In a recently announced plan from the Obama White House, college graduates with huge student loan debts may be able to lower their loan payments. The plan so far will only help students graduating next year or in subsequent years.

Borrowers who have student loan debt with the federal government and with the Federal Family Education Loan Program will be able to consolidate those loans at a slightly lower interest rate. There is currently an option for graduates to pay based on income, but the new plan is being implemented under executive authority, and it will expand the income-based option to include what is being called "Pay as You Earn." Under this plan a graduate would make payments of 10 percent of their discretionary income for 20 years. After that, remaining student loan debt would be forgiven.

San Diego debt negotiation attorneys have noted that under current plans, graduates must pay at least 15 percent of their discretionary income, and do so for 25 years before debt is forgiven.

Some observers believe that action on a new student loan repayment plan got impetus from an online petition demanding student debt relief, and the fact that the Occupy Wall Street movement has been vocal about the crushing debt burden on many graduates in California and across the country.

California has seen some of the highest college tuition increases in the country. They rose 21 percent at four-year colleges and rose an incredible 37 percent at community colleges.

Source: NYT "President to Ease Student Loan Burden for Low-Income Graduates" Oct. 25, 2011