Student loan debt has exploded in recent years.
A divided Congress (Republican controlled House / Democratic controlled Senate) rarely works with the president anymore.
Existing legislation is flexible enough to allow for executive action.
All these combined have led to a decision by the president to issue an executive order "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."
- Click here for the article.
A divided Congress (Republican controlled House / Democratic controlled Senate) rarely works with the president anymore.
Existing legislation is flexible enough to allow for executive action.
All these combined have led to a decision by the president to issue an executive order "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."
- Click here for the article.
The action marks the latest effort by Obama’s administration to advance policies by executive action after being stymied on Capitol Hill. With the help of several cabinet heads, the president has spent much of this year initiating modest changes in programs that may provide a boost to Democrats in advance of the midterm elections.
Obama’s action tomorrow 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 retards economic growth as young college graduates are forced to postpone home buying or other purchases.
2305 students will likely be tested on executive orders - and other mechanisms available to the president to accomplish objectives over the objection of Congress. Critics argue that these are unconstitutional ways to overcome the checks and balances, supporters argue they are essential tools for implementing the law.
In addition to class notes, click here for background on executive orders:
- Wikipedia: Executive Order.
- Congressional Research Center: Executive Orders: Issuance and Revocation.
- Wikipedia: Lists of executive orders.
And since student debt has exploded in recent years, the subject has risen as a public policy issue - an example of agenda setting. Here are links with detail about the subject:
- The Project on Student Debt.
- Federal Reserve Bank of New York: Student Loan Debt by Age Group.
