Obama Unveils Plan To Ease Student Loan Burden [VIDEO]

President Barack Obama has unveiled a plan to permit students to consolidate loans from the federal government at a lower interest rate.

The administration is moving forward with a new “pay as you earn” proposal.

The President’s plan will allow 1.6 million students the ability to cap their loan payments at 10 percent of their discretionary income starting next year. Additionally, starting this January an estimated 6 million students and recent college graduates will be able to consolidate their loans and reduce their interest rates.

Obama says putting a college education within reach of every student has never been more important.

“But it’s also never been more expensive. That’s why today we’re taking steps to help nearly 1.6 million Americans lower their monthly student loan payments. Steps like these won’t take the place of the bold action we need from Congress to boost our economy and create jobs, but they will make a difference. And until Congress does act, I will continue to do everything in my power to act on behalf of the American people.”

Courtesy Associated Press

At an appearance at the University of Colorado in Denver, he also urged students to get involved and push Congress to do something to bolster the economy. His advice: “Tweet `em.” Obama says lawmakers are “tweeting all over the place” and students should “tweet `em back.”

Obama says executive steps he’s taking to help economically struggling Americans isn’t the kind of bold action needed from Congress, but he says what he’s doing can help the economy.

The President’s announcement follows a new report on tuition costs from the college board. It showed that average in-state tuition at four year public colleges rose $631 this fall compared with a year ago.