President Biden is planning to take executive action to forgive $10,000 or more in federal student loan debt for tens of millions of Americans, a move that would provide unprecedented relief for borrowers but is certain to draw political and legal challenges.

Following more than a year of internal White House debate, the president is set to announce later Wednesday that he will cancel $10,000 in federal student loan debt for borrowers making under $125,000 a year or couples making less than $250,000 a year, according to people familiar with the matter. In addition, those who receive federal Pell Grants and make less than $125,000 a year would be eligible for total forgiveness of up to $20,000, some of the people said.

The forgiveness applies to students with federal loans from both undergraduate and graduate programs, one of the people said. While debt forgiveness is often treated as income for tax purposes, the canceled student debt will be exempt, like some other federal student debt forgiveness programs.

Mr. Biden is also planning to announce an extension of the pandemic pause on student loan payments through the end of this year, the people said. Loan payments were set to resume for millions of borrowers after Aug. 31.... Read More: WSJ