The GI Bill and Student Loan Debt: Ameritech Financial Notes Alternatives

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Jun 18, 2018, 08:00 ET

ROHNERT PARK, Calif., June 18, 2018 /PRNewswire/ -- The 40 million Americans who currently have student loans may not know how those loans came about. In 1944, veterans were the first main recipients of student loans and widespread financial support for college thanks to the GI Bill. Today, veterans can get loans discharged if they have a total and permanent disability from service. Any veterans who don't see enough benefit to completely avoid student debt can turn to a new loan repayment plan to help in repayment, such as an income-driven repayment plan (IDR) offered by the Department of Education. Ameritech Financial, a document preparation company that assists borrowers with federal repayment plan applications, suggests struggling borrowers look into IDRs as a potential method to help them alleviate the burden of their debt.

Federal loans did not become widely available until 1958 with the National Defense Education Act (NDEA), which was created in part to remain competitive with the Russians, especially after Sputnik went into orbit and launched the space race. It is important to note that the GI Bill, officially known as the Servicemen's Readjustment Act, was passed for veterans prior to the NDEA. The GI Bill aimed to remedy consequences of not giving veterans from WWI enough support, financial or otherwise. Introduced shortly before the end of WWII, the GI Bill was very successful: 49 percent of college students were veterans in 1947, and almost half of all WWII veterans benefited from the GI Bill by 1956. In the past few years, veteran advocacy groups have complained about the newest iteration of the GI Bill because they still end up with student loan debt despite the support of the bill. Veterans who use the GI Bill and have student loan debt can learn about other options, such as potentially cutting down monthly student debt payments by choosing IDRs.

"How do veterans have student loan debt if they also have the GI Bill? It is a complex situation, but the important thing is for veterans to know they have options," said Tom Knickerbocker, executive vice president of Ameritech Financial. "They may not know where to turn, which is why we recommend they examine their situation and become financially literate. Wherever they are in their student debt journey, it's not the end of the world. They could even be eligible for help through a federal repayment program."

Other important factors to consider are that the GI Bill only covers $22,805.34 per year when veterans attend private colleges. This makes student loan debt especially inevitable, considering private colleges, on average, cost $34,740. Considering these two amounts, the remainder could be nearly $12,000 for veterans who want to pursue private institutions for higher education. Additionally, 41 percent of veterans hold student loan debt, which could be difficult to pay down depending on several factors. IDRs may help veterans in repayment because the payments are calculated based on their income and family size and can end in forgiveness after 20 to 25 years.

"Companies like Ameritech Financial attempt to offer borrowers of all backgrounds, including veterans, a new and more positive perspective on student loan debt," said Knickerbocker. "Lowering monthly payments could increase savings if successfully enrolled in one of the government's federal student loan repayment plans."

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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SOURCE Ameritech Financial