US Appeals court extends block on Biden student debt relief plan

The Eighth Circuit Court of Appeals on Friday extended its block on President Joe Biden's Saving on a Valuable Education (SAVE) plan, which would have lowered monthly payments for millions of student loan borrowers. 

The Appeals court initially blocked all aspects of the plan last month, which was brought by seven Republican state attorneys general. The SAVE plan, which is income-driven, was the Biden administration's backup plan after the Supreme Court decided last year to strike down a previous plan that forgave up to $20,000 in student loans for millions of borrowers.

All three of the court's justices, who were all appointed by Republicans, voted in favor of the block, and argued that the states have at least a "fair chance" of winning the case at the highest level.

“On initial review, the States have the better of the arguments on these ‘substantial questions of law which remain to be resolved,’” the court said in the 10-page ruling, per CNN.

The justices also claimed that the plan was a “vast assertion of newfound power” and the Biden administration failed to show clear authorization from Congress, according to The Hill.

“Our Administration will continue to aggressively defend the SAVE Plan — which has been helping over 8 million borrowers access lower monthly payments," the department said in a statement last month. "We won’t stop fighting against Republican elected officials’ efforts to raise costs on millions of their own constituents’ student loan payments.”

The case is expected to ultimately go to the U.S. Supreme Court. 

Misty Severi is an evening news reporter for Just The News. You can follow her on X for more coverage.