Court Strikes Deathblow to Biden’s Student Debt Plan

Former President Biden’s attempts to provide student debt relief hit with deathblow as courts blocked his efforts.

Quick Takes

The 8th Circuit Court of Appeals officially ended Biden’s student loan forgiveness plan.
The Supreme Court denied the administration’s request to lift a block on the SAVE plan.
Missouri Attorney General Andrew Bailey sued the Biden administration over the $500 billion SAVE plan.
The ruling prevents future presidents from implementing similar student loan forgiveness plans.
The White House claimed the SAVE plan has helped over 8 million borrowers with lower payments.

Courts Deliver Blow to Biden’s Student Debt Relief Plans

The Biden administration’s efforts to provide widespread student debt relief have hit another roadblock. The 8th Circuit Court of Appeals has officially ended former President Biden’s student loan forgiveness plan, ruling that the administration overstepped its legal bounds. This decision follows the Supreme Court’s earlier ruling that blocked Biden’s initial plan to cancel student debt for millions of families.

The court’s decision is a significant setback for the previous attempts to address the nation’s student debt crisis. It not only blocks the current plan but also sets a precedent that could prevent future presidents from implementing similar student loan forgiveness initiatives without explicit congressional approval.

Circuit court puts final nail in the coffin for Biden's $500B student loan forgiveness plan https://t.co/SQa4iTPy8E

— Fox News Politics (@foxnewspolitics) February 19, 2025

SAVE Plan Faces Legal Challenges

Following the Supreme Court’s rejection of the initial debt cancellation plan, the Biden administration introduced the SAVE (Saving on a Valuable Education) plan. This alternative approach aimed to provide lower monthly payments for borrowers and potential loan forgiveness after 10 years.

Missouri Attorney General Andrew Bailey sued the Biden administration over the SAVE plan, arguing that it exceeded the authority granted by Congress. The court agreed, ruling that the Secretary of Education had overstepped by designing a plan for loan forgiveness rather than repayment.

“Though Joe Biden is out of office, this precedent is imperative to ensuring a President cannot force working Americans to foot the bill for someone else’s Ivy League debt.” – Bailey

Future Implications

The ruling’s impact extends beyond the current administration. It effectively limits the executive branch’s ability to implement broad student loan forgiveness programs without explicit congressional authorization. This decision highlights the ongoing debate over the extent of presidential power and the role of the judiciary in checking executive actions.

As the legal battles continue, millions of student loan borrowers face uncertainty about their financial futures. The administration’s efforts to provide relief have been thwarted, leaving many to wonder what alternatives, if any, may be available to address the growing student debt crisis in America.