On Wednesday, the Supreme Court ruled to keep an injunction halting one of the key provisions of President Joe Biden's changes to the federal student loan program. The court upheld a lower court's block on the Saving on a Valuable Education (SAVE) plan—an income-driven repayment plan that would have drastically reduced the amount many borrowers would have to pay on their loans before receiving forgiveness.
In 2022, Biden announced plans to enact widespread, one-time student loan forgiveness. While that plan was halted by the Supreme Court last year, several other elements of Biden's policy changes—including the SAVE plan—went untouched. However, several Republican states launched lawsuits against the program, arguing that the plan's incredibly generous terms amounted to an illegal overuse of executive spending power.
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