ROHNERT PARK, Calif., April 27, 2018 /PRNewswire/ -- Falling behind on student loan payments can be blamed on high payments. Alternatively, recent graduates may simply lack the financial savvy necessary for success in repayment, or they might have a low starting salary as they begin their career. Others might be underemployed or prioritize other debt, like high-interest credit cards or mortgage payments in which delinquency can result in homelessness. Ameritech Financial, a document preparation company that helps borrowers with federal repayment plan applications, suggests that successful repayment depends on several factors, not the least of which involves the federal repayment plan that borrowers are in.
"Delinquency can be bad, especially when it leads to default, but it's usually avoidable," said Tom Knickerbocker, Executive Vice President of Ameritech Financial. "Even borrowers who literally don't have the money can likely still stay current on their loan in the right repayment plan."
Recent reports have shown the prevalence of default in loans approaching 20 years after dispersion. However, even new borrowers are falling behind. While many individuals may blame poor job prospects or low incomes, federal borrowers may find answers in their repayment plan.
The Department of Education offers several repayment plans for federal student loans that are intended to help borrowers afford their payments. While every borrower begins repayment in the Standard Repayment plan, they also have access to others, including some that extend the repayment term, charge less now and more in subsequent years, and several that depend on income.
Ameritech Financial is a private company that helps borrowers understand federal repayment plans, specifically income-driven repayment plans (IDRs). Such plans base payments on income and family size, can reduce payments to as low as zero for certain circumstances, and can end in forgiveness after 20 to 25 years of enrollment. Because of the connection between payment amount, income, and family size, countless borrowers find IDRs valuable in tight budgets.
"Staying current on student loans is important for financial wellbeing, so it's important that borrowers know about the different repayment plans that they have access to," said Knickerbocker. "At Ameritech Financial, we talk to borrowers about their options in the context of their personal situation. And if they want to apply for an IDR, we help them with the paperwork to do so. When so many options are available, the goal is for no one to fall behind on their 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.
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.
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