A federal appeals court has dealt another blow to President Joe Biden’s efforts to provide student debt relief. On Friday, August 9, 2024, the 8th U.S. Circuit Court of Appeals in St. Louis issued an injunction blocking the Biden administration from implementing its latest student loan forgiveness program.
The court’s decision comes in response to a lawsuit filed by Missouri, Arkansas, Iowa, Kansas, Nebraska, and South Carolina. These Republican-led states argue that the debt relief plan exceeds the administration’s authority and would harm state-based loan agencies.
The ruling specifically targets the Saving on a Valuable Education (SAVE) plan, which aims to reduce monthly payments for many borrowers and accelerate loan forgiveness for others. Under this plan, borrowers with original balances of $12,000 or less could have their debts forgiven after just 10 years of payments.
In its per curiam opinion, the appeals court stated that the plaintiff states “have shown a strong likelihood of success on the merits of their claim.” The court added that the SAVE plan “has a greater impact” than the previous student debt relief program that was struck down by the Supreme Court in 2023.
The Biden administration had argued that the SAVE plan was different from the earlier program and was based on the Higher Education Act, which they claim gives the Education Secretary broad authority to manage federal student loan programs.
U.S. Education Secretary Miguel Cardona expressed disappointment with the court’s decision, stating, “We strongly disagree with the Eighth Circuit’s decision to block the SAVE plan. The Biden-Harris Administration will continue to fight to deliver student debt relief to borrowers, make college more affordable, and stand up against baseless lawsuits by Republican officials and special interests.”
This latest setback follows a string of legal challenges to the Biden administration’s attempts to address the student debt crisis. In June 2023, the Supreme Court struck down a more expansive debt relief plan that would have canceled up to $20,000 in federal student loans for eligible borrowers.
The SAVE plan, which has already enrolled more than 5.5 million borrowers since its launch in August 2023, will remain in effect for those currently enrolled. However, the injunction prevents the Department of Education from expanding the program or implementing new features.
As the legal battle continues, millions of student loan borrowers face uncertainty about the future of their debt. The Biden administration is expected to appeal the decision, potentially setting the stage for another Supreme Court showdown over student debt relief.
Citations:
[1] https://www.reuters.com/legal/federal-court-extends-block-bidens-student-debt-relief-plan-2024-08-09/
[2] https://news.bloomberglaw.com/litigation/biden-student-loan-plan-gets-blocked-again-by-appeals-court
[3] https://studentaid.gov/manage-loans/forgiveness-cancellation/debt-relief-info
[4] https://www.theguardian.com/money/article/2024/aug/10/court-rules-against-biden-student-debt-relief-program
[5] https://thehill.com/homenews/education/4821278-biden-student-loan-relief-debt-forgiveness-save-plan-supreme-court/
[6] https://www.whitehouse.gov/briefing-room/statements-releases/2024/04/08/president-joe-biden-outlines-new-plans-to-deliver-student-debt-relief-to-over-30-million-americans-under-the-biden-harris-administration/
[7] https://www.acainternational.org/news/federal-court-blocks-student-loan-debt-relief-plan/
Last modified: June 20, 2025
