American Financial Benefits Center Urges Federal Student Loan Borrowers With Professional Licenses to Avoid Default

EMERYVILLE, Calif., April 10, 2018 (Newswire.com) - In several states, student loan borrowers who default on their loans can get their professional licenses revoked. However, many states have either eliminated such policies or are attempting to do so. American Financial Benefits Center (AFBC), a private document preparation company that helps federal student loan borrowers with federal repayment plan paperwork, suggests that borrowers do what they can to avoid default. Income-driven repayment plans (IDRs) may enable borrowers who are at-risk of defaulting to stay current on their loans.

“Policies like the ones that revoke licenses of borrowers who default on their loans may function as obstacles to student loan repayment rather than motivation,” said Sara Molina, Manager at AFBC. “We hope more states take action to help borrowers who are struggling, especially when they are doing valuable work with the public and need their licenses to continue to do so.”

Policies like the ones that revoke licenses of borrowers who default on their loans may function as obstacles to student loan repayment rather than motivation.

Sara Molina, Manager at AFBC

According to a New York Times article that attracted a lot of attention to the issue at hand, Tennessee has a history of being one of the most aggressive states when it comes to revoking professional licenses. In five years, the state had reported more than 5,400 people to licensing agencies for revocation.

Recently, Tennessee lawmakers pushed to eliminate the practice, but could not succeed. Instead, the state passed a law allowing for a medical hardship exemption. If borrowers defaulted because of a medical hardship, their professional license would not be revoked and they would be able to continue working.

There are many reasons that borrowers may default on their federal student loans. There are also several options for dealing with student debt that are offered by the Department of Education. Many borrowers who feel that they cannot afford their monthly payments benefit from income-driven repayment plans that base payments on income and family size and may end in forgiveness after 20 to 25 years of enrollment in the program.

“At AFBC, we believe that borrowers shouldn’t feel like repayment is impossible,” said Molina. “We want to make sure borrowers know their options and feel empowered to take advantage of them. Our clients are in IDRs that are intended to help them afford their loans and avoid default, and we help them with the required yearly paperwork as long as they wish to stay in the program.”

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).

Contact

To learn more about American Financial Benefits Center, please contact:

American Financial Benefits Center

1900 Powell Street #600

Emeryville, CA 94608

1-800-488-1490

[email protected]

Source: American Financial Benefits Center