Thanks to President Obama, student loan re-payments just became a little bit easier.
The POTUS signed an executive order Monday afternoon that will allow millions of student-loan borrowers to cap their payments at 10 percent of their monthly income, and forgive any unpaid debt after 20 years. According to officials, the plan will expand a 2010 law and provide relief for an additional 5 million borrowers who took out loans before October 2007 or stopped borrowing by October 2011.
“We are here today because we believe that in America, no hardworking young person should be priced out of a higher education,” Obama said. “I’m only here because this country gave me a chance at higher education…This is why I feel so strongly about this.”
The executive action will take steps to “further lift the burden of crushing student loan debt,” according to a statement released by the White House.
“From reforming the student loan system and increasing Pell Grants to offering millions of students the opportunity to cap their monthly student loan payments at 10 percent of their income, making a degree more affordable and accessible has been a longtime priority for the President,” the statement reads. “But he knows there is much more work to do and that’s what this week is all about.”
Mr. Obama, who is scheduled to give commencement addresses this week, will continue his student loan push Tuesday with a question and answer session on Tumblr.
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