Ameritech Financial: Student Loan Repayment Options May Improve Millennial Retirement Saving Practices
ROHNERT PARK, Calif., April 2, 2018 /PRNewswire/ -- A recent report from the National Institute on Retirement Security shows that the majority of millennials aren't saving for retirement. CNN also profiled some millennials responding to the report in which they discussed their particular reasons for postponing a retirement fund. Two of the women profiled cited student loans as a major factor. Ameritech Financial, a document preparation company which aligns student loan borrowers with federal programs that potentially lower their payments, reminds borrowers that affordable payments are a possibility for many federal student loan borrowers.
"As student loan balances get higher, retirement fades in priority because the immediate concern is making that huge monthly loan payment, which is understandable," said Tom Knickerbocker, Executive Vice President of Ameritech Financial. "But for borrowers who are really feeling the pinch, there may be different ways to go about it."
One woman profiled in the CNN article had, with her husband, a balance of $60,000 in loans, which they have worked to nearly pay off fast, putting all extra money towards the student debt. Another woman recently completed grad school and has a large balance of $120,000, but is unsure whether to focus on faster loan repayment or retirement.
If one has the means to choose, deciding how quickly to pay off a loan is definitely a highly personal financial conundrum. However, some student loan borrowers don't even have the chance to decide whether retirement is on the table because they simply have nothing left over after the bills are paid. Worse yet, some don't have enough income to even cover the bills. That's where income-driven repayment plans (IDRs) may help.
Income-driven repayment plans are federal repayment plans offered by the Department of Education. Rather than calculating monthly payments based on a ten-year payoff schedule as the Standard plan does, IDRs base monthly payments on income and family size. So for borrowers who qualify for these plans and have high debt relative to their income, monthly payments will likely decrease to a more affordable amount in an IDR.
IDRs require an application and yearly recertification. While borrowers are free to apply by themselves, some might need additional assistance. Ameritech Financial is a private, independent company which helps student loan borrowers identify an IDR, if appropriate, apply for the plan, and recertify their plans if the borrowers wish to stay in them year after year.
"Borrowers in income-driven plans may find that they have more money at the end of the month because of their new plan, and some of that could be the foundation of a bigger financial goal," said Knickerbocker. "Ameritech Financial is a partner to borrowers in the process of applying for plans and taking the next step towards that goal."
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
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SOURCE Ameritech Financial
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https://ameritechfinancial.com
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