Ameritech Financial Encourages Student Loan Borrowers to Look to Their Family
ROHNERT PARK, Calif., March 19, 2018 /PRNewswire/ -- Income-driven repayment plans are most well-known for being based on borrowers' income. However, another important factor that may affect IDR payment amounts is family size. Ameritech Financial, a private document preparation company that helps federal student loan borrowers apply for and recertify income-driven repayment plans, reminds borrowers that their family is a key part of their IDR.
"Family size is an important factor in the IDR calculation," said Tom Knickerbocker, executive vice president of Ameritech Financial. "Borrowers who do not report an accurate family size risk an inaccurate and potentially unaffordable payment. Therefore, it's important to put some thought into it. And if family size changes, just like if income changes, it's important to recertify an IDR to accurately reflect those changes."
Income-driven repayment plans calculate payments as a percentage of discretionary income. Discretionary income is calculated by taking a borrower's gross income and subtracting 1.5 times the poverty guideline, which is based on family size. The larger the family, the more gets subtracted from the gross income and the lower the IDR payments are. If family size is not reported, servicers may use a default size of one.
Contrary to popular belief, family size does not only include children. For the purpose of IDR applications, family size includes any individual living with the borrower who receives more than half their support from the borrower. That certainly includes children — even unborn children who will be born within the next year — but could also include friends or parents, as long as they are dependent on the borrower at the time the application is submitted and through the year the new payment will be in effect. Whether a spouse is included depends, in part, on the plan in which you are applying.
Ameritech Financial has helped thousands of borrowers apply for IDRs and work through the calculation of family size. Their document preparation experience also includes knowing when to provide additional documentation, such as a statement describing family size to supplement the number reported on the application, to maximize the likelihood of success.
"At Ameritech Financial, we do everything we can to try to get our clients' applications accepted," said Knickerbocker. "And that includes recertification every year. We understand the importance of an affordable student loan payment, and we're proud to put our knowledge to good use helping clients apply for affordable payments."
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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