Ameritech Financial on How Congress Affects Student Loans

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Jun 20, 2018, 01:00 ET

ROHNERT PARK, Calif., June 20, 2018 /PRNewswire/ -- Student loan borrowers may not be aware of the Higher Education Act of 1965 (HEA), which was written into law to assist low- and middle-income families to afford expensive higher education. In the decades since, HEA has been reauthorized eight times with changes reflecting the different parties in power. The latest iteration of HEA is the PROSPER Act (Promoting Real Opportunity, Success, and Prosperity through Education Reform Act), which has not yet been passed but is potentially set for a vote this summer. There are many concerns about the PROSPER Act. For example, some argue that the changes it proposes are an attempt to tackle the burgeoning student debt crisis, but they could ultimately be detrimental to students. In contrast, students and graduates may not be aware that there are already repayment plans, such as income-driven repayment plans (IDRs), available to them that could help them save money. Ameritech Financial is a private company that assists borrowers in understanding IDRs and completing the necessary application paperwork.

"As student loan laws and payment plans have changed throughout the years, the rules surrounding them have become increasingly complex. It is important for students to know their options," said Tom Knickerbocker, Executive Vice President of Ameritech Financial. "They may not know where to turn, which is why we recommend they become financially literate. Wherever they are in the student debt journey, it's not the end of the world. They could even be eligible for help through a federal repayment program."

As the PROSPER Act looms in the near future, experts fear the ramifications of some of its recommended changes to laws. In particular, if the loan repayment rate for an educational program is less than 45 percent from the 3 previous years, then it will lose its federal financial aid in the future. In other words, if a student studies a major that is historically low-paying, such as Social Work, and is not capable of repaying his or her loans upon entry into the workforce, then this law would greatly downsize the number of capable professionals who work to improve society. Students who chose a public service major and profession can learn more about the Public Service Loan Forgiveness program (PSLF) with the help of Ameritech Financial. PSLF requires federal student loan borrowers to make 120 qualifying payments while working for a qualifying employer. Qualifying payments are those made in one of the income-driven repayment plans, and a qualifying employer is a government agency or 501(c)(3) nonprofit agency. Borrowers must also have direct loans to be eligible for PSLF.

Unfortunately, it appears the PROSPER Act wants to decimate PSLF — supporters feel it allows education institutions endless power in raising tuition without meeting the needs of its stakeholders, namely the students in attendance. They want to see more fiscal responsibility and capped spending. On the other hand, one of the negative impacts already anticipated is that there will be less incentive for new students or workers to pursue a degree or profession in public service. Without PSLF, they would find it very difficult to pay back their student loans.

"PSLF is too valuable to ignore, so we do what we can to help our clients meet the requirements if they fit the PSLF employment standards," said Knickerbocker. "Even if clients don't work in public service, being in an IDR can help them with their monthly finances. And they still receive forgiveness after 20 to 25 years of enrollment if they have any balance left."

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.

Ameritech Financial Newsroom

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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