Press Release (ePRNews.com) - ROHNERT PARK, Calif. - Jun 05, 2018 - The President recently signed into law a banking bill that includes two provisions affecting private student loans. However, the majority of student loan borrowers hold federal loans and will see no difference in repayment resulting from this bill. Ameritech Financial, a document preparation company that assists federal borrowers with federal repayment plan applications, reminds borrowers with federal loans that they have access to a variety of repayment options if they are struggling.
“Student loans are often lumped together in news stories, but private loans and federal loans are completely different,” said Tom Knickerbocker, Executive Vice President of Ameritech Financial. “They have different requirements to take out and feature different terms and repayment options. Borrowers should know what kind of loans they have so that they can approach repayment effectively.”
The two provisions in the recent banking bill that pertain to private student loans involve repayment or, specifically, the inability to pay. The first disables private lenders from declaring loans in default or demanding full repayment when a borrower’s cosigner dies. It also requires lenders to release a cosigner of any obligation to pay the loans if the borrower dies. The second provision enables borrowers to request that a default is removed from their credit report if their lender offered a rehabilitation program.
Student loans are often lumped together in news stories, but private loans and federal loans are completely different.
While those can help private loan borrowers, federal loan borrowers already have similar borrower protections. Federal student loans do not require good credit, so borrowers generally do not have a cosigner. However, if a federal student loan borrower passes away, their loans are discharged. The same is true for Parent PLUS loans: if either parent or child dies, those loans are discharged rather than being passed on to family members. Additionally, federal student loan borrowers who default have the one-time option of completing a default rehabilitation program that includes removal of the default from their credit report.
However, federal student loan borrowers who have not yet defaulted but may struggle to repay their debt have access to a variety of repayment plans through the Department of Education. For example, income-driven repayment plans calculate payments on income and family size and can end in forgiveness after 20 to 25 years of enrollment. Borrowers under such plans often see a reduction in payment that can ease financial stress in their household.
“Knowing whether you have private or federal loans is the first step in finding success in repayment,” said Knickerbocker. “Those provisions might be improvements for private loan borrowers, but federal borrowers should know about the borrower protections inherent in their loans, like IDRs. At Ameritech Financial, we help borrowers understand their federal loans and repayment options, and we help with IDR applications if they want to enroll in one.”
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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To learn more about Ameritech Financial, please contact:
5789 State Farm Drive #265
Rohnert Park, CA 94928