Ameritech Financial Suggests Being Proactive When Change in Income May Affect Student Loan Repayment
ROHNERT PARK, Calif., March 22, 2018 /PRNewswire/ -- For many individuals or families, income can fluctuate over time, whether those changes come from inconsistent freelance work, switching jobs or employment losses. When income changes, student loan borrowers may feel additional financial stress as they worry about their ability to pay their bills. Ameritech Financial, a document preparation company that assists federal student loan borrowers in applying for income-driven repayment plans, reminds borrowers that if they address their federal loans proactively, they will likely be able to stay current on their student loan payments in the event of any degree of income change.
"Student loan payments can be stressful even with a stable income," said Tom Knickerbocker, executive vice president of Ameritech Financial. "When income is inconsistent or changes suddenly, borrowers should look into their options sooner rather than later to take steps to avoid falling behind on their payments."
Delinquency and default are serious matters that can negatively affect borrowers' credit and financial future, so borrowers should try not to fall behind on payments. When income changes, especially when it decreases or is lost completely, staying current can be a difficult task. However, the Department of Education has some options that borrowers can look into depending on the situation.
Deferment and forbearance may be appropriate for temporary situations. Interest still accrues while in forbearance, and it may accrue while in deferment. That interest, as well as all interest that may have accrued before any length of time spent in deferment or forbearance, will capitalize when the loans re-enter repayment and may inflate monthly payments, so delaying loans like this may not be the best option for all borrowers.
For longer-term solutions, the Department of Education has several repayment plans that federal student loan borrowers can apply for. Income-driven repayment plans (IDRs) may be especially useful for borrowers whose income may not cover their loan payments or who simply feel financially strained each month. IDRs calculate payments based on income and family size, potentially reducing payments to as little as zero dollars a month, depending on individual circumstances.
Borrowers who are in an IDR when their income reduces can recertify their income early to request a payment recalculation to more accurately reflect the lower income.
"At Ameritech Financial, we help federal student loan borrowers understand their options when they can't reasonably afford their student loans," said Knickerbocker. "IDRs have helped lower payments for countless borrowers and lessen financial stress. But because those programs can be confusing and require annual recertification, borrowers may need some extra support. We hope to support our clients through their IDR repayment process by helping with document preparation and reminding them of important yearly deadlines as long as they are in the program."
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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