Press Release (ePRNews.com) - ROHNERT PARK, Calif. - Nov 17, 2017 - Many people are not clear about the details of their student loans and who administers them. While borrowing and repaying large sums of money should be a transparent process, that is not always the case. Several surveys conducted over the past few years show borrowers have varying levels of knowledge about their student debt and the repayment process. While some may know how much debt they have, they might not know who owns their debt or who services their debt. Ameritech Financial is a private document preparation company that assists its customers to determine the best federal student loan repayment program for his or her circumstances and assists in the application process. Because Ameritech Financial is not affiliated with any lender, servicer or the Department of Education, its focus is on advocating for borrowers in their search for and enrollment in an affordable repayment plan.
“Borrowers have to deal with so many different organizations during the life of their student loans,” said Tom Knickerbocker. “Sometimes those organizations are not very helpful. Ameritech Financial hopes to step in to help them when their lenders and servicers may have failed them.”
A distinction some borrowers may not know is the difference between lender and servicer:
Borrowers have to deal with so many different organizations during the life of their student loans … Ameritech Financial hopes to step in to help them when their lenders and servicers may have failed them.
The lender is the institution that initially issues the loan. Lenders set the terms of the loans and require borrowers to sign a promissory note agreeing to repay the lender.
For federal loans the lender can be:
- The Department of Education (for all types of Direct Loans);
- A college or university, but the loan was funded by the Department of Education (for Perkins Loans, though currently no new Perkins loans are being issued and it’s unclear if the program will be renewed);
- A private company, but the loan is guaranteed against default by the Department of Education (for Federal Family Education Loan Program loans, though no new loans of this kind have been issued since 2010).
U.S. states may also offer student loans, but those loans work differently than federal loans. For private student loans, the lender is a private company. Private student loans can be potentially sold to other companies, so the current owner of the debt is not always the original lender. Private student loans can be issued by a bank, credit union or other type of financial company.
Ameritech Financial assists borrowers of federal loans, helping them apply for repayment programs offered by the Department of Education. These repayment plans can potentially lower the monthly payments of qualified borrowers and even get eligible borrowers on track to forgiveness.
It’s important to note some federal loan programs may not be issuing new loans, but borrowers are still repaying them and will be for years to come. Ameritech Financial may be able to assist qualified borrowers at various points in the life of their loan.
The servicer is the company responsible for handling repayment of the loan — in other words, who the borrower sends money to every month. The servicers are hired by the lender, and while they do not have power over the terms of the loan, they are responsible for setting up repayment plans for each borrower and communicating with the borrower about the loan. Therefore, the servicer is the organization with whom the borrower will likely have the most contact over the life of the loan. There are currently nine companies that have been contracted with by the federal government to service federal student loans; borrowers may be most familiar with ones like Navient, Nelnet and FedLoan. Private loans may be serviced by a variety of companies, including some that also service federal student loans.
Servicers can change during the lifetime of the loan. Borrowers do not get to choose their servicers or whether a change is made. A change in servicer does not mean that the owner of the debt has changed.
While clients of Ameritech Financial stay in control of their student loans and are responsible for payments, Ameritech works on the behalf of borrowers by preparing paperwork and communicating with the servicer in conjunction with the borrower.
“Dealing with your student loans can be a complicated process,” said Knickerbocker. “For some borrowers, they just don’t have the time, energy or patience to navigate all the options alone. Ameritech Financial tries to simplify a sometimes messy borrower-servicer relationship by assisting and advocating for our clients who need help applying to enroll in a federal repayment plan.”
About Ameritech Financial
Ameritech Financial is a private company located in Rohnert Park, California. Ameritech Financial has already helped thousands of people with financial analysis and student loan document preparation 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:
5789 State Farm Drive #265
Rohnert Park, CA 94928
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