Ameritech Financial: Consolidating Federal Student Loans Not the Same as Consolidating Private Debt

Press Release ( - ROHNERT PARK, Calif. - Mar 29, 2018 - Consolidating debt can be a good thing to do if done properly with the right kinds of debt. However, when it comes to student loans, it may not be so simple. The main argument to consolidate debt such as credit card or medical debt is that consumers can roll all those separate payments into one, usually with a lower interest rate. That can help debtors pay off such debt faster. However, that is not usually the case for federal student loans. Ameritech Financial is a private document preparation company that helps federal student loan borrowers navigate through and apply for federal options for dealing with their student debt. The company specializes in income-driven repayment options offered by the Department of Education.

“There are a variety of options for dealing with student debt offered by the Department of Education,” said Tom Knickerbocker, executive vice president of Ameritech Financial. “Though consolidation may sound familiar and potentially comforting in that familiarity, it may not be the best option for those who feel their payments are too high.”

Consolidating federal student loans can simplify the repayment process by reducing the number of loans and loan payments to one. This can be especially helpful for borrowers whose loans are split between servicers.

Though consolidation may sound familiar and potentially comforting in that familiarity, it may not be the best option for those who feel their payments are too high.

Tom Knickerbocker

Executive Vice President of Ameritech Financial

However, unlike with private consolidation, federal consolidation usually does not come with a lower interest rate. Instead, the consolidated loan calculates the new interest rate based on the weighted average of the previous interest rates and combined with a longer payoff term, consolidated loans may cost borrowers more overall.

Ameritech Financial suggests that borrowers looking to reduce their payments look into income-driven repayment plans (IDRs) in which consolidation is often the first step. Such plans base payments on income and family size and, while they also include a long payoff term, any remaining balance at the end of the 20- to 25-year term is forgiven.

“While some borrowers may feel that the key to successful repayment is getting a lower interest rate, the only way to do that is to refinance into a private loan in which borrowers will lose out on federal borrower protections,” said Knickerbocker. “At Ameritech Financial, we help borrowers understand IDRs and how they may benefit their situation. We also help borrowers who decide to go that route apply for those programs.”

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:

Ameritech Financial
5789 State Farm Drive #265
​Rohnert Park, CA 94928

Source : Ameritech Financial
Business Info :
Ameritech Financial

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