The Biden Administration’s SAVE student loan forgiveness program was struck with another massive legal blow on Friday when the Eighth Circuit Court of Appeals ruled to block its implementation.
The three-Republican-appointee panel deemed the effort to allow borrowers enrolled in the Saving on a Valuable Education, or SAVE, program to restructure their loan payments as unconstitutionally authorized.
In the ruling, justices argued that the SAVE plan “is an order of magnitude broader than anything that has come before,” and that the administration had falsely “discover[ed] in a long-extant statute an unheralded power to regulate a significant portion of the American economy.”
The court held that the Department of Education must stop pausing or relieving both principle and interest balances from the roughly 8 million borrowers utilizing the program, having previously issued a stay temporarily blocking the program.
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www.salon.com/2024/08/09/appeals-blocks-bidens-save-student-loan-plan/