A U.S. appeals court ruled Tuesday that the Biden administration lacked the authority to implement its student debt relief program, SAVE (Saving on a Valuable Education), which aimed to lower monthly payments and accelerate loan forgiveness for millions of borrowers.
The 8th U.S. Circuit Court of Appeals in St. Louis sided with seven Republican-led states that sued to block the program, arguing that Biden was using SAVE as a backdoor attempt to cancel student debt after the Supreme Court struck down his broader loan forgiveness plan in June 2023.
SAVE featured reduced monthly payments and faster debt forgiveness for those with small balances, but critics, including the GOP-led states, argued that the program’s estimated $475 billion cost over a decade would unfairly burden taxpayers.
The ruling further casts doubt on the future of Biden’s student loan relief efforts, especially with Donald Trump back in the White House. It remains to be seen whether the administration will appeal the decision or attempt another approach to student debt relief.
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