The new funding comes at a time when the company continues to expand partnerships with retirement recordkeepers and payroll providers. In 2022, it announced collaborating with Fidelity Investments.
CEO and co-founder of Summer, Will Sealy, commented: “We’re thrilled to announce this new funding, especially at a time when the need for better college planning and student loan solutions has never been more acute
“As student loan forgiveness hangs in the balance and payments are set to resume for the first time in years, we’re excited to share our solution with more people to enable them to unlock financial freedom”
Founded in 2017, Summer has so far raised $18m in funding. Recent collaborations include a student loan benefit launched with Intuit’s personal finance subsidiary, Credit Karma, and an expanded partnership with the American Federation of Teachers to support their 1.7 million teachers, government employees, and healthcare workers. Summer will use the new funding to develop the platform and help even more borrowers with a holistic approach to financial wellbeing.
Student debt: facts and recent initiatives
According to the Federal Reserve, US student loan debt currently stands at $1.75tn. In August 2022, US President Joe Biden launched a student debt forgiveness plan, promising temporary relief for borrowers. Since then, the plan has gone all the way up to the Supreme Court, where American conservative judges have cast doubt on the legality of Biden’s plan.
For that reason, some companies have launched initiatives to alleviate the stress that comes with paying back student debt. One example is Upwise from MetLife teaming up with Savi at the beginning of April, allowing the former to integrate Savi’s tech capabilities and help individuals access student loan forgiveness.
Summer aims to help 46 million borrowers with their student loan debt. The business offers various solutions such as college cost planning, automated enrollment for loan assistance plans, tuition assistance, student loan contributions, retirement matching, and emergency savings.