White House to help borrowers afford student loan repayment

The Administration of U.S. President Barack Obama on Tuesday signed a presidential memorandum to help borrowers afford their monthly student loan repayments, the White House said in a statement.

According to the statement, the new requirements will make sure all of the more than 40 million Americans with student loans are aware of resources to manage their debt. More than 70 percent of Americans earning a bachelor's degree graduate with debt, which averages 28,400 U.S. dollars, said the White House.

The Obama administration will create a new website to better oversee and address complaints from borrowers about lenders and servicers that collect student loan payments on behalf of the government.

It will require the servicers to better inform borrowers about their repayment options and notify them how to set monthly payments and change repayment plans.

The administration is also considering changes to the treatment of loans in bankruptcy proceedings, which means it would be easier for borrowers to discharge student loans through bankruptcy.

It will also take new steps to analyze student debt trends and recommend legislative and regulatory changes. Enditem