Obama Plans New Relief for Student Loans

President Obama's next plan for struggling Americans: student loan relief that could save borrowers hundreds of dollars a month, the White House says. Using his executive authority, Obama will speed up a measure that caps student loan payments at 10% of discretionary income, starting in 2012 instead of 2014. He will also order that debts be forgiven after 20 years instead of 25, the AP reports.

Further, the president will let borrowers consolidate two loans into one, if they have borrowed directly from the government and the Family Education Loan Program. Obama plans to roll out the proposal in Denver tomorrow during his campaign-style tour of Western states. His plan updates a law passed by Democrats in Congress last year, which reduced the loan payment cap and removed banks as middlemen in student loans. (More President Obama stories.)