American Financial Benefits Center Reminds Struggling Young Borrowers of Income-Driven Repayment

EMERYVILLE, Calif., March 6, 2018 /PRNewswire/ -- It's common to see stories of student loan borrowers living with their parents to curb the costs of adulthood, especially when student loans are involved. That is an easy way for parents to help out their adult children, but it seems they are helping out those who have moved out as well. About three-fourths of parents have reported helping their adult children who are working full-time jobs with their living expenses. American Financial Benefits Center (AFBC), a document preparation company, helps its clients afford their living expenses by assisting with application and recertification paperwork for federal income-driven repayment plans.

With increasing student loan balances and potentially low income for recent graduates, it's not too surprising that young adults need financial help. In fact, according to a 2017 study of Federal Reserve data, millennials earn about 20 percent less than baby boomers did at their age, adjusted for inflation.

"Parents do so much for their kids, and that doesn't stop when they move out," said Sara Molina, Manager at AFBC. "When student loans push young adults to ask their parents for help, you know they are bad. Those young adults should know that they have other options if they would prefer not to rely on their parents for all things adulting."

The need to ask for help may come from a shortage of income. Or it may come from poor financial skills. Either way, parents helping their children can use their help as an opportunity to teach their young adult children about finances. Experts also agree that financial help should not be indefinite; instead, parents should set a time limit on that help to encourage their children to take steps to be financially independent.

The survey showed that the most common expenses that parents help their children with are their cell phone bill and car insurance. Although student loans are lower on the list, taking action on those can also free up budget room for other bills. Income-driven repayment plans calculate federal student loan payments based on income and family size. Depending on income, loan payments can go down to as low as zero dollars.

"IDRs that lower student loan payments can help borrowers stay current on their student loans while freeing up some money to go to other bills or debt," said Molina. "AFBC clients who have lower payments thanks to an IDR may not have to rely on their parents to live independently. Especially when help from the parents is not an option, IDRs can be a financial lifesaver."

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]

Related Links

AFBC home page

SOURCE American Financial Benefits Center

Related Links

http://afbcenter.com