Ameritech Financial on Income Inequality and Income-Driven Repayment Plans

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Jun 29, 2018, 01:00 ET

ROHNERT PARK, Calif., June 29, 2018 /PRNewswire/ -- The quote "the rich get richer" comes to mind when thinking about income inequality. The term refers to the extent to which income is distributed in an uneven manner among a population. In the United States, income inequality has been growing for nearly 30 years. This huge divide in incomes does not leave very much room for those who have student loan debt. Ameritech Financial, a private document preparation company that assists federal student loan borrowers to apply for federal repayment plans available through the Department of Education, sees the effect that income inequality has on its clients.

"Our clients have gone to school to theoretically get better jobs and have larger incomes, but to do this they have taken on student loans," said Tom Knickerbocker, executive vice president of Ameritech Financial. "With increasing income inequality, it can be difficult for people with higher education and student loans to pay back huge amounts." This is particularly evident as the average household income has just now caught up to pre-Recession times.

Though the middle class may be getting stronger, poverty continues to be a problem in the United States. According to Kimberly Amadeo at The Balance, "The middle class has the most economic mobility of anyone in America … but research shows that it is difficult for the poor to become wealthy. The rags-to-riches promise of the American Dream has dimmed." The ability to bridge this gap through education is still possible, however being able to get there is difficult with increased higher education costs.

Those who do attempt to bridge the gap through education may end up with sizeable student loan balances that may get in the way of their wealth-building intentions. Such borrowers may be eligible for federal income-driven repayment plans that are intended to reduce monthly payments by basing them on income and family size.

"We believe in the importance of higher education and that income-driven repayment plans (IDRs) may help our clients be successful in staying on track with their student loan repayment," said Knickerbocker. "We hope that more people will be able to work with IDRs so they can potentially lower their payments and gain better financial standing."

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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Income Inequality Harder on the Lower Incomes
Credit: TeroVesalainen/Bigstock

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SOURCE Ameritech Financial