Supreme Court Blocks Biden's Student Loan Plan

The U.S. Supreme Court has denied President Biden's request to reinstate the Saving on a Valuable Education (SAVE) plan, which aimed to reduce federal student loan payments. This decision follows a nationwide injunction from the 8th U.S. Circuit Court of Appeals, which argued the plan could incur costs exceeding $475 billion without Congressional approval. The SAVE plan intended to cap repayments at 5% of income, down from 10%, and provide loan forgiveness for low-income borrowers, impacting over eight million enrolled individuals. Previous attempts at student loan forgiveness had already been blocked by the Supreme Court, which found that the administration lacked the authority to cancel debts without legislative backing. The Biden administration has already forgiven approximately $168 billion in student loans, but critics claim the new plan unfairly burdens taxpayers and possibly seeks electoral advantages ahead of upcoming elections. The appeals court is expected to issue a more detailed ruling on the plan's legality soon, potentially allowing for further Supreme Court review.