Student Loan Forgiveness News & Information
American Financial Benefits Center Reminds Student Loan Borrowers: Check Out Income-Driven Repayment PlansThe student debt landscape is filled with competing explanations about why debt levels are so high. To cover increasing tuition costs, students must borrow more and more money. But some say the abundance of federal loans is actually the culprit behind rising tuition, not the solution to it. Meanwhile, others wonder if rising student debt is even a crisis at all. While experts continue to analyze the situation and work on improving it for future borrowers, current borrowers who are struggling with student debt may need some help managing it. American Financial Benefits Center (AFBC), a private document preparation company specializing in document preparation for federal student loan repayment programs, reminds borrowers that income-driven repayment plans offered by the Department of Education may lower monthly payments. Thanks to all the reports on student debt being published lately, it’s easy to outline what the modern student loan borrower looks like and who is struggling the most. While graduate students accumulate more debt than undergraduates, borrowers with less debt who did not complete a degree program default at a higher rate. Furthermore, debt levels may not be the most crucial factor when predicting default rates; instead, individual circumstances, like the school attended or family financial situation, can be more telling. “Every borrower has a unique financial situation that may benefit from federal income-driven repayment programs,” said Sara Molina, Manager at AFBC. “At AFBC, we’ve seen the impact those programs can have on individuals’ monthly budgets and encourage any federal student loan borrower struggling with payments to look into them.” All student loan borrowers begin repayment in the Standard repayment plan unless... read more
American Financial Benefits Center Advises Caution: Tax Filing Status Can Affect Student Loan PaymentsWhat do student loans and taxes have in common? It sounds like the opening to a bad joke, but when student loan payments are calculated using income, which is most easily gathered through tax documents, it’s easier to see the relationship between the two. How income-driven repayment plan enrollees file their taxes can affect the size of their monthly payments. This is especially true for married federal student loan borrowers. American Financial Benefits Center, a document preparation company specializing in assisting borrowers in applying and recertifying for federal repayment plans, encourages its married clients to consider possible implications before they file their taxes. “It’s exciting to file your taxes jointly for the first time after you get married,” said Sara Molina, Manager at AFBC. “But if you’re in an income-driven repayment plan, you might want to take a step back and decide if that’s the best course of action.” Filing jointly when married has many advantages, including higher base deductions, and can mean a larger tax refund for many couples. However, reporting a larger income can result in a larger student loan payment in an income-driven repayment plan. Because joint filing combines a couple’s incomes, payments calculated based on that income will be higher — or worse, sometimes that bump in income can disqualify borrowers from enrolling in an IDR program. (However, while an income bump may prevent borrowers from enrolling in a new IDR, borrowers currently enrolled in an IDR will remain in that repayment plan no matter how much their income increases.) Most IDRs will use both spouses’ incomes in payment calculations only if they filed their... read more
Minimize Your Student Debt!
If you are an existing client of AFBC, contact us at: Ph. 1-800-488-1490 or [email protected]
Monday - Saturday 8am - 5pm PST
AFBC Client Testimonials
My Account Specialist did an amazing job explaining everything. He not only tolerated me, but encouraged me as I research everything that he talked about because it sounded just a bit too good to be true.
I got ahold of My Account Specialist at AFBC about a month ago and was astonished at the program he was able to get me into. It will not only save my family about $200/month but I can now see a light at the end of the tunnel and believe now that I…
My Account Specialist provided me with the best service possible. Can’t wait to share the news!! Glad I found your company!!
Megan Haddock Rocks!!!! Megan is so easy to talk to, listened to all my concerns and answered all my questions! Thank you so much Megan!!!!!
Thanks for your help Christine!!!! I tell everyone I know about AFBC and give them your direct extension as I know they will receive top notch service.
Before calling AFBC, I was feeling as if there was no where to turn or no one to talk to. knowing I was soon to have my wages taken, i called and talked to Christine. Just hearing her kind voice and sincere tone, put me at ease. I would recommend AFB…
The process was easy and Megan was very helpful. We saved tons of money and I would definitely recommend AFBC to everyone.
This one call changed everything, I was not criticized for life happening, no negative comments, Robert and everyone i had contact with made it so easy. I have a payment plan and its affordable. If you are having problems with student/ parent loans…