ROHNERT PARK, Calif., April 20, 2018 /PRNewswire/ — A recent proposal for full student loan forgiveness caused mixed responses. Many individuals praised the idea, while others felt it was unfair to those who have sacrificed a lot to pay off their loans. While such an idea is no more than theory at this point, it brings up a question of whether the effort to pay down loans means anything at all next to the option of forgiveness. Ameritech Financial, a document preparation company that helps federal student loan borrowers with federal repayment plan applications, reminds borrowers that even if loan forgiveness is in the future, borrowers should still do what they can to at least stay current on their loans.
“Who knew that student loan forgiveness would be such a dividing topic?” asked Tom Knickerbocker, Executive Vice President of Ameritech Financial. “It takes a lot of resources to pay off student debt, and many families simply can’t afford to do so as quickly as others can. Forgiveness might benefit those families the most.”
Many borrowers have pinched pennies, negotiated raises, and sacrificed comforts to pay off their student debt. It’s understandable that they may feel that any initiative to provide student loan forgiveness to borrowers who do not appear as dedicated to their debt repayment is unfair. However, any such initiative may simply give struggling borrowers the same opportunities as those who have paid off their debt: the opportunity to pursue their other financial goals and set up for their future.
More than half of student loan borrowers are delaying big decisions in life because of student debt. They are waiting to save for retirement, get married, buy a house, start a family, or start a business. Such delays can impact the economy as well as individual financial lives. Borrowers who can pay off their debt in a short period of time, regardless of the effort it took to do so, become able to contribute to the economy and their personal goals much sooner than those who struggle with their student loan payments.
However, full forgiveness is not the only way for struggling borrowers to be able to work toward financial goals. Federal income-driven repayment plans (IDRs) can potentially reduce payments for eligible borrowers by basing payments on income and family size. Such plans also end in the forgiveness of any remaining balance after 20 to 25 years of enrollment in the program.
“IDRs can allow borrowers who can’t sacrifice comforts to speed up loan repayment to still have the financial freedom to save for retirement or for a down payment,” said Knickerbocker. “At Ameritech Financial, we help borrowers understand and apply for IDRs so that they can escape the feeling that their debt is holding them back.”
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.
To learn more about Ameritech Financial, please contact:
5789 State Farm Drive #265
Rohnert Park, CA 94928
SOURCE Ameritech Financial