Obama Signs Memo Clamping Down On Student Loan Services

WASHINGTON — President Barack Obama has signed a presidential memorandum clamping down on companies that service student loans issued by the federal government.

Obama says the steps he’s announcing will streamline and improve how the government interacts with student borrowers. He says one of his top priorities is to improve college affordability.

Obama’s memo requires those companies to better inform borrowers about their repayment options and delinquent payments. Obama is also telling loan servicers to apply extra payments first to the highest-interest loans, helping students pay off debt quicker.

The president signed the memo in the Oval Office shortly before departing for Atlanta. He’ll discuss the steps later Tuesday during a visit to Georgia Tech.

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Allison Leslie is a University of South Florida graduate with a bachelors degree in Mass Communications. She joined Genesis in 2016. With a passion for sports, Allison has interned with 620 WDAE, Pewter Report, Trifecta Team: St. Petersburg Bowl, Bullscast, and many other publications. Being a native to the Bay Area, she has followed and supported Tampa Bay teams her whole life.