Governor Ned Lamont announced today that Summer, a social enterprise that assists student loan borrowers, is providing Connecticut residents financially impacted by the COVID-19 crisis with free assistance managing their student loans.
As a certified B Corp, Summer is the leading resource for borrowers to simplify and save on their student debt – offering cutting-edge tools and a dedicated team of student loan experts to find, compare and enroll in dozens of loan assistance and forgiveness programs. Connecticut residents can now access Summer’s digital platform free of charge and receive customized loan savings recommendations by visiting meetsummer.org/covidrelief.
While the U.S. federal government has taken the important step of pausing payments on all Federal Direct loans, millions of borrowers have continued to make payments on private student loans and commercially-held FFEL and Perkins loans that were excluded from the CARES Act.
On April 21, Governor Lamont extended relief options to many Connecticut student loan borrowers with loans excluded by the CARES Act, halting late fees and offering a three-month, opt-in pause on payments, among other benefits. Today, Governor Lamont is supplementing this initiative with the smart, hands-on support provided by Summer’s digital platform and team of student loan experts, ensuring more favorable repayment outcomes for Connecticut borrowers in need of assistance.
“Many of our residents are facing unprecedented financial hardship that is pushing those with student loan debt onto a financial tightrope,” Governor Lamont said. “We are grateful for Summer and its sponsorship of much-needed assistance to our residents who are struggling with their student loans.”
Borrowers who are either unemployed or have experienced a significant salary reduction could be eligible for a $0 or very low monthly payment in a federal Income-Driven Repayment (IDR) plan. With the average borrower paying approximately $300 per month on student loans, an IDR plan can result in an annual savings amount of $3,600 – three times the amount of the $1,200 stimulus checks. Similar to tax software, Summer’s digital platform can help Connecticut residents check their eligibility across IDR plans and automatically complete the application if they qualify.
“We are excited to partner with Governor Lamont and the state of Connecticut to help residents tackle their student debt so they can focus on critical needs such as food and medical supplies,” Will Sealy, CEO of Summer, said. “The flurry of federal and state announcements has left borrowers more confused than ever about how to navigate the repayment process. With our digital platform and team of student loan experts, we’re working to ensure Connecticut residents have a clear plan for managing their debt and reducing their stress. We hope other states will join Governor Lamont soon.”