AFBC Reminder: Student Loan Repayment is Solely on Borrower
EMERYVILLE, Calif., February 8, 2018 (Newswire.com) - When it comes to repaying federal loans, who is responsible? The borrower who signed the promissory note. While there might be a village of people assisting in the application for loans and in the repayment process, the borrower is the only one responsible for making payments. American Financial Benefits Center (AFBC), a document preparation company that assists in applying for and maintaining enrollment in repayment plans, reminds clients that even when receiving assistance, borrowers are always in charge of loan payments.
“At AFBC, we provide customized assistance to student loan borrowers when it comes to enrollment in repayment plans offered by the Department of Education,” said Brandon Frere, CEO of AFBC. “Depending on circumstances, we even get borrowers on track toward forgiveness. But our clients maintain their access to their loan accounts, and only they can make payments on their loans.”
At AFBC, we provide customized assistance to student loan borrowers when it comes to enrollment in repayment plans offered by the Department of Education.
Brandon Frere, CEO of AFBC
The income-driven repayment plans that AFBC specializes in assisting borrowers apply for can potentially reduce a borrower’s monthly payment since the plans require payments based on income and family size. Once in a plan, however, borrowers are the only ones responsible for making all monthly payments to their servicer.
When it comes to students and their parents, there may be confusion about who is responsible for paying back federal student loans. Even if parents helped fill out financial aid forms, if the student signed the promissory note and the loans bear the student’s name, only the student is responsible.
Similarly, parents can take out federal loans in their own names to finance their child’s education. These are Parent PLUS loans and the parent who signed the promissory note is the only one accountable for paying them back. Parents can in some cases add cosigners to Parent PLUS loans, known as “endorsers,” but only the parent and cosigner bear responsibility in those instances. The child who received the education is not on the hook for parent loans, nor can a federal loan be transferred to the child.
If borrowers do see a headline about “transferring” federal loans, these are actually describing refinances. Another person has to agree to take out a private loan in his or her own name in order to replace the current borrower’s loan. Refinancing, while potentially helpful for some, removes myriad protections and opportunities, including income-driven repayment and loan forgiveness.
“We want our borrowers to know that while we work hard for them to help manage their student loans, we are not in the business of paying back their loans on their behalf,” said Frere. “And no one else holds the responsibility except for the person whose name is on that loan. This way, borrowers are always in control of their 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. They adhere to strict customer service guidelines and strive 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