In the Confusing World of Student Loan 'Forgiveness,' AFBC Makes Sure Its Clients Understand

Press Release ( - EMERYVILLE, Calif. - Dec 13, 2017 - Student loan forgiveness is all the rage these days as debt levels reach new highs and default rates increase. Borrowers calling for forgiveness hope for some relief in sometimes impossible financial situations. There are currently several options for student loan forgiveness, but they aren’t quick, and they are often misunderstood. Repaying student loans takes a lot of work, but so does forgiveness. American Financial Benefits Center, a document preparation company focused on the federal student loan industry, ensures that its clients understand the repayment plan they are in and helps them work toward loan forgiveness, if applicable.

A recent study came out that showed just how much borrowers understand about federal student loan forgiveness. The results show that half the participants are not confident in their understanding of the available forgiveness programs. The Public Service Loan Forgiveness is the least understood, with more than half the participants saying they are not confident that they understand it. Furthermore, more than half of participants believe that private student loans can be forgiven through federal forgiveness programs. That is simply not true.

“Getting student loans forgiven isn’t as easy as just signing up,” said Sara Molina, Manager at AFBC. “The types of forgiveness most accessible to struggling borrowers take years and yearly attention.”

The types of forgiveness most accessible to struggling borrowers take years and yearly attention.

Sara Molina, Manager at AFBC

Forgiveness comes in many forms, from those tied to circumstances out of borrowers’ control — like victims of fraud or permanent disability — to those tied to repayment plans — like income-driven repayment plans (IDRs) and the controversial Public Service Loan Forgiveness program (PSLF). Most borrowers are not eligible for circumstance-based forgiveness, instead turning to IDRs. Anyone pursuing PSLF will find the most benefit when enrolled in an IDR. AFBC helps position its PSLF-eligible clients in the repayment plan that will benefit them the most at the end of the required 10 years of qualifying payments.

The several available IDRs have slight variances in eligibility requirements, but the terms are mostly similar. Monthly payments are calculated based on income and family size, so borrowers don’t pay more than 10 or 15 percent of their discretionary income. Those payments need to be recalculated each year, so borrowers are expected to submit yearly recertification forms to stay enrolled. After 20 to 25 years, any remaining balance is forgiven. AFBC helps its clients with all the paperwork required in applying and recertifying in these programs to ensure smooth sailing until the end.

“Our clients can rest assured knowing they are on track in the IDR that fits their needs,” said Molina. “Whether it ends after 10 years or 25, we stay with each client in the long term and make sure they fully understand the program they are in and what to expect year after year.”

About American Financial Benefits Center

American Financial Benefits Center is a document preparation company that 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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