American Financial Benefits Center Recommends Patience Through Student Loan Marathon
EMERYVILLE, Calif., Feb. 17, 2018 /PRNewswire/ -- Students beginning college often take out loans without realizing exactly what they are signing up for. During school, when most students do not make any payments, those loans can feel like income, and it's easy to forget about it once it's been spent. But those loans have a long-term impact. American Financial Benefits Center (AFBC), a document preparation company that assists borrowers in applying for and staying enrolled in income-driven repayment plans, looks at student loan repayment as a marathon and encourages borrowers to be patient throughout the process.
The student loan journey starts with the FAFSA and ends with the final payment, or, for those who qualify, forgiveness. Depending on how much education borrowers complete and how they approach repayment, their student loan journey could be shorter than 10 years, or even upwards of 35 years for those with advanced degrees in long-term repayment plans.
"There's something about the process of getting student loans that makes them feel temporary," said Sara Molina, Manager at AFBC. "Maybe it's that you don't have to start making payments right away. Whatever it is, it can result in shock when the repayment process begins and reality sets in."
Sticker shock is quite common for student loan borrowers, especially when they discover what their monthly payments will be. That shock may manifest in urgency to pay down those loans as quickly as possible, resulting in daily sacrifices and delays in working toward life milestones. Ultimately, besides full erasure of student debt, that is the quickest route to the student debt finish line. However, there are other options.
For borrowers who can't, for example, live rent-free or survive on a razor-thin budget, student loan repayment may take longer. The Standard repayment plan, which all borrowers begin repayment in, takes 10 years to complete. Borrowers who need lower monthly payments can apply for income-driven repayment plans, which base monthly payments on income and family size. Those options can take up to 25 years to complete, but they can also ease financial stress and allow borrowers to focus on other financial goals, like buying a house or starting a family.
"Student loan repayment really is like a marathon," said Molina. "You train and practice and when it's time to start the marathon, you pace yourself and let your determination and patience guide you to the finish line. AFBC clients are like those runners, pacing themselves in IDRs, making their way to the finish line."
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).
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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SOURCE American Financial Benefits Center
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