Paying for Your Kid's College While in Debt? Not Impossible, Says American Financial Benefits Center
EMERYVILLE, Calif., Jan. 17, 2018 /PRNewswire/ -- Saving or paying for a child to go to college can be a challenge, even more so if the parent is also dealing with debt, including their own student loan debt. However, it's not impossible to tackle the issue of a kid's college expenses while in debt. Clients of American Financial Benefits Center (AFBC), a document preparation company that assists student loan borrowers with enrollment in certain federal repayment programs, can keep their bills lower by maintaining their enrollment in the right repayment plan. AFBC clients would also benefit from mapping out a game plan for paying for their kid's college costs.
"While student loan borrowers are often talked about as 'kids,' so many of them actually have children of their own," said Sara Molina, Manager at AFBC. "And a lot of those children are college-bound. So, this is a major financial question that borrowers are concerned about."
Depending on how big a borrower's loan balance is relative to their income, the savings gained by staying in an income-driven repayment plan could be substantial. Current borrowers who are in income-driven plans can also expect to have any remaining balances forgiven at the end of a 20- to 25-year period. AFBC urges their clients who are concerned about paying for a child to go to college to put any savings they can from their reduced monthly loan payment towards a college fund.
College savings funds come in many forms, from simple savings accounts to investments in stocks and bonds to tuition-specific plans like 529 Plans. 529 Plans can be state- or school-specific and can come in the form of college savings plans or a prepaid tuition plan.
But if a child's entrance to school is arriving fast, AFBC recommends clients keep an open line of communication with their kid about the financial aspects of college. Parents with student loans are in a unique position to prepare their kids with information they wish they had when they were just starting higher education. This includes informing them about things like the differences in tuition between public schools and private schools, the potential benefits and risks of student loans, as well as their child's own contributions or responsibilities when it comes to paying for college.
Borrowers might do well to both save and to lay out expectations with their college-bound child. For example, some parents are saving for their children's college tuition, but will only cover the costs up to a point, and within certain conditions, i.e. their children attend in-state public schools and participate in work-study programs.
AFBC clients can expect support from the company to help them stay enrolled in income-driven repayment plans. These services include annual income and family size recertification. If a borrower thinks a change in payment plan is in order, the borrower can call AFBC for help. AFBC recognizes that, for student loan borrowers, being in the right payment plan could be a crucial part of a college savings plan.
"At AFBC, our goal is to make our clients' lives financially easier," said Molina. "And if we can help borrowers bring their student loan bills down and free up some money to go towards something meaningful, that means a lot. That's our goal."
About American Financial Benefits Center
American Financial Benefits Center is a document preparation company that helps clients apply for federal repayment plans that fit their personal financial and student loan situation. They adhere to strict customer service guidelines and strive 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).
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 American Financial Benefits Center
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