AFBC: Reasons That Those Without Degrees But Who Have Student Loans Have Lower Repayment Rates

Press Release ( - EMERYVILLE, Calif. - Sep 06, 2018 - Struggling with loan repayment is a reality for many student loan borrowers. A new report by Michael Itzkowitz highlights that those who leave college without a degree struggle most often with repayment. American Financial Benefits Center (AFBC), a document preparation service company that has worked with thousands of borrowers regardless of whether or not they had a degree, understands how daunting repayment can be.

Preston Cooper, a contributor for Forbes, says that there are three likely explanations as to why a student loan borrower who doesn’t complete college will be less likely to repay. On average, college graduates earn over 50 percent more. That’s a lot more financial room right there. The second reason was that those who leave college without a degree might be less motivated to work on repayment. With no degree to show for their efforts, but a lot of student loans, it could be a factor for some borrowers. Lastly, there’s likely to be differences that were there before college between those who would graduate and those who would not. Factors like finances and family background likely play a role in that, but Cooper suggests that there are likely other unobservable differences at work. “Every student loan borrower has their own reasons for working on their loans the way they do because each person has a unique situation,” said Sara Molina, manager at AFBC.

In reality, as with most things, non-graduates have a multitude of reasons for not working on repayment of their student loans. AFBC has worked with qualified borrowers to help them apply to enroll in federal income-driven repayment programs, regardless of their receiving a degree or having dropped out of school. The income-driven repayment programs have lowered many clients’ monthly repayments, and even got some on the track for student loan forgiveness in 20-25 years of staying in the program. “At AFBC we want to help as many people as possible better afford financial wellness, so we do what we can to assist our clients in the application process regarding income-driven repayment programs,” said Molina.

Every student loan borrower has their own reasons for working on their loans the way they do because each person has a unique situation.

Sara Molina

Manager at AFBC

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.

Each AFBC telephone representative has received the Certified Student Loan Professional certification through the International Association of Professional Debt Arbitrators (IAPDA).

American Financial Benefits Center Newsroom


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

You may also like this  


Or using ePRNews Account

Don't have an account ? Sign Up

Register New Account

Or Signup using Email

Already have an account ? Login

Reset Password

Already have an account ? Login


If you have any concerns regarding this press release, please contact the Author / Media Contact / Business of this press release. ePRNews is not resposible for the accuracy of the news posted and do not endorse, support any product/ services/ business mentioned and hereby disclaims any content contained in this press release.