The United States Supreme Court rejected an emergency appeal from the Biden administration to lift a nationwide injunction on the student loan forgiveness plan. However, the Justices did agree to fast-track the case and will hear arguments in February.
The student loan forgiveness plan would wipe out $10,000 in student loan debt for individuals making under $125,000 and couples earning less than $250,000. In addition, those who received Pell Grants would have up $20,000 in student loans forgiven.
The plan has faced several lawsuits, including one filed by six GOP-led states. In that case, a three-judge panel with the 8th Circuit Court of Appeals in St. Louis issued a nationwide injunction after determining that Missouri had legal standing to file the lawsuit.
In response to the injunction, the Biden administration extended a pause on repayments until June 30, 2023.
A decision on the legality of the plan is expected in June.
