More Than Half of Student Loan Borrowers Not Setting Aside Money, But Ameritech Financial Argues It Is Possible
ROHNERT PARK, Calif., October 15, 2018 (Newswire.com) - A recent survey showed that student loans are keeping 66 percent of borrowers from saving as much money as they would like. As the second-highest household expense in the U.S., student loans can present a major hurdle in an individual’s budget. While nearly half of the participants also wished they had paid off their loans as quickly as possible, that simply is not possible for every borrower. But that does not mean their situation is hopeless, just that they may need to try a different approach. Ameritech Financial is a document preparation company that assists student loan borrowers in applying for federal student loan repayment plans, such as those based on income, offered by the Department of Education.
“That student loan borrowers can’t save money because of their student loans is not a surprise to us,” said Tom Knickerbocker, executive vice president of Ameritech Financial. “What might be a surprise to them is that they may be able to lower their monthly payments so that they can start saving more reliably.”
The survey also asked about advice that participants would give their younger selves regarding student loans and the responses speak to the lack of information they had going into college. Nearly half (41 percent) would dedicate more time to understanding student loans and financing options; a third would advise speaking with an expert about educational financing; and 29 percent would select a less-expensive school to attend. This shift to greater awareness of limiting debt and evaluating a future with loans is promising for future students.
That student loan borrowers can't save money because of their student loans is not a surprise to us. What might be a surprise to them is that they may be able to lower their monthly payments so that they can start saving more reliably.
However, borrowers who have student debt now are past the point of prevention. Those who have the income to pay down their loans as quickly as possible may simply need a plan to do so. Borrowers who struggle to afford ongoing expenses, such as housing, utilities and food, or who would prefer not to wait to build savings may need a different plan and a different mindset.
The Department of Education offers several repayment and delay options for federal student loans that are intended to reduce payments and allow borrowers to focus on other financial goals. Income-driven repayment plans (IDRs) calculate monthly payments on income and family size and may end in forgiveness after 20 to 25 years of enrollment. Those reduced payments and definite end time may help borrowers focus their remaining finances in productive directions, such as saving for retirement, paying down other debt or simply covering necessary living expenses.
“At Ameritech Financial, we help borrowers apply for IDRs that we hope will help them to save money or get the rest of their expenses under control,” said Knickerbocker. “No one should feel they are in a hopeless situation. The Department of Education has solutions; borrowers just need to find them. We aim to help with that.”
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