The Supreme Court has dealt a blow to President Joe Biden’s student-loan relief program, keeping a block on the initiative that would extend payment periods and forgive outstanding debts of $12,000 or less. This decision comes after the court struck down Biden’s attempt to cancel up to $400 billion in student loans last year.
Republican-led states had sued to stop the latest program, known as Save, arguing that Biden had overstepped his authority. Lower courts had put Save on pause while the lawsuits made their way through the legal system, and the Supreme Court ultimately backed one of those injunctions in an emergency ruling.
With more than one in 10 Americans holding federal student debt, the issue has been a major concern for young voters and a key focus for the Biden administration. While Biden has approved nearly $150 billion in relief for close to five million people through executive actions, the Supreme Court’s decision puts a halt to his efforts to provide more comprehensive relief through Save.
The program, touted as “the most affordable student loan repayment plan ever,” has already benefited over 400,000 participants, including many low-income borrowers. However, the Supreme Court’s decision to uphold the injunction in Missouri means that the relief program will not move forward as planned, impacting those with larger loan balances.
The legal battle over student loan relief continues to unfold, with the states and the Biden administration filing emergency petitions to the Supreme Court. The court’s conservative majority ruling in favor of the injunction in Missouri highlights the ongoing debate over the president’s authority to enact such sweeping relief measures without congressional approval.
