Ameritech Financial on Federal Student Loan Borrowing Limits and Repayment Plans
ROHNERT PARK, Calif., March 20, 2018 /PRNewswire/ -- Student loan balances are increasing at alarming rates. Total student loan debt is over $1.4 trillion in the nation and growing every day. While many lawmakers and lay people are contributing to the conversation about potential solutions, some only address one part of the problem. For example, some calls to lower borrowing limits may get in the way of students affording college. Ameritech Financial, a document preparation company that helps borrowers apply for federal repayment programs, reminds borrowers that when their loans are too high, they may be able to find relief in income-driven repayment plans.
"Student loan borrowing limits are supposed to help borrowers limit their debt, but when tuition costs more than the limits, students may end up in worse situations," said Tom Knickerbocker, executive vice president of Ameritech Financial. "Student loans can already be a big burden if students just borrow up to the limits. It's scary to think they might have to borrow more on top of that."
According to a recent analysis, the current loan limits do not cover the full undergraduate tuition costs of 70 percent of institutions in America. Those borrowing limits last increased a decade ago, but tuition has gone up by an average of 37 percent in that time period for public four-year colleges. When students borrow the maximum amount and still fall short, they may decide to turn to private loans to cover the cost. Or, they may even decide to forgo college.
However, borrowing up to the limits can result in high student loan payments after students leave college. Current federal borrowing limits add up to $31,000 for four years of higher education. That comes out to a monthly payment of $321 in the standard repayment plan every borrower starts out in. For many borrowers, that payment may be unmanageable, either because their starting income is insufficient or they end up underemployed.
Ameritech Financial reminds any borrower struggling with high federal student loan payments of the available federal repayment plans. Income-driven repayment plans (IDRs) calculate payments based on income and family size, and any remaining balance at the end of the 20- to 25-year term (if a borrower remains in such program) may be forgiven. When borrowers' income is not sufficient to cover student loan payments as well as all other financial obligations, IDRs may reduce payments enough to help.
"The federal repayment options are there for borrowers who are struggling with staying current on their federal student loans," said Knickerbocker. "IDRs, in particular, can dramatically improve borrowers' financial situations depending on how much their loan payment goes down. At Ameritech Financial, we help borrowers understand and apply for such repayment plans."
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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