Tuesday, July 23, 2024
Reading Time: 3 minutesOakland County is stepping up to ease the financial strain of student debt for its residents. The Oakland County Student Debt Relief Initiative, launched by the Board of Commissioners in collaboration with County Executive Dave Coulter’s administration, aims to form a strategic partnership with Savi, a social impact company focused on reducing student loan payments and facilitating loan forgiveness for borrowers.
On July 18, the Board of Commissioners passed a resolution to allocate up to $500,000 for this program, spearheaded by Chair David T. Woodward (D-Royal Oak) and Commissioner Brendan Johnson (D-Rochester Hills). This initiative will provide all county residents and employees with student loan debt access to Savi’s services free of charge for one year.
“Reducing student debt is a crucial step towards promoting economic prosperity and alleviating financial stress for our residents,” said Johnson, who carries college debt. “This initiative demonstrates our commitment to supporting the future of Oakland County.”
Savi’s platform supports borrowers throughout their loan journey, from identifying new repayment or forgiveness options to enrolling in these plans and offering ongoing assistance if issues arise with their loan servicer. Currently, 172,000 Oakland County residents collectively owe $6 billion in student debt. By utilizing Savi’s platform, residents could potentially save thousands of dollars on their student loan payments.
“Oakland County is committed to providing meaningful financial relief to our residents,” Coulter said. “This partnership with Savi will make a real difference in reducing the student debt burden and enhancing the economic well-being of our community.”
Savi co-founder Tobin Van Ostern shares Coulter’s optimism about the positive impact this partnership will have on the community.
“Oakland County is leading the way for the nation when it comes to helping residents with student loan debt. We are humbled to be a part of Oakland County’s Student Debt Relief Initiative that will help thousands of residents tackle one of the biggest financial burdens millions of Americans face: student loans,” said Van Ostern. “Through this partnership, Oakland County residents will have the ability to quickly find and maximize savings through their new repayment and forgiveness options.”
Nationally, student debt has ballooned to over $1.6 trillion, surpassing credit card debt and trailing only mortgage debt. Thousands of Oakland County residents are grappling with this escalating financial challenge.
“The Oakland County Student Debt Relief Initiative represents a significant milestone as the first county-wide program of its kind in the United States, setting a precedent for other counties to follow,” Woodward said.
Recent actions by the Biden-Harris Administration, including the Saving on a Valuable Education (SAVE) plan and the Public Service Loan Forgiveness (PSLF) program, have broadened opportunities for debt forgiveness and reduction.
“We applaud Oakland County leaders for initiating this opportunity for its residents,” said Glenn McIntosh, senior vice president for student affairs and chief diversity officer for Oakland University, where the announcement was held. “This initiative demonstrates a strong commitment to enhancing the well-being of our community. We are excited to see the positive impact it will have on the lives of Oakland County residents.”
So far, Savi has identified over $3 billion in loan forgiveness, with an average forgiveness amount of $25,553 for eligible borrowers.
A public dashboard will be created and made available on the county’s website, highlighting the benefits and impact of the Oakland County Student Debt Relief Initiative for residents and employees.