Ameritech Financial Notes That Deprioritizing Student Loan Repayment May Be Appropriate for Various Situations

ROHNERT PARK, Calif., April 3, 2018 /PRNewswire/ -- Student loans can represent a big burden in a borrower's life. That weight may inspire borrowers to face those loans and pay them off as quickly as possible. However, that targeted approach may set them back when it comes to other financial goals, such as buying a house or saving for retirement. Ameritech Financial, a private document preparation company that helps borrowers navigate and apply for federal repayment plans, suggests that many borrowers may find more long-term value in deprioritizing student loan repayment.

"We respect the self-discipline and dedication it takes to supercharge any debt payoff journey," said Tom Knickerbocker, Executive Vice President of Ameritech Financial. "That method, while the subject of most student loan repayment advice articles, might not be right for every situation. And some borrowers may choose to deprioritize student loan repayment while still making minimum payments as they work toward other goals."

The internet is full of advice suggesting the best way for borrowers to pay their student loans is to make certain sacrifices and put large percentages of their income toward their debt. In fact, most success stories describe ways of doing just that. However, that strategy usually precludes all other savings and may contribute to the statistics showing that student loan borrowers are delaying important financial moves, like starting a retirement or down payment fund, because of their student loans.

Ameritech Financial encourages borrowers to analyze their own situation, as well as their emotions surrounding their debt, to come up with a financial plan not only for their student loans but also for their other financial obligations and goals. Borrowers feeling high financial stress from their student loans may benefit most from attacking them head-on. The same goes for other debts, like credit card debt, which usually has a much higher interest rate. Borrowers who have a strong desire to own a home or start a family may wish to prioritize saving toward those goals.

However, some common advice from financial experts is to always contribute to a retirement plan, especially if one's employer has a matching program. They may also suggest having an emergency fund, though the amount may differ for each individual or family. Borrowers who need help deciding on financial priorities should talk to a professional financial advisor.

Even borrowers who feel that they have no choice but to focus on their high student loan payments may be able to stay current on those loans while also focusing on their preferred financial goal. Income-driven repayment plans (IDRs) calculate payments based on income and family size and can potentially reduce payments to as little as zero dollars for certain borrowers based on individual circumstances. Any reduction in payments may allow borrowers to pursue other financial goals more substantially.

"IDRs may be helpful for borrowers who would prefer to use their income for saving for a house or a family or whatever their primary goal is," said Knickerbocker. "They are also valuable for those who simply cannot afford their loan payments with their current income. At Ameritech Financial, we help borrowers understand IDRs and apply for enrollment if they choose 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.

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]

Related Links

Ameritech Financial home page

SOURCE Ameritech Financial

Related Links

https://ameritechfinancial.com