Press Release (ePRNews.com) - ROHNERT PARK, Calif. - Jun 20, 2018 - It’s not how much you borrow, but how much money you have before you borrow, that determines the relative challenge of paying off student loans, according to a national study by Washington Center for Equitable Growth. In the study, which compared the geographic distribution of average household student loan balances and average loan delinquency to median income across the United States, very obvious patterns emerged concerning the role that debt plays in people’s lives and the larger economy. Ameritech Financial, a document preparation service company, assists students across all geographic and demographic boundaries to navigate the sometimes onerous burden of student loan repayment.
“Though student loan debt cuts across all demographics, it is disheartening that it appears to hit hardest those from impoverished and minority communities,” said Tom Knickerbocker, Executive Vice President of Ameritech Financial. “It turns out that it isn’t how much you owe, but how limited your resources are that creates the harshest conditions for repayment.”
Counter-intuitively, it is not those who borrow the most money who are most likely to have difficulty with their loan. Instead, the study shows, those with the highest levels of borrowing are graduate students who, despite their debt-burden, often have well-paid positions awaiting them after graduation and are able to efficiently manage their loans. In fact, some graduate schools report default rates as low as two to three percent. On the other hand, those with the lowest student loan balances are more likely to run into trouble paying off their loans since these borrowers often take out smaller loans to attend for-profit colleges with limited or unproven job prospects when and if they graduate.
It turns out that it isn’t how much you owe, but how limited your resources are that creates the harshest conditions for repayment.
The study also confirms that as borrowers of all demographics and ethnicities age, repaying student debt hampers their ability to accumulate wealth. A Pew Research Center study found that college-educated householders with student debt have one-seventh the wealth of people without debt. Though this is in part because the wealthiest students don’t need to go into debt to pay for college, student debt repayment may delay expenditures associated with the traditional economic lifecycle, such as owning a home or a car or getting married.
Though it appears that historically disadvantaged communities have the most challenging time repaying student loan debt, Ameritech Financial suggests that all students can possibly find relief through federal repayment plans such as income-driven repayment plans (IDRs), which, for example, calculate payments based on income and family size and can potentially reduce monthly payments of struggling borrowers. Additionally, IDRs can end in the forgiveness of any remaining balance after 20 to 25 years of enrollment.
“IDRs help a lot of federal student loan borrowers manage their loans and ease financial stress,” said Knickerbocker. “At Ameritech Financial, we help borrowers understand and apply for IDRs so they can possibly free themselves from lingering social and financial constraints.”
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
To learn more about Ameritech Financial, please contact:
5789 State Farm Drive #265
Rohnert Park, CA 94928
email@example.com Source :