The Supreme Court of USA rejection This Wednesday allow the government to resume the student debt cancellation programwhose application was halted in July by an appeals court at the request of several states.
The programknown as Savings for Quality Education (SAVE) Plan, was Blocked by the Eighth Circuit Court of Appeals at the request of a group of Republican-majority states that believe the Trump Administration Joe Biden needs Congress’s permission to authorize spending up to $475 billion.
The Budget Office of the Congress lowered the cost estimate for the program to $230 billion in the next decade, while the Government considers that The figure will be even lower, at 156 billion.
The Supreme Court’s decision, which was issued without dissenting voices among the three progressive judges, means that The program will be put on hold until the Eighth Circuit Court of Appeals reach a decision on its legality.
Cancelling student debt was one of Biden’s key campaign promises in the 2020 election, when he faced former Republican President Donald Trump.
An initial financial relief plan was struck down by the Supreme Court’s conservative majoritywhich decided that the Executive had exceeded its powers by establishing the cancellation of some 400 billion in student debt to some 43 million people.
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In response to the decision of the six conservative justices of the highest court, The Biden administration introduced a new version, the SAVE plan, at the end of 2023, which lowers monthly payments and accelerates loan repayment.