Ameritech Financial Supports Increased Enrollment in Income-Driven Repayment Plans
ROHNERT PARK, Calif., March 23, 2018 /PRNewswire/ -- Federal income-driven repayment plans (IDRs) have seen increased usage in the past five years, according to a recent report. However, many borrowers who may benefit from enrollment in an IDR are still not utilizing the valuable resource. Ameritech Financial is a private company that helps federal student loan borrowers with document preparation to apply for and recertify enrollment in IDRs.
"The report shows that borrowers in very different situations are using IDRs to repay their federal student loans," said Tom Knickerbocker, executive vice president of Ameritech Financial. "It's promising that so many borrowers are finding relief from high student loan obligations through IDRs, and we hope to help people with that as well."
According to the report, 29 percent of households with student debt are making payments in IDRs. Most of those households using IDRs reported income levels between $20,000 and $60,000. However, many higher-income households are also taking advantage of IDRs. Those households may represent borrowers with high debt levels, such as six-figure balances held most commonly by doctors, lawyers and others who pursued advanced degrees.
Addressing the other end of the income spectrum, the report showed concern that many low-income households with student debt reported being in forbearance due to financial hardship rather than being enrolled in an IDR that may benefit their financial situation. Extended time in forbearance allows interest to accrue and leaving forbearance triggers interest capitalization, which can lead to higher balances and higher resulting payments.
Income-driven repayment plans calculate payments relative to income and family size, which helps to personalize repayment to each borrower's financial situation. Additionally, at the end of the 20- to 25-year term built into IDRs (assuming that the borrower remains in the IDR program), any remaining balance is forgiven.
There are four separate IDRs that federal borrowers can apply for and to remain in each program, enrollees must recertify their income and family size information annually to account for any possible changes. Even if nothing has changed, borrowers must submit that paperwork or risk returning to the standard repayment plan.
"Ameritech Financial account specialists have experience with the paperwork required for IDR applications," said Knickerbocker. "We have helped thousands of borrowers understand and apply for IDRs that have the potential to substantially reduce payments and improve borrowers' financial situations. One of our main goals is to help those who may need it most find financial relief through applying for an IDR for their federal student 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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