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Ameritech Financial to Degree-Less Student Loan Borrowers: Have You Checked Out IDRs?
ROHNERT PARK, Calif., Feb. 13, 2018 /PRNewswire/ -- Recent studies have shown that the people struggling the most with their student loans are not those with the highest balance; instead, borrowers with less debt and no degree are more likely to default than those with a degree or higher balances. Ameritech Financial, a document preparation company that assists borrowers in navigating through and applying for federal repayment plans, suggests struggling borrowers consider income-driven repayment plans to ease the financial burden of their education.
According to a report by the Financial Industry Regulatory Authority, 28 percent of students who took out loans to fund their education left school before completing their degree program. Furthermore, low-income students are more likely to drop out than students in other economic groups. Without the increase in earnings that often accompanies a college degree, low-income borrowers without degrees may find it much more difficult to pay off those loans.
"Low-income students come to college at a disadvantage already," said Tom Knickerbocker, executive vice president at Ameritech Financial. "They are often told that a college degree is essential for getting a good job and financial security. So, they take out loans to cover the costs."
According to an episode of the podcast Educate, students drop out of college primarily because the costs of attending college are too high, even if they are working. Some don't get paid enough; others can't make their work schedule fit with their school schedule. Also, a recent study shows that working more than 25 hours a week affects students' grades and their ability to pass classes. All that stacks the odds against low-income students.
With or without a degree, student loan borrowers are expected to pay back those loans. With a degree, it's much easier to get a job that will pay enough to help cover the monthly student loan payments. Without the degree, earnings potentials are much lower. Ameritech Financial reminds any borrower struggling with payments that income-driven repayment plans (IDRs) offered by the Department of Education are intended to help struggling borrowers successfully manage their student loan payments.
"Student loans are supposed to help people, but when they don't, they can ruin individuals' financial futures," says Knickerbocker. "With IDRs, borrowers who do not have a degree finally have a chance to ease the residual stress from their college experience. At Ameritech Financial, we help borrowers understand and apply for IDRs that are intended to help them in their unique financial situation so that they don't have to worry about being unable to pay those loans that didn't help them in the end."
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
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SOURCE Ameritech Financial
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