3 states file emergency Supreme Court petition to halt Biden’s student loan repayment program

A trio of GOP-run states filed an emergency petition on Monday with the Supreme Court to halt President Biden’s Saving on Valuable Education (SAVE) income-driven student loan repayment program.  

South Carolina, Texas and Alaska petitioned the court to halt the plan after the 10th Circuit allowed the administration to start a significant portion of it. 

The SAVE plan was set to slash monthly student loan payments from 10 percent of discretionary income to 5 percent this month. It would also begin offering student loan forgiveness to certain groups of borrowers.  

The 10th Circuit halted the loan forgiveness but said the lower monthly payments could proceed, leaving the states to appeal to the Supreme Court, which last year struck down Biden’s previous attempt at universal debt relief.

By default, Monday’s motion was sent to Justice Neil Gorsuch, who handles emergency appeals arising from the 10th Circuit.  

But Gorsuch could refer the matter to his colleagues for a vote. And even though the Supreme Court is on its summer recess, the justices still act on emergency applications. 

The case has thrown student loan borrowers into another round of uncertainty as Republicans continue to fight against Biden’s efforts at student loan forgiveness.

The Biden administration has taken action to put borrowers in forbearance while the legal challenge plays out in court.  

“While we are frustrated by the continued legal challenges brought to limit borrower relief, we are pleased to see the Department of Education take quick and decisive action by placing 3 million borrowers in an administrative forbearance,” said Natalia Abrams, president of Student Debt Crisis Center.