ROHNERT PARK, Calif., April 6, 2018 /PRNewswire/ -- The President has declared the month of April Financial Capability Month. What is financial capability? Otherwise known as financial literacy, it is based on a foundation of knowledge about how finances work and how to build wealth. For student loan borrowers, financial literacy may mean understanding their loan terms, repayment options and how student debt fits into their entire financial situation. Ameritech Financial, a document preparation company that helps borrowers understand and apply for federal income-driven repayment plans, encourages borrowers to learn about their loans and take steps that will benefit their financial situation as a whole.
"Students loans are a big deal and a lot of borrowers don't know much about them besides their monthly payment," said Tom Knickerbocker, executive vice president of Ameritech Financial. "Some basic financial literacy may help them find greater success in repayment and beyond into the rest of their financial situation."
While students are required to undergo counseling courses before and after taking out student loans, they don't always retain the information or even read it. Having some basic knowledge about their loans, however, can help them in repayment. Borrowers should know the facts about their loans, such as balances, interest rates, loan status, repayment plan and payoff term.
Borrowers may also benefit from coming up with a plan for their overall financial situation. Knowing which debt is the top priority for payoff, for example, can inform decisions on what to do with student loans. While individuals may decide to talk to a financial expert, many come up with a debt payoff plan that targets debt with either the highest interest rate or lowest balance. Such strategies require some extra funds, which borrowers with high student loan payments may not have.
This is where student loan literacy comes in. Federal student loan borrowers have access to a variety of income-driven repayment plans (IDRs) that can potentially reduce payments and free up some funds that can go toward other debt or savings goals. Such plans calculate payments on income and family size and, therefore, may benefit those with low income, high balances, large "families" (which doesn't necessarily include just those persons related to the borrower), or all three.
"At Ameritech Financial, we help borrowers understand their loans and their options for repayment, and we put it in the context of their financial situation when helping them decide whether an IDR may be appropriate to their situation," said Knickerbocker. "Without basic knowledge about loans and repayment options, borrowers who can't afford their payments may end up in forbearances that can make their loans more expensive in the long run. Or worse, they may default. Our goal is to help our clients strategize and apply for programs that would hopefully prevent that."
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.
To learn more about Ameritech Financial, please contact:
5789 State Farm Drive #265
Rohnert Park, CA 94928
SOURCE Ameritech Financial