Ameritech Financial on Trading Social Security Benefits for Student Loan Forgiveness
ROHNERT PARK, Calif., March 21, 2018 /PRNewswire/ -- Student loan debt is known to cause borrowers to delay life milestones, such as buying a house, starting a family, or saving for retirement. Currently, a bill is going through Congress that may encourage borrowers to delay their eligibility to collect social security in exchange for partial or full student loan forgiveness. While that may solve some problems now, experts are weary about individuals raising their retirement age — it's impossible to predict capability to work in those later years. Ameritech Financial, a document preparation company that assists borrowers with federal repayment plan applications, reminds borrowers to consider income-driven repayment plans, which may provide enough monthly relief from student loans so they don't feel the need to delay retirement.
"Retirement might feel far enough away that borrowers feel comfortable delaying it another couple of years to receive financial relief now," said Tom Knickerbocker, Executive Vice President of Ameritech Financial. "If borrowers need relief now, though, they don't necessarily have to make decisions that may sacrifice some time in retirement later in life." With that said, it may be best to speak with a financial planner or accountant to understand how any sort of plan to delay receiving Social Security could affect a particular individual.
The bill, named the Student Security Bill of 2017, would offer $550 of student loan forgiveness for each month borrowers agree to delay their eligibility for social security benefits, with a maximum of $40,150 with a delay of 6 years and 1 month. Some argue that the bill would not only help borrowers with personal finances, but it would boost the economy and help save social security, thereby solving multiple problems our national economy faces right now.
According to a survey, about 46.13 percent of Americans would be willing to delay social security benefits. The average respondent would postpone social security benefits by 22 months to receive $12,100 of student loan forgiveness. Though that may not wipe out all of their debt, the reduction in balance could reduce payments enough to boost their budget. In the case the proposed legislation goes through, borrowers considering taking advantage of the program should consult with a tax professional or certified financial planner before agreeing to such change in important benefits.
However, there may be another way to do that without postponing retirement. Federal repayment plans, especially those that base payments on income and family size, can potentially reduce monthly payments, allowing borrowers to save, spend, or invest. That could help boost the economy by allowing borrowers to make those large purchases they may be delaying, like buying a house or a new car, while also allowing them the flexibility to retire when they need to later in life.
"It may be important for many to have the flexibility to retire and start collecting social security benefits a little early later in life," said Knickerbocker. "It would be a shame to not have that option. At Ameritech Financial, we help borrowers understand and apply for repayment options to make their federal student loans affordable without having to limit their future options."
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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https://ameritechfinancial.com
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