Ameritech Financial Suggests That IDRs Can Help Borrowers With Whole Student Debt Situation

ROHNERT PARK, Calif., May 1, 2018 (Newswire.com) - Paying down student loans can be difficult for borrowers who only have federal loans. However, many borrowers must contend with both federal and private loans. While private loans have less flexibility than federal loans, both can be dealt with for a favorable repayment outcome. Ameritech Financial, a document preparation company that helps borrowers apply for federal repayment plans, suggests that borrowers struggling with both should be proactive about improving their whole situation.

“College is so expensive these days that students might need to take out all the loans they can get their hands on,” said Tom Knickerbocker, Executive Vice President of Ameritech Financial. “Paying off multiple federal and private loans can be complicated and can put a financial strain on anyone.”

Paying off multiple federal and private loans can be complicated and can put a financial strain on anyone.

Tom Knickerbocker, Executive Vice President of Ameritech Financial

Private loan borrowers are at the mercy of their lender, meaning the lender is not required to work with them if they have trouble making their payments. However, borrowers who struggle with private loans are still encouraged to contact their lender to see if they will work together. Some private lenders, for example, may offer limited forbearance for undue hardship.

Borrowers who cannot afford their private loans may look into refinancing to receive lower payments. While they will have greater success with a good repayment history, any borrower can shop around with different private lenders. Alternatively, borrowers may be able to improve their ability to pay their private loans by addressing their federal loans, which have much more flexible options.

Federal student loans come with borrower protections, which include deferment and forbearance for short-term delays in making payments and a variety of repayment plans for long-term solutions. Many borrowers have found value in federal income-driven repayment plan (IDRs) in reducing payments. Such plans base payments on income and family size. Any reduction in federal loan payment may allow borrowers to put more money toward their private loans.

Federal loans can be refinanced, as well, but at the cost of federal loan features that protect borrowers in case of an inability to make payments. Therefore, federal borrowers should consider the move thoroughly before following through.

“At Ameritech Financial, we help borrowers understand IDRs in the context of their whole financial situation, including how such a change might affect their private loan repayment,” said Knickerbocker. “Some borrowers might even try a combination of refinancing private loans and applying for an IDR to lower federal payments. We help our clients with the IDR paperwork to make the process as easy as possible for them.”

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.

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