American Financial Benefits Center: Loss of Income Doesn't Have to Mean Losing the Ability to Pay Student Loans
Emeryville, CA, April 3, 2018 (Newswire.com) - Loss of employment is usually perceived as a personal problem, regardless of cause. The affected individual loses necessary income and may have trouble with finances. However, an individual's job loss can also affect his or her partner. When either or both partners have student loans, the financial strain can compound. American Financial Benefits Center (AFBC), a document preparation company that helps its clients with federal repayment plan applications, reminds borrowers whose income is not sufficient to cover student loan payments that income-driven repayment plans (IDRs) may provide a solution.
"Losing income can be difficult for anyone, especially when someone else may be depending on it," said Sara Molina, Manager at AFBC. "For example, couples who work together to pay all the bills, including debt, may feel especially stressed."
Losing income can be difficult for anyone, especially when someone else may be depending on it.
Sara Molina, Manager at AFBC
Successful student loan payment requires income, just as all other bills do. Falling behind on student loans can have some negative consequences. However, even with no income or reduced income, borrowers have access to federal repayment plans that may help them to stay current on their loans. Short-term solutions may include deferment or forbearance. Or, borrowers who need long-term solutions may get a reduced payment by applying for an income-driven repayment plan, which bases payments on income and family size.
Due to the variable nature of IDRs, borrowers are required to recertify their income and family size each year. Borrowers who are in an IDR and experience a reduction in income, whether they lose their income or their partner does, can recertify that information before their annual deadline to request recalculation early. Any reduction in payment may also help the couple cover other bills that a reduction in income may have made difficult.
"At AFBC, we help our clients with the recertification paperwork required to remain enrolled in an IDR that bases payment on income and family size," said Molina. "If a client's income ever changes, especially from a job loss in the household, we encourage them to give us a call and we will help them work through the recertification paperwork as quickly as possible so they hopefully won't have to scramble to make their monthly payment as previously calculated."
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.
AFBC is a member of the Association for Student Loan Relief (AFSLR), and each representative on the phone 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