Guests: Matt Chingos and Janet Lorin
Circumventing Congress, President Obama yesterday signed an executive order that would expand the Pay As You Earn program which lowers student loan payments to 10% of a borrower’s monthly income. Previously, the program only applied to newer loans, but yesterday’s action increases eligibility to some five million people whose loans were taken out prior to 2007. Meanwhile, in the coming weeks, Congress will take up the issue of reducing student debts as it begins debate on a plan proposed by Democratic Senator Elizabeth Warren. That bill would allow borrowers to refinance their student loans at lower rates currently only available newer loans. To help make sense of all of this – what it means to students, graduates, and their families – we’ve invited MATTHEW CHINGOS and JANET LORIN to join us. CHINGOS is a fellow at the Brookings Institution and LORIN is a reporter for Bloomberg News.