Current:Home > ContactSupreme Court rebuffs Biden administration plea to restore multibillion-dollar student debt plan -WealthRoots Academy
Supreme Court rebuffs Biden administration plea to restore multibillion-dollar student debt plan
View
Date:2025-04-12 12:37:04
WASHINGTON (AP) — The Supreme Court on Wednesday kept on hold the latest multibillion-dollar plan from the Biden administration that would have lowered payments for millions of borrowers, while lawsuits make their way through lower courts.
The justices rejected an administration request to put most of it back into effect. It was blocked by 8th U.S. Circuit Court of Appeals.
In an unsigned order, the court said it expects the appeals court to issue a fuller decision on the plan “with appropriate dispatch.”
The Education Department is seeking to provide a faster path to loan cancellation, and reduce monthly income-based repayments from 10% to 5% of a borrower’s discretionary income. The plan also wouldn’t require borrowers to make payments if they earn less than 225% of the federal poverty line — $32,800 a year for a single person.
Last year, the Supreme Court’s conservative majority rejected an earlier plan that would have wiped away more than $400 billion in student loan debt.
Cost estimates of the new SAVE plan vary. The Republican-led states challenging the plan peg the cost at $475 billion over 10 years. The administration cites a Congressional Budget Office estimate of $276 billion.
Two separate legal challenges to the SAVE plan have been making their way through federal courts. In June, judges in Kansas and Missouri issued separate rulings that blocked much of the administration’s plan. Debt that already had been forgiven under the plan was unaffected.
The 10th U.S. Circuit Court of Appeals issued a ruling that allowed the department to proceed with a provision allowing for lower monthly payments. Republican-led states had asked the high court to undo that ruling.
But after the 8th Circuit blocked the entire plan, the states had no need for the Supreme Court to intervene, the justices noted in a separate order issued Wednesday.
The Justice Department had suggested the Supreme Court could take up the legal fight over the new plan now, as it did with the earlier debt forgiveness plan. But the justices declined to do so.
veryGood! (48892)
Related
- Senate begins final push to expand Social Security benefits for millions of people
- Jennifer Lopez Briefly Brings Up Ben Affleck Amid Split Rumors
- South Carolina governor signs into law ban on gender-affirming care for transgender minors
- Matthew Perry’s Death Still Being Investigated By Authorities Over Ketamine Source
- McConnell absent from Senate on Thursday as he recovers from fall in Capitol
- Teen Mom's Kailyn Lowry Reveals Her Boob Job Was Denied Due to Her Weight
- Vermont governor vetoes bill to restrict pesticide that is toxic to bees, saying it’s anti-farmer
- 11 presumed dead, 9 rescued after fishing boat sinks off the coast of South Africa
- Kylie Jenner Shows Off Sweet Notes From Nieces Dream Kardashian & Chicago West
- Progressive prosecutor in Portland, Oregon, seeks to fend off tough-on-crime challenger in DA race
Ranking
- Newly elected West Virginia lawmaker arrested and accused of making terroristic threats
- Connecticut’s top public defender could be fired as panel mulls punishment for alleged misconduct
- Teen Mom's Kailyn Lowry Reveals Her Boob Job Was Denied Due to Her Weight
- Climber's body found on Mount Denali in Alaska, North America's tallest
- North Carolina justices rule for restaurants in COVID
- Indiana Fever's Caitlin Clark injures ankle, but returns in loss to Connecticut Sun
- ‘Historic’ Advisory Opinion on Climate Change Says Countries Must Prevent Greenhouse Gasses From Harming Oceans
- Man seriously injured in grizzly bear attack in closed area of Grand Teton National Park
Recommendation
Tarte Shape Tape Concealer Sells Once Every 4 Seconds: Get 50% Off Before It's Gone
Elvis' Graceland faces foreclosure auction; granddaughter Riley Keough sues to block sale
Former Arizona GOP chair Kelli Ward and others set to be arraigned in fake elector case
Severe turbulence during Singapore Airlines flight leaves several people badly injured. One man died
Where will Elmo go? HBO moves away from 'Sesame Street'
Generative AI poses threat to election security, federal intelligence agencies warn
Storms have dropped large hail, buckets of rain and tornados across the Midwest. And more is coming.
Chris Pratt Shares Insight Into His Parenting Style With All 3 Kids