On Wednesday, the Supreme Court rejected the Biden-Harris administration's attempt to revive its student loan forgiveness plan in a brief order that allowed for an appeals court national injunction to stay in place. The decision from the high court is the latest blow to President Biden's attempts to unilaterally forgive hundreds of millions of dollars of debt from undergraduate and graduate students.
"The application to vacate injunction presented to Justice Kavanaugh and by him referred to the Court is denied," the court order reads. "The Court expects that the Court of Appeals will render its decision with appropriate dispatch." The Biden-Harris administration attempted to circumvent the Supreme Court's decision in early 2023 that curtailed its ability to forgive student loans by coming up with the Saving on a Valuable Education (SAVE) plan. The plan caps the amount that undergraduates have to pay to five percent of their income, which would require the federal government to pay $475 billion.
The Biden-Harris administration has argued that a 1993 law grants the Department of Education the authority to create "income contingent repayment" based off of "the appropriate portion of the annual income of the borrower." Given the Supreme Court's order, the case will head back to the U.S. Court of Appeals for the Eighth Circuit, in St. Louis.
Earlier this year, Republican-led states filed a lawsuit against the Biden administration to challenge the president's SAVE Plan, which was launched in 2022 and has forgiven loans for over 150,000 Americans. Kansas Attorney General Kris Kobach, who is leading the effort, explained during a press conference that Biden lacks the authority to take unilateral action on the issue. "In a completely brazen fashion, the president pressed ahead anyway," Kobach said, per The AP. "The law simply does not allow President Biden to do what he wants to do."
The court's decision is a major blow to President Biden's unconstitutional efforts to forgive billions of dollars in student loans and leaves millions of Americans in limbo after being promised unilateral action from the president. In President Biden's relentless effort to undermine the judiciary, he attempted to use the power of the executive branch to forgive student loans despite the court's previous order that doing so would be unconstitutional. His administration has given false hope to students, and it will only provide more fuel to those calling for the Supreme Court to be radically changed.
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