ROHNERT PARK, Calif. - March 5, 2018 - (Newswire.com)
For many college students, their first experience living away from family may be their first experience managing money. They need to make sure they can cover rent, food and utilities, as well as transportation and other miscellaneous costs. While many students get part-time work to help with those expenses, it is also common to borrow money. Ameritech Financial, a document preparation company specializing in helping federal student loan borrowers apply for income-driven repayment plans (IDRs), reminds students that living costs can inflate student loan borrowing and repayment obligations.
A college’s cost of attendance includes tuition, fees and supplies, as well as room and board, transportation and personal expenses. Living expenses often make up a big portion of that cost of attendance, but they also vary based on several factors. Location has a big impact on how much living expenses will cost. On-campus versus off-campus housing can also affect the costs. Students’ spending habits, while often criticized, can make or break a budget.
“The high cost of college does not just represent tuition, as potential tuition-free solutions may suggest,” said Tom Knickerbocker, executive vice president of Ameritech Financial. “Living expenses can require a lot of funds, especially in some locations. Students may learn a lot about managing money from their first year at college, and they can live by those lessons for years.”
According to financial aid expert Mark Kantrowitz, to avoid running out of money before the end of the semester, which happens to about half of all college students, they need to learn how to manage that money. That could require a detailed budget, but most importantly it requires an understanding of financial priorities. Rent, bills and food should be high priority. To keep costs down, students may need a crash course on cooking — eating out often may be unsustainable.
Rather than borrowing more to cover additional expenses, Kantrowitz stresses that the key to managing borrowed money is to limit it. He suggests that students get a part-time job if they want to increase their budget for entertainment or social expenses, which are typically lower priority for frugal students; however, a part-time income should not come at the expense of the college education.
Even with successful budgeting or frugal living, students can graduate college with a lot of debt. Potentially high payments can be approached the same way as college living costs: by determining financial priorities. Again, bills, housing and food are high priority, and that includes student loans. If those loans are too high, they must be addressed.
Ameritech Financial reminds struggling borrowers of the various federal repayment options available. In particular, income-driven repayment plans can help make those payments more manageable by calculating payments relative to income and family size.
“Living expenses are important during college and after,” said Knickerbocker. “And when student loans get in the way of those expenses, something needs to happen. We help borrowers understand IDR options and apply for them when it may be their best option for successfully managing their debt. Those potentially lower payments can also help our clients focus on other financial priorities.”
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.
Contact
To learn more about Ameritech Financial, please contact:
Ameritech Financial
5789 State Farm Drive #265
Rohnert Park, CA 94928
1-800-792-8621
customer.service@ameritechfinancial.com
Related Links
Ameritech Financial home page
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Original Source: Ameritech Financial Warns of High Cost of Living, Supports Borrowers Living With Debt
