Biden’s Student Debt Relief Plan ENDED By Judge

President Biden’s student debt relief plans hit another roadblock as courts continue to challenge the administration’s authority.

Even after losing the White House, he keeps losing some more.

At a Glance

  • The 8th Circuit Court of Appeals officially ended Biden’s student loan forgiveness plan
  • The Supreme Court denied the administration’s request to lift a block on the SAVE plan
  • Courts ruled that the Secretary of Education exceeded authority in designing loan forgiveness plans
  • The White House claims the SAVE plan has helped over 8 million borrowers with lower payments
  • Future presidents may be prevented from implementing similar student loan forgiveness plans

Biden’s Student Debt Relief Plans Face Legal Setbacks

The Biden administration’s efforts to provide student debt relief have encountered significant legal obstacles – and subsequent attempts to save it post-presidency are failing. The 8th Circuit Court of Appeals has officially ended President Biden’s initial student loan forgiveness plan, ruling that the administration overstepped its legal bounds. This decision follows the Supreme Court’s earlier rejection of the plan, which aimed to cancel student debt for millions of American families.

In response to these setbacks, the administration introduced the SAVE plan, described as the “most affordable student loan repayment plan ever.” However, this alternative solution has also faced legal challenges. The Supreme Court recently denied the Biden administration’s request to lift a block on the SAVE plan, further complicating the President’s debt relief efforts.

Missouri Attorney General Andrew Bailey sued the Biden administration over the SAVE plan, arguing that it exceeded the authority granted by Congress. U.S. Circuit Judge L. Steven Grasz, appointed by President Trump, agreed with this assessment in the court’s ruling.

“Rather than implying by omission or other ambiguities, Congress has spoken clearly when creating a repayment plan with loan forgiveness or otherwise authorizing it—explicitly stating the Secretary should cancel, discharge, repay, or assume the remaining unpaid balance,” U.S. Circuit Judge L. Steven Grasz said.

The court’s decision emphasized that the Secretary of Education had gone beyond their authority by designing a plan where loans are largely forgiven rather than repaid. This ruling not only impacts the current administration’s efforts but may also prevent future presidents from implementing similar student loan forgiveness plans.

Political Divide and Public Reaction

The legal challenges to Biden’s student debt relief plans have highlighted the deep political divide on this issue. Supporters of the administration argue that these plans are necessary to ease the financial burden on millions of Americans, while opponents view them as executive overreach and unfair to taxpayers who didn’t attend college or have already paid off their loans.

“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,” Missouri Attorney General Andrew Bailey said.

Despite these setbacks, the former President and his team maintain that their efforts have made a positive impact.

A spokesperson stated, “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.”

The recent court rulings leave many student borrowers in a state of uncertainty. It remains unclear when borrowers will be removed from the SAVE plan, but they will likely face increased payments under alternative plans.

RELATED ARTICLESMORE FROM AUTHOR