Supreme Court rejects request to dam Biden student loan debt program

The Supreme Court on Thursday rejected a request to dam the Biden administration’s student loan debt relief program.

Justice Amy Coney Barrett denied the emergency application to dam this system that had been filed by a Wisconsin taxpayers’ group Wednesday.

Barrett is chargeable for such applications issued from cases within the seventh Circuit U.S. Court of Appeals, which incorporates Wisconsin. A notation of her denial on the Supreme Court’s docket doesn’t indicate that she referred the applying to your entire Supreme Court before she rejected the request.

The loan relief plan, which is about to start taking effect this weekend, will cancel as much as $20,000 in student debt for tens of millions of borrowers.

Greater than 8 million people submitted applications for this system last weekend after the U.S. Department of Education launched a beta test.

The challenge to the plan got here from the Brown County Taxpayers Association in Wisconsin, which had filed a federal lawsuit in that state as a part of that effort.

Earlier this month, a U.S. District Court judge dismissed the suit, saying the group lacked legal standing to stall the plan pending the final result of the case.

The group then appealed that ruling to the seventh Circuit. In its request Wednesday to Barrett, the group asked that she or your entire Supreme Court suspend implementation of the debt relief program pending the final result of its appeal.

Dan Lennington, deputy counsel of Wisconsin Institute for Law & Liberty, Inc., which acted as lawyers for the taxpayers group, in a press release said, “After all, we’re disenchanted that the court denied us emergency relief.”

“But that doesn’t make this system lawful,” Lennington said. “Student loan forgiveness will remain under review by the courts and will possibly still be paused as we advocated for this week.”

— CNBC’s Annie Nova contributed to this report.