EMERYVILLE, Calif., Nov. 1, 2018 /PRNewswire/ -- The idea behind student loans is that even if that they're a large amount, they'll be manageable with the degree earned and the subsequent job obtained afterward. However, as many borrowers have personally found out, that is not always the case. American Financial Benefits Center (AFBC), a document preparation service company that has helped many struggling student loan borrowers apply for federal repayment programs says that there is an economic storm brewing, and they aren't the only ones to have noticed it.
"Going to college is supposed to get someone the next step ahead, but what if it doesn't always do that?" said Sara Molina, manager at AFBC. LendingTree analyzed 2016 data from the Federal Reserve and saw some of the staggering but potentially not surprising differences between those that are under 35 with student loans and those without. On average there is a 75% difference in net worth between the two groups, in favor of those without student loans. Those with student loan debt on average almost $19,000 less in retirement savings. Regular bank accounts average half as much in them for borrowers versus non-borrowers.
Other than meaning that on average, those under 35 without student loans have more available money than those that do, it's also showing that the difference is likely to grow into a larger problem. It's already being shown more, the differences between lower, middle, and upper-class families, and with these kinds of numbers so early on in people's lives, it's likely to just get worse. Being unable to afford to buy a house instead of renting, or to start prepping for their own children's futures so that they can avoid the shackle of student loan debt, even just struggling to afford incoming bills, that kind of stuff is all leading to an even larger class divide.
To try and better their situation or keep it from getting worse, borrowers may look towards enrolling for federal assistance. AFBC has helped thousands of qualified borrowers apply for federal income-driven repayment programs that have gotten them on track for student loan forgiveness after 20-25 years of being in the program and potentially lowering their monthly payments. "We believe student loan repayment shouldn't have to be a struggle, that's why we're so committed to helping our clients apply for these programs and through the yearly recertification process," said Molina.
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
New Apartment Next To Crumbling Building
SOURCE American Financial Benefits Center