A U.S. appeals court has put an end to former President Joe Biden’s SAVE plan, which made taxpayers pay for student loan debt taken out by college students.
The decision by the 8th U.S. Circuit Court of Appeals based in St. Louis said that Biden went beyond his authority when he ordered the Department of Education to forgive loans outright.
The lawsuit was brought by Missouri Attorney General Andrew Bailey and attorneys general of Alabama, Arkansas, Florida, Georgia, North Dakota, and Ohio. This was the third legal challenge of Biden’s illegal attempts to work around the law and force some $450 billion in student loans onto Americans who did not sign for those loans.
“We obtained another court order BLOCKING an illegal Biden-era student loan scheme,” Bailey wrote on X on Tuesday. “Though [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. HUGE win.”
“The Secretary has gone well beyond this authority by designing a plan where loans are largely forgiven rather than repaid,” the court wrote.
Now that Donald Trump is back in the White House, it is unlikely the Department of Education will appeal the ruling.
