EMERYVILLE, Calif., August 9, 2018 (Newswire.com) - Student loans have some of the most unique rules. They can’t be discharged through bankruptcy, they are tough to refinance and, besides paying them off, only if the original borrower passes away could they be forgiven in a short amount of time. After a loved one passes, the worrying about loan repayment might be too much for someone to handle. Normally, those who’ve watched someone pass wouldn’t have to worry about the deceased’s student loans. However, in light of a recent story, even death may not stop a servicer from trying to collect a debt. American Financial Benefits Center (AFBC), a document preparation service company, has worked with thousands of borrowers to help enroll them into income-driven repayment plans that potentially lower their monthly payments. However, making lowered payments on a loan that should have been discharged can be harsh a reality.
In the case of Sean Bennett, two family friends agreed to help him take out a student loan because his family was dealing with their own debt. Those family friends received a bill five years later that continued to accrue interest over those five years despite Bennett’s family having received a letter of condolences from Sallie Mae (Bennett’s servicer) that stated that the loan would be forgiven so long as the proper paperwork was received. Bennett’s family kept all of the paperwork for their personal records and were shocked when their family friends received a letter from Navient (a split-off of Sallie Mae). “It’s hard to say what entirely happened in this situation, but what will matter most is that Navient makes things right, as its sister company previously said it would,” said Sara Molina, manager at AFBC.
The sad thing is about cases like Bennett’s is that they aren’t entirely unique. There’s likely several other instances of grieving families receiving some sort of bill for a deceased debt that they should not have received. AFBC’s assistance with enrolling people into income-driven repayment plans can only go so far but for many, it is greatly needed. Those with lowered monthly payments and the potential of loan forgiveness after 20-25 years of qualifying payments may help them deal with some of life’s other burdens. “Unfortunately, none of us can know when our time here will be over. So we at AFBC want to do our part to make life easier when possible by assisting people in applying for income-driven repayment programs. Life can be tough enough on its own without the struggle of student loan debts,” said Molina.
It's hard to say what entirely happened in this situation, but what will matter most is that Navient makes things right, as its sister company previously said it would.
About Financial Education Benefits Center
Financial Education Benefits Center is located in San Ramon, California. The membership company has already helped thousands save money and obtain the necessary education required to live a financially healthy life.
Financial Education Benefits Center has partnered with several name brand third-party companies to expand the financial and educational products and services available to its members and to provide a variety of wellness services as well.
To learn more about Financial Education Benefits Center, please contact:
Financial Education Benefits Center
2010 Crow Canyon Place Ste. 100
San Ramon, CA 94583
Source: American Financial Benefits Center