Press Release – updated: Mar 13, 2018 10:00 PDT
ROHNERT PARK, Calif., March 13, 2018 – Student loan borrowers are leaving college with balances that mirror new car prices â€” without a shiny new car to show off. Instead, borrowers have only a degree and soft skills to show for their debt. Many borrowers race to pay off that debt as quickly as possible; many are delaying buying a house or a car or saving for retirement because of their student debt. However, thereâ€™s another alternative. Ameritech Financial, a document preparation company, helps borrowers apply for federal income-driven repayment plans that adjust their payments to an amount appropriate to their income as well as family size and allows them to take their time with their debt while focusing on other financial goals.
â€œStudent loans are usually a big deal and should be addressed, but paying them off as quickly as possible may not be the answer for every borrower,â€� said Tom Knickerbocker, executive vice president of Ameritech Financial. â€œInstead, taking your time with student loan repayment may allow borrowers to focus on other financial and life goals.â€�
Whereas car loans are typically offered in terms of five years or less, student loans start at a 10-year term. However, many students are taking twice as long to pay off their debt. Furthermore, student loans often have a higher interest rate than car loans, and monthly payments can be overwhelming for recent graduates just starting out in their career.
Student loans are usually a big deal and should be addressed, but paying them off as quickly as possible may not be the answer for every borrower.
Executive Vice President of Ameritech Financial
Federal student loan borrowers who cannot afford their loan payments can apply for income-driven repayment plans (IDRs) offered by the Department of Education. Such plans calculate payments based on income and family size and can end in forgiveness after 20 or 25 years if there is any balance left to forgive. While this is not the quickest way to pay down student debt, it may be the most accommodating for borrowers whose income is not sufficient to cover high payments or for such borrowers facing other important financial obligations.
Besides being able to possibly better afford monthly student loan payments while enrolled in IDRs, borrowers may also have the financial freedom to focus on other financial goals, such as those many borrowers today who are delaying: buying a house, starting a family or saving for retirement. Those reduced payments from IDR enrollment can be a blessing for borrowers who do not want to delay those life milestones.
â€œThe thought of paying student loans for 20 or 25 years might be uncomfortable for some borrowers,â€� said Knickerbocker. â€œBut IDRs help a lot of people from falling behind on their loan payments and from delaying their lives. At Ameritech Financial, we help borrowers understand IDRs and, if they decide it is the best course of action, we help them prepare the application and recertification paperwork each year until the end of the term.â€�
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.
Ameritech Financial is a member of the Association for Student Loan Relief (AFSLR), and each representative on the phone 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
â€‹Rohnert Park, CA 94928
Source: Ameritech Financial