DES MOINES ― Attorney General Tom Miller announced a partnership today with social enterprise Summer to assist Iowa’s student loan borrowers in securing relief in the face of the COVID-19 pandemic.
Summer, a certified B Corp, gives student loan borrowers guidance to save on and simplify their student loan repayment. Summer’s technology tools and team of student loan experts help borrowers find, compare, and enroll in loan assistance and forgiveness programs.
Iowans can now access Summer’s digital platform free of charge to receive customized loan savings recommendations at www.meetsummer.org/IA/
Despite the recent extension of the CARES Act through the end of the year, millions of borrowers remain unsure whether their loans are eligible for the payment suspension and interest waiver. Across the country, as many as 24 million borrowers with private student loans and commercially held FFEL and Perkins federal loans are still required to make monthly loan payments.
“This partnership is a new step in our efforts to educate student loan borrowers of their rights and avoid predatory practices,” Miller said.
The average debt carried by new college graduates in Iowa has been rising. In 2014, the average undergraduate borrower left college owing $23,379, and by 2018 that number was $25,421 — a 9 percent increase in four years.
“Student debt was already a concern before the pandemic,” Iowa College Aid Executive Director Mark Wiederspan said. “The most powerful tool we can offer to borrowers is clear information about their repayment options.”
For instance, a fixed repayment plan is the default for federal student loans, but it might not be the best plan for everyone. Borrowers who have experienced a significant reduction in income could be eligible for a monthly payment as low as $0 by enrolling in a federal Income-Driven Repayment (IDR) plan. With the average borrower in the U.S. paying approximately $300 a month on student loans, an IDR plan can result in an annual savings of $3,600 — three times the amount of the $1,200 CARES Act stimulus checks.
Similar to online tax software, Summer’s digital platform can help Iowans check their eligibility across IDR plans and facilitates the entire application process if the borrower qualifies. In addition, Summer helps students identify loan forgiveness programs and track their progress toward meeting the requirements to qualify.
"With unemployment still at record high levels, borrowers need all the help they can get to manage the burden of student loan repayment,” said Will Sealy, Summer’s co-founder and CEO.
