A federal appeals court on Tuesday blocked the Biden administration's student loan relief plan, ruling the administration lacked the authority to establish it.

Joe Biden as president announced the Saving on a Valuable Education (SAVE) plan 10 days after the Supreme Court rejected his previous debt cancellation plan in June of 2023. 

The plan would have cost the federal government $475 billion over a decade, according to an analysis by the University of Pennsylvania’s Penn Wharton Budget Model.

The ruling comes after seven Republican led states argued Biden was trying to skirt the Supreme Court's ruling by create other plans that still forgave many student loans. The plan reduced monthly payments, allowed for early student loan forgiveness, and aimed to forgive up to $20,000 in student debt for each borrower.

On Tuesday, a three-judge panel for the Eighth Circuit Court of Appeals, found that the administration exceeded its authority by creating a plan that largely forgives the student loans, instead of overseeing how they are repaid. 

“As the Supreme Court previously held, Missouri suffers a cognizable financial harm when the Secretary enacts a plan that discharges student loans and closes accounts serviced by [the Missouri Higher Education Loan Authority],” the judges wrote. 

The challenge was led by Missouri and joined by Arkansas, Florida, Georgia, North Dakota, Ohio and Oklahoma.

The appeals court also ruled that the current Department of Education cannot revive older repayment plans to approve loan forgiveness through other means, the Washington Examiner reported.

Misty Severi is a news reporter for Just The News. You can follow her on X for more coverage.