On August 28, 2024, Missouri Attorney General Andrew Bailey announced that the United States Supreme Court upheld a court order from the Eighth Circuit blocking the Biden-Harris Administration’s student loan cancellation plan. The decision was unanimous.
“This is the second time the Supreme Court has sided with my office against one of Joe Biden and Kamala Harris’ unlawful student loan cancellation schemes,” said Attorney General Bailey. “This court order is a stark reminder to the Biden-Harris Administration that Congress did not grant them the authority to saddle working Americans with $500 billion in someone else’s Ivy League debt. This is a huge win for every American who still believes in paying their own way.”
The Eighth Circuit had previously upheld a preliminary injunction from the Eastern District of Missouri, further ruling that “The Government is, for any borrower whose loans are governed in whole or in part by the terms of the Improving Income Driven Repayment for the William D. Ford Federal Direct Loan Program and the Federal Family Education Loan (FFEL) Program, 88 Fed. Reg. 43820, enjoined from any further forgiveness of principal or interest, from not charging borrowers accrued interest, and from further implementing SAVE’s payment-threshold provisions. This injunction will remain in effect until further order of this court or the Supreme Court of the United States.” The Supreme Court has left this injunction in place.
In 2023, Attorney General Bailey successfully challenged another student loan plan by President Biden at the Supreme Court. In a 6-3 decision, that plan was struck down as unconstitutional due to its significant impact on the federal budget without congressional approval.
Joining General Bailey in filing suit were attorneys general from Arkansas, Florida, Georgia, North Dakota, Ohio, and Oklahoma.
In their lawsuit, these states argued: “Just last year, the Supreme Court struck down an attempt by the President to force teachers, truckers, and farmers to pay for the student loan debt of other Americans—to the enormous tune of $430 billion. In striking down that attempt, the Court declared that the President cannot ‘unilaterally alter large sections of the American economy.’ Undeterred, the President is at it again."
The states added: "Yet again, he is unilaterally trying to impose an extraordinarily expensive and controversial policy that he could not get through Congress."
The relevant orders can be accessed via provided links.
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