Ameritech Financial: Despite Possible Upcoming Changes, Private Student Loans Still Don't Have Repayment Flexibility of Federal Student Loans

ROHNERT PARK, Calif., March 12, 2018 (Newswire.com) - Borrowers of private student loans could have more protections if new legislation introduced in the U.S. Senate becomes law. For example, borrowers who have struggled with their private loans and go into default might be able to get a default mark removed from their credit report — one time only, though. These proposals may signal that private student loans will move a little more in the direction of federal student loans in regards to protections for borrowers. Federal student loan borrowers who are struggling with loans tend to have more options regarding repayment. Ameritech Financial, a document preparation company that helps align student loan borrowers with federal programs that can potentially lower their payments, encourages borrowers with federal loans to look into their repayment options.

“Borrowers with private student loans tend to have limited options when it comes to repayment, but the situation is much different for federal student loans,” said Tom Knickerbocker, executive vice president of Ameritech Financial. “However, since many people with private loans also have federal loans, the laws governing the two kinds of loans often affect the same group of borrowers.”

While most of the student loans in existence are federal ones, there are people with private loans who are hurting, so we might be seeing more of a shift. In the meantime, federal student loan borrowers make up the majority, and they have much more leeway when it comes to repayment.

Tom Knickerbocker, Executive Vice President, Ameritech Financial

The aforementioned legislation is pending and, even if it is to become law, it may first be revised. However, borrowers with federal loans have rules already in place that allow them greater flexibility when it comes to repayment and remedying the situation if they fall behind on payments. Income-driven repayment plans (IDRs) are an example of this flexibility. These plans allow qualified borrowers to potentially have a lower monthly payment because the payment is based on the borrower’s income and family size.

For borrowers who need help figuring out income-driven repayment, Ameritech Financial assists clients in selecting a plan that’s right for them and applying for enrollment. The company also helps with the yearly recertification process, which is necessary if a borrower wants to stay in the IDR. Ameritech Financial has a stellar customer service team which is always ready to answer questions about repayment, recertification and other processes that fall within the company’s purview.

These repayment plans are offered to federal loan borrowers by the Department of Education, but Ameritech Financial is an independent, private company that is not affiliated with any government agency or any loan servicer.

Private loans by definition will likely always be administered with less protections for the borrower because they are part of a for-profit enterprise. However, as more and more borrowers feel the weight of private student loans, there might be more improvements to private student borrower options.

“While most of the student loans in existence are federal ones, there are people with private loans who are hurting, so we might be seeing more of a shift,” said Knickerbocker. “In the meantime, federal student loan borrowers make up the majority, and they have much more leeway when it comes to repayment.”

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]

Source: Ameritech Financial