Obama signs memo clamping down on student loan servicers

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.

More than 70 percent of Americans graduate from college with debt, which averages $28,400, Reuters reported.

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.

This story was originally published March 10, 2015 at 11:00 AM with the headline "Obama signs memo clamping down on student loan servicers."