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Joe Biden’s attempts to fulfill a major campaign promise to relieve student loan debt took another hit this week when a federal appeals court blocked the Saving on a Valuable Education program, better known as SAVE.
On a one-page, unsigned order issued on Thursday, the Eighth Circuit Court of Appeals granted the request of six Republican-led states, including Missouri, to suspend implementation of aspects of the SAVE program while the court considers a more permanent block favored by Republicans. A district judge had already blocked implementation of the other parts of the SAVE program in a ruling last month.
Supporters of SAVE, on the other hand, waxed histrionic that the order blocking the implementation of SAVE would upend people’s lives, even though the program began offering debt relief only a few months ago.
Andrew Bailey, the Republican attorney general of Missouri who filed the emergency motion on behalf of the plaintiffs, celebrated the order as a “HUGE win” for everyday Americans. Bailey called SAVE “illegal” and claimed it was a backdoor means of saddling taxpayers — many of whom never went to college — “with half-a-trillion dollars in Ivy League debt.”
“I’m proud to lead from the frontlines on this. In Missouri, we believe in paying our debts and not burdening hardworking taxpayers. Today’s victory is a win for every hardworking American who pays their bills without leaning on their neighbors,” Bailey added in a separate statement.
Supporters of SAVE, on the other hand, waxed histrionic that the order blocking the implementation of SAVE would upend people’s lives, even though the program began offering debt relief only a few months ago.
“Today’s ruling from the 8th Circuit blocking President Biden’s SAVE plan could have devastating consequences for millions of student loan borrowers crushed by unaffordable monthly payments if it remains in effect,” said a statement from Secretary of Education Miguel Cardona.
“This decision threatens the entire federal student loan system and will cause complete chaos and confusion,” added a statement from Eileen Connor, president and executive director of the Project on Predatory Student Lending.
The Biden administration has tried to ease or outright cancel student loan debt for years after campaigning heavily on the issue in 2020. However, time after time, the courts have overruled many of those efforts. In June 2023, the Supreme Court struck down Biden’s attempts to cancel up to $20,000 in loans for qualified borrowers.
SAVE was yet another means of trying to achieve a similar end. To date, more than 8 million people have enrolled in SAVE, and over 400,000 of them who had taken out no more than $12,000 originally had their entire debt eliminated. The appellate court order will not affect any debt cancellation that has already been given through the SAVE program.
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