ROHNERT PARK, Calif., April 20, 2018 /PRNewswire/ -- Student loans are an investment in one's future, or that's how millions of Americans might justify the risk of taking out thousands of dollars of loans for a college education. However, paying down those loans can set borrowers back in other investments in their future, namely retirement and homeownership. Ameritech Financial, a document preparation company that helps student loan borrowers apply for federal repayment plans, recommends that borrowers plan student loan repayment, retirement saving, and other financial goals simultaneously.
"Your financial future depends on many factors, so it might not make too much sense to focus all your attention and finances toward one goal and delay the others," said Tom Knickerbocker, Executive Vice President of Ameritech Financial. "We believe that student loan repayment is important, but it shouldn't get in the way of retirement or home buying goals."
Saving for retirement is a career-long process, and because of the way interest compounds in 401(k) and other retirement accounts, it pays to start early. However, student loan borrowers spend the first 10 years of their careers focusing on paying down their student loans. Borrowers who ended up with high monthly payments or low income relative to their payments may be unable to pursue other financial goals, like retirement or homeownership, until such student debt is paid off.
That 10-year payoff schedule is built into the federal Standard Repayment plan, which all borrowers are placed in automatically and results in the quickest and cheapest repayment of all federal options. However, other federal repayment plans may benefit borrowers who would prefer to prioritize retirement saving and/or homebuying. Income-driven repayment plans, for example, base payments on income and family size by calculating payments as a percentage of discretionary income. Such plans can potentially reduce payments and increase a borrower's saving power.
Of course, it is always a good idea to speak with a financial advisor or tax expert to assist in deciding which payment terms may work best for a particular borrower. Whether or not someone decides to hire an outside party to assess their finances, Ameritech Financial is there to help in the application process for certain repayment plans.
"Looking at your entire financial situation, alongside your goals, is essential for coming up with a plan that will be best for your financial future," said Knickerbocker. "At Ameritech Financial, we help borrowers understand federal repayment plans in the context of their situation and goals, and if they want to apply for IDRs, we help them with the paperwork to do so."
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.
To learn more about Ameritech Financial, please contact:
5789 State Farm Drive #265
Rohnert Park, CA 94928
SOURCE Ameritech Financial