Updated 11/28/22: Since this blog post was published, payments and interest on federally-held student loans are now set to resume 60 days after a court decision on President Biden’s forgiveness program. If no decision has been issued by June 30th, 2023, payments will resume 60 days later.
In response to President Biden’s plan to eliminate up to $20,000 of student loan debt, Summer, a certified B Corporation that advises hundreds of thousands of student loan borrowers across the country, has launched Forgiveness Eligibility Check that allows borrowers to check their loan forgiveness eligibility in real time.
On August 24, 2022, the Biden Administration announced an unprecedented slate of student loan updates, including the cancellation of $10,000 or $20,000 of federally-held student loans for qualifying borrowers, as well as one final extension of the payment pause for federally-held student loans through December 31, 2022. In addition, the administration proposed creating a new income-driven repayment (IDR) plan that will further lower monthly payments for eligible borrowers.
But many questions remain, and top of mind for borrowers is whether they qualify for some relief and how to apply. Summer’s Forgiveness Eligibility Check addresses that gap, and will be a critical bridge to applying for relief once the application becomes available.
“As the first organization to launch a meaningful tool for student loan borrowers in the wake of President Biden’s announcement, Summer provides needed clarity for borrowers who are uncertain about their eligibility and are looking for guidance on their loan repayment,” said Summer CEO Will Sealy. “At Summer, we help borrowers qualify for a variety of loan forgiveness plans so they can forge stronger financial futures starting now.”
Based on an individual’s household income as well as a detailed look at their loan information, the Summer platform can tell borrowers instantly whether they qualify for at least $10,000 of loan forgiveness, and assess their eligibility for other important loan assistance programs like Public Service Loan Forgiveness (PSLF) and income-driven repayment (IDR) plans. Summer is now able to inform borrowers whether they previously received a Pell Grant and thus are eligible for $20,000 of forgiveness. Even those who do not qualify will receive customized repayment and forgiveness recommendations.
The U.S. Department of Education has not yet released the application for forgiveness. Summer will reach out to members who have created a Summer account when it is time to take further action and the application has been released.
Summer works with employers nationwide to provide a cost-effective digital solution that helps borrowers reduce the burden of student loan debt, regardless of their financial situation.
View the original press release here.