EMERYVILLE, Calif., March 23, 2018 /PRNewswire/ -- Student loans can be powerful, both in their capability to fund a higher education and their ability to cause persistent financial anxiety. According to a report released in August 2017, more than a quarter of millennials experience anxiety from their student loans. American Financial Benefits Center (AFBC), a document preparation company that assists its clients with income-driven repayment plan applications, reminds borrowers that though their student loans may cause anxiety, they can be managed through strategic repayment.
"It's hard to appreciate the education you got when your student debt overshadows everything you do," said Sara Molina, Manager at AFBC. "Decisions about having coffee or drinks with coworkers or dinner out with friends can be influenced by financial anxiety. It really is a problem that affects every part of life."
Financial anxiety can manifest in diverse ways. Some feel nausea. Others avoid taking risks at work, worrying that any risks may lead to termination, which may affect their student loan repayment. However, financial anxiety may come down to a lack of control — and that applies to the whole financial situation. High housing costs, savings goals, and bills all contribute to a financial situation that can be overwhelming. Because student loans often make up the second highest household expense, besides rent or a mortgage, it's easy to attribute that anxiety to student debt.
There are several ways that borrowers can ease that anxiety, and they all center around taking control of their loans. First, borrowers may consider talking to a financial expert about their unique situation. If they don't speak with an expert, common advice for handling household finances describes creating a budget. Simply seeing where money goes may ease some stress. If expenses outnumber income, borrowers may need to cut back on certain things.
Income-driven repayment plans (IDRs) offered by the Department of Education can potentially reduce student loan payments, allowing borrowers to allocate funds to other expenses or savings depending on their goals. IDRs base payments on income and family size, and borrowers in certain situations may even have zero-dollar payments in the program.
"Financial anxiety can make everyday life more difficult than it needs to be," said Molina. "That anxiety shouldn't get in the way of progress at work or relaxation at home. At AFBC, our clients who are enrolled in IDRs are a step ahead in finding relief from financial anxiety. We hope they are able to take further steps to control their finances."
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