ROHNERT PARK, Calif., March 15, 2018 /PRNewswire/ -- Financial stress seems to be a constant in life these days. For many, financial stress may stem from student loans or other debt. However, that stress starts before student loan repayment begins. While college studies are underway, about 70 percent of students are stressed about their finances, including student debt, according to a study. Ameritech Financial, a document preparation company specializing in the federal student loan repayment plans offered by the Department of Education, suggests that college may be a good time to develop good financial habits and federal repayment plans may help ease financial stress after graduation.
College may be the first time that students have to manage their own finances, so it's understandable that they feel stress. Budgeting may be necessary to avoid running out of money before the end of the semester, especially when students must live off of limited funds from financial aid and, for some, part-time work. However, tracking expenses may be a difficult habit to develop, and many students may rely on credit cards when funds get low. In fact, in 2014, students charged an average of $2,150 for education costs to their credit accounts.
"Americans are not strangers to financial stress," said Tom Knickerbocker, Executive Vice President of Ameritech Financial. "There are ways to deal with financial stress, including budgeting or having a debt payoff plan, and it's best to develop those habits early. College may be a hectic time with coursework and exams and such, but if students can learn good financial habits, they'll be better off in the future."
One major stressor before graduation may stem from uncertainties about student loan repayment. While it's possible to look up current student loan balance totals and use calculators to estimate monthly payment amounts, it's more difficult to predict future income and forecast whether it will be enough to make those payments.
The study found that a quarter of students expected to graduate with between $30,000 and $50,000 of debt, but one-fifth of students expect to have more than $50,000. That can be hard to pay on an entry level salary, especially when living expenses and other debt is factored into the budget.
When federal student loans contribute to financial stress, Ameritech Financial recommends taking a look at federal repayment plans. Income-driven repayment plans (IDRs) calculate payments as a percentage of discretionary income, which factors in family size, so they are intended to better accommodate one's actual income. Any reduction in payments resulting from IDR enrollment can help borrowers' whole financial situation by potentially allowing them to allocate extra funds to other parts of their budgets.
"No one should feel financially stressed on a daily basis," said Knickerbocker. "But student loans, on top of all other financial obligations, can inspire continuous stress like that. At Ameritech Financial, we hope to relieve that stress by helping student loan borrowers apply for IDRs that can possibly lower payments and hopefully improve financial situations."
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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