AFBC Recommends That Graduating College Students Learn About Their Loans and Repayment Options

EMERYVILLE, Calif., May 11, 2018 /PRNewswire/ -- It's never a bad time to learn about student loan repayment options, but May might be one of the best. With graduation just around the corner, students may have a lot on their minds: the final final exams, job searching, polishing their resume, networking and future housing arrangements, to name a few. They should also take some time to consider their student loans if they had to borrow for college. American Financial Benefits Center (AFBC), a document preparation company that helps federal student loan borrowers with repayment plan applications and recertifications, reminds borrowers that they may have multiple loans that might require different repayment attention.

"Graduating college can be exciting and scary and students may choose to push their loans to the back burner until they find a job," said Sara Molina, manager at AFBC. "This might be a mistake. We encourage all borrowers to understand the loans they have and become familiar with their options for repayment before their first repayment due date."

Student loan borrowers should first take stock of the facts. They may receive notifications from their lenders about imminent repayment or they might be required to complete exit counseling for their loans. They can log into the National Student Loan Data System (NSLDS) to see all the federal student loans they have, but they should also keep an eye out for private loan bills or statements if they took out private loans. Private loans may not have a grace period like federal loans typically come with, so borrowers may need to start paying those back soon after graduation if they had not started already.

Private loans and federal loans have different repayment terms. Private loans are limited to the terms of the promissory note the borrower signed when they took out the loans. While some private lenders may offer forbearance for undue hardships, they are not required to do so.

Meanwhile, federal student loans have a variety of repayment plans that may confuse borrowers. Every federal loan borrower begins repayment in the Standard Repayment plan, which features set payments based on a 10-year payoff term. Other repayment plan options can extend payoff terms and reduce payments. For example, income-driven repayment plans (IDRs) calculate payments based on income and family size and can end in forgiveness in 20 to 25 years of enrollment in such programs.

"At AFBC, our clients often came to us confused about their student loans and struggling with the Standard Repayment plan," said Molina. "We helped them understand their loans and repayment options before assisting them in applying for a federal repayment plan. For many, that is the first step to successful repayment. We hope our clients feel that they are in an affordable repayment plan and that our yearly assistance with recertification paperwork helps them maintain that."

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).

American Financial Benefits Center Newsroom

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
[email protected]

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Graduation and Student Loan Repayment
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Related Links

AFBC home page

SOURCE American Financial Benefits Center