Too Good to Be True? AFBC Probes Unusual Ways to Pay Off Student Loan Debt

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Jul 27, 2018, 13:00 ET

EMERYVILLE, Calif., July 27, 2018 /PRNewswire/ -- Game shows, lotteries and trivia apps are all new avenues to potentially pay off student debt. However, some may not be widely practiced. For example, a worker could ask their employer if the employee benefits package includes student loan assistance, but too few companies currently offer it. Other opportunities could be outdated, such as one volunteer organization that offered to pay a stipend toward student loan debt in exchange for expertise but is no longer in operation. Borrowers should do their research before they commit to an unusual repayment strategy. Ameritech Financial Benefits Center (AFBC), a document preparation service company, has helped thousands of federal borrowers enroll into income-driven repayment programs (IDRs), which may spark a positive change in their financial situation.

"Gambling your financial future with a game or lottery could be very risky, especially if you hope it will pay off all of your student loans," said Sara Molina, Manager at AFBC. "We understand why those alternatives could be alluring because high student loan debt is oftentimes overwhelming. We think a safer option is lowering monthly payments with IDRs through the Department of Education."

Those with low wages and big families could possibly see a reduction in monthly payments in an IDR because such repayment plans are based on income and family size. Borrowers should be aware that IDRs require yearly recertification of that information to remain in the program and that payments may go up or down due to changes in circumstances. AFBC helped its clients with both the initial application and the yearly paperwork to continue their enrollment in IDRs.

Getting a side hustle is another innovative way to tackle student debt. One blog listed 53 different ideas for making extra money, such as blogging, delivering for restaurants and grocery stores, offering rideshare services and donating plasma. Some side hustles could bring in as little as $25 a month or go as high as thousands of dollars. While not all of these ideas are for everyone, a student loan borrower might get inspired and realize there are options. Most importantly, part of the process of taking ownership of one's finances is to realize they do have power over their situation.

"IDRs could be the solution you are looking for if every penny counts. Lower monthly payments may help you with your savings goals and help you breathe easier. Plus, a combination of IDRs and having a side hustle could greatly increase your bottom line," added Molina. "Do your own research and ask yourself what's most important to you. Also, a side hustle doesn't have to be forever. You could try one out for a few months and then when your financial situation improves, put it on pause."

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

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]

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SOURCE Financial Education Benefits Center