In a move aimed at easing the burden of student debt, Mayor Eric Adams has announced an expansion of New York City's partnership with the student loan assistance company Summer. The initiative could save the average New Yorker approximately $3,000 annually on student loan payments, with individuals holding advanced degrees potentially saving up to $7,000, according to a statement obtained by the Office of the Mayor.
"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. We're changing that by making higher education more affordable working-class families and helping put up to $1 billion back in their pockets," Mayor Adams stated in a press release. This program extends beyond graduates with student loans, offering guidance to parents of college-bound children with the goal of helping them save up to $10,000 per child in educational expenses.
As of now, residents can use Summer's tools to check eligibility for loan reduction programs and plan for college expenses. The website provides a centralized platform for paperless applications to federal programs and allows users to track their progress toward potential loan forgiveness. This approach aims to simplify the complex process of managing student loans and help reduce or eliminate these financial obligations.
In the first three months since its launch for city employees, the Summer partnership has resulted in $13.8 million in savings for civil servants. The program has assisted over 380 civil servants in applying for Public Service Loan Forgiveness and Income-Driven Repayment Plans, which can be complex to navigate. “We are lowering costs for families, helping them connect to debt relief, and making our city the best place to find opportunity, raise a family, and live the American Dream,” Adams noted in the press release.
This initiative aligns with Adams’ broader goal of reducing various forms of debt for New Yorkers. It is part of a larger plan that includes tax cuts, medical debt forgiveness, and improvements to education and after-school programs, collectively saving the local population over $30 billion. “Mayor Eric Adams' new initiatives to reduce municipal student loan debt and expand college savings programs mark a critical step forward in making higher education more accessible and affordable for New Yorkers,” New York State Assemblymember Alec Brook-Krasny told the Office of the Mayor.
