New York City Mayor Adams announced on Thursday, August 7th, an expanded partnership with student loan assistance company “Summer” to introduce a city-wide student loan forgiveness and college savings assistance program. It is expected to help New York City residents reduce their annual student loan repayment amounts by an average of $3,000, ultimately saving citizens up to $1 billion in total expenses.
“We are lightening the burden on families, helping them with debt relief, making New York the best city for seeking opportunities, raising families, and achieving the American dream,” Mayor Adams stated at a press conference.
The initiative was initially a pilot program for 100,000 public servants, aiding them in enrolling in Federal Income-Driven Repayment Plans and Public Service Loan Forgiveness programs, aimed at reducing $360 million in student loan debt for public servants.
With this expansion, the program will now cover all city residents, benefiting approximately 1.4 million New Yorkers carrying student loan debt and around 1.6 million parents preparing to send their children to college, saving on education expenses. The city government noted that the program has a more pronounced effect on borrowers with higher education degrees, with an average annual repayment reduction of $7,000 expected.
Citizens can utilize Summer’s free online platform to quickly check their eligibility, compare various repayment options, manage necessary documents for applying for Federal programs, and track application status. The platform also offers personalized suggestions and tools based on individual circumstances to help users find the most suitable repayment and forgiveness strategies.
Moreover, the program provides tools specifically to assist parents in college savings and financial planning, estimating college costs, exploring savings methods, and learning how to bridge financial gaps. Some families are projected to save up to $10,000 annually on their children’s college expenses.
These resources will also work in conjunction with existing college savings programs in New York City, like “NYC Kids Rise,” further expanding their impact.
According to city data, over 2,000 municipal employees have already benefited from the program, with more than 380 successfully applying for Public Service Loan Forgiveness or income-driven repayment plans. Will Sealy, CEO of Summer, mentioned that within three months of the pilot program’s launch, over $13.8 million in student loan debt had been alleviated for city employees, with an average reduction of $3,800 in annual payments per person. With the expansion to all city residents, more individuals will benefit.
For registration or more information, please visit: https://www.meetsummer.com/nyc-saveoncollege