The United States Supreme Court has rejected a plea by the Biden administration to restore most of the president's multibillion-dollar student debt forgiveness plan.
In an unsigned order, the high court said Wednesday it was keeping a hold on the SAVE Plan while lawsuits make their way through the courts.
It comes after the 8th U.S. Circuit Court of Appeals last month granted a temporary injunction filed by a group of Republican attorneys general who claimed the administration did not have authority to enact the SAVE Plan.
While the case is ongoing, the ruling stipulates that the Biden administration cannot carry out additional forgiveness under the SAVE Plan.
A White House official said we will vigorously defend the SAVE Plan, which has helped almost 8 million borrowers lower their monthly payments, including 4.5 million who have made zero dollar payments.
And, we won’t stop fighting against Republican elected officials’ efforts to raise costs on millions of their own constituents’ student loan payments.”
The SAVE Plan was created by an executive order in 2023 after the Biden administration failed in its efforts to forgive up to $20,000 of federal student loan debt per borrower.