National Student Loan Debt Crisis Has No Party Affiliation, According to American Financial Benefits Center
EMERYVILLE, Calif., August 2, 2018 (Newswire.com) - There is no red student loan debt. There is no blue student loan debt. There is American student loan debt, and it grips the nation regardless of political party. Though party affiliation does affect ideas about the direction of policies dealing with the crisis, student loan debt is an equal opportunity obligation. Forty percent of all Republicans and 45 percent of all Democrats have someone in their household who currently has student loan debt, according to a recent Harvard Kennedy School study. American Financial Benefits Center (AFBC), a document preparation company that helps its clients apply for federal income-driven repayment plans (IDRs), reminds borrowers that no matter their political affiliation, nearly half of all Americans know someone battling with student loan debt.
“Though it can feel like we are divided politically, it is important to remember our common, national experiences,” said Sara Molina, manager at AFBC. “Unfortunately, student loan debt is one of those common experiences and we need to provide excellent solutions for borrowers who are struggling.”
Though borrowers from Republican states carried less debt, borrowers from Democratic states defaulted less. In states with two Democratic senators, borrowers carried 25 percent more student debt. Counterintuitively, borrowers were 55 percent more likely to go into default on their student loans if they lived in a state with two Republican senators. Though it is not definitively clear why there is this difference, overall, more debt signifies borrowers have worked toward, and hopefully earned, advanced degrees such as an engineering, medicine or law degree and may have an increased probability of earning a better income and staying clear of default.
Unfortunately, student loan debt is one of those common experiences and we need to provide excellent solutions for borrowers who are struggling.
And in at least one state, Illinois, Democrats and Republicans banded together to override a governor’s veto of a student loan bill of rights. Governor Bruce Rauner felt the bill, though “laudable,” would impede the federal government and smaller loan companies. The two parties worked together to stand up for borrowers who were being provided insufficient information about their student loans. The bill requires servicers to inform borrowers about all of their options, including repayment and discharge options, and establishes an ombudsman to represent borrowers facing challenges with their servicers.
As our clients know, at AFBC we aim to give borrowers overwhelmed by student loan debt a clear picture of their options and assist them in navigating the application and maintenance processes.
“We help thousands of borrowers save millions of dollars in monthly payments per year, and that lets them get on with their lives,” said Molina. “We may not get our news from the same sources, but we pour all of our energy into helping borrowers have the opportunity to live less-burdened by student loan debt."
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