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. (Read more student loans stories.)