Student Loan Debt Doesn't Need to Feel So Scary, Says American Financial Benefits Center

College Graduate with Empty Wallet

Zombies, vampires, student loan debtors. Do a quick web search using the terms “student loan debt” and “Halloween.” The number of results that come up for student loan costumes says something: student loan debt is scary — scary enough for representation during the spooky holiday. With 45 million borrowers owing a mind-blowing $1.5 trillion, it’s little wonder this may be some people’s idea of the perfect fright-night costume. American Financial Benefits Center (AFBC), a document preparation company, hopes to make student loans a little less scary by assisting borrowers in applying for federal income-driven repayment plans (IDRs).

“We hear stories all the time about student loan borrowers being unable to afford even the most basic expenses,” said Sara Molina, manager at AFBC. “It’s easy to see why people would wryly dress up as student loan debt — being unable to afford the basics is scarier than anything you’d find on Halloween.”

Not only do numerous student loan borrowers have trouble affording necessities, but they’re also putting off many major adult milestones due to the debt they carry. Marriage, starting a family, purchasing new vehicles and homes — not to mention being unable to save for retirement. Student loan borrowers report that their debt negatively impacts their mental health and 35 percent of those under 55 say that they regret taking out loans, stating they weren’t worth it. Moreover, student loan debt has been named as a factor in one out of eight divorces; student loan debt literally affects every facet of borrowers’ lives. It’s not just a millennial problem, either. Boomers and Gen Xers are also hugely affected by student loans, whether it’s their own that they’re still struggling to pay off or loans taken out for children or grandchildren.

It's easy to see why people would wryly dress up as student loan debt — being unable to afford the basics is scarier than anything you'd find on Halloween.

Sara Molina

Manager at AFBC

Gen Z is the youngest of the generations affected by student debt, although there isn’t a fair amount of data on how it’s impacted their lives yet. One survey found that Gen Z, on the whole, overestimates the federal student loan forgiveness programs; 53 percent of them believed they would receive assistance from it, yet only a small percentage of borrowers (around three percent) will have their loans forgiven by the federal government. When asked if they were confident in their ability to fully pay off their student loan debt, 39 percent of Gen Z respondents said “no” or that they were “unsure” they would be able to.

Student loans are scary. One way to ease the fear is with an IDR, which can effectively reduce monthly payments for federal student loan borrowers who qualify, and potentially end the debt in forgiveness after 20 to 25 years of remaining in the program.

“Student loan debt doesn’t need to feel so scary,” said Molina. “IDRs can make a huge difference and bring a lot of relief to many borrowers. No one should have to struggle with necessities or put their lives on hold.” 

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).

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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: Financing and Student Loans, Financial News

Tags: federal student loans, halloween, income-driven repayment, scary


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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