EMERYVILLE, Calif., Dec. 22, 2017 /PRNewswire/ -- Student loans can complicate anyone's financial situation, no matter how complicated their financial situation already is. Income-driven repayment plans can help simplify student loan payments by making them more affordable, but a complicated financial situation can make IDR applications and recertifications more difficult for some, especially when the borrower's situation changes. American Financial Benefits Center, a document preparation company that specializes in federal student loan repayment plans, helps its clients with the IDR process by guiding them to collect the right information to maximize the likelihood of successful application.
The several income-driven repayment plans offered by the Department of Education calculate a borrower's payment based on income and family size. Borrowers must submit that information each year for the 20- to 25-year term, which is most easily done by providing their most recent tax return. When that isn't accurate, or when they have more complicated situations, borrowers need to submit other documentation to show the Department how much they make each month. That way the Department will be able to more accurately calculate the borrower's payment at 10 to 15 percent of their current income, depending on the IDR program they are submitting paperwork for.
"The last thing borrowers need is for their IDR payment to be too high because it was calculated from inaccurate information," said Sara Molina, Manager at AFBC. "Income-driven repayment plans are supposed to help each borrower's financial situation, not complicate it more. When the easy way to fill out the application won't cut it, borrowers might not know what to do. It takes a little more effort and might require a helping hand."
To calculate IDR payments, the Department of Education requires proof of all taxable income, including wages, tips, unemployment income, alimony, interest payments, and dividend payments. If any of that information changes, borrowers may have to provide documentation in addition to or in place of their tax return to make their payment calculation as accurate as they can.
AFBC has years of experience collecting documentation for IDR applications and suggests borrowers write up a statement describing their financial situation, whether it's unemployment, self-employment, or something else, and their monthly income. Borrowers should also provide proof of income, such as bank statements, deposit slips, or copies of checks.
"Borrowers who have more than the traditional employment income might get confused about what the Department of Education needs for their IDR applications," said Molina. "At AFBC, we make sure each of our clients knows what they need to send in so that they don't have to stress about it."
About American Financial Benefits Center
American Financial Benefits Center is a document preparation company that helps clients apply for federal 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).
To learn more about American Financial Benefits Center, please contact:
American Financial Benefits Center
1900 Powell Street #600
Emeryville, CA 94608
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SOURCE American Financial Benefits Center