EMERYVILLE, Calif., March 26, 2018 /PRNewswire/ -- Wanderlust can be difficult to shake once it takes hold. In fact, vacations are good for individuals and families. However, debt, including student loans, can complicate, postpone, or even prevent travel plans. Debt can be a limiting factor in life, especially for families who have trouble budgeting for vacations or fear missing payments while away. American Financial Benefits Center (AFBC), a document preparation company that helps its clients apply for and remain enrolled in federal repayment plans reminds borrowers that it is possible to take vacations while repaying student loan debt.
"There's nothing better than taking a vacation to get away from it all," said Sara Molina, Manager at AFBC. "We're firm believers that student debt shouldn't get in the way of some quality time away."
The best part of planning a vacation is deciding where to go and what to do there. Figuring out how to fund a vacation may not be exciting, but it is an essential part of the process. Like any financial goal, planning a vacation starts with deciding how to pay for it, beyond deciding how to limit costs while on said vacation. For many, that might mean setting aside money to build a vacation or travel fund, which may require budgeting to take a look at current finances and determine if anything needs to change.
Student loan debt may make it difficult for individuals or families to build a travel or vacation fund. When student loans take up a substantial portion of borrowers' income, they may need a change in plan. Specifically, federal income-driven repayment plans (IDRs) calculate loan payments as a percentage of discretionary income, which takes into consideration income and family size, and can be as low as zero dollars for certain borrowers. Any reduction in payment may allow borrowers to set money aside to travel or pursue other financial goals.
"There's no reason that student loan borrowers can't take the occasional vacation, as long as they plan for it in their budget and make sure not to skip any student loan payments along the way," said Molina. "At AFBC, our clients who are in IDRs may be in a good position to put money aside for a well-earned vacation. Or, they may choose to pursue other financial goals. Whatever they do, we hope they feel their student loans don't get in the way."
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