Supreme Court blocks Biden's student loan forgiveness plan leaving borrowers in limbo the Supreme Court has decided not to reinstate President Biden's latest student loan forgiveness plan for now leaving millions of borrowers in uncertainty The Plan called the safe plan was blocked by an appeals court due to Legal challenges from several Republican Le States the Supreme Court's decision means that the current block on the plan remains in place while the legal process continues the save Plan introduced in July 2023 is designed to reduce student loan payments for borrowers based on their income for example borrowers making payments under this plan would pay only 5% of their discretionary income above a certain threshold additionally those who owe $122,000 or less could have their debt forgiven after 10 years of payments the education department estimates this plan will cost nearly 56 billion over 10 years the plan faced obstacles when seven states sued to block it arguing that it overstep