There May Be a More Flexible Repayment Plan for Student Loan Borrowers, Notes AFBC
EMERYVILLE, Calif., August 8, 2018 (Newswire.com) - Many student loan borrowers find themselves struggling to meet their life goals because they chose the wrong student loan repayment plan. The Standard Repayment plan may not always be the most helpful plan for borrowers' life situations. Borrowers are often not informed of the relative benefits of the different plans they can choose from. Based on information gathered from the Consumer Financial Protection Bureau, bad information is one of the most common complaints of borrowers, which leads many borrowers to choose a plan that may not align with their particular situation. American Financial Benefits Center (AFBC), a document preparation company, encourages borrowers to find good sources of information that can help them work toward successful repayment.
"Student loan borrowers should not have their repayment options closed off by bad information," said Sara Molina, manager at AFBC. "Borrowers shouldn't have their debt loom over their head for most of their life just because they were never told that they had a better option."
The standard student loan repayment plan isn't as flexible as other plans to help a borrower deal with realities of life after higher education. After leaving higher education, career pursuits often result in student loan borrowers accepting low-paying or entry-level jobs. Such borrowers may have trouble affording their costs of living and the costs of student loan repayments. Alternative plans, such as income-driven repayment plans (IDRs), may help a borrower obtain more life flexibility that they need and desire. IDRs reduce a qualifying borrower's payments to 10 to 15 percent of their discretionary monthly income — allowed to be as low as $0. IDR programs are also eligible for federal loan forgiveness after 20 to 25 years of enrollment in the program.
Borrowers shouldn't have their debt loom over their head for most of their life just because they were never told that they had a better option.
"Things like income and family size can change, but IDRs take that into consideration so borrowers don't have to scramble to get their payments together," said Molina. "While borrowers can still repay their debt, they will hopefully no longer have to worry about giving up opportunities in order to deal with their student loans."
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