Mayor Adams, Student Loan Benefits Company Summer Launch Partnership to Help Wipe out Estimated $360 Million in Student Loan Debt for 100,000 Public Servants

May 5, 2025

Video available at: https://www.youtube.com/watch?v=O744adCbXZ0

First Unveiled in 2025 State of the City Address, Initiative Will Help City Employees and Qualifying Family Members Enroll in Federal Public Service Loan Forgiveness Program and Income-Driven Repayment Plans for Free

ACS, DSS, and NYCHA Will Be First Agencies in Pilot Program Starting Today, Full Program to Roll Out for All City Employees Starting in September

Announcement Follows Mayor Adams' "Best Budget Ever," Which Invests in Affordability, Public Safety, and Quality-of-Life Issues New Yorkers Care Most About

New York – New York City Mayor Eric Adams, New York City Department of Consumer and Worker Protection (DCWP) Commissioner Vilda Vera Mayuga, and New York City Department of Citywide Administrative Services (DCAS) Commissioner Louis Molina today announced a new effort to help more than 100,000 city employees enroll in the federal government's Public Service Loan Forgiveness (PSLF) program and Income Driven Repayment (IDR) plans to reduce or cancel an estimated $360 million in student loan debt. Through a partnership with Summer – a leading company that helps borrowers navigate student loan repayment options – New York City will provide public servants and eligible family members with free access to student loan experts and online debt assistance tools to help enroll in affordable repayment options and the PSLF program.

City employees at the New York City Administration for Children's Services (ACS), the New York City Department of Social Services (DSS), and the New York City Housing Authority (NYCHA) are now eligible as part of the pilot phase of the program, which launched today; the full service will begin a phased rollout for all New York City government employees this September. Originally announced in his State of the City address earlier this year, the investment to launch this program is funded as part of Mayor Adams Fiscal Year (FY) 2026 Budget and builds on the Adams administration's ongoing work to make the city more affordable for working-class families. The Adams administration has launched ambitious initiatives to eliminate and cut city income taxes for hundreds of thousands of New Yorkers, wipe out more than $2 billion in medical debt, invest hundreds of millions of dollars in early childhood education, and more.

"Public servants wake up early and stay up late to keep our city running, but too many of them still struggle with expensive student loan debt. But our administration is helping to change that by putting hundreds of millions of dollars back into the pockets of our city employees and giving them the peace of mind they deserve through the Public Service Loan Forgiveness program," said Mayor Adams. "Connecting city employees and their dependents to a benefit they are entitled to is just another way our administration is helping make this city more affordable for working-class New Yorkers. Whether it's eliminating city personal income taxes for working-class families, cancelling $2 billion in medical debt for New Yorkers, or saving people $30 billion through city, state, and federal programs, our administration is fighting every day to make life more affordable all across the five boroughs."

"Student loans should not be a barrier to pursuing a lifetime of financial success. Expanding access to the Public Service Loan Forgiveness program is an important way we can set city employees up for long-term financial freedom and put money back in their pockets. I know firsthand how liberating that can be," said DCWP Commissioner Mayuga. "With the federal government set to resume collecting on defaulted student loans this week, the supports we are announcing today are well-timed to help borrowers and the many millions navigating the rapidly-evolving student loans landscape. Thank you to Mayor Adams, Commissioner Molina, and our new partners at Summer for sharing our commitment to help New Yorkers reduce millions in student loan debt and make our city more affordable for working-class families."

"Student loan guidance and education are monumental tools for empowering individuals, and with this initiative, we are bringing these resources directly to public servants and their loved ones," said DCAS Commissioner Molina. "Those who serve our communities should not feel encumbered by their student loans, and we are proud to play a key role in administering this loan assistance platform citywide. The Adams administration remains committed to supporting its workforce and providing necessary relief to all city employees through innovative and accessible solutions."

"This initiative will provide a critical resource to thousands of New York City employees and their families," said Will Sealy, founder and CEO, Summer. "Paying back student loans shouldn't be a barrier to pursuing a career in public service. We're proud to partner with the City of New York to deliver the tools and expertise needed to navigate student loan assistance programs, ensuring public servants get the debt relief they've earned."

