ROHNERT PARK, Calif., May 29, 2018 /PRNewswire/ -- A recent survey showed how much Americans know about student loan interest rates. Spoiler alert: not much. While the survey was quite technical and borrowers might not need to know all those details to be successful in repayment, it highlights a lack of knowledge about student loans in general. Ameritech Financial, a document preparation company that assists borrowers with federal repayment plan applications, suggests that borrowers know some basic facts about their loans as well as some options for repayment.
"Student loan repayment can be difficult, but knowing certain things about your loans and the process can make it much more manageable," said Tom Knickerbocker, Executive Vice President of Ameritech Financial.
The survey focused on interest rates and how they are set, whether they are fixed or variable rate, and whether borrowers can refinance for a better rate. While those can all affect student loan outcomes in general, borrowers might benefit from more basic and personal information.
Knowing what their own interest rates on their loans are, for example, can help them plan repayment, especially if they want to focus any extra payments toward high-interest loans or if they might want to refinance. Those thinking about refinancing should consider such a move carefully because they would lose access to federal repayment plans that help countless borrowers afford their payments.
Other basic facts that borrowers should know include current balances and payment amounts, repayment status, loan types, and who their servicer is. All such information directly affects repayment. For example, borrowers with subsidized loans who need a short break from monthly payments can enter deferment, in which interest does not accrue like it would for unsubsidized loans.
Borrowers with high payments in the Standard, Extended, or Graduated Repayment plans may choose to apply for an income-driven repayment plan (IDR) that calculates payments on income and family size. Such plans may reduce payment amounts and end in forgiveness after 20 to 25 years of enrollment.
"It might not be useful to all borrowers to know that variable student loan rates are set based on LIBOR," said Knickerbocker. "But knowing their options for repayment if it gets too hard can be very helpful. At Ameritech Financial, we help borrowers examine the details of their loans and understand IDRs in that context. We also help with application paperwork if they wish to apply for one."
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.
To learn more about Ameritech Financial, please contact:
5789 State Farm Drive #265
Rohnert Park, CA 94928
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SOURCE Ameritech Financial