ROHNERT PARK, Calif., March 27, 2018 /PRNewswire/ -- Student loan borrowers and lawmakers agree that student debt is a problem. While a college education is still very valuable for the economy and individuals, student loans may prevent many from taking that leap into their future. While some lawmakers have proposed solutions involving free tuition, that only goes so far to cover the costs associated with college. Ameritech Financial, a document preparation company that assists borrowers with federal repayment plan applications, reminds borrowers that if they are struggling with their student loans, they may be able to turn to available income-driven repayment plans to help manage those loan payments.
"A higher education may be worth the debt, but many borrowers still struggle with it," said Tom Knickerbocker, executive vice president of Ameritech Financial. "The hard truth about any proposals to fix college funding and financial aid is that they may leave out those who have already been through it and are now dealing with thousands, tens of thousands or even hundreds of thousands of dollars of debt."
Student debt is a problem for millions of Americans, but some experts still agree that college education is necessary for both personal and economic success. However, that debt has been shown to cause borrowers to delay buying a house, getting married or starting a family. While many individuals call for more non-traditional solutions, such as expanding apprenticeships and trade skill training, others propose changes to the way college is funded.
The push in recent years for tuition-free college resulted in the Excelsior Scholarship in New York. However, the program provides funds only for tuition, so students must still come up with the other costs associated with college attendance, such as living expenses, transportation and supplies. Furthermore, for students who do not graduate within four years or the time frame that the funded degree program requires of full-time students, the scholarship turns into a loan that the students are responsible for paying back.
Recently, a proposal for debt-free college has been making waves in the media. Debt-free education would cover all the costs associated with a college education, not just the tuition that makes up about 45 percent of those total costs. Debt-free higher education, as proposed in this bill, would apply to both community and four-year colleges. It would rely on funding from states, with matched funding from the federal government.
However, states may choose not to take funds from the federal government, and it may be unlikely that a bill this progressive would pass in the current Congress. Additionally, the bill does not address those who are currently indebted and may be struggling to pay down their student debt. Ameritech Financial suggests those borrowers turn to the available federal repayment plans.
"Income-driven repayment plans have helped countless borrowers reduce their payments to make their debt manageable with the income they have," said Knickerbocker. "At Ameritech Financial, we help borrowers understand their IDR options and apply for one if they feel it is their best option. We even help with the yearly recertification paperwork, staying with each client as long as they stay in the program."
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