Circuit court puts final nail in the coffin for Biden’s $500B student loan forgiveness plan

The U.S. 8th Circuit Court of Appeals put a final end to former President Joe Biden’s student loan forgiveness plan on Tuesday.

Missouri Attorney General Andrew Bailey originally sued the Biden administration over its nearly $500 billion effort to wipe away student loans, known as the SAVE plan. The court’s Tuesday ruling found that Biden’s secretary of education had “gone well beyond this authority by designing a plan where loans are largely forgiven rather than repaid.”

Bailey noted in a statement that the ruling has no active impact beyond blocking future presidents from attempting Biden’s maneuver.

“Though Joe Biden is out of office, this precedent is imperative to ensuring a President cannot force working Americans to foot the bill for someone else’s Ivy League debt,” Bailey said in a statement.

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Former President Joe Biden’s $500 million student loan forgiveness plan was smacked down for a final time in court on Tuesday. (Jacquelyn Martin/AP/Bloomberg via Getty Images)

The Supreme Court of the United States denied the Biden administration’s request to lift a block on the SAVE plan last year. A federal appeals court in Missouri had earlier blocked the entire SAVE program from being enforced while litigation over the merits continues in the lower courts. The Department of Justice, which is part of the Biden administration, most recently asked the high court for emergency relief.

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The Biden administration argued the court went too far when it issued a nationwide injunction, which effectively put a temporary freeze on the SAVE plan.

Missouri Attorney General Andrew Bailey filed numerous successful lawsuits against Biden’s student loan forgiveness efforts. (Getty Images)

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“Our Administration will continue to aggressively defend the SAVE Plan – which has helped over 8 million borrowers access lower monthly payments, including 4.5 million borrowers who have had a zero dollar payment each month,” a White House spokesperson told Fox News Digital at the time. “And, we won’t stop fighting against Republican elected officials’ efforts to raise costs on millions of their own constituents’ student loan payments.”

The U.S. Supreme Court blocked multiple efforts by President Biden to forgive student loans nationwide. (AP Photo)

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Biden introduced SAVE after the Supreme Court struck down his initial student loan forgiveness plan. The White House said that the SAVE plan could lower borrowers’ monthly payments to zero dollars, reduce monthly costs in half and save those who make payments at least $1,000 yearly. Additionally, borrowers with an original balance of $12,000 or less will receive forgiveness of any remaining balance after making 10 years of payments.

Fox News’ Greg Wehner contributed to this report.

Read the full 8th Circuit ruling here: