Struggling with student loan debt? Credit Karma’s New Payment Relief Experience Could Help
OAKLAND, Calif.–(BUSINESS WIRE)–Credit Karma, the consumer technology platform with more than 120 million members in the United States, Canada and the United Kingdom, is launching a new personalized debt relief experience for Americans this month. federal student loan holders, who account for 92% of all student loans in America. Now, Credit Karma can help federal student loan borrowers who are struggling to make payments on time, apply for two potential forms of relief that could lower their monthly payments, or help them understand if they qualify for a loan forgiveness. ready.
Credit karma found that many borrowers with outstanding student loan debt have had to sacrifice necessities like groceries and paying rent in order to maintain their student loan payments. Borrowers like these can benefit from extending the term of their loan and adjusting their repayments according to their income, in order to control their other bills and expenses. This prevents them from backsliding and ultimately maintains their ability to be approved for favorable financial products down the line. With unique insight into members’ financial profiles, Credit Karma can help federal borrowers who are struggling financially find a payment plan that allows them to pay off their debt in a more manageable way.
Credit Karma will present eligible borrowers with personalized estimates of how much they could reduce their monthly payment with a government Income-Based Repayment (IDR) plan, including the potential trade-offs that come with extending the term of the loan. From there, at no cost and with no impact on their credit, borrowers can start the application process, directly from within the Credit Karma app, before being seamlessly transferred to Summer to complete the application process. Credit Karma has partnered with Summer, the digital solution to help student borrowers reduce their debt, to power this new product for its members.
“About 22 million Credit Karma members hold approximately 53% of the total student loan debt in America, amounting to $850 billion, making student loan debt a significant financial burden for many of our members. said Josh Dockery, product manager for student loans at Credit Karma. “Data from the FSA and our partner Summer show average savings of $90,699 on Public Service Loan Cancellation (PSLF) and average monthly IDR payment reductions of $192, respectively, and I am confident that our product can help our members find effective payment relief solutions that work for them.”
The other form of relief that Credit Karma can help connect eligible federal student loan borrowers is loan forgiveness. Federal borrowers who visit Credit Karma may be eligible for Public Service Loan Forgiveness and can confirm whether or not they are eligible directly through the Credit Karma app before beginning the application process.
On the backend, Credit Karma sorts through members’ student loan types and relief program combinations to determine which plans members are eligible for and which might be most beneficial for their circumstances, so they can apply with more confidence. of confidence. Credit Karma’s Student Loan Help Center also provides educational materials and resources to help borrowers on their journey to repaying their student loans.
“We founded Summer to provide every borrower with the advisory support they need to successfully navigate the complex student loan repayment system,” said Will Sealy, Founder and CEO of Summer. “Today marks an important milestone in that effort. In partnership with Credit Karma, millions of borrowers can access best-in-class support for free and could achieve significant savings on their student loans.
About Credit Karma
Founded in 2007 by Ken Lin, Credit Karma, an Intuit Company (Nasdaq: INTU), is a consumer technology company with more than 120 million members in the United States, United Kingdom and Canada, including nearly half of America’s millennials. Although best known for pioneering free credit scores, company members turn to Credit Karma for everything related to their financial goals, including identity monitoring, applying for cards credit checks, loan research (auto, home and personal), car insurance, savings accounts and now checks accounts through our banking partner, Member FDIC MVB Bank, Inc. – all for free. See how Credit Karma members are making financial progress on TikTok, Instagram, Facebook, and Twitter.
Summer partners with organizations to help their populations navigate and reduce student loan debt with proven technologies, policy expertise, and a human touch. Founded in 2017, Summer offers industry-leading tools like PSLF Digital Enrollment to help all borrowers achieve their financial goals.
Summer is a Certified B Corporation®.
Learn more about summer at www.meetsummer.org