Summer

We’re thrilled to welcome Housing Works to the Summer family! Housing Works is a NYC non-profit organization that provides advocacy, support, and lifesaving services to those impacted by homelessness and HIV/AIDS, and they’re now offering student loan benefits to its employees via Summer’s platform. By easing the financial challenges associated with student loans for their employees, together we’re helping to ensure that Housing Works can continue its crucial mission –– to end the dual crises of homelessness and AIDS through relentless advocacy, the provision of lifesaving services, and entrepreneurial businesses that sustain its efforts –– with a fully supported and thriving workforce. Read more on the blog here: https://lnkd.in/ehWDX3YZ

When Nasdaq asked to highlight Summer on their tower, we thought it was too good to be true. Yet here we are, lighting up Times Square! 🌟 Thank you Nasdaq for highlighting a major milestone for Summer: helping borrowers save $1.75 billion in student loan debt. It was a real milestone to see Summer’s impact displayed during such a pivotal moment in the company’s growth –– we couldn't have achieved it without our hardworking team and incredible partners. Massive thanks to those who have been a part of Summer’s journey so far! What should we do when we hit $10 billion in savings?

Summer is in Houston this week for the AFT Convention! 🚌 It's been incredible connecting with teachers, healthcare workers, and other public sector employees, helping them navigate Public Service Loan Forgiveness. A highlight? Hearing success stories from those who've already achieved forgiveness with our help! 💪

More news on Biden’s SAVE plan: A federal appeals court temporarily blocked the plan, which ties a borrower’s monthly payments to their income and family size. What does this mean for borrowers? The Department of Education will pause student loan payments for 8 million people (~18% of all borrowers), though loans will continue to accrue interest. Thankfully, there are several other robust Income-Driven Repayment plans such as Pay As You Earn (PAYE) that are not impacted by the ruling—and can lower borrowers’ monthly payments if they need help. Need further guidance? Reach out to us! Summer is always here for people grappling with student debt. https://lnkd.in/ech-7xMv

Summer’s Head of Commercial Michelle Tran is joining an all-star Women in Finance panel next week, hosted by New York Life, and you won’t want to miss it! Jessica Ruggles of New York Life Insurance Company will moderate a chat with Michelle, Ana Mahony, CEO & Founder of Addition Wealth, and Michaela Giacobbe, Senior HR Business Partner at Meta. They’ll dig into how they each challenged the status quo in their own careers, how they’re driving inclusion of more voices in the workplace, and how leaders can support women building wealth through thoughtful strategies and programs that are far from one-size-fits-all. Tune in on Wednesday, July 24 at 1:00pm ET/ 10:00am PT. Link to register here: https://lu.ma/jz8ehn1u

Happy #ForgivenessFriday! 🙌 Meet Patti, an incredible teacher Summer was able to assist through our partnership with AFT. Despite years of making payments, Patti was still burdened by a mountain of student debt. Summer guided Patti through the Public Service Loan Forgiveness (PSLF) process. The result? $199,497 of debt forgiven! This outcome highlights both the life-changing impact of PSLF and the complexity of navigating the program. Summer is honored to have played a role in Patti's journey, helping her transition from financial stress to newfound freedom. Congratulations Patti! 🎉

The Wall Street Journal’s recent article highlights a significant disparity in 401(k) contributions. Research conducted by Vanguard shows that nearly half of the $200 billion in company contributions go to the top 20% of earners, while the lowest-earning workers get just 6% of the money. Yes, federal policy requires 401(k) plans to be equitable, and plans are subject to annual review to make sure they don’t disproportionately favor top earners… But the reality is that for people living paycheck to paycheck, or those saddled with bigger financial burdens, paying into a retirement plan to get their full employer match may not be feasible. The WSJ article presents some alternative formulas for matching contributions to help make plans more equitable, but one solution they didn’t mention? Student Loan Retirement Matching. Employers and recordkeepers should take note: adding a student loan match helps more employees participate in the retirement plan, and may also help with required anti-discrimination testing. Want to learn more? Reach out to Summer today. Read the full article here: https://lnkd.in/eMyimWZa

One reason employers aren’t hearing from their employees that they need help with their student loan debt? Nearly half aren’t paying their debt down at the moment, according to a The New York Times piece from Stacy Cowley yesterday. Almost 19 million student loan borrowers have not resumed payments on federal loans following a years-long pause, leaving their accounts delinquent, in default or still on pause, according to the latest Education Department data, and “that reality, along with court decisions that regularly upend the rules, has complicated the government’s efforts to restart its system for collecting the $1.6 trillion it is owed.” So what happens when the on-ramp period to resuming payments ends, and borrowers will have to face penalties for non-payment? Certainly a wave of financial anxiety for millions of Americans, but also an opportunity for employers to step up. Read the full piece, linked in comments, and let us know what you think is coming down the pike for student loan borrowers. https://lnkd.in/eQ9xkQBK

Breaking news: key components of the SAVE plan have been restored. For now, the Biden administration can move forward with lowering some monthly student loan payments to 5% of borrowers’ discretionary income. However, student debt forgiveness under the SAVE plan is paused due to ongoing legal challenges. As these policy updates unfold, Summer is committed to serving our partners and members. Learn more here: https://lnkd.in/e-zQC5Dt

Federal judges in Kansas and Missouri have issued orders halting key parts of President Biden's SAVE Plan, which aimed to reduce student loan payments and expedite forgiveness. The rulings prevent the Department of Education from lowering monthly payments from 10% to 5% of discretionary income and from issuing further loan forgiveness. However, borrowers can still enroll in SAVE, and those already benefiting from the plan will not see changes to their current status. Borrowers should expect their monthly payment amounts to remain the same for now. As these developments unfold, Summer is committed to keeping borrowers and employers informed and supported every step of the way. Read more about this latest development: https://lnkd.in/e8ijKcuN