Income-Driven Repayment Plans May Repel Tax Refund Garnishment, Says Ameritech Financial

Press Release ( - ROHNERT PARK, Calif. - Jun 28, 2018 - Disappointment, anger, distress.  These are some of the emotions that might accompany the realization that an anticipated federal tax refund has been redirected toward an unpaid student loan. Federal student loans are considered to be in default if no payment has been made in 270 days. When that happens, the federal government has the right to claim a tax refund as payment against the debt, in a process known as a treasury offset.  Ameritech Financial is a document preparation company that assists borrowers in applying for and maintaining enrollment in income-driven repayment plans (IDRs), including the resubmission of paperwork every year to stay in the program. Many borrowers find relief from high payments with IDRs, which base payments on income and family size and can end in debt forgiveness after 20 to 25 years of enrollment.

“Maybe you anticipated a large refund on your taxes to pay some bills or even put some money away for a rainy-day. Then, sadly, the money never showed up. These offsets for many different types of expected federal payments can arise at inopportune times,” said Tom Knickerbocker, Executive Vice President at Ameritech Financial.  “We urge borrowers to carefully consider applying for federally available repayment programs, such as IDRs, to avert these kinds of unwelcome surprises.”

The Department of Education notifies the Treasury Department once loans go into default and the Internal Revenue Service then sends written notification of tax refund garnishment. Garnishments hit low-income student loan borrowers exceedingly hard and are not limited to tax refunds. Various Social security benefits and tax credits such as Social Security Disability and Earned Income Tax Credits, among many other others, can be garnished. 

We urge borrowers to carefully consider applying for federally available repayment programs, such as IDRs, to avert these kinds of unwelcome surprises.

Tom Knickerbocker

Executive Vice President of Ameritech Financial

Offsets are not uncommon. With student loan default rates near 11%, the government has a plethora of offset targets. Last year, the Treasury Department executed $2.6 billion in tax refund offsets on approximately 1.3 million defaulted student loans, an average of just about $2000 per defaulted loan.

“The best way to protect your tax refund is to avoid default in the first place, while the worst thing is to do nothing,” said Knickerbocker. Borrowers who can’t afford their monthly payments may benefit from applying for a federal income-driven repayment plan.

Knickerbocker continued: “The government has many tools available, including tax refund garnishment, so always remain proactive. IDRs may allow you to scale your payments to your discretionary income and avoid default.  We can help you see if you may benefit from one of these programs, and keep you up to date once you are enrolled.”

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:

Ameritech Financial

5789 State Farm Drive #265

Rohnert Park, CA 94928


Source : Ameritech Financial
Business Info :
Ameritech Financial

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