(ReclaimingAmerica.net) – In very bad news for Joe Biden, who is still losing despite not being in office anymore, a legal victory for American taxpayers has emerged as the U.S. 8th Circuit Court of Appeals has blocked the former president’s attempt at student loan amnesty, known as the Saving on a Valuable Education (SAVE) plan.
See the tweet below!
Activist judges have been dealt a blow, and constitutional balance has been maintained.
On the legal front, the appeals court concluded the Biden administration overstepped their authority with the SAVE plan.
Spearheaded by Missouri and supported by several Republican-led states, a lawsuit challenged the legality of these sweeping federal actions.
The court’s decision reflects skepticism over the administration’s claim to extensive executive power unilaterally deciding who benefits from debt relief without Congress’s explicit approval.
The Biden administration’s plan was initially proposed as a solution to an economy burdened by over $1 trillion in student loans.
The SAVE initiative aimed to forgive up to $500 billion in debt over the next decade, with enticing offers such as reduced monthly payments and eventual debt cancellation for small balances.
However, the projected cost of up to $475 billion raised significant concerns about fiscal responsibility.
The court’s decision affirms the states’ assertion that administrative agencies, such as the Department of Education, cannot extend beyond Congress’s decisions.
Rather, this presents an attempt by the administration to distribute taxpayer money without legislative check.
The ruling was a reiteration of the sentiment from a previous Supreme Court decision rejecting Biden’s earlier student debt cancellation plan in June 2023, which would have eliminated $430 billion in debt.
The move also comes against a backdrop of proposals from House Republicans geared towards restructuring the student loan system.
This could result in borrowers shouldering higher repayment amounts but ensures that relief is provided with national interests at heart rather than executive overreach.
Many Republicans argue that taxpayers should not bear the brunt of subsidizing higher education for others.
“The average student loan borrower could pay nearly $200 a month more if the GOP’s plans to reshape student loan repayments succeed, according to an early estimate by The Institute for College Access & Success,” reports CNBC.
Consumer advocates persistently argue that affordable student loan options are necessary, citing research that suggests debt hinders significant life milestones such as starting businesses, buying homes, and starting families.
President Trump’s administration previously sought to robustly fund more tax cuts through responsible financial planning, much to the country’s benefit.
It’s clear legal checks are necessary to maintain boundaries and protect liberties from expansive government action.
Attorney General Andrew Bailey succinctly stated, “When the federal government acts beyond its authority, the American people suffer. Today, that overreach was rightfully checked.”
NEW: A U.S. appeals court on Tuesday blocked the Biden administration's student loan relief plan known as SAVE, a move that will likely lead to higher monthly payments for millions of borrowers.
The 8th U.S. Circuit Court of Appeals sided with the seven Republican-led states… pic.twitter.com/jXqzwDlbsm
— Melissa Hallman (@dotconnectinga) February 18, 2025
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