President Obama Signs Student Loan Relief Plan

The executive order caps the amount students have to pay on student loan debt to 10 percent of their income, and debts after 20 years are forgiven.

President Obama Signs Student Loan Relief Plan
The College Board

Paying off your student loans could get a little easier soon. President Obama signed a memorandum today lessening the financial burden for millions of Americans.

‚Äč"Mr. Obama signed an executive order at the White House that limits borrowers payments to no more than ten percent of their monthly income. ... Americans now owe more on student loans than they do on credit cards." (Via KPIX)

The executive order would extend the current "Pay as You Earn" loan repayment plan and cap payments at ten percent of the student's income for up to 20 years. (Via Business Insider)

At the 20-year mark, The White House says any outstanding loans will be forgiven by the government. That time would be cut in half for public service employees.

This executive order comes right before Congress is expected to vote on another student loan bill headed by Massachusetts' Democratic Senator Elizabeth Warren.  

That bill would allow students to refinance their loans and would be footed by increasing the tax rate for the wealthiest Americans. (Via MassLive.com)

President Obama also talked about this bill during his announcement today. 

"It would be scandalous if we allowed those kinds of tax loopholes for the very, very fortunate ... while students are having trouble just getting started in their lives." (Via The White House)

According to American Student Assistance, nearly 20 million Americans attend college each year and about 60 percent of them, almost 12 million, have to borrow money to cover costs.  

And the Consumer Financial Protection Bureau says all that debt adds up to roughly $1 trillion in student loans.

The rising cost to attend college is a key reason for the growing number of students in need.

The College Board says tuition and fees for both private and public four-year universities have tripled since 1973.

The president will answer questions about education and student loan debt in the Persident's first Tumblr Q&A session Tuesday, June 10, at 4 p.m. Eastern Time.