Obama eases student loan burden by expanding cap on payments

WASHINGTON — Aiming to alleviate the burden of student loan debt, President Obama expanded a program today that lets borrowers pay no more than 10 percent of their income every month, and threw his support behind more sweeping Senate legislation targeting the issue.

Flanked by student loan borrowers at the White House, Obama said the rising costs of college have left America’s middle class feeling trapped. He put his pen to a presidential memorandum that he said could help an additional 5 million borrowers lower their monthly payments.

“I’m only here because this country gave me a chance through education,” Obama said. “We are here today because we believe that in America, no hard-working young person should be priced out of a higher education.”

An existing repayment plan Obama announced in 2010 lets borrowers pay no more than 10 percent of their monthly income in payments, but is only available for those who started borrowing after October 2007. Obama’s memo expands that program by making opening it to those who borrowed anytime in the past.