President Obama will announce Wednesday a plan to permit some student loan borrowers to pay lower monthly payments on federally-backed loans starting next year, said U.S. Education Secretary Arne Duncan, reports the News Service of Florida. A law passed last year allows student loan borrowers to pay loans based on their earnings, with a cap of 15 percent of their discretionary income, beginning in 2014. Obama wants to push that up to 2012 and change the cap from 15 percent to10 percent. Melody Barnes, the Director of the Domestic Policy Council, said Obama does not congressional approval. Obama also wants to allow some borrowers to consolidate loans at a lower interest rate. Florida has one of the highest student loan default rates in the nation, an indication that these borrowers either don’t have jobs or are underpaid. Florida’s student loan default rates for fiscal year 2009 were 10.5 percent, an increase over 8 percent from the previous year.