Erase All Student Debt? Ameritech Financial Suggests Considering Income-Driven Repayment Instead
ROHNERT PARK, Calif., March 23, 2018 /PRNewswire/ -- Student loan borrowers graduate from college with uncomfortable amounts of debt, and they seem to be willing to do almost anything to pay down that debt. Living with parents is a common strategy, but many would also be willing to give up their right to vote in the next two presidential elections and more are increasingly taking unusual measures to rid themselves of that debt. Furthermore, a recent report speculated a scenario in which all current student debt was fully erased. Ameritech Financial, a document preparation company that assists borrowers in applying for federal repayment plans, recognizes borrowers' need for relief.
"Borrowers may dream of having their student loan debt just disappear," said Tom Knickerbocker, executive vice president of Ameritech Financial. "Imagine what you could do if you didn't have to make those student loan payments each month. But full erasure of all debt isn't the only way to reduce student loan pressure on their finances."
The authors of the report, published by the Levy Economics Institute of Bard College, described that erasing all student debt would boost the GDP, reduce unemployment rates and increase available jobs. On a more personal level, borrowers who have high monthly payments would be able to use that money in other ways. For borrowers putting off life milestones, money that would have gone to student loan payments could go toward a mortgage, a car purchase or a new family fund. Other borrowers may instead choose to help out friends and family or plan family vacations.
However, a MarketWatch article about the report points out that erasing student debt would increase the federal deficit due to losing out on all those payments and the accruing interest. Ultimately, it is very unlikely that lawmakers would consider total student debt erasure an option.
Instead of hoping for a miracle, Ameritech Financial suggests considering turning to options that are currently available. Income-driven repayment plans (IDRs), for example, are intended to lower monthly payments based on borrowers' income. That may be enough to ease financial stress and allow borrowers to meet financial goals they may be delaying because of high student loan payments. While that may not be a solution that would benefit the economy as much as erasing debt would, IDRs can make an individual borrower's month-to-month financial situations easier.
"Unfortunately, erasing all student debt will probably remain a dream in today's world," said Knickerbocker. "But taking advantage of IDRs may be the next best thing. At Ameritech Financial, we help borrowers apply for federal repayment plans that are intended to reduce payments, freeing them up financially to focus on their other goals instead of putting them off."
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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