Red States Ask Supreme Court To Block Biden’s Student-Loan Scheme

President Joe Biden departs after delivering remarks on student loan debt at Madison College, Monday, April 8, 2024, in Madison, Wis. (AP Photo/Evan Vucci)

A trio of Republican-led states called on the Supreme Court on Tuesday to halt the Biden administration’s plan to slash student debt repayments for millions of borrowers.

Republican attorneys general from Alaska, South Carolina, and Texas are challenging the Saving on a Valuable Education, or SAVE, Plan, which is aimed at lower-income borrowers to reduce their monthly payments and provide a faster route to debt forgiveness. The plan was formulated on the heels of the Supreme Court decision last year to strike down President Joe Biden’s broader student loan forgiveness program.

The petition comes just days after the U.S. Court of Appeals for the 10th Circuit lifted a temporary halt on the Biden administration’s plan, and it once again thrusts the president’s longstanding campaign promise into the legal limelight just months before the 2024 presidential election.

“As Congress has done nothing in the intervening 12 months to authorize the Administration to write off nearly half a trillion dollars of loans, if the Tenth Circuit were to vacate the district court’s preliminary injunction, it will ‘ha[ve] decided an important federal question in a way that conflicts with [a] relevant decision[] of this Court,’” the states argued in their petition.

Around 8 million people are enrolled in the SAVE Plan, and nearly 3 million enrollees were expected to begin lower payments as of July 1, when the plan was activated.

Read the full story here.