States Want Supreme Court To Block Loan Plan

(USNewsBreak.com) – Student loan forgiveness formed a large cornerstone of President Joe Biden’s campaign when he ran in 2020. When he tried to implement a sweeping program that would have seen most Americans receive up to $20,000 forgiven off their balance, states sued and took the matter all the way to the Supreme Court. The court eventually ruled that Biden didn’t have the authority to issue such forgiveness. However, that didn’t stop the administration, which began narrowing its focus on specific types of loans. Now, three red states are suing to prevent these programs as well.

On Tuesday, July 9, Texas, Alaska, and South Carolina filed an emergency Supreme Court petition asking justices to block the Savings on Valuable Education (SAVE) plan, which they claim skirts around the High Court’s 2022 ruling. Initially, lower courts in Missouri and Kansas sided with the red states, but the administration took the issue to the 10th US Circuit Court, which lifted the injunction. That allowed the feds to move forward with partial forgiveness while it considered the merits.

Three states ask Supreme Court to stop Biden student loan forgivenesshttps://t.co/BiCQyUvpcr pic.twitter.com/5kWelaHalq

— The Washington Times (@WashTimes) July 9, 2024

“This current attempt to unilaterally cancel debt is every bit as unlawful as the first 12-digit effort this court rejected,” the petition stated. The states want the Supreme Court to block the plan from moving forward while the case works its way through the courts.

The SAVE plan seeks to reduce student loan payments by lowering the amount paid based on discretionary income from 10% to 5%. While the Supreme Court is handling the matter — the petition went to Justice Neil Gorsuch, who could refer it for a vote — the Biden Administration is working to put qualifying students in forbearance. During this period, they will not have to pay.

The Supreme Court is currently on recess, but the Justices still take up emergency petitions. It’s unclear when the Court might respond to the petition.