OAN Staff James Meyers
8:01 AM – Wednesday, February 19, 2025
The U.S. 8th Circuit Court of Appeals put an official end to former President Joe Biden’s student loan forgiveness plan on Tuesday.
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Missouri Attorney General Andrew Bailey (R-Mo.) previously sued the Biden administration over its $500 million effort to get rid of student loans, which was known as the SAVE plan.
The ruling by the court on Tuesday found that Biden’s secretary of education had “gone well beyond this authority by designing a plan where loans are largely forgiven rather than repaid.”
It was also cited that the ruling has no active impact blocking future presidents from attempting Biden’s maneuver.
“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.
Last year, the Supreme Court denied the Biden administration’s request to lift a block on the SAVE plan last year. A federal appeals court in Missouri had blocked the whole SAVE program from being enforced while litigation over the merits continues in the lower courts.
In response, the Justice Department, which was part of the BIden administration, most recently asked the Supreme Court for emergency relief.
At the time, the Biden administration argued the court was too extreme when it issued a nationwide injunction, which ended up putting a temporary freeze on 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 White House spokesperson told Fox News Digital at the time. “And, we won’t stop fighting against Republican elected officials’ efforts to raise costs on millions of their own constituents’ student loan payments.”
Biden introduced the SAVE plan after the Supreme Court halted his initial student loan forgiveness plan. The White House claimed that the plan could help borrowers lower their monthly payments to zero dollars, cut monthly costs in half and could save students at least $1,000 yearly.
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