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The U.S. Supreme Court declined to reinstate President Joe Biden’s most recent plan to forgive student debt for millions of borrowers, instead letting lawsuits in lower courts play out.
The justices refused to take up an administration request to lift a hold the federal appeals court placed on the program in a lawsuit by Republican-led states, according to a document on the court’s website. It didn’t indicate if any justices dissented.
When Biden’s program to forgive billions of dollars of student debt through the HEROES Act was nixed by the U.S.’s highest court in 2023, the administration reworked the plan to go through the Higher Education Act. The original plan sought to cancel up to $20K of student loans per borrower who earned less than $125K per year.
Several Republican-led states filed lawsuits against the newest plan. Earlier, the 8th U.S. Circuit Court of Appeals paused the SAVE plan, saying it was “even larger in scope” than the original proposal.
As of July, the Biden administration has forgiven ~$168.5B in student loan debt, mostly through a program that applies to borrowers who work in certain public service jobs, Bloomberg reported.
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