Borrowers May Want to Apply for Student Loan Forgiveness Repayment Plan Before the PROSPER Act Passes, Notes American Financial Benefits Center
EMERYVILLE, Calif., July 6, 2018 (Newswire.com) - Student loans can be one of the biggest, most long-running strains on someone’s finances that can dictate a person’s habits. For many, this financial journey has the possibility of ending in loan forgiveness, which allows them to pursue a life that doesn’t revolve around saving as much as possible to repay student loans. With the appearance of the recent PROSPER Act, many loan forgiveness programs were under threat of being removed, and there may be fewer repayment options for borrowers. However, since the PROSPER Act has been pushed back, American Financial Benefits Center (AFBC), a document preparation company, suggests that borrowers may not need to worry just yet and encourages them to look into income-driven repayment (IDR) plans if they plan on pursuing loan forgiveness.
“There are a few student loan repayment plan options out there, and each has a unique purpose to help borrowers in a different situation,” said Sara Molina, manager at AFBC. “When you take away a borrower’s plan, you might take away that individual’s ability to pay. Fortunately, there is still time to act.”
Two popular strategies for federal student loan repayment are Public Service Loan Forgiveness (PSLF) and income-driven repayment plans (IDRs). Such plans base payments on income and family size and may result in loan forgiveness in 20 to 25 years of enrollment, depending on the borrower’s situation. PSLF requires borrowers to be in one of the aforementioned IDRs, but if they make 120 qualifying monthly payments, they may have their loans forgiven after those 10 years’ worth of payments. Such programs may be the best chance at repayment for many borrowers.
There are a few student loan repayment plan options out there, and each has a unique purpose to help borrowers in a different situation. When you take away a borrower's plan, you might take away that individual's ability to pay. Fortunately, there is still time to act.
Under the prospective PROSPER Act, PSLF would be eliminated and the various IDRs currently offered would be combined into a single option with several other changes to the program. It is unclear how this legislation, if passed, would affect borrowers currently in repayment in one of the repayment plans offered by the Department of Education.
“A legislation change may occur far in the future, but will probably only affect future borrowers,” said Molina. “For those borrowers who want to have a current plan for their loans, as well as the confidence that they have chosen the right repayment plan for their needs, they should take a look at some of the federal repayment plans out there.”
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).
To learn more about American Financial Benefits Center, please contact:
American Financial Benefits Center
1900 Powell Street #600
Emeryville, CA 94608
Source: American Financial Benefits Center