• US Supreme Court

Washington, Aug 28 (EFE) –

The US Supreme Court on Wednesday refused to allow President Joe Biden’s administration to reinstate the student debt cancellation program, halted in July by a St. Louis-based appeals court.

Saving on a Valuable Education (SAVE), was blocked by the Eighth Circuit Court of Appeals at the request of a group of Republican-majority states.

The lawsuit said the Joe Biden administration needed congressional approval to authorize the $475 billion it estimated the program would cost.

The Congressional Budget Office estimated a $230 billion cost over the next decade, and the administration believes the figure will be even lower at $156 billion.

The Supreme Court’s decision means the program will be on hold until the Eighth Circuit Court of Appeals rules on its legality.

Student debt forgiveness was one of Biden’s top campaign promises in the 2020 election.

The plan would reduce monthly student loan payments from 10% to 5% of a borrower’s discretionary income, saving the typical borrower about $1,000 annually, the White House says.

It would also forgive some smaller loans in ten years, compared to 20 or 25 years under previous rules.

Borrowers earning less than $32,000 a year would have their payments suspended until their income exceeds that amount, among other benefits.

An earlier financial relief plan was struck down by the Supreme Court’s conservative majority, which ruled that the government had overstepped its authority in setting up the cancellation of some $400 billion in student debt for about 43 million people.

In response to the decision of the six conservative justices of the Supreme Court, the Biden administration presented at the end of 2023 a new version, lowering monthly payments and accelerating the cancellation of loans. EFE

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