A federal appeals court extended its pause on President Joe Biden's student debt relief plan, setting up a likely date with the U.S. Supreme Court, The Hill reported on Friday.
In July, the St. Louis-based 8th U.S. Circuit Court of Appeals granted a request by seven GOP-led states to suspend portions of the U.S. Department of Education's debt forgiveness plan that had not already been blocked by a lower court judge. On Friday, the court's revised ruling prevented Biden's DOE from proceeding with the debt relief plan until the lawsuit challenging it is resolved.
The Saving on a Valuable Education Plan is an income-based repayment plan that aims to give more benefits to borrowers by lowering monthly payments for eligible candidates and allowing those whose original balance were $12,000 or less to have their debt forgiven after 10 years. The court noted that Biden's plan would ultimately forgive "approximately $475 billion in federal student loan debt."
The judges' 3-0 decision described Biden's plan as a "vast assertion of newfound power" and said the administration fell short of showing clear authorization from Congress.
"The new SAVE plan ... is an order of magnitude broader than anything that has come before," the opinion read.
In March, seven Republican state attorneys general sued over the SAVE plan, which was brought forth by the Biden administration after the Supreme Court struck down the previous universal student debt relief program brought by the president. The lawsuit argued that Biden overstepped his authority in creating SAVE.
"Last time Defendants tried this the Supreme Court said that this action was illegal. Nothing since then has changed," the lawsuit read.
Education and the Workforce Committee Chairwoman Virginia Foxx, R-N.C., told Newsmax, "The courts keep saying the Biden-Harris administration's student loan schemes are illegal. Congress, including former Speaker [Nancy] Pelosi, says the administration doesn't have the authority to enact its radical and unfair policies.
"If Biden and [Vice President Kamala] Harris continue doing the same thing over and over expecting different results, they are insane. Borrowers who relied on advice from the Biden-Harris administration continue to be negatively impacted because of its false promises," she said.
Friday's ruling is expected to force an emergency appeal by the Justice Department and push the case up to the Supreme Court, The Hill reported.