ROHNERT PARK, Calif., March 14, 2018 /PRNewswire/ -- Millennials have been in the spotlight recently for shouldering the bulk of the student loan debt. However, the older end of Generation Z is making its way through college now, accumulating the debt that millennials have been struggling with. How will they fare? It's hard to tell how successful they will be through repayment, but a recent survey brought to light some Gen Z understandings of student loans. Ameritech Financial, a document preparation company specializing in helping borrowers with federal loan repayment plan applications, reminds current students that student loans will affect their lives for years to come and it's important to be as knowledgeable as possible about their loans and options.
"College is a time for education, and when it involves taking out student loans, it's important that students learn what they can about those loans in addition to their studies," said Tom Knickerbocker, executive vice president of Ameritech Financial. "Knowing things like how much they will be paying back and their options for repayment will influence their success."
According to the survey, about two-thirds of Gen Z respondents have looked at their student loan accounts. Keeping track of those loans is essential for minimizing them. For those borrowers who are near the end of their school career, knowing their balances will inform their job search, especially when it comes to salary requirements.
The survey revealed two major misconceptions held by Gen Z students. First, a little more than half of the respondents believe that they will be able to take advantage of forgiveness programs after graduation. The main forgiveness program, Public Service Loan Forgiveness, only benefits those working for the government or 501(c)(3) employers, regardless of job function.
Second, nearly 40 percent of respondents believed it is possible to refinance student loans through a federal program. That is simply not true. Refinancing is solely in the realm of private companies, and refinancing a federal loan will forfeit the valuable borrower protections inherent in federal loans, such as loan forgiveness and income-driven repayment plans.
On a positive note, more than half of the respondents believe that they will be able to fully pay off their debt. However, those in the remaining 40 percent, or any federal student loan borrower struggling to make their payments, may be able to take advantage of one of the various income-driven repayment plans offered by the Department of Education. Such plans base payments on income and family size and may even end in forgiveness after 20 or 25 years.
"Knowledge is power and leads to success in the student loan repayment process," said Knickerbocker. "We specialize in that knowledge and help our clients understand the available repayment plans. We also help them with the application paperwork and yearly recertification so that they can hopefully feel empowered in their repayment process."
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.
To learn more about Ameritech Financial, please contact:
5789 State Farm Drive #265
Rohnert Park, CA 94928
SOURCE Ameritech Financial