayment plan. The block prevents the Department of Education from offering the plan while litigation continues. In the meantime, borrowers enrolled in the SAVE Plan are being moved into forbearance while the Biden administration defends the plan in court.

The appeal from the administration is separate from a lawsuit brought against the income-contingent SAVE Act by Alaska and other states in another appeals court. An emergency request for an injunction to block the student loan forgiveness plan in that case is also pending at the Supreme Court.