President Proposes Student Loan Relief

MEMPHIS, Tenn. - Wednesday, President Barack Obama announced a plan to offer relief for college graduates with student loans.

The Pay as You Earn Plan allows you to consolidate your student loan debt into one government loan. His plan also places a cap on the amount you pay each month.

The plan calls to reduce interest rates by up to a half-percent, which is expected to result in savings of a couple hundreds dollars in monthly payments. Borrowers with multiple loans would have the option to consolidate into one government loan. And instead of 25 years, all student loan debt would be forgiven after 20.

Working professionals are also breathing a sigh of relief at the possibility, saying if it moves forward it would make juggling family and work easier.

Among all household debt, home mortgages narrowly trump student loans. The plan is expected to benefit over a million borrowers and the President would not need the approval of Congress.

The plan is the latest effort to rev up a seemingly stagnant economy. Whether it succeeds is yet to be seen.