President Obama to take executive action expanding the Pay As Your Earn (PAYE) program, the Senate will markup the fiscal year 2015 Appropriations Bill for Labor, Health and Human Services, and Education, and Related Agencies, and Senate to consider a student loan refinance bill and an extension to veterans educational benefits.
Through an executive order, President Obama intends to expand the PAYE program by allowing those who borrowed before October 2007 to be eligible to participate. Additionally, it is expected that President Obama will direct the Department of Education to renegotiate contracts with federal student loan servicers in an effort to decrease student loan default rates. Some have estimated that the proposed changes could lessen the student debt burden for approximately 5 million Americans.
This week, the Subcommittee on Labor, Health and Human Services, and Education (LHHS-ED) will markup its $156.8 billion fiscal year (FY) 2015 funding bill, which is level funding from current FY 2014 and $1 billion above the House allocation for FY 2015. Also, the Senate will consider Senator Elizabeth Warren's (D-MA) student loan refinance bill that would allow eligible borrowers to refinance older loans at current federal interest rates (which are currently at 3.86 percent), as well as a bipartisan bill that would extend educational benefits to surviving spouses of military members who died in the line of duty and require public institutions to charge in-state tuition rates to recently separated veterans.