Obama aims to expand student loan relief

President Barack Obama speaks at Henninger High School
President Barack Obama speaks at Henninger High School in Syracuse, N.Y., Thursday, Aug. 22, 2013. Obama is pitching an overhaul of federal student aid that would link dollars to the Education Department’s ratings of colleges and universities. His proposal would give students at better-rated schools cheaper loans or bigger grants. (AP Photo/Jacquelyn Martin)

WASHINGTON (AP) — President Barack Obama is signing an executive order that lets borrowers pay no more than 10 percent of their monthly income in student loan payments.

The measure expands on a 2010 law that covered those who started borrowing after October 2007 and kept borrowing after October 2011. The executive order allows those who borrowed earlier to participate, potentially extending the benefit to millions more borrowers.

Obama will sign the order Monday during an event in the White House Rose Garden. The president will also use the appearance to call for Congress to pass more sweeping legislation that would let college graduates with heavy debts refinance their loans.

The Senate is expected to debate the legislation next week, but it faces significant obstacles.

blog comments powered by Disqus