WASHINGTON (AP) — The White House says President Barack Obama is prepping new executive steps to help Americans struggling to pay off their student debt.
Obama plans to announce Monday that he's expanding an existing program that prevents borrowers from having to pay more than 10 percent of their monthly income in student loan payments. That program is only available to people who borrowed during certain years, but Obama intends to expand the timeframe for eligibility.
Obama also plans to announce that he's directing the government to renegotiate contracts with federal student loan servicers so encourage them to make it easier for borrowers to avoid defaulting on their loans.
And the president is going to ask the Treasury and Education departments to work with tax preparers to increase awareness about tuition tax credits and flexible repayment options.
THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.
President Barack Obama used the college commencement season Saturday to get behind Senate Democratic legislation that would let college graduates with heavy debts refinance their loans.
The Senate is expected to debate the legislation next week, but it faces significant obstacles.
In his weekly radio and Internet address, Obama noted the program would be paid for by doing away with tax loopholes for millionaires. He says the choice facing lawmakers is whether to "protect young people from crushing debt or protect tax breaks for millionaires."
According to the Institute for College Access and Success, the average debt for the class of 2012 was $29,400. Obama also notes that the unemployment rate for college graduates is about half what it is for high school graduates and that a typical college graduate makes $15,000 more a year than a worker with just a high school degree.
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