One embodiment of the present invention includes a memory element having a composite free layer including a first free sub-layer formed on top of the bottom electrode, a nano-current-channel (NCC) layer formed on top of the first free sub-layer, and a second free sub-layer formed on top of the NCC layer, wherein when switching current is applied to the memory element, in a direction that is substantially perpendicular to the layers of the memory element, local magnetic moments of the NCC layer switch the state of the memory element.