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Obama to announce measures to help college students

Tuesday, October 25, 2011

President Barack Obama will announce a plan to allow people holding two kinds of student loans to reduce their interest rates by consolidating their debts into one government loan, officials inside and outside the administration said Tuesday.

Mr. Obama is to announce the move in Denver on Wednesday, part of a White House push to emphasize actions his administration can take to boost the economy without congressional approval. Education Secretary Arne Duncan and White House Domestic Policy Council Director Melody Barnes were scheduled to discuss the proposal later Tuesday.

The change could affect an estimated 5.8 million people who hold two types of student loans—government-backed loans issued by the private sector under the Federal Family Education Loan program and “direct loans” issued by the government, an administration official said.

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