Apr 28 2018
It's been six years since the national student debt totals surpassed $1 trillion, though student debt has been a problem far longer than that. While many factors may contribute to the upward trajectory of both national and personal student debt, the fact is that the numbers continue to rise and could drastically impact the economy. Ameritech Financial, a document preparation company that helps borrowers with federal repayment plan applications, encourages borrowers who are struggling in repayment to understand their own loan facts and options.
"Such big milestones for something so negative as student debt can provide a good opportunity for borrowers to touch base about their own debt and take action if necessary," said Tom Knickerbocker, executive vice president of Ameritech Financial.
Student loans in individuals' households have grown to make up the second-largest expense next to rent or a mortgage. Such a burden may make saving, preparing for the future or paying down other debt more difficult. In fact, many borrowers are delaying life milestones because of their debt. However, federal student loan borrowers have access to borrower protections that are intended to help them in repayment.
Federal options such as deferment or forbearance allow borrowers to temporarily postpone their repayment. Such options are beneficial when borrowers cannot make their payments for a short period of time. For longer solutions to unaffordable student loan payments, borrowers have access to a variety of repayment plans. Income-driven repayment plans (IDRs) are flexible plans that base payments on income and family size and end in forgiveness after 20 to 25 years in the program.
Ameritech Financial is a private company that helps borrowers navigate their federal options and understand them in the context of their own situation. The company assists those who wish to apply for a federal repayment plan with the application documents and yearly recertification as long as they wish to remain in the program.
"When hearing about national statistics, it can be comforting to get perspective on your own debt and how it fits into your overall finances," said Knickerbocker. "That's what we do at Ameritech Financial. We hope that our clients can avoid feelings of dread when they see shocking headlines about student debt and feel that they have theirs under control."