Borrowers Don't Need to Move Back in With Parents to Pay Off Student Loans, Says AFBC

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The benefits of living independently can feel less important than paying off student loans once the first payment is made. The abrupt spike in living expenses that comes once a borrower sees how much they need to pay, and for how long, can encourage pinching pennies wherever possible. This new student loan lifestyle can make borrowers consider moving back in with their parents in order to pay off their debt. Perhaps one of the reasons that many adults still live with their parents is to be able to afford living expenses and pay off student loans. For many of those borrowers, there may be a strategy that they can use to stay independent, according to American Financial Benefits Center (AFBC), a document preparation company that helps its clients with federal repayment plan applications.

“Many Americans don’t seem to feel that they can make it on their own without paying off their student loans,” said Sara Molina, manager at AFBC. “Many borrowers have parents who say ‘I made it with nothing’ and for them, ‘nothing’ feels like $30,000 more than what they need to strike it on their own. Luckily, there is probably a plan to help borrowers become independent much sooner.”

While the Standard Repayment plan can shackle a borrower to his or her parent’s house, there are other repayment plans, such as an income-driven repayment plan (IDR), which can allow a borrower to take the leap into their own independence. Such plans can help them keep their monthly costs low and afford to move into the life of their choice. By choosing the right plan, many borrowers may be able to achieve loan forgiveness after 20-25 years in such plan, giving a tangible end to their repayments. Borrowers may only be asked to pay 10 percent of their discretionary income each month, and they will be able to request a recalculation of their payment before their annual recertification is due in case their life situation changes.

Many Americans don't seem to feel that they can make it on their own without paying off their student loans. Many borrowers have parents who say 'I made it with nothing' and for them, 'nothing' feels like $30,000 more than what they need to strike it on their own. Luckily, there is probably a plan to help borrowers become independent much sooner.

Sara Molina

Manager at AFBC

By changing to an IDR, borrowers don’t need to make drastic choices to pay their student loan repayments. They can make an exit strategy for leaving their parents' home and a schedule for their own self-development.

“If someone pursues an education, they should not feel like their choice has sentenced them to a life of repayment until death,” said Molina. “We at AFBC advise borrowers to not give up hope because there are several federal repayment plans that might help them.”

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).

American Financial Benefits Center Newsroom

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


Categories: Financial News, Financing and Student Loans

Tags: hardships, housing, income-driven repayment, living with parents, moving back home, student loan repayment, student loans


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About American Financial Benefits Center

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American Financial Benefits Center works to align each client with the different U.S Department of Education programs available to them based on their income and occupational situation.

American Financial Benefits Center
1900 Powell Street (600)
Emeryville, CA 94608
United States