Ryan Phillippe is madly in love with his fiancee.

Ryan Phillippe and Paulina Slagter

Ryan Phillippe and Paulina Slagter

The 41-year-old actor proposed to law student Paulina Slagter over the holidays and friends say the couple are completely loved up.

A source told PEOPLE: "Ryan is madly in love and wants to spend the rest of his life with Paulina. And the feeling is mutual. They are a wonderful couple."

Ryan is said to be extremely proud of his fiancee's intelligence and has told friends that she is changing him for the better.

The insider added: "Ryan and Paulina are very much in love. She is changing him. He is a better man.

"Ryan feels Paulina is very intelligent and has opened his mind to equality and civil rights, areas he has never really focused on that intently.

"Being a student at Stanford law is impressive to him, and he is very proud of her. He feels that she has the ability to change the world and make it a better place."

Meanwhile, the 'Catch Hell' star - who was previously married to Reese Witherspoon for eight years - recently gushed about his wife-to-be.

He shared: "She's awesome. When people see her they have these judgments because she could be a model but she's about to graduate Stanford Law.

"Also what's great about it - as you get older certain issues become more important to you. I'm very involved in civil rights issues, and so to be with a woman who could actually make an impact in the legal realm - that's a beautiful thing."