In January President Obama said in his State of the Union address, that he would use his “pen and phone” to take executive actions and enlist private institutions on matters when disputes with congressional Republicans block legislation.
President Obama on Monday will take executive actions to ease the burden of college loan debt for potentially millions of Americans. This in front of a Democrat led plan to allow student loans to be refinanced with a new tax on high income earners to help foot the bill.
Mr. Obama’s main action will be to expand on a 2010 law that capped borrowers’ repayments at 10 percent of their monthly income.
The intent is to extend such relief to an estimated five million people with older loans who are currently ineligible — those who got loans before October 2007 or stopped borrowing by October 2011.
Relief would not come until December 2015. given the time needed for the Education Department to propose and put new regulations into effect.
Senator Elizabeth Warren is trying to gather support for her plan that would let college graduates with existing federal student loans refinance those loans at the lower rates now offered. To help pay for the program, her bill would phase in a minimum tax in 2015 for individuals with adjusted gross income between $1 million and $2 million.
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