Ameritech Financial on the Common Financial Conundrum: Retirement Saving Versus Student Loan Repayment

ROHNERT PARK, Calif., April 11, 2018 /PRNewswire/ -- Millions of young adults are faced with an important financial decision: save for retirement or pay down student loans. While saving for retirement may not feel as important for younger borrowers, starting early is extremely beneficial. However, student loans can cause certain emotional reactions that may preclude all other financial goals. Ameritech Financial, a document preparation company that assists with federal student loan repayment plan applications, reminds borrowers that they may be able to use their student loans to the advantage of a retirement saving plan.

"Saving for retirement and staying current on student loans are both very important for financial wellbeing," said Tom Knickerbocker, Executive Vice President of Ameritech Financial. "We encourage borrowers to analyze their financial priorities and abilities. If they cannot afford their student loan payments, for example, they should focus on improving their loan situation before falling behind on their payments."

Retirement can feel so far away to workers in their 20s or 30s. But because retirement savings plans accrue interest that compounds, it pays to start early. That's why financial experts usually advise individuals to focus on that. Those whose employers offer a matching 401(k) program should take advantage of all the matching available, which is essentially free money.

However, student loans can take a toll on borrowers' mental health, inducing stress and even embarrassment. For some, that might be enough to target those loans with vehemence and pay them off as quickly as possible. Others may not have the available income to adopt such an aggressive strategy. Those borrowers may find benefit in a federal income-driven repayment plan, which calculates payments relative to income and family size, often reducing payments for eligible borrowers.

IDRs can enable borrowers to stay current on their student loans. Such borrowers may also be able to use any freed-up funds from any reduction toward retirement savings. This approach allows borrowers to work toward both goals instead of choosing one. If borrowers need help strategizing about their finances, they may choose to speak with a financial expert.

"At Ameritech Financial, we are proponents of using IDRs not only for student loan repayment but for other financial goals, as well," said Knickerbocker. "Both retirement and student loans are important for a healthy financial situation, and IDRs can empower borrowers to pursue both. We help borrowers apply for IDRs, and we hope they feel financially free enough to focus on their other financial goals."

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 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

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https://ameritechfinancial.com