Supreme Court rebuffs plea to restore multibllliou-dollar student debt plan
Legal Compliance
lawsuits make their way through lower courts.
The justices rejected an administration request to put most of it back into effect. It was blocked by the 8th U.S. Circuit Court of Appeals.
In an unsigned order, the court said it expects the appeals court to issue a fuller decision on the plan “with appropriate dispatch.”
The Education Department is seeking to provide a faster path to loan cancellation, and reduce monthly income-based repayments from 10% to 5% of a borrower’s discretionary income. The plan also wouldn’t require borrowers to make payments if they earn less than 225% of the federal poverty line — $32,800 a year for a single person.
Last year, the Supreme Court’s conservative majority rejected an earlier plan that would have wiped away more than $400 billion in student loan debt.
Cost estimates of the new SAVE plan vary. The Republican-led states challenging the plan peg the cost at $475 billion over 10 years. The administration cites a Congressional Budget Office estimate of $276 billion.
Two separate legal challenges to the SAVE plan have been making their way through federal courts. In June, judges in Kansas and Missouri issued separate rulings that blocked much of the administration’s plan. Debt that already had been forgiven under the plan was unaffected.
The 10th U.S. Circuit Court of Appeals issued a ruling that allowed the department to proceed with a provision allowing for lower monthly payments. Republican-led states had asked the high court to undo that ruling.
But after the 8th Circuit blocked the entire plan, the states had no need for the Supreme Court to intervene, the justices noted in a separate order issued Wednesday.
The Justice Department had suggested the Supreme Court could take up the legal fight over the new plan now, as it did with the earlier debt forgiveness plan. But the justices declined to do so.
“This is a recipe for chaos across the student loan system,” said Mike Pierce, executive director of the Student Borrower Protection Center, an advocacy group.
“No court has decided on the merits here, but despite all of that borrowers are left in this limbo state where their rights don’t exist for them,” Pierce said.
Eight million people were already enrolled in the SAVE program when it was paused by the lower court, and more than 10 million more people are looking for ways to afford monthly payments, he said.
Sheng Li, litigation counsel with the New Civil Liberties Alliance, a legal group funded by conservative donors, applauded the order. “There was no basis to lift the injunction because the Department of Education’s newest loan-cancellation program is just as unlawful as the one the Court struck down a year ago,” he said in a statement.
Related listings
-
Court filings provide additional details of the US’ first nitrogen gas execution
Legal Compliance 08/01/2024A corrections officer who helped carry out the nation’s first nitrogen gas execution said in a court document that the inmate had normal blood oxygen levels for longer than he expected before the numbers suddenly plummeted.Another court documen...
-
Giuliani Disbarred in N.Y. for Wrongdoing During Trump’s 2020 Campaign
Legal Compliance 07/07/2024Rudy Giuliani, the former New York City mayor, federal prosecutor and legal adviser to Donald Trump, was disbarred in New York on Tuesday after a court found he repeatedly made false statements about Trump’s 2020 election loss.The Manhattan app...
-
Israel’s high court orders the army to draft ultra-Orthodox men
Legal Compliance 06/26/2024Israel’s Supreme Court on Tuesday ruled unanimously that the military must begin drafting ultra-Orthodox men for compulsory service, a landmark decision that could lead to the collapse of Prime Minister Benjamin Netanyahu’s governing coal...
Victorville CA DUI Lawyers - Drunk Driving Defense Attorney
The outcome of a Victorville CA DUI defense will have a long-term effect on anyone’s life, making the decision to receive legal representation an easy one. The fact is, most people accused of a DUI are first offenders with no criminal background. Whether this is your first run in with the law or you have had previous convictions, you are in need of a DUI defense attorney.
If you fail a sobriety test or have a blood alcohol level above 0.8%, you are considered to be driving under the influence in which you will be arrested. During this time you will be read your Miranda rights and it is crucial to exercise your right to remain silent. As they say, “anything you say can and will be held against you in court.” The courtroom takes no mercy on drunk drivers and any statement you make during your arrest will only damage your case.