Ameritech Financial: Hawaii May Not Be Paradise When It Comes to Paying Student Loans

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Nov 12, 2018, 08:00 ET

ROHNERT PARK, Calif., Nov. 12, 2018 /PRNewswire/ -- For those trying to manage their student loan debt, borrowers might consider increasing income, reducing expenses or applying for an income-driven repayment plan (IDR). But, few borrowers consider their location as a factor. It turns out, though, that there are better and worse states to live in the U.S. for paying off student debt. In the best states, Utah and Washington, for example, student loan payments average close to about 10 percent of net income. In the most challenging state, Hawaii, borrowers spend more than 22 percent of their disposable income to keep up with their student debt. Factors such as average student debt, cost of living and average income combine to provide a snapshot that gauges the relative difficulty of paying down student loan debt in each state. Ameritech Financial, a document preparation company, helps thousands of people across the country find solutions to overwhelming student loan debt. They skillfully guide clients through the processes of applying for and maintaining enrollment in federal programs, such as IDRs, that can possibly lower suffocating monthly payments.

"These are interesting findings and we closely follow all research about student loan debt," said Tom Knickerbocker, executive vice president of Ameritech Financial. "For us, though, each borrower is unique. And if they are struggling with student loan debt, we find a solution that works best for them, making sure they maximize the benefits available to them and hopefully keeping that monthly payment low based on income and family size."

The best five places to manage student loan debt are Utah, Washington, North Carolina, Colorado and Texas. While Utah is not high in terms of average annual income, $45,490, it has the lowest total student debt, $18,969, and average monthly payments, $192. Interestingly, the second-ranking state, Washington, has much higher student loan debt, $24,331, but also much higher income, $55,810. North Carolina, Colorado and Texas also have less-than-average student loan debt, from $24,133 to $26,607, and higher-than-average incomes, from $52,870 to $57,850. In these states, between 12 and 13 percent of disposable income is spent on student loan debt.

On the other hand, Hawaii is nearly average in all categories, except that it costs nearly 34 percent more than average to live there, making it extremely difficult to pay off student loan debt. Maine, the second-worst state, reports lower-than-average wages, $44,180, and higher-than-average student debt, $30,586, requiring borrowers to pay just over 20 percent of their net income for their monthly student loan payments. Borrowers in Connecticut, Pennsylvania and New Jersey pay out just under 20 percent of their net income to round out the bottom five. Both Pennsylvania and New Jersey average some of the highest debt in the nation at over $35,000.

No matter where borrowers live, for those overburdened by student loan debt, an IDR can make a huge difference in how much money is left at the end of the month to pay household bills. Ameritech Financial is a trusted advocate, working on behalf of clients as they navigate the sometimes overly complicated paperwork required by loan servicers to apply for IDRs.

"We can help dot all the i's and cross all the t's during the applications process so that clients can worry less about what they don't have and start focusing on what they want to achieve," said Knickerbocker. "By helping borrowers keep up to date, their student loan debt might even be forgiven after 20 or 25 years."

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.

Ameritech Financial Newsroom

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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Hawaii: Beautiful but Not Great for Student Loans
Credit: Andrushko Galyna/Bigstock

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SOURCE Ameritech Financial