President Barack Obama signed this week a presidential memorandum addressing the student loan process for post-secondary education.

Obama acknowledged the need for higher education and its costs. He said the average undergraduate student has approximately $28,000 in student loan debt due to funding their college education. Obama stressed the average numbers, but noted there are students with higher loan debts.

The presidential memorandum affects several factors in the student loan system. The first is the complaint and feedback on federal financial aid.

"We're going to require that the businesses that service your loans provide clear information about how much you owe, what your options are for repaying it, and if you're falling behind, help you get back in good standing with reasonable fees on a reasonable timeline," said Obama, during a speech at the Georgia Institute of Technology on Monday. "And if you're paying stuff off, you should be paying off the high-interest loans first, not the low-interest ones. We're going to take a hard look at whether we need new laws to strengthen protections for all borrowers, wherever you get your loans from."

The presidential memorandum also helps borrowers replay their loans and avoid default. By Jan. 1, 2016, the secretary for the U.S. Department of Education is tasked to require all Federal Direct student loan programs to provide "enhanced disclosures" to loan recipients and strengthen their consumer protections. Loan providers will be required to provide notifications when borrowers become delinquent or have an incomplete application, specifically when adjusting repayment plans.

By July 1, 2015, the Department of Education is instructed to implement actions to ensure debt collections for defaulted federal student loans are "fair, transparent, charges reasonable fees to defaulted borrowers." The Education secretary is expected to publish a quarterly performance report on private debt collection agency contractors.

According to Education Department Secretary Arne Duncan, banks will be held to high standards and have to improve their customer service. He added that his department will navigate through regulations and legislations, such as bankruptcy laws, to protect borrowers.

"It is our responsibility to make sure that the more than 40 million Americans with student loans are aware of resources to help them manage their debt, and that are doing everything we can to be responsive to their needs," said Duncan. "The Student Aid Bill of Rights builds on the efforts our Administration has been taking over the last several years to make college more affordable and continues to chip away at the burden of student debt - so no one should feel overwhelmed by their student loans."

Obama's presidential memorandum was delivered to the secretaries of the Education and Treasury Departments, commissioner of Social Security, director of the Consumer Financial Protection Bureau, director of the Office Of Management and Budget, the director of the Office Of Science and Technology Policy and the director of the Domestic Policy Council.

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