Obama Signs Order Capping Student Loan Payments
Payments limited to 10% of monthly income for more people
By Kevin Spak, Newser User
Posted Jun 9, 2014 1:58 PM CDT
President Barack Obama straightens his tie before he receives an honorary doctorate of laws degree during the Morehouse College 129th Commencement ceremony, May 19, 2013, in Atlanta.   (AP Photo/Carolyn Kaster)

(Newser) – President Obama today signed an executive order that will cap student loan payments for as many as 5 million borrowers. Obama is extending an existing rule capping student loan payments at 10% of borrowers' monthly income to those who took out their loans prior to 2007, the AP explains. For active duty military officers, the cap will be 6%. Obama is also calling on the Department of Education to renegotiate with loan providers to create incentives for borrowers who pay their loans on time, the Washington Post reports.

The program also allows teachers to cancel their entire balance after 10 years, and low-income borrowers to do so after 20 to 25 years, CNN adds. But all of these perks won't be available to students who borrowed from private institutions. Obama is also backing Elizabeth Warren's proposed legislation allowing students to refinance their debt at lower rates. "While Congress decides what it's going to do, I will keep doing whatever I can without Congress to help responsible young people," Obama said over the weekend.

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Jun 10, 2014 4:11 PM CDT
Will this end the same way the home loan debacle ended?
Jun 10, 2014 12:18 PM CDT
Senate can't act because Harry Reid won't allow anything to come up for a vote and Obama is dictator, by Executive Order, because Congress won't act. Nice little setup that the Democrats have.
Jun 10, 2014 11:09 AM CDT
Obama leads. The obstructionist republican party of NO refuses to follow. Obama moves ahead without them. Republicans complain about how Obama isn't a leader. Idiotic. Who's dumb enough to vote republican?