The Eighth Circuit Court of Appeals has upheld a ruling blocking President Joe Biden’s “SAVE” (Saving on a Valuable Education) student debt relief plan, stating the program likely exceeds the U.S. Education Department’s authority.
In a 2-1 decision issued on February 18, 2025, the Eighth Circuit affirmed a lower court’s preliminary injunction against the plan, siding with Missouri and other Republican-led states that argued the initiative was an unlawful executive overreach.
The SAVE plan aimed to lower monthly student loan payments—some to as low as zero dollars—and forgive remaining balances after 10 years for borrowers with $12,000 or less in federal loans.
However, the court found that the Education Department lacked congressional authorization to implement such sweeping changes.
Judge L. Steven Grasz, writing for the court, stressing that loan forgiveness requires explicit approval from Congress, citing the major questions doctrine, a legal principle requiring clear legislative authorization for policies with significant economic or political impact.
“Rather than implying by omission or other ambiguities, Congress has spoken clearly when creating a repayment plan with loan forgiveness,” Grasz wrote. “The statutory text enabling the creation of [SAVE] provides no comparable language.”
The decision follows the U.S. Supreme Court’s 2023 ruling, which struck down a previous Biden administration student debt relief program, also invoking the major questions doctrine.
Legal and Political Battle Over Student Debt Relief
The case, Missouri v. Trump, No. 24-2332, was brought by Missouri and several other states, which argued that the SAVE plan imposed economic burdens without congressional approval.
The Missouri-led coalition initially secured a partial injunction blocking only the loan forgiveness aspects. However, the Eighth Circuit expanded the injunction, halting both the forgiveness provisions and the income-driven repayment adjustments.
The ruling marks another legal blow to Biden’s student debt relief efforts, a policy that has been strongly opposed by Republican leaders, including former President Donald Trump, who has criticized Democratic-led student loan forgiveness initiatives.
Impact on Borrowers and Future Litigation
The Biden administration has stated that 7.5 million borrowers had already enrolled in the SAVE plan, with $1.2 billion in student loan balances forgiven before the injunction.
The decision leaves those borrowers in legal limbo, uncertain about whether the relief they received will stand.
The ruling also sets the stage for further legal battles, as the Education Department may appeal to the U.S. Supreme Court.
For now, the SAVE plan remains blocked nationwide, with the appellate court ordering the lower court to fully enjoin the program.
