Court Blocks Biden’s Push for Student Loan Forgiveness in SAVE Plan, States Hail Victory

President Joe Biden’s latest attempt to push through student loan forgiveness has hit a snag as a U.S. District Court Judge partially granted a preliminary injunction against the Department of Education’s new income-driven repayment plan known as the “Savings on Valuable Education” (SAVE) plan. Missouri Attorney General Andrew Bailey and several other states celebrated the decision, calling it a win for the rule of law and the Constitution.

Attorney General Bailey highlighted the massive financial impact of Biden’s proposed plan, criticizing the President for overstepping his authority and infringing on Congress’s power of the purse. This legal victory follows a previous Supreme Court ruling against Biden’s unilateral actions regarding student loan debt, emphasizing the importance of constitutional boundaries.

The states involved in the lawsuit expressed concerns about Biden’s repeated attempts to implement costly policies without congressional approval, characterizing it as a troubling disregard for the Constitution. The court’s decision to block the loan forgiveness provision of the SAVE plan signals a temporary setback for the Biden administration’s agenda.

The judge’s order focused on the lack of clear congressional authorization for loan forgiveness under the SAVE program, raising questions about the Secretary of Education’s authority in this matter. The ruling underscores the ongoing legal battles surrounding Biden’s initiatives and the need for adherence to separation of powers principles.

Despite these preliminary injunctions, the final outcome remains uncertain as the litigation progresses. For now, the road to student loan forgiveness faces obstacles, marking a potential setback for the Biden administration’s efforts to address the issue.

Written by Staff Reports

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