PSLF is among the most expansive loan forgiveness initiatives in the country, helping reduce burdensome student loan debt while encouraging Americans to pursue careers in public service. After 120 months of payments while working full-time at a qualifying not-for-profit organization or any level of the city, state, or federal government – including New York City government – individuals can get the remainder of their student loan debt forgiven. Unfortunately, complex criteria and hard-to-navigate requirements have made it difficult for many eligible applicants to successfully enroll in PSLF and receive loan forgiveness. One in six New Yorkers have student loan debt, but, since 2017, less than 11 percent of eligible borrowers submitting loan forgiveness forms to the federal government had their loans successfully forgiven. Many New York City municipal employees are eligible for debt relief through PSLF but have not enrolled in the program or have struggled to recertify year after year.

To break down these barriers and help save New Yorkers money, the new partnership between the Adams administration and Summer will offer city employees free access to Summer's online portal, as well as free expert guidance from Summer's team in verifying their eligibility for PSLF, managing their paperwork for enrollment and completion of the program, and staying on track for loan forgiveness. Through the partnership, city employees will be able to identify the best repayment and forgiveness strategy for their individual situation. Additionally, the family members of public servants who independently qualify for PSLF – either by working for another branch of government or for a qualifying not-for-profit organization – will be able to take advantage of the program as well. Following a pilot phase with city employees from ACS, DSS, and NYCHA, the program will begin expanding to include all city employees in September 2025. As a Certified B Corporation, Summer has generated over $1.8 billion in total student loan savings to date.

This program between New York City and Summer is the largest of its kind implemented by any municipal government in the United States, solidifying New York City's position as a national leader in addressing the student debt crisis. The support program will not only strengthen the city's ability to recruit and retain top-tier talent but help public servants save money as well. By freeing up income that would otherwise go to debt payments, participating employees will have more money to spend locally, helping stimulate New York City's economy.

"New York City and the Department of Consumer and Worker Protection has long been a leader on what cities can do to help their residents struggling with student debt," said Winston Berkman-Breen, legal director, Student Borrower Protection Center. "We are excited to see New York City continue to serve as a model for how cities as employers can work to support their employees with their student loan debt. Public Service Loan Forgiveness is a critical tool for maintaining and building the bench of committed public servants across the country, and we hope more cities follow New York's lead."

The Adams administration has already saved New Yorkers more than $30 billion by connecting local residents to city, state, and federal programs, including a historic expansion of the New York City Earned Income Tax Credit that has already returned over $345 million to New Yorkers. Since the start of the Adams administration, DCWP's "NYC Free Tax Prep" program has helped New Yorkers save nearly $57 million in tax preparation fees by helping filers file approximately 257,000 tax returns for free. NYC Free Tax Prep providers also offer drop-off services and virtual tax preparation services. To bolster these efforts, Mayor Adams last year unveiled "Axe the Tax for the Working Class," an ambitious proposal to bring significant tax relief to working-class families by eliminating cutting city personal income taxes for more than 582,000 filers and their dependents, returning over $63 million to these New Yorkers. Axe the Tax would eliminate the New York City Personal Income Tax for filers with dependents living at or below 150 percent of the federal poverty line, as well as lower city personal income taxes for filers immediately above that threshold too. If passed into law, Axe the Tax for the Working Class could bring relief to working-class families as soon as tax year 2025.

Today's announcement also builds on Mayor Adams' ongoing efforts to wipe out burdensome debt and put money back in New Yorkers' pockets. The Adams administration has already partnered with Undue Medical Debt to relieve over $2 billion in medical debt – the number one cause of bankruptcy in the United States – for hundreds of thousands of working-class New Yorkers, with more than $80 million in medical debt already forgiven.

Today's announcement follows Mayor Adams' "Budget Week" last week, where the Adams administration unveiled signature investments in the "Best Budget Ever," which will make New York City safer, more affordable, and the best place to raise a family, while maintaining record-high reserves and ensuring a strong fiscal future for the City of New York.