Biden announces student debt cancellation for 40 million borrowers before SCOTUS blocks it

President Biden announces a plan to cancel up to $10,000 in federal student loan debt for borrowers earning under $125,000, and up to $20,000 for Pell Grant recipients, invoking the HEROES Act of 2003. The Department of Education receives over 26 million applications within weeks. Republican-led states immediately challenge the plan in court. In June 2023, the Supreme Court rules 6-3 in Biden v. Nebraska that the administration exceeded its statutory authority, citing the "major questions doctrine." The ruling eliminates relief for approximately 40 million borrowers. Biden announces a separate rulemaking process to pursue narrower debt relief.