On Wednesday, August 28, the United States Supreme Court turned down a plea from Joe Biden’s administration to reinstate its multibillion-dollar plan intended to bring the monthly installment for borrowers to a lower amount.
The plan, dubbed SAVE—Saving on a Valuable Education, was introduced by the White House in August 2023. Originally, undergraduate students would have to pay 10% of their discretionary income in loans. SAVE aimed to lower the amount to 5% of the income, which, according to the Biden administration, could help students save around $1,000 a year.
The Education Department aimed to help borrowers get shorter repayment tenures for loans of smaller amounts. The SAVE plan also made way for a loan amount of $12,000 or less to be forgiven by the Biden administration after 10 years.
St. Louis District Judge John Ross blocked an overture for the SAVE plan’s implementation in June. On August 9, the Eight Circuit Court of Appeals in St. Louis completely blocked the plan from taking its course. Following the ruling, the Biden administration filed an emergency motion with the Supreme Court to withdraw the appeals court’s order, but the Justice denied the request.
Following the news, netizens shared their opinions. While some were enraged with the Supreme Court's decision, others sided with them.
"The supreme court needs to be overthrown at this point", wrote one person.
"This is why it’s so important twe vote Kamala cause she will appoint judges that support young people", one X user opined.
"and that’s why it’s important kamala is voted so she can continue pushing for policies like these that will actually benefit the people", another resonated.
"i just graduated… i needed this", commented one person.
A few others were not on board with SAVE and did not want taxpayer money to fund the student loans.
"Why should taxpayers foot the bill for student loans that others chose to take on?", said one.
"Your loan your responsibility", wrote another.
"If you can’t afford to pay back a loan, don’t accept it, that goes for everyone", commented one X user.
Supreme Court blocks Biden administration's SAVE plan following appeals court's injunction
According to a court document, the Justice hoped the St. Louis appeals court would deliver "its decision with appropriate dispatch." As per the Education Department, the approximate cost for the student debt relief plan over 10 years would be $156 billion.
However, GOP-led lawyers claimed the estimated amount would reach approximately $475 billion, considering that the Biden administration had deducted $430 billion as loan forgiveness.
Seven Republican-led states objected to this program in recent months. A federal lawsuit aimed to block SAVE from taking effect was filed in Missouri. Some of these states further sued the program in a Kansas federal court.
Following the Supreme Court's decision, Andrew Bailey, Missouri Attorney General, said:
"This court order is a stark reminder to the Biden-Harris administration that Congress did not grant them the authority to saddle working Americans with $500 billion in someone else’s Ivy League debt."
Bailey added that it was a "win" for Americans who advocate paying off student fees on their own.
An Education Department spokesperson expressed their disappointment with the decision and said they would continue to root for lower installment amounts for borrowers.