The 8th Circuit Court of Appeals has ruled against Former President Joe Biden’s SAVE student loan forgiveness plan, effectively ending the $500 billion initiative. Missouri Attorney General Andrew Bailey led the challenge, arguing the program exceeded the Secretary of Education’s authority.
The ruling follows the Supreme Court’s 2023 rejection of Biden’s first loan forgiveness effort. The SAVE plan, intended to cut monthly payments and forgive smaller balances, faced strong Republican opposition, with critics calling it an attempt to bypass the Court’s decision.
With SAVE blocked, borrowers may see increased monthly payments as House Republicans push for policy changes. Experts warn that rising student debt could further hinder homeownership and economic stability for millions.
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