Ameritech Financial Reminds Independent Undergraduate Students That High Student Loan Balances Can Be Manageable
ROHNERT PARK, Calif., April 10, 2018 (Newswire.com) - Many undergraduate students get help from their parents to cover the costs of college. In fact, colleges count on parents helping by including an Expected Family Contribution (EFC) in their financial aid award letters. What happens if parents choose not to help? Some may focus on their own future rather than their child’s. Ameritech Financial, a document preparation company that helps federal student loan borrowers with federal repayment plan applications, reminds students that if they end up with high undergraduate loan balances due to a lack of family help, there are federal repayment plans that may help them manage those loans.
“It can be hard to fund an education even when parents can help,” said Tom Knickerbocker, Executive Vice President of Ameritech Financial. “When parents can’t or won’t help, either because they need to focus on their retirement or even their own student loans, students may get themselves into deep debt. That can have long-lasting consequences after graduation.”
When parents can't or won't help, either because they need to focus on their retirement or even their own student loans, students may get themselves into deep debt.
Tom Knickerbocker, Executive Vice President of Ameritech Financial
Students who do not receive family support may be able to access additional financial aid if they qualify for independent status. Normally reserved for graduate students or those over the age of 24, undergraduate students under the age threshold may be eligible if they fall under strict criteria: if they are married, have dependents, are veterans, have been legally emancipated, or are homeless without parents.
In such cases, independent students have higher student loan limits. However, while borrowing more may be necessary to attend college and earn a degree that can boost future earnings, high loan balances may make life difficult at the beginning of a career. If total loan balances exceed their yearly salary, borrowers may struggle to make their payments under the Standard Repayment plan all borrowers begin repayment in.
Instead, borrowers may benefit from enrollment in one of the federal income-driven repayment plans. Such plans calculate payments on income and family size rather than the principal and payoff term. Some borrowers may even see a payment of zero dollars under certain circumstances. Furthermore, any balance remaining after 20 to 25 years of enrollment in an IDR will be forgiven.
“Most of the borrowers with high balances have an advanced degree to show for it,” said Knickerbocker. “But when certain situations necessitate additional loans for an undergraduate degree, those borrowers should know that they didn’t dig their own financial grave. At Ameritech Financial, we help borrowers understand IDRs and how they can potentially help their own financial situation. We also help with application paperwork if they choose to apply for 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 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.
Contact
To learn more about Ameritech Financial, please contact:
Ameritech Financial
5789 State Farm Drive #265
Rohnert Park, CA 94928
1-800-792-8621
customer.service@ameritechfinancial.com
Source: Ameritech Financial
