Supreme Court Blocks Biden's Student Debt Relief Plan Amid Ongoing Legal Battles

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The Supreme Court has decided to keep President Joe Biden’s latest student debt relief plan on hold while lawsuits proceed in lower courts. In two unsigned orders issued on Wednesday, the Court denied the administration’s request to temporarily reinstate the plan, which aims to provide billions in debt relief and lower payments for borrowers.

The 8th U.S. Circuit Court of Appeals had previously blocked the implementation of Biden’s SAVE Plan, dealing a significant setback to the President’s efforts to reduce the financial burden on borrowers. Following this ruling, the administration appealed to the Supreme Court, seeking to allow the plan to move forward.

This decision comes after earlier legal challenges blocked key aspects of the SAVE Plan, which included lowering the income-based repayment rate from 10% to 5% of discretionary income and accelerating loan cancellations. The Supreme Court has previously ruled against Biden’s broader student loan relief efforts, stating that he and Education Secretary Miguel Cardona exceeded their legal authority.