Does Avocado Toast Really Impede Student Loan Borrowers' Ability to Buy a House? Ameritech Financial Weighs In
ROHNERT PARK, Calif., July 11, 2018 (Newswire.com) - In an article by Chaya Benyamin for The Perspective, she talks about why avocado toast consumption could, or could not, be ruining millennials. The first side is "blame the economy" shortly followed by "blame the avocados." Both sides have strong points and are debated by economists and bloggers alike. Ameritech Financial, a document preparation company that assists borrowers with federal repayment plan applications, notes that in some circumstances income-driven repayment plans (IDRs) may potentially help borrowers reduce their loan payments, so they don't have to curb spending on certain items, like avocado toast.
Overpriced, Instagrammable toast is hardly the only barrier to property ownership in the U.S. “Being short on funds can make any financial situation difficult, but student loan borrowers might feel like their loans make it even harder to manage,” said Tom Knickerbocker, Executive Vice President of Ameritech Financial. “Sometimes it’s easy to cut down on spending or bring in more money, but it’s not always possible.” Seven in ten seniors who graduated from college in 2015 had student loan debt, averaging $30,100 per borrower, according to The Institute of College Access and Success. That amount was up 4% from the year before.
The reason some people may want to blame the avocados, and subsequently blame the millennials, is based on notions that the age group is not frugal with money. Unfortunately, budgeting can be difficult at any age range, especially for those who are underemployed and drowning in debt. Research suggests that millennials are actually no more freewheeling with their spending on travel and dining than other generations. According to Linda Qiu and Daniel Victor at the New York Times, “The truth is, even if millennials assumed the eating-out habits of baby boomers, it would take around 113 years before they could afford a down payment on a home.” They continue by adding that homeownership is historically lower among millennials, and has declined across most age groups since the 2008 financial crisis.
Being short on funds can make any financial situation difficult, but student loan borrowers might feel like their loans make it even harder to manage.
“Student loans may get in the way of spending on some of the simpler things, but they don’t necessarily have to,” said Knickerbocker. “IDRs can potentially help in reducing monthly payments to allow borrowers to allocate more money elsewhere. At Ameritech Financial, we help borrowers understand and apply for IDRs, and we hope they feel less financial stress because of them.”
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