SC denies Biden's plea to restore multibillion-dollar student debt plan

The Supreme Court on Wednesday kept on hold the latest multibillion-dollar student debt relief plan from the Biden administration, while multiple 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 8th US 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 per cent to 5 per cent of a borrower's discretionary income. The plan also wouldn't require borrowers to make payments if they earn less than 225 per cent 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.