Ameritech Financial Reminds Student Loan Borrowers That Enrollment in Income-Driven Repayment is Not Automatic

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May 16, 2018, 08:00 ET

ROHNERT PARK, Calif., May 16, 2018 /PRNewswire/ -- When it comes to federal student loans, payment plans are not automatically based on the borrower's income. Contrary to what many student loan borrowers believe, the Standard plan — that all borrowers entering repayment are placed in — is based on a 10-year payoff schedule, not income. However, income-driven plans do exist, but an initial application and yearly recertification are required to enroll and stay enrolled. Ameritech Financial, a private document preparation company that helps borrowers apply for repayment plans, reminds borrowers that income-driven repayment is not the automatic repayment plan for federal student loan borrowers.

"It's important to clear up this big misconception because borrowers may be paying way more monthly than they expected and find themselves coming up short," said Tom Knickerbocker, executive vice president of Ameritech Financial. "Ameritech Financial helps bring our clients up to speed about income-driven repayment and then provides concrete support in applications and recertifications for these programs."

Compared to the 10-year Standard plan, income-driven plans extend repayment to a period of 20 or 25 years. Monthly payments are determined by factoring in the borrower's income and family size. With this calculation, certain borrowers' payments may lower. At the end of the 20 or 25 years of repayment in the income-driven repayment plan, borrowers are positioned to have the remaining balance of their loans forgiven.

Borrowers may not know where to start when it comes to choosing and applying for an income-driven repayment plan. Ameritech Financial is a private, independent company that helps borrowers do just that. Clients of Ameritech Financial receive document preparation services, among other select services, to apply for an appropriate plan and maintain enrollment as long as the borrower wishes. Ameritech Financial is not associated with any government agency or loan servicer, working instead for and on behalf of borrowers.

"There's always a bigger need for these repayment plans, and many borrowers may be expecting to be in them but not realize that they need to do more," said Knickerbocker. "Ameritech Financial works to help make the application process smooth and worry-free for borrowers who need the assistance."

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.

Ameritech Financial Newsroom

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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Income-Driven Repayment Plans
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SOURCE Ameritech Financial