On February 18, 2025, the U.S. Court of Appeals for the Eighth Circuit affirmed and expanded a preliminary injunction against the Biden-era “Saving on a Valuable Education” (SAVE) student loan repayment plan in Missouri v. Trump, U.S. Department of Education. The case is now defended by President Donald J. Trump’s administration and the U.S. Department of Education in their official capacities.
Seven states, including Florida, argued that the Department exceeded its statutory authority by using income-contingent repayment regulations to grant sweeping loan forgiveness rather than to ensure loans are repaid over time.
The court agreed that the states are likely to succeed on the merits, holding that 20 U.S.C. § 1087e(d)(1) authorizes the Secretary to design plans for repayment—not broad cancellation—of federal student loans. As a result, the Eighth Circuit ordered the entire SAVE rule, and the Department’s attempt to revive earlier REPAYE forgiveness provisions as a “hybrid” workaround, to be preliminarily enjoined nationwide while the case proceeds.
This ruling significantly curtails the Executive Branch’s ability to use income-driven repayment rules as a vehicle for mass student-loan forgiveness without clear authorization from Congress.
Download the Full Opinion: Missouri v. Trump, No. 24-2332 (8th Cir. Feb. 18, 2025) (PDF)
Cox Law, PLLC monitors federal and state case law developments that may affect Florida borrowers, students, and creditors. If you have questions about how recent court decisions may impact your legal rights, reach out today for a consultation. Call (813) 685-8600 or email webquestion@coxlawplc.com. Disclaimer: The information in this post is for general informational purposes only and does not constitute legal advice. Reading this post does not create an attorney–client relationship. Every case is different; you should consult an attorney about your specific situation.