EMERYVILLE, Calif., Feb. 20, 2018 /PRNewswire/ -- Once a federal student loan borrower enters repayment, there are various income-driven repayment plans (IDRs) offered by the Department of Education that become available. The requirements for entering into these plans vary, and each plan calculates the borrower's monthly payment a little differently. Family size is a factor in the payment calculations, and borrowers should know what the definition of family size includes. American Financial Benefits Center (AFBC), a private document preparation company that assists borrowers in applying for and maintaining enrollment in repayment plans, reminds borrowers to consider that elders living under their roof may count in their family size calculation.
"Which relatives or friends count in your family size calculation depends on the circumstances," said Sara Molina, Manager at AFBC. "It's important to know that not just a spouse or children can count in that family size. If a parent or friend is living under a borrower's roof and receives at least half of his or her support from the borrower, this person may qualify to be counted as part of the family size."
Adults of any age—relatives or not—who are receiving a certain level of support from the borrower and live in the borrower's house, can actually count towards family size. As the population ages, it's likely that many of these adult additions to households will be elderly parents. If the adults who are living with the borrower receive more than half of their support from the borrower, then these folks are part of the official family size. Support is defined by Federal Student Aid (FSA) as including, but not limited to: housing, food, clothes, medical care, and money and loans. Borrowers should read the full FSA definition of family size to ensure their complete understanding.
Clients of AFBC who are currently in IDRs can receive help from AFBC if they need to update their family size. Borrowers can file a payment recalculation request, or they can simply add their new family size to their yearly recertification documents. In either case, AFBC assists its customers to prepare the necessary paperwork for their review and approval. If AFBC clients have any questions about changing family size or recertification, they can always call customer service.
"We know that taking care of an elderly parent might be complicated, especially when it comes to money," said Molina. "So reflecting that true family size in a borrower's payment is important. AFBC is here to assist our clients when their family changes so that their payment can match their needs as much as possible."
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.
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