Though Default May Be Likely, It is Not Inevitable, Says Ameritech Financial

ROHNERT PARK, Calif., March 13, 2018 (Newswire.com) - Default rates may look bad, especially when percentages approaching 50 start appearing in headlines, but federal student loan borrowers should know that defaulting is avoidable. In fact, due to the potentially disastrous consequences of defaulting, borrowers should do everything they can do to avoid it. Ameritech Financial, a document preparation company that assists federal student loan borrowers in applying for income-driven repayment plans, reminds borrowers that regardless of the likelihood that they may default, based on recent data, they can take action to reduce the possibility and take charge of their loan payments.

“It takes many months of missed payments to default on federal student loans, and it may be one of the worst things you can do when it comes to debt,” said Tom Knickerbocker, executive vice president of Ameritech Financial. “Not only does your credit suffer, but it can take time to recover from default and life can be delayed. We stress the importance of avoiding defaulting on federal student loans.”

It takes many months of missed payments to default on federal student loans, and it may be one of the worst things you can do when it comes to debt.

Tom Knickerbocker, Executive Vice President of Ameritech Financial

Recent reports have been exploring student loan default rates through a predictive lens. Besides reports predicting default rates of 40 percent for entire cohorts, some have been trying to figure out specifically who is most likely to default. While that can be important information in attempting to curb those default rates, it may simply cause fear or anger in those groups. As a result, for-profit borrowers and black borrowers may feel that they have been given the short end of the stick. It’s important that those borrowers know that although the numbers say they are more likely to default, it is not inevitable.

Federal student loans have myriad protections that are intended to help borrowers stay current on their loans. Options like deferment and forbearance are short-term solutions for when borrowers need only a few months or less of relief from their payment. For long-term solutions, which may be more valuable for borrowers who are at risk of defaulting, income-driven repayment plans (IDRs) calculate payments using borrowers’ income and family size, which may lower payments to as little as zero dollars for some borrowers.

“At Ameritech Financial, we help borrowers understand their options when they need a solution for unmanageable student loan payments,” said Knickerbocker. “When IDRs are a key component of that solution, we help with preparing the documents for the application and annual recertification so our clients will hopefully continue to benefit from affordable payments.”

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