Biden Requests Supreme Court to Remove Injunction on Student Loan Relief Plan

President Joe Biden has requested that the Supreme Court reinstate a ⁤$475 billion student loan relief plan, which was blocked⁤ by an ⁢appeals court two⁢ weeks ago. ‍The government ‍filed an emergency application on‌ August 13th after the U.S.‌ Court of Appeals for the Eighth Circuit temporarily halted the ⁤Saving on a ⁢Valuable Education (SAVE) plan while litigation continues.⁣ The ⁢case, ⁤known⁣ as Biden ​v. Missouri, is now before the⁢ Supreme Court.

The SAVE⁢ plan, proposed by U.S.⁤ Education Secretary Miguel Cardona in August 2022,⁤ aims⁣ to reduce monthly payments for eligible ‍borrowers and expedite loan ⁣forgiveness for ⁤others. Approximately 8 million borrowers‌ have already signed up ⁤for the program.

However, in‍ June⁣ 2023, before the SAVE plan‌ was finalized, the Supreme ​Court struck down a previous $400 billion​ student loan forgiveness plan in Biden ⁣v. Nebraska.

The Eighth Circuit determined that Missouri and six other states⁣ challenging the ⁢SAVE plan would likely be able to prove that it ⁣violates the major questions doctrine.⁤ This doctrine requires courts to assume that Congress does not delegate important policy questions ⁢to ‌government agencies.

As a ⁣result of⁣ this ruling, federal forgiveness of principal or interest on outstanding student loans has been temporarily halted nationwide. Additionally, ⁢interest calculation on‌ loans has ‍been blocked‍ and provisions allowing borrowers to make⁢ low or zero monthly payments based on income have been paused.

The Eighth Circuit’s decision conflicts ⁢with ⁢an order issued by the Tenth Circuit‍ in Alaska v. U.S Department of Education on June 30th which allowed‍ repayments ⁤based on ⁣income to ‌begin temporarily.

On ​August 22nd, however, the​ Tenth Circuit issued a new order deferring to both the Eighth Circuit and Supreme Court while they ​attempt⁣ to resolve this dispute ⁤over the SAVE plan.

President⁢ Biden’s filing argues that this ⁤new ruling‌ from Tenth ⁤Circuit further supports vacating or narrowing Eighth Circuit’s universal injunction so that implementation of SAVE can proceed either ‍fully ⁣or partially.

According to U.S Solicitor General ​Elizabeth‍ Prelogar’s brief presented ⁢to Supreme Court: “One ⁢circuit⁤ should not be able inhibit ‌development of ‘thoughtful precedent at ⁤circuit level’ by issuing an injunction with universal reach…where more tailored relief would fully redress plaintiffs’ asserted injury.”

Nationwide injunctions have sparked controversy within⁢ legal circles recently as they extend beyond specific cases involved​ and affect parties‌ not ⁢directly related to litigation.

Justices Neil Gorsuch and Clarence Thomas have criticized such nationwide⁤ injunctions‍ previously.

Gorsuch wrote in 2020: “It is difficult see how court is still acting within⁣ its judicial ⁢role…when federal courts ⁣issue nationwide injunctions affecting parties⁢ not‌ involved in litigation.”

If Supreme ⁤Court declines vacating or narrowing Eighth​ Circuits’⁤ universal injunction ⁣then‌ it should ⁢treat ⁣application as petition for certiorari (review) and fast-track oral⁤ arguments in Biden v.Missouri according Prelogar’s brief.

Missouri Attorney General Andrew Bailey did not⁤ respond when reached out ‌for comment by The Epoch Times.

While currently pending during ⁤summer ⁢recess,the government’s application remains under consideration ‍by Supreme ⁣Court who ⁢could issue their ruling at any ⁣time

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