US President Joe Biden will cancel up to $10,000 (£8,474) in federal student loans for millions of Americans who earn less than $125,000 each year.
Mr Biden will also forgive $20,000 of debt for students on Pell Grants, which applies to those in greatest financial need. The president will provide the details of his plan at 14:15 EST (18:15 GMT).
An estimated 43 million Americans owe an estimated combined total of $1.6tn in federal student debt.
Almost a third owe less than $10,000.
"My administration is announcing a plan to give working and middle-class families breathing room as they prepare to resume federal student loan payments in January 2023," Mr Biden said on Twitter.
The announcement follows more than a year of intense internal White House debate.
Some top Democrats, including Senate Majority Leader Chuck Schumer of New York and Senator Elizabeth Warren of Massachusetts, have pushed Mr Biden to use his executive power to wipe out borrower debts.
But Republicans and some moderate Democrats have said debt cancellation will add to inflation by giving Americans more money to spend.
House minority leader Kevin McCarthy, a Republican from California, quickly criticized the plan on Twitter: "Who will have to pay for Biden's debt transfer scam? Hard-working Americans who already paid off their debts or never took on student loan debt in the first place," he wrote.
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