Last Thursday, President Obama announced a plan to forgive 100% of all federal student loans in the country. Breathe... now read that again.

The POTUS announced the news during a speech in Scranton, PA.

"In today's economy a university education is more important than ever. Where would successful people like Bill Gates, Steve Jobs, Tom Hanks, Brad Pitt or Mark Zuckerberg be without their college diplomas? These days skipping college just isn't an option, but neither is continuing to pay for increasingly expensive tuition.

This is a radical idea and many are skeptical, believing that nothing will actually come of it. Considering that student loan debt is estimated at over 1 trillion dollars, one thing is for sure: something needs to happen and soon.

With President Obama's plan, all $900 billion in federal student loans will be completely wiped out on November 1st and no further payments need be made after that date. This loss of revenue will significantly add to the U.S. government's deficit, although the cost would be spread out over several years.