Parents' Debt Affects Child's College Funding Decisions, High Debt May Be Manageable Through Federal IDRs, Says Ameritech Financial
Rohnert Park, Calif., April 18, 2018 (Newswire.com) - Student loans are not a problem reserved for young adults. Increasingly, parents of prospective or current students also have student loans to contend with. Generation Z has grown up watching those around them struggle with student debt, including their parents, leaving them to wonder how they will get through college. Ameritech Financial reminds borrowers that there are many ways to get money for college and many federal student loan repayment options for those struggling with student debt.
“It can be hard enough imagining a life with student loans without having to worry about your parents’ debt,” said Tom Knickerbocker, Executive Vice President of Ameritech Financial. “But that’s exactly what Gen Z students are doing. Their parents’ debt may mean they will need to take out more loans, which is probably not what they want to do after watching their parents struggle with their own loan payments.”
It can be hard enough imagining a life with student loans without having to worry about your parents' debt.
Tom Knickerbocker, Executive Vice President of Ameritech Financial
According to a recent survey, about one in five parents of Gen Z students have their own student debt and are unable to help their child with college funding. Considering each school incorporates an expected family contribution in their financial aid awards that do not take into consideration parents’ existing debt, students may see a gap in funding.
While it might be too late for many, families that expect to be unable to take out Parent PLUS loans should start forming a financial plan early. College savings plans, such as 529 plans, grow similarly to retirement plans and with enough time can be enough to cover at least some college costs. Scholarships and grants can also be awarded as early as elementary school.
If high loan payments get in the way of helping fund a child’s education, or if students end up borrowing a lot to pay for college without parental assistance, federal income-driven repayment plans (IDRs) may provide some relief. Such plans base payments on income and family size, and have the potential to reduce payments and create some room in a budget to save money toward other financial goals.
“At Ameritech Financial, we help borrowers in all situations apply for IDRs that may reduce their payments,” said Knickerbocker. “Our goal is to help our clients work to get into a better financial situation, and if that enables them to save money or help their kids through college, then we know we’ve done our jobs.”
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.
Contact
To learn more about Ameritech Financial, please contact:
Ameritech Financial
5789 State Farm Drive #265
Rohnert Park, CA 94928
1-800-792-8621
customer.service@ameritechfinancial.com
Source: Ameritech Financial
