American Financial Benefits Center Warns of Student Loans Limiting Social Mobility
Emeryville, Calif., March 20, 2018 (Newswire.com) - Low-income students are told that with the right education, they will have the opportunity for social mobility. Many such students attend college with that goal in mind. After all, the increased earnings potentials for individuals with a college degree should be sufficient to allow for a financially comfortable life. However, student loans may get in the way of that. American Financial Benefits Center (AFBC), a document preparation company that assists its clients with applications for federal repayment plans, reminds borrowers that if their loans get in the way of financial growth, there are a variety of federal repayment plans that may help.
“High schoolers are told to go to college to set themselves up for success in life,” said Sara Molina, Manager at AFBC. “But when they have to take out student loans to do so, and those loans are going to take years to pay off, are they really setting themselves up in a positive light? Many may not feel like they are.”
Any extra funds in a tight budget can get individuals on track to achieving that social mobility they hoped to get from a college degree.
Sara Molina, Manager at AFBC
Student loans can impact every decision in life, limiting job searches, savings, or investing opportunities. Borrowers may feel rushed in their job search right out of college and accept an offer for employment with limited growth opportunities simply because the pay may be enough to cover student loan payments that will be due at the end of the six-month grace period.
Student loan payments can also take up a great portion of a monthly budget — for many, those payments are the second largest expense behind rent or a mortgage — which can affect housing decisions and prevent borrowers from saving up for life milestones like buying a house or starting a family.
When student loans get in the way of financial and social mobility, borrowers may want to consider income-driven repayment plans. Such plans can reduce monthly payments by calculating them based on income and family size. Any reduction in payments can make room for other financial goals in one’s budget. Such goals can lead to social mobility by providing more opportunities to build wealth, whether that happens in a good job or through investing.
“IDRs may allow borrowers to start putting money aside or pay down other debt,” said Molina. “Any extra funds in a tight budget can get individuals on track to achieving that social mobility they hoped to get from a college degree. Many AFBC clients enjoy benefits of being enrolled in an IDR, and we’re happy to help them stay enrolled by helping with recertification applications each year, as long as they choose to remain in the program.”
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