Ameritech Financial Encourages Borrowers to Empower Themselves Amidst Servicer Oversight Debate
ROHNERT PARK, Calif., March 6, 2018 /PRNewswire/ -- Student loan debt reaches new highs every day and when borrowers have trouble with their loans, they usually must rely on their servicer for help. Those student loan servicers, companies contracted by the federal government to collect student loan payments, have a reputation for keeping valuable information from borrowers, such as repayment plan options that could benefit borrowers who need a long-term change to be able to afford their loans. A political battle currently rages as states and the Department of Education try to decide who has the authority to oversee servicers. Ameritech Financial, a document preparation company that assists borrowers in understanding and applying for federal repayment plans, remains dedicated to helping borrowers, and advocates for them in the student loan repayment process.
State lawmakers believe that they have the authority to oversee student loan servicers as it falls naturally in their consumer protection role. However, servicers have argued that because they operate by federal guidelines and rules, state oversight would overly complicate their work and harm the borrowers by resulting in long processing times and potentially conflicting rules.
"Borrowers rely on their student loan servicers for information that could help them repay their loans successfully," said Tom Knickerbocker, executive vice president of Ameritech Financial. "Those servicers' main role is in collecting the debt, not helping borrowers — they've said so themselves. When borrowers need help figuring out a potential long-term solution for their loans, we're here to help."
Department of Education Secretary DeVos has shown her intent to side with the servicers who urged the department in 2017 to tell the states to step down. The states responded at the time with a letter reminding the department of their natural oversight role, but the battle rages on.
How does this affect borrowers? Federal student loan borrowers must still rely on their servicers for information about their loans, but Ameritech Financial recommends being informed before they do so. Knickerbocker suggests that "going into a conversation with previous knowledge can help borrowers guide a conversation, instead of letting the servicer make suggestions that may not be in their best interest."
Servicers have been accused of guiding borrowers into deferment or forbearance, which can greatly increase the loan balance and make it much more difficult to pay off, rather than explaining long-term solutions to borrowers who cannot afford their payments. Those borrowers may benefit from one of the various income-driven repayment plans (IDRs) offered by the Department of Education. In those plans, payments are based on income and family size and may end in forgiveness after 20 to 25 years.
"At Ameritech Financial, we specialize in helping borrowers understand IDRs and, if they agree that it is their best option, we assist with the application paperwork," said Knickerbocker. "No matter who their servicer is or what they have been told, borrowers should have all the tools they need to be successful in repayment. We are proud to help borrowers apply for the relief they need."
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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