'Why Do I Need to Recertify?': American Financial Benefits Center Clarifies Key Feature of Income-Driven Repayment

EMERYVILLE, Calif., March 7, 2018 /PRNewswire/ -- Federal student loan borrowers who are in income-driven repayment plans (IDRs) might be happy or relieved to have their monthly payments at an affordable level. Depending on the situation, some borrowers in IDRs could have payments as low as zero dollars, and still be current on their loans. But IDRs are not set-and-forget repayment plans. To stay in IDRs, borrowers must recertify every year. American Financial Benefits Center (AFBC), a document preparation company which helps federal student loan borrowers apply for and recertify enrollment in repayment plans, reminds borrowers in IDRs why recertification is important.

"At AFBC, we do not just help our clients apply for a plan and stop there," said Sara Molina, Manager at AFBC. "We provide annual recertification support, including reminding borrowers of upcoming deadlines and assisting in the preparation of all recertification-related paperwork."

Once enrolled in an IDR, recertification is necessary for staying in a plan year after year. If the borrower does not submit a recertification by the deadline, his or her payment plan could revert to the Standard plan. Leaving an IDR can also result in a capitalization of interest on a borrower's loan or loans. This means any outstanding interest on a loan is added to the principal. However, borrowers in certain repayment plans whose financial position improves substantially may find it make sense for them to revert back to a Standard plan due to an increase in monthly payments.   

If a borrower does choose to remain in an IDR for an extended period of time, specifically 20 or 25 years, he or she is positioned to receive loan forgiveness at the end of that timeframe.

AFBC monitors clients' repayment plan timelines so no deadlines are missed and borrowers can maintain continuity in their IDRs. However, AFBC clients must respond to communication and provide updated information to AFBC in order to successfully recertify.

These repayment plans are offered by the Department of Education and managed through servicers, but AFBC is a private, independent company that is not affiliated with the Department, any federal agency or any loan servicer. While AFBC offers a strong set of services, AFBC never makes student loan payments for their clients. All borrowers who are clients of AFBC must make their own payments directly to their loan servicer.

"Recertification is a vital part of the repayment plan process and an important part of our services," said Molina. "We hope that all AFBC clients and all borrowers in IDRs know about recertification and why it matters to their student loans."

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

https://afbcenter.com/