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Sarbanes Statement on President's Action to Make Student Loans More Affordable for Millions of Students
Executive order will help students struggling with their education loans
WASHINGTON – U.S. Congressman Sarbanes (D-Md.) today applauded President Obama’s executive action to give up to five million people struggling with their education loans more flexibility with their monthly payments:
“Education is the cornerstone of the American dream and we must ensure that it is within reach for students of all economic means. President Obama’s executive order will help millions of people in this country who are struggling to pay their student loans,” said Congressman Sarbanes. “Providing student borrowers with a practical framework to manage their education debt will allow more Americans to pursue their professional goals and dreams.”
The Pay As You Earn (PAYE) allows students with federal education loans to cap their monthly repayment at 10 percent of their incomes. However, students who borrowed before October 2007 or haven’t borrowed since October 2011 have not been eligible for the capped repayment option. Today, President Obama signed an Executive Order to expand the PAYE option to people with older federal education loans, which is expected to help more than five million borrowers have greater flexibility to make important financial decisions like buying a home, starting a business or saving for retirement.
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