The U.S. 8th Circuit Court of Appeals has officially ended Joe Biden’s student loan forgiveness initiative, ruling that the administration exceeded its authority in creating the plan.
The decision, issued Tuesday, marks a significant legal defeat for Biden’s attempt to provide widespread debt relief through the Saving on a Valuable Education (SAVE) plan.
The legal challenge was led by Missouri Attorney General Andrew Bailey, who sued the administration over the $500 million effort to cancel student loan debt.
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The appeals court determined that the Secretary of Education “went well beyond this authority by designing a plan where loans are largely forgiven rather than repaid.”
Bailey responded to the ruling, emphasizing its broader implications beyond Biden’s tenure.
“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 said in a statement.
The decision follows a series of legal battles over Biden’s student loan initiatives.
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In 2023, the Supreme Court struck down his original forgiveness plan, which sought to cancel up to $20,000 in student debt per borrower.
In response, the administration introduced SAVE, a revised plan intended to provide relief through income-based payment adjustments and eventual debt cancellation.
However, the program faced immediate legal challenges.
A federal appeals court in Missouri had previously blocked the SAVE plan from taking effect while lower courts reviewed its legality.
The Biden-Harris administration appealed to the Supreme Court, requesting emergency relief to lift the injunction, but the justices denied the request.
The White House has continued to defend the program, arguing that the court’s ruling restricts efforts to ease the financial burden on borrowers.
“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 White House spokesperson told Fox News Digital.
“And, we won’t stop fighting against Republican elected officials’ efforts to raise costs on millions of their own constituents’ student loan payments.”
The SAVE plan, as introduced by the Biden administration, was designed to reduce monthly payments for borrowers, with some qualifying for zero-dollar payments.
The White House estimated that borrowers with original balances of $12,000 or less could have their remaining debt forgiven after 10 years of payments.
With the 8th Circuit’s ruling, the SAVE plan is now permanently blocked, preventing future presidents from reviving a similar effort through executive action.
The decision marks a decisive legal victory for Republican-led states challenging Biden’s debt relief policies.
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