The federal government announced it will cover student loans as long as the student is not at risk of bankruptcy, as long it has a bank account.
The program, known as Student and Family Equity Protection, is part of a broader plan that includes more financial help for borrowers struggling with their student loan payments.
The president signed the order on Thursday.
President Donald Trump signed a bill in February that expanded the federal student loan program, which has been plagued by the effects of the Great Recession.
The administration has been pressing Congress to extend the program for three years while the federal government provides other relief.
Student loans will be covered under the program until the program ends in 2023.
A student will have to make monthly payments for three months after graduation.
They could also be required to pay the federal equivalent of 10 percent of their adjusted gross income, or about $18,500 for a family of four.
The program, called the PLUS loan, is funded by a formula that uses federal aid for people who can afford the payments.
For borrowers with federal student loans who do not have a job, the federal maximum is $5,600.
As of July, the program had a $14 billion debt to the government.
Federal student loan borrowers who defaulted on their loans received a $500 fine.
The Education Department says the fines were the lowest in more than two decades.
President Donald Trump said the program would help millions of students, and he touted it as an example of how the government can help those who have been left out of the recovery.
“This is going to be a really big help,” Trump said in February.
“We’re going to bring back jobs and our country will be stronger.
This is going be a big, big, great job for many people.”
Trump’s plan is expected to be implemented in 2027.
On Thursday, Trump’s Department of Education announced a plan to make student loan repayment easier.
Instead of using the federal PLUS loan program as the primary source of repayment, students will have access to a new loan repayment plan, which includes more help for struggling borrowers.
The Department of Labor announced the new program on Thursday, saying the new loan plan would cover more borrowers with student loans and help families with student loan debt.