New York, NY – New York City Mayor Eric Adams has announced a sweeping new student loan reduction and college savings initiative designed to assist 1.4 million borrowers across the five boroughs, according to Newsweek. The program also offers targeted support for 1.6 million parents and guardians, providing new tools to reduce the cost of higher education.
Why the Program Matters
Student loan debt remains a staggering financial burden in the United States, with Americans collectively owing $1.8 trillion. The launch of this initiative comes amid significant federal changes following President Donald Trump’s One Big Beautiful Bill Act, which will eliminate the Saving on a Valuable Education (SAVE) plan and other income-driven repayment options by July 2028.
Borrowers currently enrolled in SAVE will transition to either the Repayment Assistance Plan (RAP), set to debut in July 2026, or a revised Standard Repayment Plan. Both options generally come with higher monthly payments, which could strain household budgets.
“Student loan programs have become overly complex, and the recent changes by the current administration have only made things worse,” Kevin Thompson, CEO of 9i Capital Group, told Newsweek. “NYC is stepping up to provide real solutions for borrowers, especially public sector workers, to lower debt and simplify repayment.”
Key Details of the Program
The city estimates the initiative will save residents a collective $1 billion. In partnership with Summer, a student loan management platform, New Yorkers, particularly those in public service, have already tapped into federal programs like income-driven repayment and Public Service Loan Forgiveness to cut debt.
Now, the benefit is being extended to all residents, allowing free access to Summer’s services citywide.
“This program removes the administrative burden on those seeking loan assistance, scholarships, and savings options,” Will Sealy, CEO and founder of Summer, told Newsweek. “We’ve already helped thousands of NYC employees navigate forgiveness programs more easily.”
Parents and guardians will also receive specialized support, with the city estimating average annual savings of $3,000for for borrowers, and as much as $7,000 per year for those with advanced degrees.
Early Success and Expansion
During the first three months of a pilot program for city employees, participants collectively saved $13.8 million, with an average yearly payment reduction of $3,800. Originally launched in May for municipal workers, the initiative has now expanded to include all New Yorkers.
Beyond debt relief, the platform offers college cost calculators, savings strategies, and planning tools to help families prepare for higher education expenses. Financial analyst Michael Ryan called the plan a “smart move” to retain young talent in the city.
Public Response
Mayor Adams framed the program as part of a broader vision for affordability and opportunity in New York:
“Getting an education shouldn’t lead to a lifetime of debt… We are lowering costs for families, connecting them to debt relief, and making New York City the best place to find opportunity, raise a family, and live the American Dream.”
Sealy credited the city’s leadership in tackling affordability challenges, while Thompson noted that whether similar models take root in other states may depend on political will.
Looking Ahead
As the first large-scale municipal program of its kind, New York City’s approach could become a blueprint for other cities nationwide. Sealy told Newsweek that several major municipalities are already developing similar models, and NYC’s public-private partnership illustrates how local governments can act decisively without waiting for federal reforms.
Article adopted from Newsweek reporting
