President Barack Obama recently passed an executive order, “Pay As You Go,” that will allow college graduates to repay their loans at only 10 percent of their monthly income. This lowers the cap from 15 percent.

We applaud Obama’s effort to bypass our incoherent and inactive congress and create useful laws.

We also applaud Obama because he’s making an effort to turn his speeches into reality. He made many promises to improve higher education. He also makes frequent speeches about the need to educate the labor force and bring meritocracy a little closer to reality. This is a realistic way to do so rather than simply saying that he wants it and congress isn’t giving.

The average graduate has $25,000 in debt, but that’s only the average. Students graduating in mountains of debt are often underemployed, receiving low wages and trying to make due in large cities where jobs are actually available and rent costs are inflated. Students don’t usually dream of moving back to Mom and Dad’s house, but bad credit, and sometimes lack of fiscal responsibility, require it.

Although it’s great Obama is making this plan, it’s also important for students to do their part. Educate yourself and be realistic about the average salaries and employment rates of those in your degree program. Calculate how long you’ll be paying back those loans and set goals to make it work.

The federal government has information in place to allow families looking at college to plan better. You can calculate your average salary, likely debt and see how long it will take you to pay it back. Students can also make goals, say pay back the loans in five years, and calculate how much they’ll need to be paying monthly in order to achieve that goal.

In addition, the “Pay As You Go” plan creates a compromise between creditors and those standing behind the Occupy Wall Street protests, requesting that graduates be able to default on student loans.

It’s unfair student loans can’t be defaulted on, but irresponsible spenders unable to live within their means can default. However, creditors can take someone’s fancy car or large house back. The market values of diplomas and graduation caps are much lower because a degree isn’t a tangible good.

This plan makes loans more manageable, while still requiring graduates to pay off their debt. Some banks and creditors may be predatory, but it’s important for students to properly educate themselves on these manners for this reason.