ROHNERT PARK, Calif., April 17, 2018 /PRNewswire/ — Federal income-driven repayment plans (IDRs) help borrowers who have low incomes, high payments or large families afford their student loans. Because payments are based on income and family size, even enrollees whose income has dropped may still be able to afford their payments as long as they have certified their income to reflect those changes. However, enrollment rates are relatively low. A recent report suggests those low rates are related to how these plans are described. Ameritech Financial is a private company that helps borrowers understand IDRs in the context of their own financial situation. The company also helps with application and annual recertification paperwork.
“A lot of borrowers have high payments compared to their income and other expenses,” said Tom Knickerbocker, executive vice president of Ameritech Financial. “With the right resources, like IDRs, they can work to get those loans under control. Borrowers shouldn’t feel like their repayment is hopeless because they didn’t get a key piece of information about a potential solution.”
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The primary findings of the report show that borrowers are more likely to pursue an IDR if the discussion focuses on the protection qualities of IDRs. Specifically, the report described IDRs as insurance against unaffordable payments. That means that when their federal student loan payments are unaffordable, such plans will help borrowers stay current on them without fearing to fall into a negative financial situation.
While IDRs are not insurance, for example, such plans do protect borrowers in case of disproportionate student debt-to-income ratios. Simply put, borrowers in IDR programs will be more able to avoid delinquency and default because their payments will never be more than 10 or 15 percent of their discretionary income. Such plans have the power to potentially improve borrowers’ whole financial situations, as any reduction in payment may also allow borrowers to pursue other financial goals.
“At Ameritech Financial, we focus on borrowers’ current income and loan situation when explaining the IDR programs and how they might complement their budget,” said Knickerbocker. “When their financial future is on the line, we try to help them get into a situation in which they can avoid delinquency and default. IDRs have the power to do 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.
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
SOURCE Ameritech Financial
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