Press Release (ePRNews.com) - EMERYVILLE, Calif. - Feb 22, 2018 - Tuition is one of the main costs of college, followed by books and other supplies. But the total cost of college can include other expenses as well, such as housing, food, transportation, and miscellaneous costs. Recent action aimed toward offering free college, such as New York’s Excelsior Scholarship, usually features free tuition. But what about the other costs of college? American Financial Benefits Center (AFBC), a document preparation company that helps clients apply for federal repayment plans intended to curb the costs of student loans, points out that non-tuition costs may make up greater portions of student debt than many people realize.
“Paying for college can be just as difficult as earning a college degree when so many things need to be covered,” said Sara Molina, Manager at AFBC. “Unless you live at home with the parents, housing, food, and transportation costs must be factored in, and quite often that means taking out more student loans.”
Rising tuition is often blamed for rising student debt, and individuals tend to disagree on why tuition is rising. In response, some lawmakers have proposed tuition-free solutions, including the Excelsior Scholarship. Others have suggested that student loan accessibility has influenced the rise in tuition and that student loans should, therefore, be limited. Either way, reducing tuition costs will likely result in less student debt.
Unless you live at home with the parents, housing, food, and transportation costs must be factored in, and quite often that means taking out more student loans.
However, even when tuition costs are kept low, non-tuition costs can still drive up student loan borrowing. Non-tuition costs constitute up to 80 percent of a school’s sticker price. Room and board make up most of that but can vary widely depending on location.
Consider California: Despite low tuition costs and a robust need-based financial aid system, non-tuition costs continue to make funding college difficult, especially for low-income and nontraditional students. California’s high cost of living, especially in areas like L.A. and the San Francisco Bay Area, are not sufficiently addressed by the Cal Grant program, according to a report by TICAS. The grant program may award up to $1,700 to go toward non-tuition expenses, which does not come close to covering the cost of living that can be about $19,000 a year for students who live off campus.
“Tuition is important to cover, but students should carefully consider all the other costs, as well,” said Molina. “When non-tuition costs drive up student loan balances, we remind borrowers that they usually have options to successfully repay that debt — our clients are proof of that. We helped them apply for income-driven repayment plans offered through the Department of Education so they can afford their monthly payments. We continue to help them recertify for those IDRs each year for continued success.”
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
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American Financial Benefits Center