A Minnesota Republican congressman is criticizing President Obama's plan to cut loan payments for college grads with federal student loans.
The program the president announced today would have graduates pay 10 percent of their income toward loan repayment for 20 years, after which the loan is forgiven. Rep. John Kline is not pleased. The congressman chairs the House Education and Workforce Committee and calls Obama's plan "politics before policy."
"I think it's a little bit disingenuous for the president to call the student loan consolidation program a jobs program," Kline said. "We're not certain what the effect's going to be, except the transfer of more money from the private sector to the public sector."
Kline said he's still studying the policy but worries it could encourage students to take on even more debt. The White House plan applies only federal student loans, and not private loans.