The Positive Side Effects of Getting Student Loan Debt Under Control, According to Ameritech Financial
![Getting Student Loans Under Control can Promote Financial Growth](https://cdn.nwe.io/files/x/44/14/69586c746511a63354417a0303b9.jpg)
ROHNERT PARK, Calif., June 19, 2018 (Newswire.com) - World travel, buying a home, saving for a rainy day — these financial goals are likely more possible when student loan debt is under control. However, while having extra funds may inspire borrowers to pursue lifestyle inflation, experts argue that they should try to keep expenses down for rainy days, like unexpected job loss or car problems. Sources also recommend that borrowers who reduce student loan debt payments should save additional income, either for retirement, emergency funds, or other ways to “pay yourself first.” A potential solution to student loan borrowers’ problems is to seek out a new loan repayment plan, such as those offered by the Department of Education. Ameritech Financial is a document preparation company that assists borrowers with federal repayment plan applications, such as income-driven repayment plans (IDR), which may mitigate the burden of debt by reducing payments.
In order to make financial goals a reality, experts recommend financial literacy to Americans. Why is this subject so important? Financial illiteracy could lead to poor credit, filing for bankruptcy, unnecessary financial service fees, fewer savings, and more debt. A study in 2016 revealed that two-thirds of Americans failed a basic financial literacy test. Learning about interest rates and how they affect student loans could benefit borrowers when they choose new loans or new repayment plans, like IDRs.
It can be difficult to focus on student loans when you are having a tough time making ends meet.
Tom Knickerbocker, Executive Vice President of Ameritech Financial
“It can be difficult to focus on student loans when you are having a tough time making ends meet,” said Tom Knickerbocker, Executive Vice President of Ameritech Financial. “But we encourage borrowers to take the time to learn the basics of loan repayment so that they can determine whether they need to look into repayment options. At Ameritech Financial, we help clients look at their whole financial situation, and if they would benefit from enrollment in an IDR, we help them with the application and recertification process each year.”
Prioritizing where funds are allocated is a learned skill. Most people need practice at saving before they make it a habit. Several financial advisers advocate that those who are new to personal finance should set up automatic payments from direct deposit paychecks into separate bank accounts. The amount to deposit varies, depending on bills, rent, and student loan debt. One adviser even suggested starting anywhere, like putting aside $10 from each paycheck until the more important debt, like delinquent and high-interest credit card bills, are paid off. By making it a habit to save $10 per paycheck, savers might start saving more when an income increases or debts decrease. Another potential way to incur savings from debt is to look into IDRs for student loan repayment plans.
“It’s okay to take a while to pay down student loans, but being able to work toward other financial goals in the meantime is ideal,” said Knickerbocker. “It’s important to note that IDRs have a longer payoff term than the Standard 10 years, but they can also help borrowers who have limited resources for repayment. At Ameritech Financial, we help borrowers understand IDRs and complete the application paperwork to enroll and stay enrolled in the program for as long as they wish.”
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.
Contact
To learn more about Ameritech Financial, please contact:
Ameritech Financial
5789 State Farm Drive #265
Rohnert Park, CA 94928
1-800-792-8621
media@ameritechfinancial.com
Source: Ameritech Financial