Student Loan Borrowers Delaying Buying Homes, But IDRs Might Prove Helpful, Says Ameritech Financial

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May 22, 2018, 08:00 ET

ROHNERT PARK, Calif., May 22, 2018 /PRNewswire/ -- Student loan payments can make up large portions of individuals' monthly expenses and can prevent borrowers from saving for retirement or for a house. Such delays certainly affect borrowers and their progress toward those financial goals, but they also affect the housing industry and national economy. Ameritech Financial, a document preparation company that assists federal student loan borrowers with federal repayment plan applications, reminds borrowers that income-driven repayment plans can help them both stay current on their loans and save for a house if they want to do so.

"It's been clear for several years that student loans are holding back the economy and borrowers, at least for the years following their graduation," said Tom Knickerbocker, executive vice president of Ameritech Financial. "Borrowers who are able to buy a house might not realize that in doing so they are benefiting the economy as well as achieving a personal goal."

A report from 2014 showed that student debt is resulting in 414,000 lost home transactions per year, and that number likely has increased as student debt has increased in the years since then. That equates to more than $80 billion lost in the housing industry. The report also showed that every $250 in monthly student loan payment reduces that borrower's home buying power by $44,000. That certainly helps to explain why millennial student loan borrowers are delaying buying a home for an average of seven years.

Federal student loan borrowers who feel that their student loans prevent them from being able to buy a house may find a possible solution in federal income-driven repayment plans (IDRs). Such plans can reduce monthly payments relative to income, which may help borrowers save up for a down payment or closing costs. It may also help them work toward a more favorable debt-to-income ratio, which is an essential requirement for securing a mortgage.

"At Ameritech Financial, we help borrowers understand IDRs in the context of their personal situation and financial goals," said Knickerbocker. "Those who wish to buy a house might be surprised to learn that IDRs may be able to make it possible under the right circumstances. We help them with the application paperwork to get on that pathway, and we hope that they are able to use their IDR to their benefit."

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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Student Loan Borrowers Delaying Buying a House
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SOURCE Ameritech Financial