Press Release (ePRNews.com) - EMERYVILLE, Calif. - Jun 26, 2018 - Differences between federal student loans and private loans may seem minimal at times. Both have private debt collectors, limited deferment time and so on. However, in light of a recent story, there has been a reminder of a large difference between federal and private student loans: the rare but still real possibility of a warrant for arrest for delinquent private loans. American Financial Benefits Center (AFBC), a document preparation company, focuses on federal student loans but wants borrowers who may have both types of loans to be aware of the larger differences that can become an issue to deal with.
Private student loans have a statute of limitations to them, in this case being six years. If no payments are collected from a borrower in six years, the loan is dropped. However, if during those six years at some point a borrower begins to make payments again or tries something like refinancing, the statute resets. Because of this statute, a warrant is a last attempt at getting the sum owed. While rare, it may occur. More frequently, borrowers will be taken to court over unpaid dues, which can still be a burden on top of already-compounding issues from burdensome student loans. “Sometimes people can get into deep trouble with their loans without even realizing it. If borrowers sign up for a loan through their school, they may not even realize it is a private loan and there are differences they need to be aware of,” said Sara Molina, manager at AFBC.
Federal student loans have no statute of limitations and if they became too much to handle, some borrowers have turned to income-driven repayment programs to handle them. AFBC has helped thousands of borrowers apply for these repayment programs in an effort to lower their monthly payments and get them on track for potential student loan forgiveness. “We at AFBC do what we can to aid with the issue of burdensome student loans, which for us means helping people apply for income-driven repayment programs and keeping them on course,” said Molina.
Sometimes people can get into deep trouble with their loans without even realizing it. If borrowers sign up for a loan through their school, they may not even realize it is a private loan and there are differences they need to be aware of.
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).
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To learn more about American Financial Benefits Center, please contact:
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1900 Powell Street #600
Emeryville, CA 94608
American Financial Benefits Center