We know that more than 130,000 Rhode Islanders of all ages have student loan debt. And for those who are struggling financially, student loan payments add to an already-great burden.
That’s why I’m thrilled that Rhode Island has partnered with Summer, a student loan advisory service that helps borrowers identify which loan assistance programs they’re eligible for and then helps them to enroll. Summer is now offering their services to Rhode Islanders at no cost to borrowers or the state.
This program is specifically for borrowers who have suffered financially during this crisis. Borrowers who have experienced a significant reduction in income could be eligible for a reduced monthly payment in a federal Income-Driven Repayment plan. With the average borrower paying approximately $300/month on student loans, an IDR plan can result in an annual savings of $3,600. Summer’s digital platform will help Rhode Island residents determine their eligibility and facilitate the application process if they qualify.
I’m glad the federal government has taken the important step of pausing payments on all Federal Direct loans, and that the Rhode Island Student Loan Authority is suspending monthly loan payments for up to 3 months for those whose income has been negatively impacted by this pandemic. But we know that there are thousands of Rhode Islanders who still have to make payments on other types of loans. That’s where Summer can help.
