On August 7, 2025, Mayor Eric Adams announced that a citywide student-loan assistance program—previously limited to civil servants—will now be available to all eligible New Yorkers. Administered in partnership with the financial-technology company Summer, the initiative provides personalized guidance to help borrowers navigate complex repayment choices.
The expansion comes during a time of sweeping federal changes that are reshaping the student-loan repayment system. Millions of borrowers nationwide are losing access to popular repayment plans and facing higher long-term costs. For New York City’s 1.4 million student-loan borrowers, the local program offers a modest but timely safety net.
In July 2025, Congress passed the “One Big, Beautiful Bill,” restructuring the student-loan system and eliminating most existing income-driven repayment plans, including SAVE, PAYE, and ICR. By July 1, 2028, borrowers will be left with only an expanded Income-Based Repayment plan or the new Repayment Assistance Plan. Interest resumed for SAVE borrowers on August 1, 2025, adding an average of $3,500 per year in costs. The Repayment Assistance Plan will calculate payments between 1 and 10 percent of adjusted gross income, require a minimum payment of $10 per month, and extend loan forgiveness to thirty years. Consolidated Parent PLUS loans will now be eligible for Income-Based Repayment, giving families more flexibility. Analysts warn that these changes could push many borrowers toward private lenders, where interest rates may be higher and borrower protections more limited.
For New York City borrowers, the expanded local program offers critical help when federal protections are being reduced. Borrowers can receive one-on-one counseling and repayment optimization through Summer at no cost. With the Repayment Assistance Plan launching in July 2026 and older plans disappearing by 2028, New Yorkers face an urgent need to evaluate their repayment strategies. The changes are especially important for public service workers in the city, many of whom rely on the Public Service Loan Forgiveness program and could see shifts in their eligibility or timelines.
Federal loan policy is moving toward fewer and longer repayment options, with the possibility of higher total costs. New York City’s program offers an important safeguard, but it will only help those who know about it and take advantage of its services. For HEI professionals and student-support staff, ensuring that borrowers understand their changing options is now a pressing responsibility.
Sources
BK Reader – NYC Launches Student Loan Reduction Program for All New Yorkers
Times of India – Trump’s Student Loan Reset
The Sun – Big, Beautiful Bill and Student Loan Payments
Business Insider – Private Lending Expected to Expand Under New Rules
NerdWallet – Understanding the Repayment Assistance Plan (RAP)
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