Generation Z's Turn: Ameritech Financial Watches as a New Generation Takes to College

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Jul 02, 2018, 13:00 ET

ROHNERT PARK, Calif., July 2, 2018 /PRNewswire/ -- Generation Z is now in college. The oldest members of this generation are 23 years old, putting much of Generation Z squarely in the 18-22 college age bracket. As a generation, these students are entering a college environment unlike that of the preceding millennials and Gen X'ers. Years of increasing costs and loan dependency have reshaped the college tuition landscape so that the newest college generation has new sets of issues to resolve and problems to navigate. Some issues, like what to eat, how to get money and who is getting romantic with whom will always be buzzworthy topics among college students, but Generation Z must also deal with a college scene that has seen tuition increase at a much faster rate than inflation. Ameritech Financial, a document preparation company that helps federal student loan borrowers with repayment plan applications, has seen multiple generations deal with college tuition and loans, and expects Generation Z to find balance somehow in this unstable situation.

"This young generation of college students has a new situation to figure out - one where the cost of their education is just a different monster than it used to be. They might stumble a little bit, but we have faith they will thrive," said Ameritech executive vice president Tom Knickerbocker.

A survey by LendEDU, given to 850 current college undergrads taking out student loans, has shed some light on the mentality of this current college generation. It would appear there is an adjustment period currently happening for these students. Amid the findings:

39.18 percent of students either answered "no" or "unsure" to the question "Do you believe that you will be able to fully repay your student loan debt?"
19.76 percent were unsure whether or not they had taken out a private loan.
52.94 percent believe that they will receive federal student loan forgiveness after graduation.

These numbers show that there is some room to grow and mature for Generation Z while also illustrating the stress of taking out so much debt at such a young age. Nearly two in five students feel insecurity concerning their future prospects of ever paying off their loan, yet nearly one in five were unsure if their loan was public or private. If those respondents who feel unsure about their ability to ever pay off the loan are not the same as the nearly 53 percent of students who believe they will receive loan forgiveness from the government, it would seem that most students either are unsure of their ability to pay off the loan or feel they won't have to. This mentality will likely change as the generation begins to graduate en masse.

One option that is potentially beneficial for Generation Z'ers is an income-driven repayment plan or IDR. These federal plans allow a student to make monthly payments based on their income and family size — payments affordable enough that cash flow can be preserved while the borrower stays current on loans.

"They've got a long way to go, but that was also said of previous generations. This one just has a different set of issues and problems when it comes to higher education," Knickerbocker said of Generation Z. "They'll find a way to make it work. IDRs might help."

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.

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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