AFBC: Despite High Cost of Private Non-Profit Universities, Student Loan Outcomes for Graduates May Be Favorable

​Private non-profit colleges make up some of the most expensive schools in the United States. And while some private non-profit institutions are much less expensive than the chart-toppers, they still command a pretty penny from their students. However, there may be some financial upsides to attending private non-profits. For one, need-based financial aid grants may reduce the big sticker prices. Also, student loan outcomes may also be favorable for bachelor’s degree holders of private non-profits. American Financial Benefits Center (AFBC), a document preparation company that helps federal student loan borrowers apply for and recertify federal repayment plans, invites student loan borrowers with private, non-profit educations to evaluate the effect of their school type of on their financial situation.

“While it may seem like a moot point to figure out how your education affects your finances now, it might be helpful for future decision-making, like whether to attend graduate school or how to approach a job search,” said Sara Molina, Manager at AFBC.

USA Today named Columbia University as the most expensive school in the country in 2018, with Vassar College and Harvey Mudd College following in second and third place. All three of these schools have tuition prices of over $50,000 per year. However, these colleges also have need-based financial aid programs designed to help lower-income students and families shoulder less of the cost. Private colleges, usually those that are not as selective as the aforementioned schools, are also known to discount tuition outside of need in order to entice students to attend.

Student loan outcomes of graduates of private non-profit four-year colleges also seem favorable. In a study conducted by researchers at the New York Federal Reserve, it showed that bachelor’s degree holders and attendees of private non-profit four-year schools had low default rates. A recent report from the Brookings Institution showed slightly conflicting information, specifically private non-profit four-year attendees had higher default rates than attendees of public universities. But the Brookings report matched the NY Fed study in that bachelor’s degree holders had the best outcomes of all categories of degree attainment.  

AFBC members and any student loan borrowers might examine how their specific institution may have affected their financial aid and student loan outcomes. Regardless of educational experience, though, AFBC offers clients application and recertification assistance for income-driven repayment plans. These plans often lower the borrower’s monthly payment to an affordable amount, thus helping protect against default.

“Knowing more about how you got to a specific financial place can be very valuable,” said Molina. “We offer a stellar service to our AFBC clients to help them stay on top of their loans, in an effort to help them stay out of default and even plan for the future.”

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).

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
info@afbcenter.com