Maloney applauds relief for over 318,000 New York student loan borrowers

WASHINGTON -- Congresswoman Carolyn B. Maloney (NY-12) today released the following statement applauding President Obama’s executive order, which allows an additional 318,874 New Yorkers to cap their federal student loan repayments at 10 percent of their income.  

“The President’s expansion of pay-as-you-earn for more graduates will help over 318,000 New Yorkers afford their loan payments each month. This executive order extends a new lifeline to New Yorkers, who acquired debt before October 2007. Many of these students are drowning in student loan debt and have no refinancing options. I’m pleased that these students will be able to access the same manageable loan repayment options available for more recent graduates.”

Background:

The executive actions taken by President Obama will allow millions more borrowers around the country to better manage their student loan debt by expanding the Department of Education’s Pay As You Earn (PAYE) program, which enables student loan borrowers to cap their loan payments at 10 percent of their monthly income. The new rules will open the PAYE program to borrowers who are currently ineligible because they have loans that originated before October 2007.  The administration estimates that these new rules will mean that an additional five million borrowers can cap their monthly student loan payments in relation to their income. Learn more about the White House’s new action to help borrowers repay their student loan debt here.