Former President Biden’s student debt cancellation efforts face another setback as courts deal what is being called a deathblow.
Quick Takes
- 8th Circuit Court of Appeals officially ends Biden’s student loan forgiveness plan.
- Supreme Court denies request to lift block on SAVE plan, a $500 billion debt relief initiative.
- Missouri Attorney General Andrew Bailey successfully sues Biden administration over SAVE plan.
- Court rules Secretary of Education exceeded authority in designing loan forgiveness rather than a repayment plan.
- Ruling prevents future presidents from implementing similar student loan forgiveness plans.
Biden’s Student Debt Relief Plans Hit Legal Roadblocks
Former President Joe Biden’s efforts to provide student debt relief to millions of Americans have encountered significant legal obstacles. The 8th Circuit Court of Appeals has officially ended Biden’s initial student loan forgiveness plan, ruling that the administration overstepped its legal bounds. This decision follows a Supreme Court ruling that blocked the president’s attempt to unilaterally cancel student debt, dealing a major blow to his campaign promise.
In response to these setbacks, the Biden administration introduced the SAVE (Saving on a Valuable Education) plan, which aimed to offer lower monthly payments for borrowers. However, this alternative approach has also faced legal challenges, with the Supreme Court denying the administration’s request to lift a block on the program.
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
Legal Challenges and Criticism
Missouri Attorney General Andrew Bailey led the charge against the SAVE plan, suing the Biden administration over what he described as a $500 billion student loan forgiveness effort. The court sided with Bailey, ruling that the Secretary of Education had exceeded their authority 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
U.S. Circuit Judge L. Steven Grasz, appointed by President Trump, wrote in the court’s opinion that the plan exceeded the authority granted by Congress. This ruling not only halts the SAVE plan but also sets a precedent that could prevent future presidents from implementing similar student loan forgiveness plans without explicit congressional approval.
Looking Ahead
While the Biden administration successfully canceled debt for over 5 million Americans through other means, the recent court decisions represent a significant setback for broader student loan forgiveness efforts. The rulings underscore the challenges of implementing large-scale debt relief programs without explicit congressional authorization.
As the debate over student debt relief continues, it is clear that any future attempts to address the issue will likely require legislative action rather than executive orders. This development highlights the importance of congressional involvement in shaping education policy and financial relief programs for millions of American borrowers.
Sources:
- Joe Biden’s Student Debt Cancellation Scheme Is Officially Dead Now
- Circuit court puts final nail in the coffin for Biden’s $500B student loan forgiveness plan
- Student Loan Forgiveness Suffers Fatal Blow
