Press Release - updated: Apr 6, 2018 10:00 PDT
ROHNERT PARK, Calif., April 6, 2018 - Many factors go into successful student loan repayment, including good payment habits to prevent late payments. However, it turns out that one important factor may include the degree the student loans were intended to fund. When students leave without that degree, it can be much more difficult to obtain a high paying job that can support student loan payments. Ameritech Financial, a document preparation company that helps student loan borrowers with federal repayment plan applications, recommends income-driven repayment plans for borrowers who may have low income and no degree.
“College is hard, especially if you’re hungry all the time,” said Tom Knickerbocker, Executive Vice President of Ameritech Financial. “The stereotype that college students survive off of top ramen and mac’n’cheese might not go far enough to show how some students struggle to get good food.”
There are many reasons that students may not complete college, including family or medical emergencies and even student debt. A recent report brought to light another reason: hunger. Food insecurity can be a real problem for college students who do not have the money for daily nutritious meals. Food insecure students may skip meals or not eat a nutritious meal for days. Many lose weight as a result and have trouble with their studies, even if they spend just as much time in the classroom and studying as their peers.
The stereotype that college students survive off of top ramen and mac'n'cheese might not go far enough to show how some students struggle to get good food.
Executive Vice President of Ameritech Financial
Food insecurity may be disproportionately felt by low-income students, who struggle with the high costs of higher education. The loans they must take out are usually justified by increased earning potentials after graduation. However, if the students don’t graduate, they likely don’t see those higher earnings, yet are still responsible for paying back the loans they took out. Some describe it as purgatory. Default rates for borrowers who dropped out are much higher than those with a degree at about 46 percent.
Defaulting on student loans can have serious financial consequences and should be avoided. But without high income, at-risk borrowers may feel like default is inevitable. However, federal borrowers have access to repayment programs that may help. Income-driven repayment plans (IDRs) base payments on income and family size, potentially reducing payments to as low as zero dollars for certain situations. After being in an IDR for the 20- to 25-year term, any remaining balance is to be forgiven.
“Student loan payments are much easier to make when they are personalized to your income,” said Knickerbocker. “Borrowers who did not finish college and who depend on low-income jobs to cover loan payments may really benefit from IDRs. At Ameritech Financial, we help borrowers understand IDR options. We also help borrowers who wish to apply for such programs with all the necessary paperwork to do so.”
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.
Ameritech Financial is a member of the Association for Student Loan Relief (AFSLR), and each representative on the phone 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.
To learn more about Ameritech Financial, please contact:
5789 State Farm Drive #265
Rohnert Park, CA 94928
Source: Ameritech Financial