Student loan debt has reached $1.7 trillion in the United States and is the second-largest form of consumer debt next to mortgages. Every 28 seconds a student loan borrower goes into default. This debt is especially burdensome for low-income borrowers, first generation college students, women, and older adults. Borrowers have no option but to rely on a federal loan servicer industry that disseminates incomplete and sometimes erroneous information, resulting in missed opportunities for reducing or eliminating debt. In addition, federal discharge and forgiveness programs have become so complex that few individuals have been able to successfully benefit from them. These issues have only worsened in the COVID-19 related economic crisis.
The Community Service Society of New York (CSS) created the Education Debt Consumer Assistance Program (EDCAP) in 2019 with support from New York State to help student loan borrowers effectively manage their debt and improve their financial health by providing free, unbiased, one-on-one consumer assistance. EDCAP is a one-stop shop for student loan debt and related issues, assisting both federal and private borrowers. Since its inception, it has helped hundreds of New Yorkers manage and, when possible, eliminate student debt and has already saved consumers close to $2 million dollars.
EDCAP is a program of the Community Service Society of New York (CSS) funded by the New York State Legislature. It was created to help New Yorkers struggling with student debt navigate the student loan repayment system and regain financial health, regardless of the type of education debt — federal or private.
If you are a borrower who needs help with your loans, visit edcapny.org.
As a single dad, Edward wanted to have a profession to provide a better future for his daughter. He took on a student loan but was never able to complete his degree. His student debt has been weighing on him for decades now.
EDCAP’s Financial Coach was able to help him apply for loan discharge due to his disability and track the three-year probation period. In December 2019, Edward was eligible to finally discharge his student loans and be debt free!
Evelin is an undergraduate student at St. Lawrence University. With a $60,000 per year attendance cost, she was concerned about how she was going to pay her student loan debt; particularly considering she intends to pursue a Masters degree.
EDCAP’s Financial Coach looked at her university award letter as well as her current and prospective loan debt. They presented the various repayment plan options and loan forgiveness programs that are available to her in the Federal Student Loan system. By overlaying these options with budgeting techniques, Evelin now has several scenarios she can consider in the future to help repay her student loans.
Kathleen took out a student loan 50 years ago. As a single mother, she struggled to repay it as a result of the added interest and collection fees. She saw her wages garnished and social security offset. Determined to eliminate her student loan, EDCAP helped her settle her debt. Kate is debt free and will now get to keep her entire social security retirement payment.
Erika is a middle school Spanish teacher. Her student debt has been increasing because she has been making minimum payments given her competing financial demands. She wanted help exploring her options and understanding the teacher loan forgiveness programs.
Our EDCAP Financial Coach was to discuss teacher loan forgiveness and help her make a strategic repayment plan to tackle her student debt.
If you are a borrower who needs help with your loans, visit edcapny.org.
