American Financial Benefits Center Explains What Student Loans Can Be Used For
EMERYVILLE, Calif., April 19, 2018 (Newswire.com) - A recent report showed that about one-fifth of college students are using student loans to invest in cryptocurrency. While some may criticize such a move as another irresponsible use of student loan money, it may be a good opportunity to outline what student loans are actually for. American Financial Benefits Center (AFBC), a document preparation company that helps its clients with student loan repayment plan applications and recertifications, encourages borrowers who struggle with high payments to look into federal income-driven repayment plans.
“It seems like there’s always something new that college students are spending their loan money on,” says Sara Molina, manager at AFBC. “Cryptocurrency isn’t exactly new, but the excitement is. Is investing in something like that really an appropriate use of student loans?”
It seems like there's always something new that college students are spending their loan money on.
Sara Molina, Manager at AFBC
Once student loans have been disbursed to a student’s school, any remainder after tuition and fees have been covered gets refunded to the student. That money looks like any other money in a bank account, so it might be easy for students to spend it on anything they want or need. However, student loans are provided for specific purposes, all of which are directly related to college attendance.
According to the Federal Student Aid office, student loans may be used for any education expense. That includes tuition and fees, room and board, books, supplies and other equipment. For those who need to pay for childcare services, student loans may be used for those as well. Finally, student loans can be used to rent or buy a personal computer, which is essential for most coursework.
Students may be tempted to use student loans for other expenses, such as travel, clothing, dining out or business expenses. However, no one monitors students’ bank accounts to make sure that they are not spending their loan funds frivolously, though a pilot program has been announced that may change the way student loans are disbursed and used. Such uses of loan money may result in higher debt balances and payments after graduation. Borrowers who find themselves with high payments may find relief in federal income-driven repayment plans (IDRs).
“Whether students spend too much of their loans on non-educational expenses or simply need to max out their loans to attend college at all, IDRs may be able to help them in repayment,” said Molina. “At AFBC, our clients are in IDRs that help them more easily afford their loan payments and work toward other financial goals instead of being held back by their loans.”
About American Financial Benefits Center
American Financial Benefits Center is a document preparation company that helps clients apply for federal student loan repayment plans that fit their personal financial and student loan situation. Through its strict customer service guidelines, the company strives for the highest levels of honesty and integrity.
Each AFBC telephone representative has received the Certified Student Loan Professional certification through the International Association of Professional Debt Arbitrators (IAPDA).
Contact
To learn more about American Financial Benefits Center, please contact:
American Financial Benefits Center
1900 Powell Street #600
Emeryville, CA 94608
1-800-488-1490
info@afbcenter.com
Source: American Financial Benefits Center