The city launched a new student loan reduction and college savings program on Thursday in an effort to reduce annual loan payments for New Yorkers by about $3,000.
New York City Mayor Eric Adams, Department of Consumer and Worker Protection (DCWP) Commissioner Vilda Vera Mayuga and Department of Citywide Administrative Services (DCAS) Commissioner Louis Molina on Thursday said they are expanding their partnership with Summer, a company that helps borrowers navigate student loan repayment options. The firm currently provides public servants with various loan reduction services.
The initiative is estimated to reduce annual student loan payments for New Yorkers by an average of $3,000 per year and an average of $7,000 per year for participants with advanced degrees.
"Getting an education shouldn't lead to a lifetime of debt; yet, for far too many New Yorkers, getting a college degree and a higher education means more bills, more debt, more money out of their pockets," Adams said in a statement.
The initial program launched in May has served more than 2,000 civil servants and helped over 380 civil servants apply for Public Service Loan Forgiveness and Income-Driven Repayment Plans at the three city agencies in the pilot program.
City residents will have access to Summer’s online portal where residents can verify their eligibility for programs that lower payments, compare repayment options, manage their paperwork for enrollment in federal programs, and stay on track for loan forgiveness, if eligible.
Additionally, the program’s college planning resources can help residents across diverse financial and educational planning scenarios navigate the challenges of preparing for higher education expenses.
“Student loan repayment and college cost planning are increasingly complex processes to navigate," said Will Sealy, founder and chief executive officer of Summer. "Thankfully, the City of New York is stepping up to provide additional access to resources, tools, and programs to reduce that complexity."
For more information on the program, click here.
