EMERYVILLE, Calif., May 17, 2018 /PRNewswire/ — Student loans are usually something that borrowers want to get out of the way. Thinking about having student loans for years or even decades can be a discouraging thought. But student loan repayment can be a long-term process and still be manageable for the borrower. American Financial Benefits Center (AFBC), a document preparation company that helps student loan borrowers apply for and stay enrolled in federal repayment plans, encourages borrowers to think about long-term student loan repayment.

“Borrowers who know about income-driven repayment should know that a long repayment is not necessarily a bad thing,” said Sara Molina, Manager at AFBC. “It’s understandable that folks want to get that debt off their plate, out of their life, and with less payable interest. But for people who really need it, an extended repayment term may be a good option.”

Income-driven repayment plans (IDRs) are offered to federal loan borrowers by the Department of Education. The plans may benefit borrowers because they base monthly payments on income and family size, often making them a more affordable plan for borrowers. However, borrowers may be hesitant to enter into these plans—or stay in them for long—because the repayment period for IDRs is 20 or 25 years.

Borrowers are able to leave the plans if they want, but they must be conscious of possible ramifications like interest capitalization if they do so. Depending on the circumstances, borrowers may be allowed to remain in the plan and overpay each month so they end up with a shorter loan term. A key feature of these plans, however, is loan forgiveness of any remaining balance at the end of the 20 or 25 years of repayment. While this forgiveness may be taxed, the loan balance forgiven may still be high enough to make financial sense for borrowers who decide to stretch out repayment.

AFBC is a private, independent company which has helped thousands of borrowers successfully apply for IDRs and get on track to potential loan forgiveness. AFBC continues to support clientele with yearly recertification throughout the life of their student loans.

“Borrowers in IDRs are so much less likely to default or fall behind with their loans,” said Molina. “This has a huge, positive effect on a borrower’s finances. We’re happy to have given borrowers real support in applying for a better repayment plan and take pride in continuing that support.”

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



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SOURCE American Financial Benefits Center