WASHINGTON D.C. -- President Barack Obama is launching a plan to help reduce student loan payments.
The measures are largely adopted from a bill introduced by Ohio (D) Senator Sherrod Brown as the "Student Loan Simplification Act."
Student loan payments would be capped at 10 percent of their income, starting next year. The present cap is 15 percent. Unpaid amounts would be forgiven after 20 years instead of the present 25 years.
Loanholders would also be able to combine bank and federal loan debt to get a lower interest rate.
"College graduates are entering one of the toughest job markets in recent memory and we have a way to help them save money by consolidating their debt and capping their payments at no cost to the taxpayer," Education Secretary Arne Duncan said.
Two-thirds of Ohio college students graduate with a debt averaging $26,000.
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