Long-term memories are maintained by more stable and permanent changes in neural connections widely spread throughout the brain. The hippocampus area of the brain essentially acts as a kind of temporary transit point for long-term memories, and is not itself used to store information. However, it is essential to the consolidation of information from short-term to long-term memory, and is thought to be involved in changing neural connections for a period of three months or more after the initial learning.
Scientists do not yet understand many things about human memory and many of the ideas and theories about it are still quite controversial.
For instance, most scientists agree that it is very useful to describe human memory as a set of STORES which are "places" to put information, plus a set of PROCESSES that that can help you find your way around the store.
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It's widely believed that sort-term memory is stored in the prefrontal lobes of the cortex.
The frontal lobe
The central executive of the prefrontal cortex serves as a temporary storage area for short term memories. They will stay here while they are being used for reasoning purposes.