EMERYVILLE, Calif., Feb. 9, 2018 /PRNewswire/ -- Borrowers have shown that they are willing to go to great lengths to pay down their student loan debt. From living with parents and being willing to give up the right to vote in the next two presidential elections to more unusual measures to cover high monthly payments, students are desperate to rid themselves of that debt. To take it a step further, a recent report outlined what would happen if all current federal student debt was erased altogether. American Financial Benefits Center (AFBC), a document preparation company that assists borrowers in applying for federal repayment plans, supports borrowers' need for relief and will continue to aid its clients in maintaining enrollment in the currently available repayment programs.
"It would be a dream come true for so many borrowers to have their debt just disappear," said Brandon Demond Frere, CEO of AFBC. "Imagine the possibilities of not having to make high student loan payments every month. What a lot of people don't realize is that full erasure isn't the only way to reduce student loan pressure on their finances."
The Levy Economics Institute of Bard College dared to imagine a world without student loans. In the report, they described a boost to the GDP, reduction in unemployment rates, and an increase in available jobs. On a more individual level, borrowers who have been making high payments would be free to allocate that money elsewhere. Borrowers currently putting off buying a house or a car or starting a family would have more financial freedom to do so. Others may finally be able to help friends and family with money or take their kids on vacation.
An article describing the report speculates that because the government would lose out on all those student loan payments, the federal deficit would increase, making it very unlikely that lawmakers would consider erasing all student debt an option.
Instead, Brandon Frere suggests individual borrowers focus on the currently available options for handling student loans. Income-driven repayment plans (IDRs), for example, may lower monthly payments enough for borrowers to meet financial goals they may be putting off because of high monthly student loan payments. While they may not boost the economy as much as erasing debt altogether would, IDRs make month-to-month financial situations easier for many borrowers.
"Unfortunately, in today's world erasing all student debt is not feasible," said Frere. "But taking advantage of IDRs is the next best thing. AFBC helps its clients remain enrolled in affordable repayment plans, freeing them up financially to focus on their other goals instead of putting them off."
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).
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/income-driven-repayment-next-best-thing-to-erasure-of-all-student-debt-says-brandon-frere-of-american-financial-benefits-center-300596511.html
SOURCE American Financial Benefits Center