Ameritech Financial Helps Student Loan Borrowers Understand Income-Driven Repayment Plans as Possible Default Prevention Tool
ROHNERT PARK, Calif., March 26, 2018 /PRNewswire/ -- Student loans have become a crisis, partly because of the extent to which students rely on taking out debt, but also because of the frequency at which borrowers have and are projected to default on those loans. Recent reports have cited default rates above 10 percent with projections to increase as borrowers progress through repayment. Ameritech Financial, a document preparation company that helps borrowers with federal repayment plan applications, reminds borrowers that if they are at risk of defaulting, they likely have options in the form of federal income-driven repayment plans (IDRs).
"Borrowers who can prevent defaulting on their student loans should take steps to do so as soon as they can," said Tom Knickerbocker, executive vice president of Ameritech Financial. "Those who are at risk of defaulting likely can't afford their payments, so IDRs available from the Department of Education might be well-suited to their situations."
There are several IDRs offered by the Department of Education, including the Income-Based Repayment plan, Pay As You Earn (PAYE), Revised Pay As You Earn (REPAYE) and Income-Contingent Repayment plan. Each plan calculates payments as a percentage of discretionary income, which takes into consideration income and family size, and can end in forgiveness at the end of the loan term. However, the plans differ in the details — namely, the percentage of discretionary income, the length of the loan term and whether the plan considers a spouse's income in the calculation.
IDRs may be the best option for borrowers whose payments are too high or their income is not high enough. Experts often suggest that borrowers who can afford their payment under the standard repayment plan should remain in that plan — borrowers in IDRs may pay more overall. However, borrowers who are at risk of defaulting likely cannot afford that standard plan payment.
Because of the varying details of the IDR plans, borrowers may get confused about them. Ameritech Financial urges such borrowers to not let that confusion become a barrier to applying for an IDR that might help them prevent defaulting, which can result in some consequences that may not be easily reversed.
"At Ameritech Financial, we specialize in helping federal student loan borrowers apply for IDRs," said Knickerbocker. "That means we have deep knowledge about the differences and can help our clients understand those differences and choose an appropriate IDR. We also help with the application paperwork, both at the beginning of the program and the yearly recertification. IDRs can be a powerful tool for preventing default, and we try to make sure our clients are on track to do just that."
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]
Related Links
SOURCE Ameritech Financial
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article