New Measure Could Help 4 Million in Calif. Repaying Loans - NBC 7 San Diego

New Measure Could Help 4 Million in Calif. Repaying Loans

    processing...

    NEWSLETTERS

    Army Sgt's Remains Return 69 Years After He Was KIA
    Somos/Veer-Getty Images/Somos RF

    A new measure signed by President Obama Tuesday could benefit some of the four million students with outstanding student loan debt in California.

    The Student Aid Bill of Rights, a presidential memorandum signed by President Obama, will direct the Department of Education and other federal agencies to work across the government to help those repaying loans.

    More than four million Californian students and residents have outstanding student loans. In total, those in California that borrowed an FFEL loan or direct loan owe an estimated total outstanding amount of $112,268,605,000. That number is the highest in the U.S. In all, more than 40 million people have students loans in the nation. 

    The memorandum will create a state-of-the-art compliant system to make sure the Department of Education, colleges and contractors provide quality service.

    That website will give students a way to file complaints and provide feedback about federal student loan lenders, servicers, collection agencies and higher education institutions in a timely manner. 

    Tuesday's move will also create steps to ensure students understand how to repay loans with monthly payments, analyze new student debt trends to recommend new legislation.

    The federal government also released state-by-state numbers outlining how many students have outstanding federal loan balances and the total number of federal student loan borrowers that may benefit from the memorandum.

    Texas has the second highest total outstanding amount due with $81,850,800,000.