WASHINGTON — President Obama will move on Monday to ease monthly payments for people with student loans, according to a White House official.

Obama, in executive action coordinated with a legislative push by Senate Democrats, will direct the Department of Education to expand the number of people who can take advantage of a law capping payments on federal direct loans to no more than 10 percent of their monthly incomes.

“I’ve heard from too many young people who are frustrated that they’ve done everything they were supposed to do – and now they’re paying the price,” Obama said Saturday in his weekly address.

The action marks the latest effort by Obama’s administration to advance policies by executive action after being stymied on Capitol Hill.

Obama’s action on Monday will expand a 2010 law that tied payments to income, according to the White House official, who said an additional 5 million people who took out loans before October 2007 or haven’t borrowed since 2011 will be eligible.

The proposal aligns with a bill from Senate Democrats that would allow individuals to refinance their student loan debt at current rates.

Democrats have argued that the $1.2 trillion worth of outstanding student-loan debt is a drag on economic growth as young college graduates are forced to postpone home buying or other purchases.


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