Academic Study on IDRs May Help Some Borrowers Understand Their Situation Better, Says Ameritech Financial
ROHNERT PARK, Calif., July 19, 2018 (Newswire.com) - Some student loan borrowers have heard of income-driven repayment plans (IDRs), but they may be hesitant to try and enroll for many reasons, one being if the IDR will actually be beneficial in the long term. A study done by Daniel Herbst of Princeton University shows that for some borrowers enrolled in IDRs, it can be very beneficial not only during repayment but also at the end of repayment. Ameritech Financial is a document preparation service company. Part of Ameritech Financial’s business is to try and help federal loan borrowers apply for these federal repayment programs.
“A study based around IDR’s effects is both interesting and valuable. It can pave the way for more people to start putting more studies about IDRs together, which may lead to more information being brought forth to the public to be able to review and make the best choice for their specific situation,” said Tom Knickerbocker, executive vice president of Ameritech Financial.
Herbst’s study lists some of the potential benefits for people who enroll in an IDR and the positive chain reaction that can occur. For example, an individual will most likely have more cash available due to the reduced payments and this allows that person to either make even more payments to pay down the loan quicker, live a more comfortable and similar lifestyle while saving the extra money or potentially live a better lifestyle short term. Due to smaller payment amounts, Herbst’s analysis predicted a less-likely chance of default on loan repayment if enrolled in an IDR. For most, worrying less about defaulting can be a benefit in itself.
A study based around IDR's effects is both interesting and valuable. It can pave the way for more people to start putting more studies about IDRs together, which may lead to more information being brought forth to the public to be able to review and make the best choice for their specific situation.
Herbst’s study goes over many things, including more mathematical breakdowns of how information related to loan repayment and IDRs is calculated. Overall, the academic study is a good read for people interested in how finances can potentially affect different aspects of someone’s life. It is interesting for borrowers who are looking to glean more information on what kind of impact an IDR may have. Knickerbocker stated, “Ameritech Financial wants borrowers to be as educated about as many aspects of the IDR process as possible. The more that a borrow knows, the better a borrow can choose the right path to their debt freedom."
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 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.
To learn more about Ameritech Financial, please contact:
5789 State Farm Drive #265
Rohnert Park, CA 94928
Source: Ameritech Financial