Despite High Collective Student Loan Debt, AFBC Reminds Borrowers That Tools for Managing Debt Are Available

Press Release ( - EMERYVILLE, Calif. - Dec 08, 2017 - ​Student loan debt in the United States is higher than ever. Federal student loans owed by Americans officially passed the 1.3 trillion-dollar mark in the second quarter of 2017. Private student loans make up over $100 billion more. However, borrowers do not need to feel the weight of this collective debt if they are effectively managing their own debt. American Financial Benefits Center, a private document preparation company that is not affiliated with the Department of Education, provides assistance to borrowers in selecting and applying for federal repayment plans that help make debt more manageable. These plans can potentially lower borrowers’ payments and get them on track for loan forgiveness.

“It’s clear student debt isn’t going anywhere, but these headlines don’t communicate the fact that people have tools to manage that debt,” said Sara Molina, Manager at AFBC. “At AFBC, we make sure that our clients stay informed about all their options in this climate of rising student debt.”

As the Department of Education becomes one of the biggest lenders in the country by virtue of their massive student debt portfolio, they are also one of the biggest debt collectors. If borrowers default on their federal student loans, the government becomes a powerful collector, with the ability to wage garnish in all 50 states, seize tax refunds, and even take a borrower’s Social Security or other federal payments.

It’s clear student debt isn’t going anywhere, but these headlines don’t communicate the fact that people have tools to manage that debt.

Sara Molina, Manager at AFBC

Despite this power to collect debt, it’s a matter of debate whether federal loans are or will be profitable for the United States government. Some argue that loans are highly profitable but shouldn’t be making the government money at all, since they are intended as a public good. But others worry that loans are not at all profitable as they are being administered now and they will eventually drain around $170 billion from the Treasury in the next several years due to nonpayment by so many borrowers.

However, there are various options and protections that borrowers receive to avoid default and the collection power of the government. Repayment options include income-driven repayment plans which base a person’s monthly loan obligation on their income and their family size. These could bring a borrower’s monthly loan obligation to as little as zero depending on their financial circumstances. While this will not necessarily reduce the huge amount of national debt, it could provide much-needed relief to struggling borrowers. AFBC assists clients in selecting and applying for these income-driven repayment plans. For thousands of enrolled AFBC clients, AFBC helps them prepare additional paperwork needed yearly for recertification.

“Our clients are enjoying the support of AFBC throughout the entire life of their student loan,” said Molina. “And when it comes down to it, the individual borrower is responsible solely for the loans in their name. We hope our clients can look past the collective debt and feel comfort in knowing they can manage their own.”

About American Financial Benefits Center

American Financial Benefits Center helps clients apply for the federal repayment plan that fits 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

Source : American Financial Benefits Center

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