White House Turning To Student Loan Reform

The White House announced Tuesday evening that after spending the past months rallying for job creation and housing reform, the administration will now be turning to student loan reform.

The proposal, entitled “Pay As You Earn,” will allow those who took out student loans to limit their payments to 10 percent of their discretionary income and will provide debt forgiveness after 20 years of installments.

“In a global economy, putting a college education within reach for every American has never been more important,” President Barack Obama said in a statement. ““But it’s also never been more expensive.”

Obama intends to pass the proposal via executive action, noting “until Congress does act, I will continue to do everything in my power to act on behalf of the American people.”

According to the White House, the plan will help 1.6 million Americans who’ve taken out loans.

President Barack Obama is scheduled to discuss the plan this afternoon at the University of Colorado in Denver.