EMERYVILLE, Calif., Feb. 14, 2018 /PRNewswire/ -- For student loan borrowers who are reading headlines about President Trump's budget proposal for 2019: don't get spooked! The president is indeed proposing big changes, including changing income-driven repayment (IDR) and eliminating Public Service Loan Forgiveness (PSLF). But there are a few things that should be cleared up. American Financial Benefits Center (AFBC), a document preparation company that helps federal student loan borrowers apply for and maintain enrollment in repayment plans and forgiveness programs, reminds its clients that the changes to IDRs and the elimination of PSLF would be for new loans only.
"We understand the news can make everything sound urgent," said Sara Molina, manager at AFBC. "But there are few things to know. First, a budget proposal is just that: a proposal, not law. Second, if it did pass as is, clients of AFBC who don't take out any new loans should not be affected."
What does a new loan mean? Any borrowers — including clients of AFBC — who do not take out any new student loans after July 1, 2019, would still, if qualified, be eligible to receive PSLF after fulfilling all the requirements. As for IDRs, existing borrowers would still be able to stay in their current plans. It's unclear if the July 2019 cap for new loans is also for IDRs.
It also bears repeating that none of the elements of the budget proposal is set in stone. Congress has to debate the budget and eventually approve the finalized version. It's impossible to know what the final budget would look like.
The budget proposal makes significant changes to a number of federal programs; the changes to student loans are just some of many. This is not to downplay the potential effects of the budget if it became law. AFBC simply wants to put into perspective what these changes might mean for their clients in certain situations, namely those who are borrowers of existing federal student loans who are in IDRs and/or working towards Public Service Loan Forgiveness.
"We want to put our clients — all of whom have existing loans — at ease when it comes to the current budget proposal," said Molina. "We can't know the future, but — assuming that these specific budget provisions stay — there are some things that our clients won't have to worry about because they already took out 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).
To learn more about American Financial Benefits Center, please contact:
American Financial Benefits Center
1900 Powell Street #600
Emeryville, CA 94608
SOURCE American Financial Benefits Center