EMERYVILLE, Calif., Nov. 22, 2017 — Negotiations for the rewriting of Department of Education rules regarding borrower defense opened last week to much ado. Borrower defense to repayment is relief that cancels the debt owed by federal student loan borrowers who have attended schools that misled or defrauded them. A backlog of tens of thousands of applications hangs in the balance. Almost all of those applications come from students of for-profit schools. What's more, student loan default rates are also unusually high for students from for-profit colleges. American Financial Benefits Center, a document preparation company that helps align clients with federal repayment plans, supports borrowers in applying for and maintaining enrollment in affordable plans regardless of their educational background.
While potentially defrauded borrowers seem like a for-profit school issue, default is also a growing problem among federal student loan borrowers of all kinds. However, it's noteworthy that former students of for-profit institutions are twice as likely to default as attendees of other types of institutions. Default can spell disaster for borrowers' credit, and thus their ability to buy cars, homes or rent property, rendering these borrowers even more vulnerable.
“We realize some students are unhappy with the education they got, some are unhappy with their loan situation, or both,” said Sara Molina, a manager at AFBC. “But because federal loan borrowers come from all walks of life and all kinds of schools, we assist our clients no matter their history or what school they went to.”
Student loan borrowers who did not finish their degree are also hit hard by default. A study showed 46.5 percent of students with no degree were in default on their student loans. AFBC helps federal borrowers put the brakes on spiraling student debt by helping them apply for and stay in repayment programs that will keep them out of default.
Lawmakers are taking notice of these issues. In light of the commencement of negotiations on borrower defense, the offices of U.S. Senators Elizabeth Warren, D-Mass., and Dick Durbin, D-Ill., released a report about the current Education Department's track record on helping defrauded borrowers. Along with critiques of the Department, the report features borrower narratives by former students of the now-defunct for-profit consortium Corinthian Colleges, as well as other schools.
“We want our clients to know that whatever they hear on the news does not change the support we give them. The programs that we have assisted our clients to apply for can offer lower payments, which is a huge relief to a lot of folks,” said Molina. “No matter where they went to school, whether they got their degree or not, AFBC is committed to helping struggling borrowers get to a place where they aren't struggling anymore.”
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).
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 American Financial Benefits Center
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