Obama To Sign Executive Order Easing Student Loan Woes

By Reuters
Sunday, June 8, 2014 18:39 EDT

WASHINGTON (Reuters) – President Barack Obama will issue an executive action on Monday aimed at making it easier for young people to avoid trouble repaying student loans, a White House official said on Sunday.

The president will sign an order directing the secretary of education to ensure that more students who borrowed federal direct loans be allowed to cap their loan payments at 10 percent of their monthly incomes, the official said.

Federal law currently allows most students to do this already. The president’s order will extend this ability to students who borrowed before October 2007 or those who have not borrowed since October 2011, the official said.

The administration says this action will help up to 5 million more borrowers, although it will not be available until December 2015.

“Many student loan borrowers are working and trying to responsibly make their monthly payments, but are nonetheless struggling with burdensome debt,” the White House official said.

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