Staff Reports
The 8th U.S. Circuit Court of Appeals has put the brakes on former President Joe Biden’s latest financial boondoggle, the Saving on a Valuable Education (SAVE) plan, which attempted to shuffle student loan debt from borrowers to taxpayers. In a move that any rational person could see coming, seven Republican-led states filed a lawsuit against the Department of Education, stating that Biden had overstepped his boundaries and attempted to achieve what could only be described as student debt forgiveness through the back door—something he was explicitly denied by the Supreme Court earlier this year.
This SAVE plan was presented as a noble effort to help borrowers with monthly payments based on income and family size, essentially a repackaged version of existing income-driven repayment plans. However, the reality is much less altruistic. According to experts, the plan is estimated to bleed taxpayers for a whopping $475 billion over the next decade. That’s a lot of taxpayer money to funnel into a program meant to provide ‘relief’ to a splintered educational system that keeps racking up debt like it’s a new iPhone model.
🚨🚨 BREAKING : The U.S. Appeals Court BLOCKS Joe Biden’s Student Debt Relief Plan this precedent is imperative to ensuring a President cannot force working Americans to foot the bill for someone else's Ivy League debt. pic.twitter.com/FXqV0jNi6P
— JOSH DUNLAP (@JDunlap1974) February 18, 2025
The Penn Wharton Budget Model, known for cutting through the fog of half-truths and lofty promises, revealed that a sizeable chunk of this impending cost—about $200 billion—will come from payment reductions for the staggering $1.64 trillion in student loans currently gnawing at the nation’s financial health. It seems that 53% of that existing loan volume is likely to transition to the SAVE plan once things kick into gear in July 2024. In layman’s terms, that means taxpayers should prepare for yet another financial hangover from government mismanagement.
Moreover, as noted by various news outlets, including Breitbart, the SAVE plan is essentially a dressed-up way to ensure Americans shoulder the burden while borrowers get a generous slice of debt transfer pie. With over 150,000 borrowers being told that their loans might vanish into thin air, it looks like the line between forgiveness and taxpayer-funded bailouts has never been blurrier. The irony is thick here; Biden’s administration can’t quite seem to make up its mind on whether it wants to treat the education system like a business or a charity.
Following the Supreme Court’s decision to strike down Biden’s previous student loan forgiveness scheme—a hefty $430 billion giveaway—the administration’s desperate push for the SAVE plan reflects a lack of real solutions to a growing problem. Simply put, when faced with the consequences of its policy decisions, the government decided to simply pass the buck on to its citizens. And so, taxpayers brace for yet another financial hit, no thanks to a plan that should have stayed dead and buried.
