In addition to endorsing legislation that would lower interest rates on student loans, President Barack Obama expanded the number of those who qualify for capping their student loan repayments at 10 percent of their monthly income.
Issued through a presidential memorandum, the executive action expands upon a 2010 loan repayment program, known as "Pay as You Earn," which previously allowed only those who borrowed after October 2007 to cap their repayments at 10 percent of their monthly income.
Obama's action Monday allows those who borrowed before October 2007 to qualify for the loan repayment cap. According to a White House press release, it would qualify nearly 5 million more borrowers.
Along with signing the memo, Obama endorsed legislation in the U.S. Senate that would allow those with outstanding student loan debt to refinance at lower interest rates, including some private borrowers.
For those with either subsidized or unsubsidized Stafford loans, that rate would be 3.86 percent.
The legislation, spearheaded by Sen. Elizabeth Warren, D-Mass., is highly contentious among Washington legislators because it would offset the costs of buying off interest rates through raising taxes on the wealthy.
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