Student Loan Relief 101: More Borrowers Won’t Pay Over 10 Percent of Incomes
On Monday, President Obama took executive action that will allow millions more people to cap their student loan payments at 10 percent of their annual incomes - an option that most, but not all, student borrowers have had since 2010.
He also urged Congress to approve a bill that Sen. Elizabeth Warren (D) of Massachusetts has sponsored, and that the Senate plans to take up this week, which would allow some 25 million borrowers to refinance student loans at lower rates. And he announced a number of other measures around communication and education for student borrowers, to allow them to make more informed decisions and take advantage of the options open to them.
“At a time when college has never been more important, it’s also never been more expensive,” Mr. Obama said in his weekly address on Saturday, in which he announced the executive actions he planned to take without congressional sign-off. He defined the choice before Congress as “protect young people from crushing debt, or protect tax breaks for millionaires.”
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