Student Loans: Obama Expands Pool Eligible for Paying Lower Premiums
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Obama to sign executive order capping student loan payments (The Washington Post)
In an attempt to ease crushing student debt, President Obama will sign an executive order Monday afternoon that will allow at least 5 million people to cap their student loan payments at 10 percent of their income.
Obama will direct Secretary of Education Arne Duncan to amend student loan regulations to allow for the payment ceiling, which the administration wants to make available to borrowers by December 2015.
The action is aimed at people who took out loans before October 2007 or stopped borrowing in October 2011. The majority of students with loans already have the option to limit payments to 10 percent of their income because of student loan legislation Obama signed in 2010 and regulations the administration adopted in 2012.
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