Obama this morning signed a memorandum to "clamp down" on student loan servicers, the Boston Herald reports:
More than 40 million Americans are in debt thanks to their education, and most of their loans come from Uncle Sam. So President Barack Obama is aiming to clamp down on the private companies that service federal student debt with a presidential memorandum he signed Tuesday.
Obama's policy tweaks don't require new legislation from Congress — a plus as far as the White House is concerned. But they won't be earth-shattering for student-borrowers, either. Instead, the new steps seek to tilt the student lending process more toward the student, with a particular focus on graduates struggling to make their monthly payments.
The President's memo targets third parties like Sallie Mae/Navient that contract with the government to collect on federal student debt.
The full story is posted here.
Comments