President Obama is expected to announce bail out package for student today(Mian Shakeel Aslam)

Mian Shakeel Aslam--- Million student loan borrowers have the right to lower your payments and consolidating your loans under a plan announced by President Barack Obama on Wednesday said the White House.

Obama Executive Order to provide student loan relief in two ways.

First, is accelerated by the Congress approved a measure that reduces the maximum repayment of student loans each year, 15 percent of disposable income by 10 percent. The White House wants to come into force in 2012, instead of 2014th addition, the White House says that the remaining debt would be forgiven after 20 years instead of 25 could be affected more than 1.6 million borrowers.

Second, allow borrowers who have loans from both the Program Family Education Loan, and a direct government loan to consolidate into one loan. The consolidated loan would be less than half a percentage point. This could be 5.8 million more borrowers.

Secretary of Education Arne Duncan told reporters on a conference call that the changes could save borrowers hundreds of dollars per month.

"The real savings that will help these graduates begin their careers and help them earn a living are," said Duncan.

Obama is expected to present his plan at a stop in Denver. The White House said the changes would have no additional costs to taxpayers.

Last year the Democrats controlled Congress passed a law which reduced the top and move all student loans for direct loans to banks as intermediaries to remove. Previously, borrowers of loans or loans directly to the government-backed Loan Program for Family Literacy, which were issued by private lenders, but basically to get insured by the government. The bill was left with health reform, with the expectation that they could save more than $ 60000000000 for more than a decade.

Today there are 23 million borrowers with $ 490 billion in loans under the Federal Family Education Loan Program. Last year, the Department of Education $ 102.2 billion in direct loans to 11.5 million beneficiaries.

Outside of mortgages, student loans are the No. 1 source of household debt, said the White House.

Posted By: Mian Shakeel Aslam 

Source: http://www.msnbc.msn.com/id/45039424/ns/politics-white_house/#.TqfCD5uPX-U