Student Loans Don't Have to Get in the Way of Starting to Save for Retirement by 35, Says Ameritech Financial
ROHNERT PARK, Calif., May 24, 2018 (Newswire.com) - By age 35, according to experts, Americans should have twice their annual income in retirement savings. That advice took the internet by storm and quickly turned into a meme featuring both realistic and unrealistic accomplishments. It’s true that saving for retirement is important, but the magnitude of student loan debt in the U.S. makes that a difficult task for many borrowers. Ameritech Financial is a document preparation company that helps federal student loan borrowers apply for federal income-driven repayment plans that are intended to reduce their monthly student loan burden and potentially support retirement savings.
“Student loans can make any financial advice challenging because such advice depends on extra income,” said Tom Knickerbocker, executive vice president of Ameritech Financial. “Student loans often demand a lot of that extra income that is supposed to go toward retirement. What borrowers might not know is that programs offered by the Department of Education might help reduce those payments.”
Student loans often demand a lot of that extra income that is supposed to go toward retirement. What borrowers might not know is that programs offered by the Department of Education might help reduce those payments.
Tom Knickerbocker, Executive Vice President of Ameritech Financial
In an article following up the initial “by 35” advice, the author outlines other financial things to take stock of while in the 30s. First on the list is student loans, and third is continuing education, which can add to that student loan balance if students don’t have the funds on hand. However, while the advice in the article is to pay extra toward those loans until they are gone, that practice can delay retirement savings for those who can’t do both. Delaying retirement savings can greatly limit the amount that grows before retirement age, so it’s critically beneficial to start putting money away early.
Instead, borrowers whose student loan payment consumes a large portion of their income, or those who cannot afford their payment at all, may find benefit from federal income-driven repayment plans (IDRs). Such plans calculate payments as a percentage of discretionary income, which uses income and family size information. Eligible borrowers may see a reduction in monthly payments, which can help them put money away for retirement without delay.
“Borrowers who feel that their student loans are competing against their retirement savings might find value in IDRs,” said Knickerbocker. “At Ameritech Financial, we help borrowers understand IDRs in the context of their financial situation and goals, and we help with the application paperwork if they decide to try it out.”
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
media@ameritechfinancial.com
Source: Ameritech Financial
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