Ameritech Financial Advocates for Borrowers of the U.S.'s Imperfect Student Loan System
ROHNERT PARK, Calif., April 3, 2018 /PRNewswire/ -- The United States is one of many countries that has a young population dealing with student loans. A recent New York Times article compared four such countries, including the U.S., analyzed them and ranked them based on several criteria. While analysis of what works and does not work in contrasting student loan policies may be helpful for informing future policy decisions, borrowers struggling today will likely not see those potential benefits. Ameritech Financial, a private document preparation company specializing in income-driven repayment plan applications, reminds federal loan borrowers that if they are struggling with their payments, they may be able to find relief in the existing repayment options.
"We're all for our government exploring options for improving the college financial aid and repayment systems," said Tom Knickerbocker, executive vice president of Ameritech Financial. "But our focus is solely on helping current borrowers navigate the current repayment options to try to improve their personal futures."
The NYT article put the U.S. financial aid system against the Swedish system. While all judges voted in favor of the Swedish system, the exercise underscored some strengths and weaknesses in both. The judges deemed Sweden's longer repayment terms as a major advantage to borrowers in repayment, contrary to common perspectives in the U.S. that student debt must be paid off as quickly as possible. Longer terms often mean lower payments, which can mean less financial stress and can allow borrowers to focus on life goals.
Other advantages to Sweden's system are low interest rates (0.6 percent) and the simplicity of repayment. However, the judges criticized the free tuition system, pointing out that the student population at colleges was heavily tilted to students from upper middle-class families. The U.S. system, while more expensive, is more effective at helping low-income students attend college and reap the benefits associated with higher education.
The article ultimately chose Australia's student loan system as the winner over Sweden but specified that no system is perfect. Australia's system, for example, only funded tuition, leaving students to pay their living expenses without federal assistance. This exercise underscores the value in analyzing other systems to get ideas on how to improve the U.S. system. However, any proposals for change may only apply to future borrowers.
Ameritech Financial encourages current borrowers to look into existing programs if they need help managing their loans. For example, deferment or forbearance may be used for short-term solutions, whereas income-driven repayment plans (IDRs) may be valuable for reducing payments in the long-term. Ameritech Financial assists borrowers in understanding the options offered by the Department of Education and applying for them.
"We've helped thousands of borrowers apply for IDRs and submit the annual paperwork to stay enrolled in such programs," said Knickerbocker. "We hope that any reduction in payments from enrollment in IDRs helps our clients feel successful and optimistic about their financial futures. We also encourage the Department of Education to explore future policy changes to make the process easier for students and borrowers in the future."
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]
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SOURCE Ameritech Financial
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