*Today President Barack Obama will issue an executive action aimed at making it easier for young people to avoid trouble repaying student loans, according to a White House official.
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.
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 stated.
You can get MORE of this story at Huffington Post.
In the meantime, Al Sharpton’s NAN/National Action Network, is praising the move by the president:
National Action Network applauds President Obama’s action to ease the debt of student borrowers. By signing an executive order on student loans, 5 million borrowers with federal student loans will have monthly payments at just 10 percent of their income.
Ballooning student loan debt has contributed to lower wealth accumulation of Generations X and Y. Rates of student loan debt are higher among individuals with higher levels of education, living in lower income households, younger people, African Americans, and people with more financially dependent children. Federal student loan debt reached more than $1 trillion last year and the proportion of borrowers defaulting on their federal student loans has been on the rise for several years.
National Action Network understands that higher education is vital to our nation’s future, and that graduates are vital to our nation’s workforce. NAN will continue to work with this Administration on initiatives that move our country forward.