Obama signed the order Monday that will cap student loan payments for as many as 5 million students borrowing money for school.
This extends the existing rule that caps student loan payments at 10 percent of the borrower’s monthly income. It now also applies to those who took out their loans prior to 2007.
The cap will be 6 percent for active duty military officers.
Obama has also called on the Department of Education to renegotiate with loan providers to come up with incentives for students who pay their loans on time.
"While Congress decides what it's going to do, I will keep doing whatever I can without Congress to help responsible young people," Obama said over the weekend.
Those perks won't be available to students who borrow from private institutions.
Obama is also backing proposed legislation from Elizabeth Warren that would allow students to refinance their debt at lower rates.