Press Release (ePRNews.com) - Rohnert Park, CA - Jun 11, 2018 - Anyone who has gone through the college acceptance and financial aid process may inherently understand why student debt is so high in the U.S. Compared to buying a car, which is governed by federal law to be transparent about how much consumers must pay, student loan debt is almost impossible to predict. Many factors contribute to this problem, but once accepted, student loan borrowers are responsible for paying them off. Ameritech Financial is a document preparation company that assists student loan borrowers in applying for federal income-driven repayment plans that are intended to reduce monthly payments.
“For such a lasting financial decision, students get a surprisingly small amount of information to help them understand the debt they are signing up for,” said Tom Knickerbocker, Executive Vice President of Ameritech Financial. “Debt, especially debt in such large numbers, isn’t something that should be a surprise. If that happens, though, borrowers should know that they might have options to ease repayment.”
Financial aid awards are supposed to help students make important decisions on how to fund their education by outlining the costs and available aid. However, such letters are wildly inconsistent in showing what part of the “award” is free money, such as scholarships and grants, or loans, and some don’t even list a total cost or they show it in a confusing way. For example, a study found 134 different terms to describe Federal Direct Unsubsidized Loans were used on various financial aid award letters, and some were not clear that they are loans to be paid back later.
For such a lasting financial decision, students get a surprisingly small amount of information to help them understand the debt they are signing up for.
Student loans are accepted on a yearly basis, and because students typically spend more than one year at college and the various college costs can increase, estimating the total cost of a degree program is not as simple as multiplying the first year’s costs by four, for a four-year program. Additionally, some loans accrue interest during school, so even known loan amounts can be higher when repayment begins than they were at acceptance. These unknowns can result in higher than expected debt.
There are no laws on the radar to address these issues, and they would likely only affect new borrowers. Ameritech Financial suggests that borrowers take control of their loans and recommends looking into federal income-driven repayment plans (IDRs). Such plans base payments on income and family size and have the potential to lower payments so that they are more palatable during any given year, hopefully allowing a borrower improve a financial situation previously smothered by student loans.
“Leaving college to high student loan payments is a sad reality of our times,” said Knickerbocker. “At Ameritech Financial, we try to help borrowers take control of those loans by assisting them with federal IDR application paperwork. If our clients can feel more financially secure while enrolled in an IDR, we consider our services a success.”
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.
Ameritech Financial Newsroom
To learn more about Ameritech Financial, please contact:
5789 State Farm Drive #265
Rohnert Park, CA 94928
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