Ameritech Financial Compares the Extended Repayment Plan and Income-Driven Repayment Programs
ROHNERT PARK, Calif., June 6, 2018 (Newswire.com) - Federal income-driven repayment plans (IDRs) can offer hope for borrowers who can’t afford their student loans in the long term. Such plans extend repayment to 20 to 25 years and lower payments relative to income and family size. After those 20 to 25 years of enrollment, any balance remaining is forgiven. However, IDRs require yearly recertification, so some experts suggest the Extended Repayment plan for longer-term repayment, lower payments and less hassle. Ameritech Financial, a document preparation company that assists federal student loan borrowers with IDR applications, encourages borrowers to examine their options and consider how the flexibility inherent in IDRs might benefit their situation.
“Every borrower’s student loan situation is different, so they won’t all fit into the same repayment plan,” said Tom Knickerbocker, executive vice president of Ameritech Financial. “There are a lot of options, so simplicity is definitely appealing. But for many borrowers, IDRs are worth the potential hassle of recertification. We help try to reduce the hassle.”
Every borrower's student loan situation is different, so they won't all fit into the same repayment plan.
Tom Knickerbocker, Executive Vice President of Ameritech Financial
The Department of Education offers a variety of repayment plans for borrowers who struggle to make payments in the Standard Repayment plan. Every borrower begins repayment in the Standard plan, which calculates payments on a 10-year payoff schedule. Many borrowers find financial relief in federal income-driven repayment plans, but if they fail to recertify each year, they may find themselves in a worse situation than they started in.
Because of the yearly paperwork, some experts recommend the Extended Repayment plan over IDRs. They share a longer payoff term and lower payments, but the Extended plan does not require any maintenance and features set payments each month. However, the potential convenience may not go far enough to fit with every borrowers’ situation. For example, borrowers who have a zero-dollar payment in an IDR might not be able to afford the Extended plan’s payments, even though they are lower than the Standard payments. Additionally, the Extended plan requires a balance of $30,000 or more, which not all struggling borrowers have.
“At Ameritech Financial, we aim to help reduce the hassle that the yearly IDR paperwork may cause borrowers,” said Knickerbocker. “Our goal is to help borrowers apply for IDRs and complete the yearly paperwork for continued enrollment so our clients can reduce their financial stress.”
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.
Contact
To learn more about Ameritech Financial, please contact:
Ameritech Financial
5789 State Farm Drive #265
Rohnert Park, CA 94928
1-800-792-8621
media@ameritechfinancial.com
Source: Ameritech Financial
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