American Financial Benefits Center Warns Borrowers: Some States Revoke Professional License in Case of Default
EMERYVILLE, Calif., Feb. 27, 2018 /PRNewswire/ -- The Department of Education has several repayment options for federal loan borrowers struggling to repay their student debt. Those options, because they can potentially lower payments, may help borrowers avoid default. Borrowers who do default may get their wages garnished or tax refund seized by the government in attempts to collect the debt. While those methods are certainly burdensome to borrowers, they are not completely prohibitive. Many states, on the other hand, can revoke professional licenses of borrowers who default. American Financial Benefits Center (AFBC) supports their clients in applying for and staying enrolled in federal repayment programs to help keep them from defaulting.
"Borrowers who are at risk of defaulting need help, not barriers," said Sara Molina, Manager at AFBC. "Revoking professional licenses when borrowers can't pay their loans is not going to help them get back on track. They need those licenses to work so they can make the money necessary to pay down the loans."
Less than half the States in the U.S. currently have laws allowing them to revoke professional licenses in case of student loan default. And some states don't even enforce the law if they have it: Hawaii had not suspended a single license at the time this New York Times article was written because no agency had given them names of defaulted borrowers.
Many experts and lay people argue against the practice of suspending professional licenses of defaulted borrowers, saying that it punishes borrowers and creates a catch-22. Suspending licenses prevents borrowers from doing the one thing that will help them get current on their loans: work. For that reason, and some others, some states have taken action toward repealing those laws.
Borrowers falling behind on payments should do what they can to avoid default, whether or not they live in a state that can suspend their professional license. The Department of Education offers a variety of repayment plans that base monthly payment amounts on income and family size. AFBC helps borrowers understand, apply for, and stay enrolled in such plans.
"The consequences of default are bad enough without the possibility of having your professional license revoked," said Molina. "No borrower should have their livelihood taken away because they were unable to pay their student loans. And those borrowers shouldn't feel like they have no options. At AFBC, our goal is to help struggling borrowers apply for federal income-driven repayment programs that allow them to successfully manage their debt."
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).
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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