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Obama: Student Loan Reform Helps Students, Economy

US President Barack Obama delivers the weekly address, 27 Mar 2010

U.S. President Barack Obama says his student loan reform plan will ensure the United States has the highest proportion of college grads in the world.

In his Saturday address, Mr. Obama said the plan will also save taxpayers $68 billion.

The plan eliminates subsidies for private banks who act as middlemen for student loans. The savings will go to increasing grants for college students and other programs.

University education in the U.S. can cost tens of thousands of dollars a year, and tuition continues to rise. Mr. Obama said the "average" student finishes college with $23,000 worth of debt.

Some information for this report was provided by AP.