‘Thanks but no thanks’ to loan plan

When students graduate from college, their biggest concerns will lie with their impending debt. But President Barrack Obama has made a proposal to alleviate some of that worry.

President Obama aims to reduce the college student debt, which currently totals $1 trillion.

He has stated that the repayment plan will be income-based, which means that students who have borrowed would reduce their monthly payments from 15 percent to 10 percent of their discretionary income. Also, their debt would be forgiven after 20 years of payments, as opposed to the usual 25 years.

Further, recent graduates would be able to consolidate their loans, opt for lower interest rates and access more information about loan choices.

These benefits could be available to students as early as 2012 if President Obama uses an executive order.

By making reforms to student debt policies, President Obama is making college more accessible to everyone. Because if students aren't intimidated by the possibility of being in debt, they'll be willing to actually attend college after high school.

And if everyone has access to a better education, then they will have access to better jobs, right?

Maybe not.

President Obama's student loan proposal looks good on paper, but how effective will it be if the job market's weak to begin with.

Students will continue to tackle debt, as well—just not as much debt. Whether it's less or more, graduates still need an income to pay it back. But if they can't find a source of income, President Obama's plan is meaningless.

Perhaps President Obama and his administration should take care of the job market before they loan the students any help.