Press Release (ePRNews.com) - ROHNERT PARK, Calif. - Jun 29, 2018 - In 2015, a study of 1,427 adults revealed 41 percent of college-educated Americans with student loans have postponed buying a home because of their debt. However, being able to rent or buy a home does not have to depend on student loan debt. Ameritech Financial, a document preparation company that helps federal student loan borrowers apply for repayment programs, can assist borrowers in applying to reduce their student loan payments and help free up room in their budget for other financial goals.
A recent study from Zillow reported that student debt has an insignificant effect on your probability of homeownership, as long as you graduate with at least a bachelor’s degree. Jamie Anderson, a staff writer at Zillow, writes about a scenario based on a 33-year-old married couple with children. Let’s say this couple has a master’s degree and no student loan debt; the probability of them owning a home is at 80 percent. Now, give the couple $50,000 in student loan debt and the probability of homeownership drops only 5 percent. What about when it comes to renting?
“Renting versus buying is a hot topic today, and it is not only based on our nation’s economy,” says Tom Knickerbocker, Executive Vice President of Ameritech Financial. “People are unsure about their debt and focus on a narrative surrounding rising loan amounts and stagnant income, and this is why looking into an income-driven repayment plan can be so necessary.” According to Anderson, “If there was a clear relation between student debt and homeownership, we would expect to see more renter households. But we don’t. For households with degrees, the proportion of buyers to renters remains relatively constant at varying levels of student debt.”
People are unsure about their debt and focus on a narrative surrounding rising loan amounts and stagnant income, and this is why looking into an income-driven repayment plan can be so necessary.
Executive Vice President of Ameritech Financial
While the numbers suggest that buying rates are not down too far for student loan borrowers, individuals may still hesitate to take the leap to homeownership. Those who worry that their student loan payments are too high to support a mortgage payment may wish to look into applying for federal income-driven repayment plans that base their monthly payments on income and family size.
“Nobody should feel like they have to choose between renting, buying, or paying off student loans,” says Knickerbocker. “At Ameritech Financial we help our clients look into repayment options so they can understand their situation and apply for a program that makes sense for them.”
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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