By Forum Staff
The City on Monday announced a new effort to help more than 100,000 public servants enroll in the federal government’s Public Service Loan Forgiveness program and Income Driven Repayment plans to reduce or cancel an estimated $360 million in student loan debt.
Through a partnership with Summer – a leading company that helps borrowers navigate student loan repayment options – the City will provide public servants and eligible family members with free access to student loan experts and online debt assistance tools to help enroll in repayment options and the PSLF program.
Employees at the City Administration for Children’s Services, the City Department of Social Services, and the New York City Housing Authority are now eligible as part of the pilot phase of the program, which launched today; the full service will begin a phased rollout for all New York City government employees this September.
“Student loans should not be a barrier to pursuing a lifetime of financial success,” said Department of Consumer and Worker Protection Commissioner Vilda Vera Mayuga.
PSLF is among the most expansive loan forgiveness initiatives in the country. After 120 months of payments while working full-time at a qualifying not-for-profit organization or any level of the city, state, or federal government – including New York City government – individuals can get the remainder of their student loan debt forgiven. Unfortunately, complex criteria and hard-to-navigate requirements have made it difficult for many eligible applicants to successfully enroll in PSLF and receive loan forgiveness. One in six New Yorkers have student loan debt, but, since 2017, less than 11 percent of eligible borrowers submitting loan forgiveness forms to the federal government had their loans successfully forgiven. Many City municipal employees are eligible for debt relief through PSLF but have not enrolled in the program or have struggled to recertify year after year.
The new partnership between the Adams administration and Summer will offer City employees free access to Summer’s online portal, as well as free expert guidance from Summer’s team in verifying their eligibility for PSLF, managing their paperwork for enrollment and completion of the program, and staying on track for loan forgiveness. Through the partnership, City employees will be able to identify the best repayment and forgiveness strategy for their individual situation. Additionally, the family members of public servants who independently qualify for PSLF – either by working for another branch of government or for a qualifying not-for-profit organization – will be able to take advantage of the program as well. Following a pilot phase with City employees from ACS, DSS, and NYCHA, the program will begin expanding to include all City employees in September 2025. Summer has generated over $1.8 billion in total student loan savings to date.
“Student loan guidance and education are monumental tools for empowering individuals, and with this initiative, we are bringing these resources directly to public servants and their loved ones,” said Department of Citywide Administrative Services Commissioner Molina. “Those who serve our communities should not feel encumbered by their student loans, and we are proud to play a key role in administering this loan assistance platform citywide.”
