About 43 million consumers owe money on student loans, and one-in-four of these borrowers are past due or in default.
The new loan system will make it easier for borrowers to manage and repay their loans. Any borrower can log into one website to access information, make payments, apply for benefits, and manage their account.
"Today's policy directive is a big win for tens of millions of borrowers," said U.S. Secretary of Education John B. King Jr. "It will help ensure that student loan borrowers get the service they deserve."