The executive order Obama signed during a live-streamed White House appearance expands on a 2010 law that protects those who borrowed after October 2007 and continued to borrow after October 2011. The order allows those who borrowed earlier to participate, potentially easing financial panic for millions of borrowers. During the same appearance, Obama called for the passing of more sweeping legislation, which would allow college graduates with heavy debts to refinance their loans. With the financial leniency, debtors would gain time to shop for better positions, and they wouldn’t feel pressed to pay student loans rather than eat. While the action will help more than 5 million additional borrowers, it will not be available until December 2015.
"Just like you can refinance your mortgage at a lower interest rate, this bill would let you refinance your student loans. And we’d pay for it by closing loopholes that allow some millionaires to pay a lower tax rate than the middle class," Obama previously stated.