On Sept. 7, the Department of Financial Protection and Innovation (DFPI) announced the launch of the Student Loan Empowerment (SLE) Project, a new $7.25 million grant program that will support nonprofit organizations delivering education, counseling, and legal assistance programs for Californians with student loans.

The SLE Project will award $7.25 million to nonprofit organizations that submit the best proposals for how they will support the development and execution of at least one of two grant streams: Network Coordination grants will fund organizations providing coordination and support for the SLE Project network, and Service Partner grants will fund community-based, individualized education and counseling or legal services to help borrowers manage their student loans.

In California, nearly four million borrowers owe $156 billion in federal and private student loans. These borrowers are faced with navigating a complex and confusing repayment system and a student loan market plagued with predatory practices. Additionally, borrowers with private loans do not have repayment protections under federal law to help them manage their loans.

The grant program was created as part of Governor Gavin Newsom’s 2022-2023 Budget, which also included $2.75 million for a statewide marketing and communication campaign focused on student loan borrower education and outreach to further the state’s commitment to providing Californians who hold student loans with vital information about their rights and options.

SLE Project applications must be submitted by Oct. 18, 2023.

The application can be found at dfpi.grantplatform.com. For questions, comments, or help, please contact [email protected].