Obama Student Loan Plan Ends Saturday

Borrowers hoping to consolidate their student loans through a special government program have until Saturday to apply.

President Barack Obama announced the Pay As You Earn plan in October. Borrowers can save up to half a percentage point on their interest rate through the program. The Education Department says about 440,000 borrowers have applied, with loans totaling $10.6 billion.

Borrowers who miss the deadline can still apply for a regular consolidation, but they won't get the interest rate deduction. The White House says 2 in 3 college graduates borrow to pay for college, and the average borrower graduates with about $26,300 in debt.

Young voters and recent graduates are crucial to Obama's re-election. Exit polls say voters age 18-24 overwhelmingly supported Obama in 2008.
(Copyright 2012 by The Associated Press.  All Rights Reserved.)