Last I checked, Obama is not running for re-election, and it'd be hard to spin this as a democratic party decision.

Also, he's enforcing a current law (loan forgiveness for total disability), not making a new one.

This may be a new thing in US or perhaps the motivations are benign. Where I come from every election cycle starts with a parade of sops and welfare schemes targeting "weaker sections". Its hard not to be cynical about such things, irrespective of the party affiliation or leadership.

I think it's more he's trying to get some stuff done before he leaves

Obama's not up for re-election.