Today Obama is rolling out a new executive order capping student loans:
WASHINGTON POST – In an attempt to ease crushing student debt, President Obama will sign an executive order Monday afternoon that will allow at least 5 million people to cap their student loan payments at 10 percent of their income.
Obama will direct Secretary of Education Arne Duncan to amend student loan regulations to allow for the payment ceiling, which the administration wants to make available to borrowers by December 2015.
The action is aimed at people who took out loans before October 2007 or stopped borrowing in October 2011. The majority of students with loans already have the option to limit payments to 10 percent of their income because of student loan legislation Obama signed in 2010 and regulations the administration adopted in 2012.
Obama will also announce that the Department of Education will renegotiate its contract with loan providers to give financial incentives to borrowers who pay their loans on time, will cap interest rates for active-duty military members at 6 percent and will partner with tax preparers H & R Block and Intuit, Inc., to provide information about loan repayment and education tax benefits.
Education Secretary Arnie Duncan was asked about the constitutionality of this executive order, and he had no clue:
I don’t think the administration even cares if this EO is constitutional. They didn’t check. They are going to do it anyway and if someone like Ted Cruz speaks up against the move, they’ll just try and demonize them like they always do.
But wait, there’s even more. The Obama admin doesn’t even know how much it’s going to cost to implement this:
Ugh. They just don’t care.