Ameritech Financial Argues That Student Loans May Not Be Ruining Every Borrower's Life
ROHNERT PARK, Calif., March 12, 2018 /PRNewswire/ -- The student loan numbers can be alarming: $1.4 trillion total student debt and counting; over $30,000 per borrower on average; seven out of 10 borrowers leaving college with debt; delinquencies on the rise, exceeding 11 percent. Reports are starting to claim that student loans are negatively affecting the economy by limiting consumer purchases. But are they ruining borrowers' lives? Ameritech Financial, a document preparation company that specializes in federal income-driven repayment plan applications, suggests that borrowers look at their own loan situation before concluding that their loans are ruining their lives.
The most startling stats can tell different stories. Students with the highest loan balances — high enough to elicit gasps of horror from anyone — make up a small proportion of all borrowers. Borrowers who are most likely to default have some of the lowest debt balances. When it comes to the ruining effect of student loans, it really is personal and unique to every borrower and their ability to pay whatever amount of loans they have.
"Student loans can be bad, but are they ruining lives?" asked Tom Knickerbocker, executive vice president of Ameritech Financial. "It's dangerous to use blanket statements like that when student debt situations vary so much from borrower to borrower."
Whether student loans are ruining individual lives may come down to each individual's perception of their loans. The purpose of student loans is to fund an education. That education is supposed to increase intellectualism and critical thinking skills as well as set students up for a successful career. Individuals who have a college degree are more likely to buy a house and build a retirement fund than those who don't.
However, those with student debt have been delaying home purchases and retirement savings in order to deal with their student loans. Borrowers who feel that their loans are holding them back in life may be justified in any claim that those loans are ruining their lives. Ameritech Financial suggests that those students create a plan to deal with both that negative perception of their loans and their burdensome loan payments.
Federal income-driven repayment plans (IDRs) have helped countless borrowers cater their loans to their unique financial situation. Payments in an IDR are calculated as 10 or 15 percent of borrowers' discretionary income, taking into consideration income and family size, and can result in a payment as low as zero. Any reduction in payment may loosen a budget enough to allow borrowers to pursue other financial goals, such as saving up to buy a house.
"Everyone has a different definition of success, and their student loans shouldn't get in the way of that," said Knickerbocker. "At Ameritech Financial, we help borrowers apply for IDRs that may lower their payments enough to reduce the stress their loans have on their lives. We hope our clients get the freedom to see their education as a positive thing in their lives and that their loans don't get in the way of success."
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.
Contact
To learn more about Ameritech Financial, please contact:
Ameritech Financial
5789 State Farm Drive #265
Rohnert Park, CA 94928
1-800-792-8621
[email protected]
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SOURCE Ameritech Financial
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