Biden’s Student Debt Relief Dealt Major Blow

Judge with gavel on wooden desk courtroom setting

Former President Biden’s student debt cancellation efforts stopped as courts delivered a deathblow to his $500 billion plan.

Top Takeaways

The 8th Circuit Court of Appeals officially ended Biden’s student loan forgiveness plan, ruling it exceeded legal bounds.
The Supreme Court denied the administration’s request to lift a block on the SAVE plan, an alternative measure for debt relief.
Missouri Attorney General Andrew Bailey praised the ruling as a win against executive overreach.
The White House claims the SAVE plan has helped over 8 million borrowers with lower payments.
The ruling prevents future presidents from implementing similar student loan forgiveness plans.

Courts Strike Down Biden’s Student Debt Relief Plans

Former President Joe Biden’s attempts to provide widespread student debt relief have been dealt a series of significant setbacks. The 8th Circuit Court of Appeals has officially terminated Biden’s student loan forgiveness plan, ruling that the administration overstepped its legal authority. This decision follows the Supreme Court’s earlier rejection of the president’s initial proposal to cancel student debt for millions of Americans.

In response to these legal challenges, the Biden administration introduced the SAVE plan as an alternative measure to ease the financial burden on borrowers. However, this initiative has also faced opposition, with the Supreme Court denying the administration’s request to lift a block on the plan.

Circuit court puts final nail in the coffin for Biden's $500B student loan forgiveness plan https://t.co/SQa4iTPy8E

— Fox News Politics (@foxnewspolitics) February 19, 2025

Legal Challenges and Executive Power

The ongoing legal battles surrounding student debt relief highlight the tension between executive action and judicial oversight. Missouri Attorney General Andrew Bailey, who sued the Biden administration over the SAVE plan, hailed the court’s decision as a victory against executive overreach.

“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

U.S. Circuit Judge L. Steven Grasz, appointed by President Trump, wrote in the court’s opinion that the plan exceeded the authority granted by Congress. The ruling effectively prevents future presidents from implementing similar student loan forgiveness plans without explicit congressional approval.

Impact on Borrowers

Despite these setbacks, the Biden Administration maintained that the SAVE plan had provided relief to millions of borrowers following the Supreme Court’s ruling last year. A spokesperson stated at the time that over 8 million borrowers have accessed lower monthly payments through the program, with 4.5 million borrowers qualifying for zero-dollar monthly payments.

However, critics argued that the administration’s approach had been misleading. James Bergeron, a former Republican staff director of the House Education and Labor Committee, accused the Biden administration of giving false hope to students regarding debt forgiveness.

The recent ruling’s implications for current borrowers enrolled in the SAVE plan remain unclear. Many will likely face increased payments under alternative repayment plans. M

As the legal battles conclude, the Biden administration’s efforts to provide broad student debt relief appear to have reached a dead end. While the administration claims to have canceled debt for over 5 million Americans through other means, the future of large-scale student loan forgiveness now rests with Congress rather than executive action.