Biden announces student loan cancellation for most borrowers

President Biden announces that the Education Department will cancel up to $10,000 in federal student loan debt for borrowers earning under $125,000 per year, and up to $20,000 for Pell Grant recipients, affecting approximately 43 million people. The announcement also extends the COVID-era loan payment pause through December 31, 2022. The administration cites the HEROES Act of 2003 as legal authority, arguing the COVID pandemic constituted an emergency justifying relief. More than 26 million people apply for relief before courts pause the program. The Supreme Court strikes down the plan 6-3 in June 2023. Biden calls the ruling wrong and pivots to alternative debt relief strategies.