American Financial Benefits Center Clients Don't Need to Seek Extra Work Just to Cover Student Loans

EMERYVILLE, Calif., Feb. 28, 2018 /PRNewswire/ — When one source of income isn’t enough, about 11 percent of Americans have found additional employment, according to a recent study. However, for young college graduates with student debt, that number is nearly double: 21 percent have more than one job. What is special about student loans that inspire one-fifth of borrowers aged 25 to 39 to find additional income? While the study does not go into motivation, there are several possible factors. American Financial Benefits Center (AFBC), a document preparation company, assists its clients in applying for federal income-driven repayment plans that may be an alternative to obtaining multiple jobs.

“The decision to get another job is unique to each person,” said Sara Molina, Manager at AFBC. “But the fact that college graduates are twice as likely to get a second job speaks to how difficult it can be to cover those student loan payments.”

Perhaps the underlying reason college graduates seek additional employment is that they need the extra income to cover payments. Whether they have high balances or not, many borrowers are struggling to pay down their loans and need support to do so.

Sometimes that difficulty in making student loan payments stems from low income. While employment rates of college graduates are high, underemployment tells a different story. Underemployment refers to college graduates working in jobs that do not require a college degree. Usually, a lower income accompanies the lower employment requirements.

Even some borrowers who are not struggling to make payments may take a second job. Those who want to pay down their loans as quickly as possible often increase their income to maximize their payments. While that strategy can be effective, borrowers who struggle to make payments have other options for handling their student loans, including federal income-driven repayment plans that base payments on income and family size.

“Getting a second job can be necessary to cover living expenses, but if student loan payments are behind the decision, we suggest borrowers consider IDRs,” said Molina. “At AFBC, our clients are successfully enrolled in IDRs, so as long as their income covers their living expenses and monthly budget, they may not need to worry about finding additional income.”

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).

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