The White House has kept the details of the decision closely guarded. Only a small group of Mr. Biden’s top aides have been informed of his plans.
Mr. Biden is scheduled to return to the White House on Wednesday from Delaware, where he is on vacation with his family. The president has said he would announce a decision on student loans by Aug. 31.
A move to forgive $10,000 in student debt under certain income thresholds would fall short of progressive Democratic demands for full student-debt cancellation or for canceling $50,000 per borrower, but it could apply to the majority of the 40 million people who hold a total of $1.6 trillion in student-loan debt.
Republicans have opposed broad student-debt forgiveness, saying such a move would be unfair to those who have already paid off their loans or never went to college, and could worsen inflation.
A report released Tuesday from the Penn Wharton Budget Model estimated that a one-time maximum debt forgiveness of $10,000 per borrower with incomes of less than $125,000 a year would cost around $300 billion.
Last month, more than 100 Democratic senators and House members from across the party’s ideological spectrum asked Mr. Biden to extend the loan-payment pause beyond its Aug. 31 expiration, citing continued economic hardships. Mr. Biden cited similar reasoning for extending the pause previously, most recently in April.
Republicans have opposed continuing the pause, arguing that it constitutes “de facto loan forgiveness.” Senior House Republicans unveiled a bill this month that would end the pause, as well as overhaul other aspects of the federal student-loan portfolio. The bill isn’t expected to go anywhere while Democrats control Congress and the White House.
The White House has left borrowers, loan servicing contractors and the Education Department itself in limbo as Mr. Biden mulled whether to extend the pause.
Last month, the administration told loan servicers to refrain from sending out billing notices or other communications related to restarting payments.
Loan servicers are contracted by the federal government to manage student loan payments. They communicate with borrowers about how much they owe, where and how to send payments, and answer questions borrowers have about repayment programs.
Political | Process 
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