EMERYVILLE, Calif., Dec. 6, 2017 — It's not surprising that someone's financial situation, especially their debt, can have ill effects on their state of mind. However, researchers have been focusing specifically on the effects of student loans on borrowers' mental health. A study revealed that student loans were associated with poorer psychological functioning in young adults. Furthermore, 50 percent of respondents to a recent survey said that depression and anxiety were results of their student loan debt. American Financial Benefits Center, a document preparation company that helps federal student loan borrowers apply for and recertify enrollment in federal repayment programs, reminds borrowers that student debt can be manageable even while they are experiencing financial or emotional difficulties.
“If someone is a client of AFBC, they already know what kind of service we can provide,” said Sara Molina. “But that doesn't mean they can't still get stressed out about their loans. What's great about AFBC is that we stay with you as long as you're in repayment.”
Federal student loans come with a host of repayment options offered by the Department of Education for even the most financially distressed borrower. Depending on a person's income and family size, a borrower could be enrolled in an income-driven repayment plan (IDR) that might lower their monthly loan obligation to as little as zero dollars. That could help ease mental turmoil related to student loans. However, just getting enrolled in a repayment plan stressful if a borrower goes it alone. To address that, AFBC assists clients in selecting and applying for a repayment plan that works best for them. If a client is already enrolled in a plan, AFBC will help recertify the client every year that they need to stay in the plan. What if a borrower's financial situation takes a turn for the worse? AFBC will be there to help the borrowers find and apply to a new repayment plan if need be.
“When you're faced with a large amount of debt, or perhaps a big change in your finances, it's understandable that it could take a toll on your mental health,” said Molina. “At AFBC, we like to remind borrowers there are ways to help your student loan situation get back on track.”
So while AFBC cannot help clients' mental health issues, the company can assist clients with applying for financial relief, helping them manage their student debt. And for some borrowers, effectively managing their student loans can bring them a mental boost, including improving family and romantic relationships. American student loan borrowers who responded to a 2017 survey said that student loans were preventing them from starting a family (46 percent), moving in with a partner (25 percent), or even going on a first date (13 percent). By reducing financial stress, borrowers may be comfortable enough to take those steps to keep their lives moving forward.
Borrowers who successfully enroll in IDRs should also know that these repayment plans ultimately end in forgiveness of any remaining balance after 20 to 25 years of payments. While that may seem like a long time, this time frame ensures that borrowers will not be paying off their loans forever – a fact that will hopefully bring borrowers peace of mind.
“At AFBC, our main goal is to help make our clients' lives easier,” said Molina, “so they can focus on the important things: family, friends, and living a life they feel good about.”
About American Financial Benefits Center
American Financial Benefits Center helps clients apply for the federal repayment plan that fits 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
SOURCE American Financial Benefits Center
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