A national program is helping student loan borrowers reduce their monthly payment by an average of $184, and it’s free.
The My Way to Repay campaign launched in October 2023 as many of the 45 million Americans carrying federal student loans were set to resume repayment. The campaign is a joint effort by Savi — a platform that helps borrowers optimize repayment — and the Ascendium Education Group — a nonprofit that funds initiatives to help learners from low-income backgrounds achieve upward mobility.
My Way to Repay aims to help student loan borrowers from underserved populations navigate the complexities of repayment.
“We went through a payment pause for more than three years, and now the on-ramp period is coming to an end — people will have to make payments or face significant financial and credit impacts,” said Aaron Smith, co-founder of Savi. “It’s a big financial challenge for a lot of people.”
Changing lives
The average federal student loan debt among borrowers, according to the Education Data Initiative, is more than $37,000. It can be a crippling figure.
“Many folks that have student loans are not able to move forward with their life planning,” said Beth Erickson, vice president of repayment solutions at Ascendium Education Group. “Things like having a family, buying a house — these huge loan payments have made that impossible.”
A report compiled by Savi found that only 28% of borrowers said they were aware of all the options available for dealing with their debt. The My Way to Repay program educates borrowers about their options.
One borrower, Lorraine, joined a My Way to Repay webinar and commented that, “It is so hard to understand how to complete forms and what is needed. Savi has helped with this. I am 66 and still working on student loans. It feels like a curse and Savi has made this trek a lot easier.”
For example, the SAVE Plan offers favorable terms to borrowers on income-driven repayment plans which may be offering even lower payment options beginning on July 1. The Public Service Loan Forgiveness program offers debt relief to borrowers who make 120 payments on their educational loans while working for a nonprofit or government entity.
On average, borrowers working with the My Way to Repay find $38,000 in loan forgiveness options.
Taking the first step
A comprehensive program, My Way to Repay offers borrowers multiple ways to better understand their debt and repayment options.
Savi, a sophisticated online tool, helps people find out whether they’re eligible for any of more than 150 repayment and forgiveness programs. Savi then presents the options side-by-side, along with the tools to submit your application.
“We are going at this problem in a variety of ways to give borrowers the extra support they need,” Smith said.
The program also offers individual counseling and educational webinars, which Smith touted as a good place to begin shaping your loan repayment strategy.
“Sitting in on a webinar is a great first step,” he said. “It will not only give you the high-level understanding of what’s happening with student loans, but there’s also a lot of misinformation and confusion. ‘Are loans forgiven?’ ‘What happens if I can’t pay?’ We provide you with answers to those questions and then we give you avenues to get knowledge about your repayment strategy, whether it’s using an online tool or calling a phone number and getting one-on-one guidance.”
To learn more about the My Way to Repay program, go to mywaytorepay.com.
