Real estate platform Pathway Homes has partnered with Savi, a technology startup, to help customers manage their debt burden through programs like Public Student Loan Forgiveness (PSLF) and other repayment plans.
Savi says its platform helps those with student loan debt understand their debt, optimize their repayment arrangement and enroll in a plan that caters to their finances. The company operates as a public benefit corporation, working in collaboration with employers, membership organizations and financial institutions to provide solutions to tackle student loan debt.
According to the National Association of Realtors, 60% of non-homeowning millennials cited student loans as a major factor in their decision to delay buying a home.
There are almost 43 million borrowers with federal student loan debt, with the average balance being $37,787 and the total average balance, which includes private loan debt, being $40,780.
This makes homeownership an unreachable dream for many.
The Biden administration issued an executive order to pardon up to $20,000 in student loans but multiple lawsuits have delayed the plan. These lawsuits claim that Biden’s promise is unconstitutional and that he cannot disburse $400 billion of taxpayers’ money on his own.
Pathway is available only to consumers living in Tampa, Orlando, Atlanta, Dallas and Phoenix. The company was formed by ResiLabs, which was established by Regis Group in collaboration with Invitation Homes Inc. and Fifth Wall.
Customers of Pathway can receive updates on government repayment and forgiveness programs, through Savi, according to a statement. This is aimed at helping them lower monthly payments and focus on becoming homeowners.
Along with enrollment programs, Pathway customers can also work with student loan experts and advocates and have access to webinars and tools, through Savi.
The release says Savi users save $1,800 annually on their student loan payments.
K.C. Cleary, co-founder and chief strategy officer of Pathway Homes, said student loan debt is a significant barrier to owning homes, especially among young professionals.
“We are committed to achieving our mission of creating more holistic and accessible homeownership opportunities, and through this new partnership with Savi, we can now empower our customers to tackle the burden of student debt and start building a future of generational wealth for years to come,” Cleary added.