The Supreme Court rejected President Joe Biden’s latest student loan relief request. This scheme extended payments and forgave debts under $12,000. The judge blocked the initiative, a blow to Biden’s ambitions to help millions of Americans financially.
Background on Student Loan Relief
Last year, the Supreme Court rejected a $400 billion student loan cancellation plan. Despite this, Biden sought consolation elsewhere. The lowest-cost student loan repayment plan ever was “Save” (Saving on a Valuable Education). Over 400,000 Save members, mostly low-income debtors, have had their loans wiped.
Supreme Court rulings and legal challenges
Republican-controlled states opposed Save. They said Biden had overstepped his authority and that only Congress could pass such a significant spending proposal. Federal justices issued injunctions in two lawsuits last summer, halting Save program monthly payments and greater loan forgiveness.
The Biden administration asked the Supreme Court to lift these injunctions. The Save program was halted when the court supported Missouri’s verdict. Owing to this decision, the July 1 monthly payment reductions will not happen.
Effect on Borrowers
This verdict impacts millions of federal student loan holders. Many of Biden’s $150 billion in aid for roughly five million individuals has been granted through administrative measures rather than Congress. The court’s ruling is a significant setback for Save program beneficiaries.
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