New Student Loan Rules Caps Payments in Relation to Income

Published 06/09 2014 11:00PM

Updated 06/09 2014 11:10PM

Washington, DC -- President Obama offered relief today to struggling student loan borrowers by extending a policy first enacted in 2010 that allows people to repay their loans as a fixed portion of their income. The president signing an executive order allowing about 5 million students who took out federal direct loans before October 2007, or who stopped borrowing by October 2011. Those borrowers were previously ineligible for the fixed income repayment option.
The executive action from the Obama administration comes at a time when college graduates are increasing, but student debt is also at it's highest level ever. The President urged Congress to pass further reforms which would allow students to refinance their student loan debt, similar to the refinancing of mortgages. 

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