Ameritech Financial Reminds Borrowers That Private Student Loans Are Not Eligible for Federal Repayment and Forgiveness Programs
ROHNERT PARK, Calif., March 28, 2018 /PRNewswire/ -- Student loan debt totals over $1.4 trillion in America. The majority of that debt is federal loans, but many students take out private loans to fund higher education. Those loans are similar to federal loans in that they fund a higher education; however, there are some key differences that may greatly affect repayment. Ameritech Financial is a private company that specializes in helping federal student loan borrowers understand and apply for federal repayment programs that may reduce payments and put them on track for loan forgiveness.
"There are a lot of useful resources offered by the Department of Education, but it's important for borrowers to realize that those options are only available for federal student debt," said Tom Knickerbocker, Executive Vice President of Ameritech Financial.
Students gain access to federal student loans, as well as grant and scholarship opportunities, by filling out the FAFSA for each year of college. Federal borrowers may receive subsidized loans, which means that the government pays the interest while students are in school, in the six-month grace period after leaving school, and during certain deferment periods. Additionally, federal loans have fixed interest rates.
Students who do not fill out the FAFSA often need to turn to private loans to fill financial gaps, and they lose out on need-based aid. Such private loans are never subsidized and borrowers often need to start repaying those loans immediately. Additionally, private loan interest rates may differ quite a bit and can be fixed or variable. Private lenders also require good credit, which means most borrowers must have a cosigner who shares the responsibility to pay down that loan.
When it comes to repaying the loans, federal loans generally seem to have many more flexible options. In addition to deferment and forbearance options, federal borrowers can apply for repayment plans that can drastically change their monthly payment. Options like income-driven repayment plans may even end in forgiveness.
Federal borrowers can also apply for Public Service Loan Forgiveness, a program that is deeply misunderstood: according to a survey, about 71 percent of respondents believed that their private loans were eligible for PSLF. That is simply untrue. In fact, private loan borrowers must repay their loans according to the loan terms; if they cannot pay their loans, they may speak to their lender, but any form of relief is not guaranteed.
"Most borrowers have federal loans, but they might still not know about their repayment options," said Knickerbocker. "At Ameritech Financial, we help borrowers understand those options and, if they decide to go this route, apply for income-driven repayment plans that may reduce their payments and help make repayment a little easier."
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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https://ameritechfinancial.com
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