The Biden administration’s request to temporarily reinstate its new student debt plan, which would have reduced payments for millions of borrowers, was reportedly rejected by the Supreme Court on Wednesday.
The Justice Department’s emergency appeal requested that the Supreme Court vacate a lower ruling that is presently impeding Biden’s plan while a legal challenge is ongoing.
There were no public dissents regarding the decree.
The legality of the proposal may ultimately be referred back to the high court, as it is not a definitive ruling.
At the moment, it serves as an obstacle to the administration’s implementation of the Saving on a Valuable Education (SAVE) initiative.
The initial phase commenced in October of last year, during which the income safeguarded from loan payments was increased to 225 percent of the federal poverty line and unpaid interest was prohibited from accruing.
Monthly payments will be reduced from 10% of a borrower’s discretionary income to 5% in the second phase, which was scheduled to commence in July.
The plan also would have reduced the repayment period for qualifying debtors to 10 years, following which their remaining balance will be forgiven.
[READ MORE: Commentator at CNN Slams Biden-Harris for Running America ‘Into a Ditch’]
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