8th Circuit Court of Appeals Deals Final Blow to Biden’s Student Loan Forgiveness Plan
On Tuesday, the U.S. 8th Circuit Court of Appeals struck down former President Joe Biden’s Student Aid and Relief from Economic (SAVE) plan, putting an end to his ambitious effort to wipe out billions of dollars in student loans.
Lawsuit and Court Ruling
The lawsuit that led to this ruling was filed by Missouri Attorney General Andrew Bailey, who challenged the administration’s authority to implement such a widespread loan forgiveness program. The court agreed with Bailey’s argument, finding that the Secretary of Education, Miguel Cardona, had "gone well beyond" his authority by designing a plan that effectively forgave loans rather than repaying them.
Bailey’s Statement
Bailey expressed his satisfaction with the ruling, emphasizing that it prevents future presidents from attempting similar maneuvers without congressional approval. "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," he said.
Supreme Court Denial
Last year, the Supreme Court denied the Biden administration’s request to lift a block on the SAVE plan. A federal appeals court in Missouri had previously blocked the entire program while litigation continued in lower courts.
Department of Justice Appeal
The Department of Justice, representing the Biden administration, made a last-ditch effort to overturn the block by appealing to the Supreme Court for emergency relief. However, the high court declined to intervene.
White House Response
The White House responded to the 8th Circuit Court’s ruling by expressing its disappointment and stating that it would continue to defend the SAVE plan. "Our Administration will continue to aggressively defend the SAVE Plan – which has helped over 8 million borrowers access lower monthly payments, including 4.5 million borrowers who have had a zero dollar payment each month," a spokesperson told Fox News Digital.
Biden’s Initial Plan
Biden introduced the SAVE plan after the Supreme Court struck down his initial student loan forgiveness plan. The White House claimed that the SAVE plan could significantly reduce monthly payments, lower costs in half, and provide substantial savings to borrowers over the long term.
Conclusion
The 8th Circuit Court of Appeals’ ruling effectively ends Biden’s student loan forgiveness effort. The decision sets a precedent that limits the executive branch’s authority to forgive student debt without congressional approval. Future presidents will face obstacles in implementing similar plans without obtaining the consent of the legislative branch.
