Lubbock Times

WASHINGTON, D.C. – The Supreme Court has unanimously ruled to maintain the pause on the Biden-Harris Administration’s student loan cancellation plan, known as the Saving on a Valuable Education (SAVE) plan.

Chairman Arrington issued a statement following the decision: “Today’s decision by the Supreme Court to keep the Biden-Harris Administration’s reckless student loan bailout on pause is a good sign they’ll ultimately declare it unconstitutional. The so-called ‘SAVE plan’ is a back door loan cancellation on the taxpayers’ dime and, even worse, it forces mainly lower-income individuals to pay off loans of higher-income college students. Kamala Harris should have to answer for this regressive and unfair executive action that will cost taxpayers hundreds of billions of dollars and further drive up college tuition. As our nation stares down an unprecedented debt and deficit crisis, one thing is clear: we cannot afford four more years of a Democrat president.”

In June 2023, after the Supreme Court found their $330 billion student loan scheme unconstitutional, the Biden-Harris Administration announced measures including a finalized income-driven repayment (IDR) rule under the SAVE Plan. This plan modifies the IDR program to allow 91 percent of new student debt to be eligible for reduced payments and eventual transfer to taxpayers.

The Congressional Budget Office estimates that the SAVE plan will cost taxpayers $260.7 billion over the next decade, while other entities project costs could reach $475 billion.

The administration's approach to student loans has faced criticism for bypassing Congress and potentially driving up tuition costs while increasing national debt and deficits. President Biden’s FY 2025 budget proposal includes significant funding aimed at reducing education costs, such as $290.3 billion for postsecondary education access and training initiatives.

In contrast, House Budget Committee’s FY 2025 “Reverse the Curse” Budget Resolution aims to protect taxpayer dollars by ending current and future student loan bailouts.

For further information:

- Chairman Arrington’s statement when President Biden announced this student loan scheme can be read [HERE].

- Details about FAFSA Fumbles are available [HERE].

- Analysis of President Biden’s student loan bailouts by PWBM can be read [HERE].