Ameritech Financial Supports Federal Student Loan Borrowers Through Entire IDR Process
ROHNERT PARK, Calif., Feb. 21, 2018 /PRNewswire/ -- Income-driven repayment plans make up a few of many federal repayment options that are intended to help borrowers manage their loans. By calculating monthly payments at 10 to 15 percent of discretionary income, which takes family size into account, and ends in forgiveness of any remaining balance after 20 to 25 years if a borrower remains in the program, IDRs may be many borrowers' best option for preventing default. However, to maximize the benefit of these repayment plans, it is essential that borrowers not miss the annual recertification deadline. Ameritech Financial, a document preparation company that assists borrowers in applying for and staying enrolled in IDRs, reminds borrowers that recertifying their income every year is essential for long-term success in an IDR.
Because income or family size can change, the Department of Education requires borrowers enrolled in IDRs to keep their servicer updated about those numbers so their payments continue to accurately reflect 10 or 15 percent of discretionary income, depending on the repayment plan.
"Continued enrollment in an IDR depends on annual recertification," said Tom Knickerbocker, Executive Vice President of Ameritech Financial. "It's important to get that paperwork in on time every year. Borrowers who don't do so may be surprised by much higher payments due."
Missing the deadline results in all accrued interest capitalizing on a borrower's loans, and those loans will reset in the Standard repayment plan. For borrowers whose IDR payments were lower than the interest that accrues in any given month, missing one recertification deadline can increase the principal and drive the new monthly payments even further out of reach.
While servicers are supposed to notify borrowers of the upcoming recertification deadline, borrowers don't always get those reminders and may fail to submit the paperwork. However, submitting the paperwork on time may not guarantee success: delays in processing paperwork, though on the servicer's end, may result in unwanted forbearance or reversion to the Standard plan, even though the law requires servicers to continue to charge the previously calculated IDR amount while they process the paperwork as long as it was submitted on time.
To maximize success, Ameritech Financial suggests that borrowers start early to account for potential delays, double-check their paperwork before submitting it to correct any errors, and check on the status of the application about a month after submission. Ameritech Financial helps its clients with those steps year after year.
"Failing to recertify can set borrowers back unnecessarily," said Knickerbocker. "Helping our clients with that part of the process is essential to our company's goal. We help our clients with the entire IDR process until the end so they have the freedom to worry less about their loans."
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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