An existing repayment plan lets borrowers pay no more than 10 percent of their monthly income
WASHINGTON -- President Obama is signing a presidential memorandum that could help an additional 5 million borrowers.
An existing repayment plan 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 it fully retroactive.
That could help Molly Wolcott, who owes more than $56,000 in student loans. At the end of the month, after paying $600 for her loan and then her car, she has nothing left.
"I've been blessed to be able to stay with parents, but it is still a struggle," says Wolcott. Right now the Ohio average for debt is over $29,000 and Ohio is sixth in the nation.
The president is also calling on Congress to pass more sweeping legislation that would let college graduates refinance their loans at lower interest rates. Senate Democrats are pushing that bill, but it faces Republican opposition over how to pay for it.