Spend Less or Make More? Ameritech Financial Suggests a Third Potential Option: Pay Less Monthly in Student Loans

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May 24, 2018, 08:00 ET

ROHNERT PARK, Calif., May 24, 2018 /PRNewswire/ -- Student loans can strain a household budget and prevent individuals from being able to work toward their financial goals. While common financial advice is split between "spend less money" and "make more money," student loan borrowers may be left wondering what to do when their student loan payments require so much of their take-home pay. Ameritech Financial, a document preparation company that assists borrowers with federal repayment plan applications, notes that in some circumstances student loans may potentially help a household budget rather than hinder it.

"Being short on funds can make any financial situation difficult, but student loan borrowers might feel like their loans make it even harder to manage," said Tom Knickerbocker, executive vice president of Ameritech Financial. "Sometimes it's easy to cut down on spending or bring in more money, but it's not always possible."

Households can spend less money by cutting costs for non-essential or extra expenses. Cable can be ditched in favor of less expensive options. Phone bills can be reduced by switching carriers or limiting usage to enable a cheaper plan. Families can cut food costs by cooking more at home, buying certain groceries in bulk and taking advantage of coupons for items they would already purchase.

Once those expenses are limited, households may try to increase their income if they are still struggling. Besides asking for a raise or finding a new job, anyone can start a side hustle if they have the right mindset and motivation. However, side jobs take extra time, which may not work for every household. Parents, in particular, may prefer to spend that time with their children.

For borrowers who have tried both methods and still need help, federal income-driven repayment plans (IDRs) might offer some relief. Such plans can potentially reduce monthly federal student loan payments by calculating them on income and family size. After 20 to 25 years of enrollment in an IDR, borrowers may see any remaining balance forgiven.

"Student loans may get in the way of household finances, but they don't necessarily have to," said Knickerbocker. "IDRs can help student loans work with a tight budget by potentially reducing payments to allow borrowers to allocate more money elsewhere. At Ameritech Financial, we help borrowers understand and apply for IDRs, and we hope they feel less financial stress because of them."

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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SOURCE Ameritech Financial