The U.S. 8th Circuit Court of Appeals has permanently blocked President Biden’s $500 million student loan forgiveness initiative, ruling that the Secretary of Education exceeded legal authority.
Key Facts:
- The 8th Circuit Court of Appeals ruled against Biden’s SAVE plan, blocking further student loan forgiveness efforts.
- Missouri Attorney General Andrew Bailey led the lawsuit, arguing the plan unlawfully shifted costs onto taxpayers.
- The Supreme Court previously denied the Biden administration’s request to lift a block on the program.
- The White House claims the SAVE plan helped millions of borrowers with lower payments.
- This ruling sets a legal precedent preventing future presidents from unilaterally canceling student debt.
The Rest of The Story:
Biden’s SAVE student loan forgiveness plan was designed to reduce payments and eliminate debt for many borrowers, particularly those with lower balances.
However, the 8th Circuit Court ruled that the administration overstepped its authority.
The decision follows an earlier Supreme Court ruling rejecting a similar Biden loan cancellation effort.
Missouri’s Attorney General Andrew Bailey, who spearheaded the lawsuit, celebrated the ruling, stating it prevents future presidents from forcing taxpayers to cover student loans.
Meanwhile, the White House remains committed to defending the program, claiming it has already benefited millions of borrowers.
BREAKING: Court Rules Biden’s Student Debt Plan ILLEGAL!
A U.S. appeals court ruled that Biden had no authority to push his student debt relief plan, which aimed to lower payments and speed up loan forgiveness – Reuters pic.twitter.com/UTc0XpXWFS
— Libs of TikTok (@libsoftiktok) February 18, 2025
Commentary:
This ruling reaffirms a fundamental principle: Congress, not the president, holds the power of the purse.
Biden’s loan forgiveness effort was never legal to begin with.
It was an attempt to bypass Congress and transfer the financial burden of student loans onto taxpayers—many of whom never attended college.
Student loan forgiveness isn’t true “forgiveness”; it’s redistribution.
The costs don’t disappear—they shift to responsible taxpayers, including working-class Americans who never had the luxury of a college education.
The plan would have disproportionately benefited high-income professionals who are more than capable of repaying their loans.
If student debt is a problem, the real solution lies in reforming universities and cutting bloated tuition costs, not saddling taxpayers with more federal liabilities.
This ruling protects both the integrity of the law and the financial well-being of everyday Americans.
The Bottom Line:
Biden’s student loan forgiveness plan is officially dead.
The courts have ruled that the president cannot unilaterally cancel student debt, reinforcing the constitutional limits of executive power.
Moving forward, any student loan policy changes must go through Congress—exactly as the law intended.
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