Be Aware of Short-Term Financial Choices in College That Could Have Long-Term Impact, Advises Ameritech Financial
ROHNERT PARK, Calif., November 19, 2018 (Newswire.com) - College is a series of choices a student must make. From the big decisions like what subject to choose as a major, to the daily “what am I going to eat for lunch” question, college presents a never-ending stream of trade-offs. Majoring in Art means not majoring in Engineering. Getting a taco for lunch means no sandwich. The toughest choices a college student may have to make, however, will likely revolve around finances. Ameritech Financial, a document preparation company, advises students to make informed decisions concerning their student loans and overall financial situation.
Tom Knickerbocker, executive vice president of Ameritech, explains that “It’s kind of too bad, but the system we have right now requires teenagers to make financial decisions that might affect them for decades or even the rest of their life. We want them to have at least a rudimentary understanding of where their loan balance will stand when they’re done with school.”
According to the U.S. Department of Education, 60 percent of students borrow money annually for college. That means three out of every five college students must face decisions about the money funding their education before they know how much money they will earn in the job market. In this situation, there are some common trade-offs students make that could end up costing them in the long run.
It's kind of too bad, but the system we have right now requires teenagers to make financial decisions that might affect them for decades or even the rest of their life.
One common mistake is to borrow too much money. The money is available, so temptation can lead a person to get as much cash on hand as possible. Unless that money is vital to a borrower’s finances, though, it should be left on the table. Establishing and understanding a personal budget is crucial. Borrowing those extra few hundred dollars a semester might seem like a good idea, but the trade-off could potentially be thousands of dollars in student loans owed because of hundreds of dollars borrowed.
Moreover, if borrowers make small monthly loan payments while attending college, they can potentially save thousands of dollars in the long run. In today’s gig economy, $50 weekly payments are a fairly modest and attainable goal. If a student takes 10 semesters to graduate and pays back just $50 dollars a week to their loans, they could pay back $13,000 over the course of their education. Graduating with that much less student debt is a trade-off all students should consider.
If federal student loans do become a thorn in a borrower’s side, Ameritech offers assistance in applying for federal programs intended to reduce monthly payments down to an affordable level. Income-driven repayment plans, or IDRs, cap loan payments based on income level and family size so that a borrower only pays 10 to 15 percent of discretionary income.
“Enrolling in an IDR is another trade-off college students and grads should mull over,” Knickerbocker began, “and we can help them find their way through the paperwork that may get a little confusing at times.”
About Ameritech Financial
Ameritech Financial is a private company located in Rohnert Park, California. Ameritech Financial has already helped thousands of consumers with financial analysis and student loan document preparation to apply for federal student loan repayment programs offered through the Department of Education.
Each Ameritech Financial telephone representative has received the Certified Student Loan Professional certification through the International Association of Professional Debt Arbitrators (IAPDA).
Ameritech Financial prides itself on its exceptional customer service.
To learn more about Ameritech Financial, please contact:
5789 State Farm Drive #265
Rohnert Park, CA 94928
Source: Ameritech Financial