The student loan problem is often discussed in the context of young adults. However, individuals in other age groups have student loans and can be burdened by the monthly payments. A recent report described increased student loan burdens in the hands of those above age 45. Ameritech Financial, a document preparation company that helps borrowers with federal repayment plan applications, reminds borrowers of all ages that they might be eligible for federal income-driven repayment plans.
"No matter what age you are, student loans can pose a financial problem," said Tom Knickerbocker, Executive Vice President of Ameritech Financial. "While young adults might base job decisions on their monthly student loan payments, older borrowers may consider their ability to save for retirement when deciding what to do with the student loans they have."
According to a recent report, student loan balances held by borrowers over 45 years of age are increasing at a faster rate than those held by younger borrowers. The report describes a situation in which older Americans may have their own education debt as well as debt for their children's or grandchildren's higher education.
Common financial advice for those approaching retirement age is to pay down debts, which makes this trend to carry more student debt especially alarming. When they should be focusing on retirement, older Americans are having to contend with student loans. However, federal repayment programs may help with financial goals that shift focus from student loans to retirement or others.
Federal income-driven repayment plans (IDRs) calculate payment based on income and family size and can end in the forgiveness of any remaining balance after 20 to 25 years of enrollment in the program. IDRs can potentially reduce payments and enable borrowers to redirect those saved funds elsewhere.
"When retirement is on the line, borrowers shouldn't feel anchored by their student debt," said Knickerbocker. "At Ameritech Financial, we help borrowers understand and apply for IDRs that may be able to improve their ability to focus on financial goals that are important for their lives while staying current on their student loans."
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.
