The Obama administration said its plan will help millions of  borrowers suffering from unaffordable monthly payments by refinancing the mortgages or by having their loans modified.  The plan can also reduce a borrowers’ loan balance by up to $1,000 a year for five years if they stay up to date with payments.  The Treasury Department will develop  guidelines for loan modifications, and require all financial institutions receiving government funds to participate in the program. All federal agencies that own or guarantee loans will have to apply the guidelines where appropriate.