Feeling Embarrassed by Student Loans? American Financial Benefits Center Reminds Borrowers That They Don't Have to Be
EMERYVILLE, Calif., March 19, 2018 (Newswire.com) - Student loans can cause financial strain and can affect job searches, but they can also lead to embarrassment. According to a recent report, 55.6 percent of respondents reported feeling embarrassed, and 74.3 percent reported daily stress from their loans. American Financial Benefits Center (AFBC), a document preparation company that helps its clients apply and recertify for federal income-driven repayment plans reminds borrowers to focus on why they took out that debt and what they are getting out of it. The company also suggests that borrowers arm themselves with knowledge.
“Embarrassment from student loans might stem from not fully understanding them or from struggling with finances despite having a good job,” said Sara Molina, Manager at AFBC. “Those things should be manageable, and we encourage borrowers to focus on the positive with their loans.”
Embarrassment from student loans might stem from not fully understanding them or from struggling with finances despite having a good job.
Sara Molina, Manager at AFBC
According to the survey, nearly 60 percent of respondents did not fully understand the debt burden they were signing up for and what repayment would look like. While many are advocating for better financial education in college, and before college, to prepare students for student loans, borrowers who have them now should do their research. Knowing one’s balances, interest rates, and repayment options can help that individual feel less stress and gain control.
The survey also illuminated the role that student loans play in a monthly budget. Besides rent or a mortgage, student loan payments make up the next largest expense. When that payment meets conflicting financial priorities, the consequences can be great. Federal student loan borrowers whose payments are too high for their income can apply for income-driven repayment plans that base payments on income and family size and may end in forgiveness after 20 to 25 years.
“Feeling in control of your loans can help with the embarrassment and stress,” said Molina. “AFBC clients who are in IDRs are in a position to stay current on their loans and focus on what they got out of their time at college, whether their degree led to a fulfilling or lucrative job or they met people they love.”
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