Millennials, Student Debt, and the Gig Economy: Ameritech Financial Probes the Issues

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Jun 26, 2018, 01:00 ET

ROHNERT PARK, Calif., June 26, 2018 /PRNewswire/ -- How much does student loan debt affect millennials and The Gig Economy? Is it overblown and sensationalized by a few news media outlets? Depending on the source, some experts believe that millennials with student debt would have greater freedoms and success with The Gig Economy if they had less debt. These experts point to the government to create the changes needed to stimulate growth in this job sector. Conversely, others argue that "alternative work arrangements" only account for 10 percent of the workforce, which also shows a one percentage point decline since 2005. Student loan debt currently totals $1.5 trillion dollars, but borrowers aren't without options. While some borrowers may turn to gigs to help them afford their student debt, others may seek a new loan plan, such as those offered by the Department of Education. Ameritech Financial is a document preparation company that guides borrowers through the process of federal repayment plan applications, which could decrease the financial hardship brought on by debt simply by switching to an income-driven repayment plan (IDR).

"The current economy for workers in America is multifaceted and trying to understand it can be a formidable task. If you are having a hard time making sense of the national economy, why not try to focus on your finances instead," said Tom Knickerbocker, Executive Vice President of Ameritech Financial. "For example, you could learn about budgeting or switching to a new student loan repayment plan. Both ideas could boost your monthly savings."

The Gig Economy is essentially independent contractor work. For example, Uber, Airbnb, part-time and temp work; however, the definitions change depending on the report or news source. In addition, the percentage of the labor force doing this type of work is contested: the Federal Reserve argues one-third of working Americans are contributing to The Gig Economy. The Bureau of Labor Statistics, on the other hand, recently reported only 10.1 percent of workers identify as having alternative work arrangements. Both reports have different definitions of this type of work. For example, the former considers gig work as side income that is in addition to the main job, while the latter was reporting on those who consider independent contractor work as the main source of income. In either case, workers with student loan debt who want to be entrepreneurial may instead opt for a traditional job because they fear that borrowing more funds would have a negative impact on their financial situation. They should consider learning more about IDRs, which may lower monthly student loan debt payments significantly.

Federal income-driven repayment plans calculate payments based on income and family size and can end in forgiveness after 20 to 25 years of enrollment. Because payments depend on income, millennials who may have an inconsistent income may find student loan repayment easier, which can also allow them to take jobs based on growth or career potential rather than pay.

"Let Ameritech Financial help you through the tedious process of federal repayment plan applications. It could end up saving you enough money to help you gain the skills needed to participate effectively as a freelancer in The Gig Economy," said Knickerbocker.

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.

Ameritech Financial Newsroom

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]

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Gig Economy and Student Loan Repayment
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