EMERYVILLE, Calif., March 26, 2018 /PRNewswire/ -- Student debt affects more than 42 million Americans. According to a report by Roll Call, even one in ten Congress members has a student loan balance, split fairly evenly between Democrats and Republicans. President Obama also had student loans, which he didn't pay off until he was in his 40s. American Financial Benefits Center (AFBC), a document preparation company that assists with federal repayment plan applications, encourages borrowers to learn from their representatives: aim high in career pursuits and don't worry if repayment takes a while.
"The education that student loans funded can help borrowers work toward lucrative or highly satisfying jobs that such student borrowers may not have been able or inclined to strive for otherwise," said Sara Molina, Manager at AFBC. "Student debt shouldn't get in the way of career pursuits, no matter how high or low one's income is."
Higher salaries, such as those that members of Congress receive, certainly may make it easier to pay down student loans. However, even a high salary may not equate to riches. Only about half of the Congress members who reported having student loans have a positive net worth, according to the Roll Call report. While the personal financial situations of our representatives may differ from our own, the fact that they carry student loans goes to show that education is important enough to take on debt. In fact, Rep. Darren Soto, D-Fl., attributed his success to his "ability to attend a top law school," which would not have been possible without student loans.
Success in a career may sometimes require certain financial flexibility. For example, an advantageous career transition or promotion may require a move that may need to be self-funded. In some states, defaulting on student loans can result in losing a professional license. For cases like those, it is essential to both stay current on student loan payments and save for an emergency or unexpected expenses.
Borrowers who may need more affordable student loan payments may benefit from applying for an income-based repayment plan (IDR). Such plans calculate payments as a percentage of discretionary income, which takes into consideration income and family size. After the 20- to 25-year term, any remaining balance will be forgiven assuming that the borrower remains in the program. While that is a long time, any reduced payments may enable borrowers to set money aside to facilitate other goals, such as career moves that may have been risky without some savings.
"At AFBC, we support our clients by helping them apply for IDRs that may enable them to make advantageous career moves or work toward other financial goals," said Molina. "We hope to take the stress and confusion out of the student loan repayment process to allow them to focus on what matters most to them, whether that's a good career, owning a home, or starting a family."
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
View original content with multimedia:http://www.prnewswire.com/news-releases/american-financial-benefits-center-student-loans-shouldnt-hinder-career-advancement-300619604.html
SOURCE American Financial Benefits Center