Biden Requests Supreme Court To Remove Injunction On Student Loan Relief Proposal

President Joe Biden is seeking the reinstatement of a $475 billion student loan relief plan through an application submitted to the Supreme Court on August 23. This move comes two weeks after an appeals court blocked the program.

The emergency application from the government was filed on August 13 in response to the U.S. Court of Appeals for the Eighth Circuit temporarily putting a pause on the Saving on a Valuable Education (SAVE) plan on August 9. The litigation surrounding this plan is ongoing, and the case before the Supreme Court goes by the name Biden v. Missouri.

The proposed SAVE plan, which was first introduced by U.S. Education Secretary Miguel Cardona in August 2022, aims to reduce monthly payments for millions of eligible borrowers and expedite loan forgiveness for others. Approximatey 8 million borrowers have already signed up for the program.

However, the SAVE plan was not yet finalized when the Supreme Court, in Biden v. Nebraska, struck down the federal government’s previous $400 billion student loan forgiveness plan in June 2023.

The Eighth Circuit determined that Missouri and six other states, which were challenging the plan, would likely be able to provide evidence that the plan violates the major questions doctrine. According to this doctrine, the courts are to presume that Congress does not delegate important policy questions to government agencies.

The nationwide injunction issued by the circuit court temporarily prevents the federal government from forgiving principal or interest on outstanding student loans. It also blocks a provision that halts interest from accruing on loans and puts a pause on a provision allowing borrowers to make very low or zero monthly payments based on their income.

The Eighth Circuit’s order conflicted in part with a June 30 order by the 10th Circuit in Alaska v. U.S. Department of Education, which temporarily allowed repayments based on income to commence.

In the words of the brief presented to the Supreme Court by U.S. Solicitor General Elizabeth Prelogar, “The Eighth Circuit’s injunction already nullified the 10th Circuit’s order and granted the relief sought by the plaintiffs”

The brief further states that “The Eighth Circuit’s order prevents other courts from considering the issues at hand, and this is not how the judicial process should work.”

Expressing concern over the use of nationwide injunctions, where a court issues an injunction that extends beyond the specific case before it, the brief cites criticism from Justices Neil Gorsuch and Clarence Thomas.

The brief concludes, “To restore normal operations in both circuits, the Supreme Court should vacate or at least narrow the Eighth Circuit’s universal injunction.” However, if the court is unwilling to take this step, the application should be treated as a petition for certiorari (review) with oral arguments scheduled in Biden v. Missouri to fast-track the case.

Missouri Attorney General Andrew Bailey was contacted for a comment but did not respond at the time of publication.

While the Supreme Court is currently in recess for the summer, the government’s application is under review on the court’s emergency docket. A ruling could be issued at any time by the justices.