ROHNERT PARK, Calif., April 17, 2018 /PRNewswire/ -- There are many articles reporting that millennials are delaying their decision to buy houses. Another recent report shows that millennials are spending a greater portion of their total earnings by the time they are 30 on rent than previous generations. One theory for why millennials are not buying houses at younger ages is that they are overburdened by their student loan debt. Ameritech Financial, a document preparation company, encourages borrowers who want to buy a house to not let their student loans get in the way of pursuing that goal.
"There are many reasons that millennials might want to buy houses, and also many things that may be holding them back," said Tom Knickerbocker, Executive Vice President of Ameritech Financial. "If student loans are part of the decision to delay, borrowers should know that if they want to prioritize buying a house, they may be eligible for a federal repayment plan that can help."
By age 30, millennials have spent an average of 45 percent of their total earnings on rent, compared to 41 percent for Generation X and 36 percent for Baby Boomers. While many people recommend that younger generations buy a house and cite several reasons, millennials may not feel financially able to do so. After all, when student loans comprise the second largest expense in a household, second only to rent, it can be difficult for many borrowers to find room in their budget to save up for a down payment and other costs associated with buying a house.
Besides feeling unable to build a house-buying fund, millennials may not be able to qualify for a mortgage due to a high debt-to-income ratio, especially if they have credit card debt or other monthly loan obligations in addition to their student debt.
Federal student loan borrowers who feel that their monthly payments are too high to allow them to save any money or qualify for a mortgage may find relief in a federal income-driven repayment plan. Such plans base payments on income and family size and can potentially reduce payments. Additionally, after 20 to 25 years of enrollment in an IDR, any remaining balance will be forgiven.
"IDRs are the missing piece of the puzzle for many borrowers whose payments demand too much of their income for them to pursue other financial goals," said Knickerbocker. "At Ameritech Financial, we help such borrowers understand and apply for IDRs that we hope enable them to focus on goals that matter to them and their future, like buying a house, while also staying current on their student loans."
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.
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