Advice on Taking Advice About Student Loans - a Guide by Ameritech Financial
ROHNERT PARK, Calif., Feb. 16, 2018 /PRNewswire/ -- The conversation about student loans is long and complicated. Individual borrowers may not know where to turn for wisdom when it comes to managing their student loans. Or they may not understand the information that they find. For those who talk to friends and family about their debt, it can be hard to tell the good advice from the bad. Ameritech Financial, a private document preparation company that assists borrowers in understanding and applying for income-driven repayment plans, advises borrowers to be careful about taking advice from non-professionals.
"Some people still find it difficult to talk about their student loans, while others are already talking about them," said Tom Knickerbocker, executive vice president of Ameritech Financial. "It's encouraging when individuals want to help each other out when it comes to student loans. However, we always warn our clients that what worked for their friend or relative might not be the best option for their situation."
The average student loan balance is more than $30,000 with an average monthly payment of $351. Those numbers do not represent all borrowers. Many borrowers have less than $10,000; many have more than $50,000. Each borrower has other financial obligations besides student loans. With situations that can vary so much, it's impossible to find advice that will be the best course of action for everyone.
That said, there are many options for federal student loan borrowers who may need a change, either short-term or long-term, from the standard repayment plan every borrower begins repayment in. Here are just a few options and when they should be considered:
- Forbearance and deferment. These options delay payments temporarily. In some circumstances, loans in deferment may not accrue interest, but because interest accrues while loans are in forbearance, these are only good options for short periods of financial hardship. Borrowers considering delaying their loans should also know that doing so will capitalize their accrued interest, which may result in larger balances and longer payoff terms.
- Income-driven repayment plans. These repayment programs recalculate payments based on income and family size every year, so payment amounts will not exceed 10 or 15 percent of a borrower's discretionary income. These are long-term options that work best when borrowers have low incomes and/or large families. One major benefit to these plans is that at the end of the 20- to 25-year term, any balance remaining is forgiven.
- Student loan forgiveness. There are a variety of forgiveness options out there, but one sticks out: Public Service Loan Forgiveness (PSLF). Borrowers working in a public service or government job can take advantage of loan forgiveness after 120 qualifying payments.
"The average student debt statistics can be alarming, but they don't necessarily describe every borrower's situation," said Knickerbocker. "When it comes to taking advice on student loans, we recommend caution and suggest borrowers understand all their options before committing to one. At Ameritech Financial, we help our clients understand and apply for repayment plans that best complement their situation."
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
[email protected]
Related Links
SOURCE Ameritech Financial
Related Links
https://ameritechfinancial.com
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article