Texas Asks Supreme Court to Consider Challenge to Student Loan Relief Plan

Texas told the Supreme Court on Aug. 10 that it wants to press on with a pending emergency application to halt the U.S. Department of Education’s proposed student loan relief plan even after a federal appeals court blocked key parts of it.

Alaska, South Carolina, and Texas filed an application in the complex, heavily litigated case with the Supreme Court on July 5, asking the court to halt the department’s SAVE plan. The plan would cancel some student loan debt and has an estimated price tag of $475 billion. The case is known as Alaska v. Department of Education.

The SAVE plan, first proposed by Education Secretary Miguel Cardona in August 2022, would lower monthly payments for millions of eligible borrowers and accelerate loan forgiveness for some borrowers. SAVE is an acronym that stands for Saving on a Valuable Education.

A reported 8 million borrowers have signed up for the program.

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

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