Ameritech Financial: As Interest Rates for Federal Student Loans Change, Borrowers Should Be Planning for Repayment

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May 11, 2018, 08:00 ET

ROHNERT PARK, Calif., May 11, 2018 /PRNewswire/ -- Student loans can be unpredictable. What do we mean by this? One way loans can be unpredictable is their interest rates. Take federal loans, for example. Some federal loans issued in years past have variable interest rates, which introduces an element of unpredictability. Now, all newly issued federal loans have fixed interest rates. However, those rates for new loans can go up or down year to year. Ameritech Financial, a document preparation company that helps student loan borrowers with federal repayment plan applications, reminds borrowers that they might have a variety of interest rates among their loans.

"Interest is one of the things a lot of student loan borrowers misunderstand, but it's one of the most important aspects of their student loans," said Tom Knickerbocker, executive vice president of Ameritech Financial. "When borrowers don't realize how their interest rates will impact their loans, they might be surprised when it comes time for repayment."

Congress sets interests rates for federal student loans according to market conditions, and experts predict that student loan interest rates are about to increase. Currently, undergraduate borrowers can take out loans with a fixed interest rate of 4.45 percent. Now, that rate is likely to rise to over five percent. As a result, current undergraduates with student loans who will need to borrow more will likely have at least two different rates across their multiple loans.

Perhaps some borrowers who are already out of school are realizing their loan situation was more complicated than they thought. Borrowers might be surprised to find multiple fixed rates among their various student loans or perhaps a bigger monthly payment than they anticipated. Borrowers of federal loans may be interested in income-driven repayment plans, which base monthly payments on income and family size. Income-driven plans also extend repayment for a period of 20 to 25 years, after which time the borrowers become eligible for loan forgiveness.

Ameritech Financial is a private, independent company which helps borrowers select, apply for and recertify enrollment in income-driven plans. Ameritech Financial offers each client a loan analysis and document preparation services for the application and recertification processes, plus monitoring of application and plan timelines to ensure deadlines are met.

"There are many aspects of student loans that some folks might find confusing or just too daunting to consider," said Knickerbocker. "But those things could decide whether a borrower has a good repayment situation or a totally unmanageable one. Ameritech Financial can serve as an assistant to applying to get into that good repayment 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.

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.

Ameritech Financial Newsroom

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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Upward Trend in Interest Rates
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SOURCE Ameritech Financial