Ameritech Financial Encourages Student Loan Borrowers to Understand How Changing Interest Rates May Impact Repayment
ROHNERT PARK, Calif., April 16, 2018 /PRNewswire/ -- When people say "interest rates are going up," what does that mean for student loans? Federal student loan borrowers, whether they have variable- or fixed-rate loans, will not necessarily be directly affected by Federal Reserve interest rate hikes. Despite the name and fact that the Federal Reserve sets interest rates for lending in the United States, Congress sets the interest rates for federal student loans. Ameritech Financial, a private document preparation company that assists borrowers in applying for federal repayment programs, encourages borrowers to learn about their loans' interest rates.
"Interest rates can have a huge effect on borrowers' repayment experience, so it's important that all different types of borrowers stay ahead of what rates their loans are carrying," said Tom Knickerbocker, executive vice president of Ameritech Financial. "Ameritech Financial helps borrowers who may be struggling with repaying their federal loans for a variety of reasons."
Borrowers who have private loans with variable rates may look to Federal Reserve interest rate changes as a prognostication of where their loan rates will be going. Borrowers with solely federal loans, however, have a somewhat different set of circumstances. Congress sets the rates of federal student loans, though current market conditions do inform Congress' decisions on interest rates. Borrowers who took out loans prior to 2006 may have variable-rate federal student loans. All federal student loans issued after 2006 receive a fixed interest rate. In other words, if a borrower took out a federal student loan after 2006, the rate will never change for the life of the loan.
Borrowers can refinance federal student loans into private student loans in order to receive a better rate. However, refinancing federal loans means eliminating the opportunity to utilize many repayment and forgiveness programs that federal loans afford. These opportunities include income-driven repayment plans, which calculate monthly payments based on income and family size.
Ameritech Financial is a private, independent company which assists borrowers in applying for and recertifying enrollment in income-driven repayment plans. The company has helped thousands of borrowers successfully enroll in a repayment plan that made their monthly payments more affordable.
"It's important to know what kind of loan you have and how the interest rate may impact your financial future," said Knickerbocker. "Ameritech Financial provides concrete support to help borrowers apply for a repayment program that works better for them."
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.
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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