Slow Student Loan Repayment Can Still Be Positive Situation, Says American Financial Benefits Center
EMERYVILLE, Calif., March 27, 2018 (Newswire.com) - Student loan borrowers who work in certain industries might be quicker in paying down their student loans, according to a survey published last year. However, while quick repayment may signal an easier repayment experience, slow repayment can also mean a positive experience. How? For federal student loan borrowers, slow repayment may indicate enrollment in income-driven repayment plans. American Financial Benefits Center (AFBC), a document preparation company that helps borrowers apply for and recertify enrollment in income-driven repayment plans, notes that slow repayment is not necessarily a bad thing.
“Depending on their levels of debt and their incomes, income-driven repayment plans may be the only option for some borrowers to stay current with their loans,” said Sara Molina, Manager at AFBC. “Our AFBC clients who are in IDRs and current with their loans may not be repaying their loans quickly, but they are staying out of default.”
Depending on their levels of debt and their incomes, income-driven repayment plans may be the only option for some borrowers to stay current with their loans.
Sara Molina, Manager at AFBC
The survey named broadcasting and journalism as the field of student loan borrowers who had paid down the highest percentage of their loans, specifically 55 percent. Unsurprisingly, unemployed student loan borrowers had paid down the lowest percentage of their debt, at nine percent of debt paid off. Other industries have varying degrees of progress, like construction (47 percent of debt paid off) or government and public administration (26 percent), but it’s not entirely clear what the precise reasons were for each of these numbers.
One reason, however, could be participation in income-driven repayment plans, which are federal repayment plans that often lower borrowers’ monthly payments because payments are determined by income and family size. Income-driven repayment plans are also available to unemployed borrowers. Some borrowers whose income is low enough relative to their debt may have a zero-dollar monthly payment requirement. These particular borrowers do not make payments on their loans each month, but they remain in good standing with their loans.
AFBC has helped clients apply for income-driven repayment plans and continues to assist with the annual recertification process needed to stay in the plan for multiple years.
“Many borrowers can count staying out of default as an accomplishment and as a positive financial experience,” said Molina. “Given how burdensome student loans are for so many borrowers, and how difficult defaulting on loans can make a person’s life, we at AFBC believe that it’s important and a crucial reason we provide the services that we do.”
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