President Joe Biden asked the Supreme Court on Aug. 23 to reinstate a $475 billion student loan relief plan two weeks after an appeals court blocked the program.
The government’s emergency application in the heavily litigated case was filed on Aug. 13 after the U.S. Court of Appeals for the Eighth Circuit on Aug. 9 temporarily paused the Saving on a Valuable Education (SAVE) plan while the litigation over it continues. The case before the Supreme Court is known as Biden v. Missouri.
The SAVE plan that U.S. Education Secretary Miguel Cardona first proposed in August 2022 would reduce monthly payments for millions of eligible borrowers and accelerate loan forgiveness for others. A reported 8 million borrowers have signed up for the program.
The SAVE plan wasn’t yet finalized in June 2023 when the Supreme Court struck down the federal government’s previous $400 billion student loan forgiveness plan in Biden v. Nebraska.
The Eighth Circuit found that Missouri and six other states challenging the plan would probably be able to prove that the plan violates the major questions doctrine. The doctrine requires courts to presume that Congress doesn’t delegate important policy questions to government agencies. […]
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