Updated: 06/09/2014 8:02 PM
Created: 06/09/2014 4:06 PM KSTP.com
By: Ellen Galles
President Obama is signing a presidential memorandum that could help an additional 5 million borrowers with their college loans.
The program is called "Pay As You Earn." It's already in effect for recent grads and now the president wants to expand the program for people who took out federal student loans before October of 2007, or stopped borrowing in 2011.
The program caps federal student loan payments at 10 percent of a borrower's income. That can make a big difference.
One recent grad told us he has about $90,000 in student loans, and is scrambling to pay them down as quickly as he can.
"Right now it's everything. I revolve all my budget planning around that. I'm expecting a child, and what we can do for our child really depends on our student loan situation," said Alex Zachman of Buffalo, Minnesota.
Obama is also calling for legislation in Congress that allows students to refinance high-interest debts at a lower rate.